Is Diamondville, Wyoming Good for Airbnb Investment?

To start an Airbnb in Diamondville, Wyoming, begin by researching local regulations through Lincoln County and the Town of Diamondville offices, as Wyoming generally allows short-term rentals but municipalities may have specific zoning requirements or business license needs. Contact Diamondville Town Hall at (307) 877-6962 to inquire about any required business licenses, occupancy permits, or zoning compliance for short-term rentals in residential areas. Find a suitable property by working with local real estate agents familiar with Diamondville's market, focusing on properties near outdoor recreation areas like the nearby Fossil Butte National Monument or along Highway 30 for traveler convenience, with typical property prices ranging $150,000-$300,000. Obtain necessary permits including a Wyoming state business license through the Secretary of State's office, potential Lincoln County health department permits if serving food, and ensure compliance with fire safety codes. Furnish the property with durable, comfortable furniture suitable for the area's outdoor recreation visitors, including amenities like Wi-Fi, heating for Wyoming's cold winters, and outdoor gear storage. List your property on Airbnb with competitive pricing around $75-$150 per night based on local market conditions, highlighting proximity to fossil hunting, hiking, and the historic Lincoln Highway. Manage the property by establishing cleaning protocols, coordinating with local cleaning services in nearby Kemmerer if needed, implementing keyless entry systems, and maintaining responsive communication with guests while ensuring compliance with Wyoming's 4% state lodging tax and any local occupancy taxes.

To identify profitable short-term rental properties in Diamondville, Wyoming, focus on properties within walking distance of the town center and main attractions, as this small coal mining community benefits from its proximity to Fossil Butte National Monument and serves as a gateway for outdoor recreation activities. Target 2-4 bedroom single-family homes or cabins built after 1980 with updated kitchens, reliable heating systems, and outdoor spaces like decks or fire pits that appeal to tourists seeking authentic Wyoming experiences. Conduct pricing analysis by researching comparable Airbnb and VRBO listings within a 20-mile radius including nearby Kemmerer, aiming for nightly rates between $80-150 depending on property size and amenities, while calculating potential annual revenue against acquisition costs and operating expenses. Research competition by monitoring occupancy rates and guest reviews of existing STRs in the area, noting that limited inventory in this rural market can work to your advantage. Utilize tools like AirDNA for market data, Mashvisor for investment analysis, and local resources such as the Lincoln County Assessor's office for property values, while connecting with Diamondville's town clerk regarding any STR regulations and partnering with local property management companies familiar with the seasonal tourism patterns driven by fossil hunting, hiking, and winter sports activities in the surrounding region.

To obtain an Airbnb/STR permit in Diamondville, Wyoming, contact the Diamondville Town Hall at 307-877-6962 or visit their office at 501 Susie Avenue to inquire about short-term rental licensing requirements, as this small town of approximately 740 residents may have recently implemented or be considering STR regulations similar to other Wyoming municipalities. You will likely need to submit a business license application, provide proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, parking plan, and contact information for a local property manager if you're an absentee owner. Required documents typically include a completed application form, property deed or lease, Wyoming state tax ID number, fire safety inspection certificate, and septic/water system compliance verification. Application fees generally range from $100-300 annually, with additional inspection fees of $50-150. The approval timeline is typically 30-60 days from submission of complete application. Diamondville-specific requirements may include maximum occupancy limits based on bedrooms and septic capacity, designated parking spaces, quiet hours enforcement between 10 PM and 7 AM, and compliance with the town's zoning ordinances which may restrict STRs to certain residential zones, though you should verify current regulations directly with the town clerk as requirements can change frequently.

Short-term rentals (STRs) in Diamondville, Wyoming operate in a largely unregulated environment at the municipal level, as this small town of approximately 700 residents has not enacted specific STR ordinances as of 2024. Wyoming state law generally allows property owners to rent their properties short-term unless prohibited by local municipalities, and Diamondville has not implemented restrictions on STRs within city limits. The town does not have designated prohibited areas for short-term rentals, nor does it require special permits or licenses for STR operations. Property owners must still comply with standard zoning regulations and any applicable homeowners association rules, and they remain subject to state tax requirements including lodging taxes. Recent legal changes have been minimal, with the town maintaining its hands-off approach to STR regulation, though this could change as the practice becomes more prevalent or if community concerns arise about impacts on housing availability or neighborhood character.

The best areas for Airbnb investment in Diamondville, Wyoming are primarily concentrated around the historic downtown district near the Union Pacific Railroad corridor, which attracts railroad enthusiasts and history buffs visiting the area's coal mining heritage sites. The residential neighborhoods along Highway 30 offer proximity to Fossil Butte National Monument (20 miles away), making them attractive to paleontology tourists and outdoor enthusiasts exploring the Green River Formation fossils. Properties near the Diamondville Cemetery and historic church areas appeal to genealogy researchers and visitors attending local community events. The eastern residential sections provide easy access to Kemmerer (3 miles away) where visitors come for business related to the energy sector, including natural gas and coal operations, as well as tourists visiting the JCPenney Mother Store. Areas close to the elementary school and community center work well for families visiting relatives or attending regional sporting events, while properties with mountain views toward the Overthrust Belt attract nature photographers and geology students studying the area's unique geological formations.

Airbnb properties in Diamondville, Wyoming are subject to Wyoming's state lodging tax of 4% on gross receipts from short-term rentals under 30 days, which is collected by the Wyoming Department of Revenue and must be remitted monthly by the 19th of the following month if monthly gross receipts exceed $750. Lincoln County, where Diamondville is located, imposes an additional 2% county lodging tax that follows similar collection and remittance procedures through the county treasurer's office. The city of Diamondville itself does not currently impose a separate municipal lodging or occupancy tax as of 2023, though hosts should verify current local ordinances as small municipalities can change tax policies. Both state and county taxes apply to the total rental amount including cleaning fees but exclude separately stated taxes, and there are generally no exemptions for occasional or small-scale rentals. Airbnb may collect and remit these taxes automatically for hosts in some cases, but individual hosts remain ultimately responsible for ensuring compliance and should register with both state and county tax authorities, maintain detailed records of all rental income and tax collections, and file returns even in months with no activity to avoid penalties.

The total cost to start an Airbnb in Diamondville, Wyoming would be approximately $185,000-$220,000. Property purchase costs around $150,000 based on the median home price in this small coal mining town. Furnishing a 2-3 bedroom property would cost $8,000-$12,000 including beds, living room furniture, kitchen essentials, linens, and basic appliances. Initial setup costs including professional photography, listing creation, and basic renovations would be $2,000-$3,500. Permits and fees including business license, short-term rental permit, and potential HOA approvals would cost $500-$1,200. Insurance including landlord and short-term rental coverage would be $1,800-$2,400 annually. Utilities setup and deposits for electricity, gas, water, internet, and cable would cost $800-$1,200. First six months operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance reserves ($200/month), Airbnb fees (3% of estimated $1,200 monthly revenue), and marketing would total approximately $6,000-$8,000. Additional costs may include property management software subscriptions ($50/month) and emergency repair funds ($2,000 reserve).

Airbnb properties in Diamondville, Wyoming face challenging profitability conditions due to the town's small population of approximately 1,200 residents and limited tourism infrastructure, with average nightly rates typically ranging from $75-120 compared to Wyoming's statewide average of $150. Properties in this former coal mining town generally achieve occupancy rates of 25-35% annually, generating gross revenues of $8,000-15,000 per year for typical 2-3 bedroom homes, while expenses including mortgage payments, utilities, cleaning, maintenance, and Airbnb fees often total $12,000-18,000 annually, resulting in negative profit margins of -15% to -25% for most operators. Success factors for the few profitable properties include targeting workers from nearby energy projects, offering competitive rates for extended stays, and maintaining extremely low operating costs through owner management, though even successful properties rarely exceed 5-8% profit margins. The proximity to Fossil Butte National Monument provides some seasonal demand during summer months, but insufficient visitor volume and competition from hotels in nearby Kemmerer limit revenue potential, making Diamondville's Airbnb market generally unprofitable except for properties with minimal debt service or those serving as secondary income sources for local residents.

Based on Diamondville, Wyoming market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property acquisition costs and financing structure. Properties in this small coal mining town of approximately 1,200 residents can achieve profitability within 18-24 months, with average nightly rates of $75-120 during peak seasons when workers and travelers pass through the area. The market benefits from proximity to Interstate 80 and regional industrial activity, though occupancy rates average 45-60% annually due to the rural location and seasonal demand fluctuations. Initial investment requirements typically range from $150,000-250,000 for suitable properties, with gross rental yields of 10-14% before expenses, making it a moderate-return market compared to major tourist destinations but offering lower competition and property acquisition costs.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Diamondville, Wyoming. For local expertise in Wyoming's rental market, investors can work with real estate agents at Century 21 BHJ Realty in nearby Rock Springs or Keller Williams Jackson Hole, both of which serve the southwestern Wyoming region and understand vacation rental dynamics. National services like AirDNA and Mashvisor provide market analysis and property identification tools specifically for Airbnb investments in smaller Wyoming markets. BiggerPockets connects investors with local Wyoming real estate professionals experienced in short-term rentals, while AvantStay and RedAwning offer property management insights for the region. Local property management companies such as Wyoming Vacation Rentals and Jackson Hole Property Management extend services to surrounding areas and can provide market guidance. Real estate agents like those at Hayden Outdoors specialize in recreational and investment properties throughout Wyoming and understand the unique dynamics of rural vacation rental markets near outdoor recreation areas that attract Airbnb guests to places like Diamondville.