Is Cody, Wyoming Good for Airbnb Investment?

Potentially—Cody, Wyoming combines visitor demand with long-term real estate upside.

• Presents a promising opportunity given the town's unique market conditions and strong tourism appeal.
• Cody, known as the "Rodeo Capital of the World" and the eastern gateway to Yellowstone National Park, experiences a consistent influx of tourists.
• This steady tourism trend drives high demand for short-term rentals, contributing to favorable occupancy rates.
• Property values in Cody have seen steady growth, making it an attractive location for real estate investment.
• The investment potential for Airbnb in Cody is further enhanced by the town's focus on preserving its Western heritage and outdoor recreation.
• While seasonal fluctuations exist, strategic pricing and property management can optimize year-round profitability.

$1,200–$3,500, based on location, season, and property quality.

• Based on available market data and regional analysis, Airbnb properties in Cody, Wyoming typically generate average monthly revenues ranging from $1,200 to $3,500, with significant seasonal fluctuations driven by Yellowstone National Park tourism patterns.
• Peak summer months (June through August) can see earnings reach $4,000-$6,000 monthly for well-positioned properties.
• Properties within 10 miles of Yellowstone's east entrance command premium rates averaging $150-$250 per night during peak season.
• Key factors influencing earnings include proximity to Yellowstone, property size and amenities, guest capacity (with 4-6 bedroom properties performing best), outdoor features like hot tubs or fire pits.
• Annual occupancy rates typically range from 45-65%, with successful hosts achieving higher occupancy through competitive pricing strategies and exceptional guest experiences.
• The market shows strong demand for authentic Western-themed accommodations and properties that cater to outdoor enthusiasts, with average daily rates fluctuating between $90-$220 depending on season, location.

Potentially strong—typical annual ROI is 8–15%.

• Typically generate ROI between 8-15% annually, with higher-end properties near Yellowstone National Park achieving returns up to 18% during peak summer months.
• The average payback period ranges from 7-12 years depending on property acquisition costs and renovation expenses, with most investors seeing break-even around year 9.
• Properties average $150-250 per night during summer season (June-September) with occupancy rates of 70-85%, while winter months drop to $80-120 per night with 35-50% occupancy.
• Compared to traditional long-term rentals in Cody that yield 6-9% annually with rental rates of $1,200-1,800 monthly.
• The proximity to Yellowstone's east entrance creates strong demand from tourists, making vacation rentals more profitable than conventional rentals.

Cody, Wyoming averages 65–70% annual occupancy, with seasonal variation.

• Airbnb occupancy rates in Cody, Wyoming average approximately 65-70% annually, with significant seasonal variation driven by Yellowstone National Park tourism patterns.
• Peak season from June through August sees occupancy rates soar to 85-95%, while shoulder seasons of May and September maintain moderate rates around 60-70%.
• Winter months from November through March experience the lowest occupancy at 25-40%, reflecting reduced tourist activity and harsh weather conditions.
• Cody's occupancy rates exceed Wyoming's statewide average of approximately 55-60% due to its strategic location as the eastern gateway to Yellowstone.
• The town's proximity to Yellowstone creates a concentrated tourism season that results in higher peak occupancy rates than most Wyoming destinations.

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

• The downtown historic district offers the strongest Airbnb investment potential due to its walkability to restaurants, shops, and the Buffalo Bill Center of the West.
• The Sheridan Avenue corridor provides excellent value with properties typically 20-30% less expensive than downtown while maintaining easy access to major attractions and offering good rental yields of 8-12% annually.
• The residential area near Beck Lake attracts families and outdoor enthusiasts with larger properties suitable for group bookings.
• The neighborhoods surrounding the Buffalo Bill Dam area capitalize on scenic views and outdoor recreation access.
• The west side residential areas near the rodeo grounds experience seasonal spikes during Stampede events and benefit from lower property taxes while attracting guests seeking quieter accommodations with mountain views.
• The areas along the Shoshone River provide unique waterfront or water-view properties that can command premium pricing of $200-300 per night during summer months.

Yes, but only where zoning permits short-term rentals and every required license is current.

• Cody, Wyoming requires short-term rental operators to obtain a business license and register with the city.
• Occupancy limits are generally based on the property's septic system capacity and bedroom count, usually allowing 2 guests per bedroom plus 2 additional guests.
• Owner-occupancy is not required for most short-term rentals in Cody, allowing for non-resident ownership and management.
• Zoning restrictions permit short-term rentals in most residential districts but may require conditional use permits in certain areas.
• The registration process involves submitting an application to the city clerk's office, providing proof of insurance, septic system compliance, and fire safety measures.
• Recent regulatory changes have focused on increasing enforcement of existing rules, implementing stricter parking requirements, and requiring more detailed guest registration procedures.

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

• Short-term rentals in Cody, Wyoming are subject to several fees and taxes including a 4% Wyoming state lodging tax, a local lodging tax of approximately 2-3% imposed by Cody.
• Property owners must obtain a business license from the City of Cody costing approximately $50-75 annually, register for a Wyoming sales tax license (free).
• The Wyoming Department of Revenue requires quarterly lodging tax returns, and operators must collect and remit the combined lodging taxes totaling approximately 8-9% on all rental income.
• Additional costs may include fire safety inspections ($75-150), health department permits if applicable ($50-100).