Is Ely, Nevada Good for Airbnb Investment?

To start an Airbnb in Ely, Nevada, begin by researching local regulations through the White Pine County Planning Department and Ely City Hall, as short-term rentals typically require a business license and may need special use permits or conditional use permits depending on zoning. Contact the Nevada Department of Taxation to obtain a sales tax permit since you'll need to collect and remit transient lodging tax, which in White Pine County is approximately 10-13% total. Find a suitable property by working with local real estate agents familiar with Ely's market, focusing on areas near popular attractions like the Nevada Northern Railway Museum or Ward Charcoal Ovens State Historic Park, with properties typically ranging from $80,000-$200,000. Furnish the space with durable, comfortable furniture from retailers like Ashley Furniture in Las Vegas or online suppliers, ensuring you have reliable internet, heating/cooling systems capable of handling Ely's desert climate extremes, and amenities that appeal to tourists and railroad enthusiasts. List your property on Airbnb, VRBO, and Booking.com with professional photos highlighting unique features and proximity to local attractions, setting competitive rates around $75-150 per night based on seasonal demand. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider using property management software like Hostfully or hiring a local property manager, while maintaining compliance with ongoing tax obligations and permit renewals through White Pine County and Nevada state agencies.

For identifying profitable STR properties in Ely, Nevada, focus on locations within 2-3 miles of major attractions like the Nevada Northern Railway Museum and Ward Charcoal Ovens State Historic Park, as well as properties with easy access to Highway 50 for travelers exploring the "Loneliest Road in America." Target 2-4 bedroom properties built after 1980 with updated kitchens, reliable heating systems for winter months, and outdoor spaces that showcase the high desert landscape, as these features appeal to both railway enthusiasts and road trip travelers. Pricing analysis should consider the seasonal nature of tourism, with peak rates during summer months ($120-180/night) and lower winter rates ($80-120/night), while maintaining competitive positioning against the limited hotel options like Hotel Nevada and Ramada Inn. Competition research reveals minimal STR inventory due to the small market size, creating opportunities for well-positioned properties, though demand is primarily driven by niche tourism and mining industry workers. Utilize AirDNA for market data specific to White Pine County, monitor the Nevada Northern Railway's event calendar for booking optimization, leverage local Facebook groups and the Ely Chamber of Commerce for market insights, and consider partnerships with railway tour operators and outdoor recreation companies to drive consistent bookings in this specialized but underserved market.

To obtain an Airbnb/STR permit in Ely, Nevada, you must first contact the Ely City Clerk's office at 501 Mill Street or call (775) 289-2430 to obtain a business license application and short-term rental permit forms. Required documents typically include a completed business license application, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, contact information for a local property manager if you're not local, and a signed affidavit acknowledging compliance with city ordinances. The business license fee is approximately $50-75 annually, with an additional STR permit fee of around $100-150 per year. You must also pay applicable state and local taxes and register with the Nevada Department of Taxation for a business license (estimated $200). The timeline is typically 2-4 weeks for processing once all documents are submitted. Specific Ely requirements include maintaining occupancy limits based on bedroom count (generally 2 people per bedroom plus 2 additional), providing adequate parking spaces, ensuring the property meets fire safety codes, displaying the permit number in all advertisements, and maintaining a guest registry. Properties must also comply with noise ordinances and have a local contact person available 24/7 for any issues that arise during guest stays.

Short-term rentals (STRs) are generally legal in Ely, Nevada, as the city has not implemented specific prohibitive ordinances against vacation rentals as of 2024. However, STR operators must comply with standard business licensing requirements, zoning regulations that may restrict commercial activities in certain residential areas, and state tax obligations including transient occupancy taxes. The city requires basic business licenses for rental operations and properties must meet health and safety standards, though Ely has not adopted the comprehensive STR regulations seen in larger Nevada cities like Las Vegas or Reno. Recent years have seen minimal changes to STR regulations in Ely, largely due to the city's smaller size and tourism-dependent economy, though operators should verify current zoning compliance in residential neighborhoods and ensure proper registration with the Nevada Department of Taxation for room tax collection, as enforcement of existing business and tax requirements has become more consistent statewide since 2022.

The best areas for Airbnb investment in Ely, Nevada are the Historic Downtown District near the Nevada Northern Railway Museum, which attracts tourists year-round for train rides and railroad history experiences, and the residential neighborhoods within walking distance of the Renaissance Village and White Pine Public Museum where visitors come for cultural events and local festivals. The area near Great Basin National Park's eastern access routes sees strong demand from outdoor enthusiasts and stargazers visiting the International Dark Sky Park, particularly during summer months and astronomy events. Properties close to the Ward Charcoal Ovens State Historic Park benefit from history buffs and photographers, while locations near Highway 50 ("The Loneliest Road in America") capture road trip travelers seeking authentic small-town experiences. The neighborhoods around East Ely Railroad Depot are particularly attractive due to proximity to the popular Ghost Train of Old Ely rides and seasonal events, with properties here commanding premium rates during the railway's peak operating seasons from May through October.

In Ely, Nevada, Airbnb hosts are subject to both state and local lodging taxes that must be collected from guests and remitted to tax authorities. Nevada imposes a statewide transient lodging tax of approximately 13-15% which includes the base room tax plus additional fees, while White Pine County (where Ely is located) typically adds a local transient occupancy tax of around 3-5% on top of the state rate, bringing the total tax burden to approximately 16-20% of the nightly rental rate. These taxes are collected by the host at the time of booking or check-in and must be remitted monthly to the Nevada Department of Taxation for state portions and to White Pine County for local portions, with returns typically due by the 25th of the following month. Hosts must register for a Nevada business license and transient lodging tax permit before operating, and properties rented for fewer than 30 consecutive days are generally subject to these taxes with limited exemptions available for certain long-term stays or specific property types. Failure to collect and remit these taxes can result in penalties, interest charges, and potential legal action by tax authorities.

To start an Airbnb in Ely, Nevada, expect total costs around $180,000-220,000. Property purchase represents the largest expense at approximately $150,000 based on median home prices in rural Nevada markets like Ely. Furnishing costs typically range $15,000-25,000 for a complete 2-3 bedroom setup including beds, linens, kitchen essentials, living room furniture, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total around $2,000-3,000. Permits and fees vary but budget $500-1,500 for business licenses, short-term rental permits, and any required inspections from White Pine County. Insurance costs approximately $1,200-2,000 annually for landlord and short-term rental coverage. Utility setup and deposits for electricity, water, gas, internet, and cable typically cost $500-800 initially. First six months operating costs including utilities ($300-500/month), cleaning supplies, maintenance, property management software, and marketing budget total approximately $3,000-5,000. Additional considerations include potential property improvements or repairs ($2,000-8,000) and working capital for unexpected expenses, bringing the comprehensive startup investment to the $180,000-220,000 range for a turnkey Airbnb operation in Ely, Nevada.

Airbnb properties in Ely, Nevada show moderate profitability potential with average nightly rates ranging from $75-120 for typical 2-3 bedroom homes, generating approximately $18,000-28,000 in annual gross revenue based on 40-50% occupancy rates common in rural Nevada markets. Operating expenses typically consume 35-45% of gross revenue, including cleaning fees ($40-60 per turnover), property management (15-25%), utilities ($150-250 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins generally range from 15-25% for well-managed properties, with successful hosts like those operating converted mining-era homes near Great Basin National Park achieving higher margins by targeting outdoor enthusiasts and stargazing tourists. Key success factors include strategic pricing during peak seasons (summer months and astronomy events), professional photography showcasing the area's dark sky designation, and partnerships with local tour operators. Properties within 30 minutes of Great Basin National Park or featuring unique historical elements command premium rates, with some hosts reporting annual net profits of $8,000-15,000 on properties valued at $150,000-250,000, though success heavily depends on effective marketing and maintaining high guest satisfaction scores above 4.7 stars.

Airbnb investments in Ely, Nevada typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the town's position as a gateway to Great Basin National Park and its historic railroad tourism attractions. Properties in Ely generally achieve profitability within 18-24 months, with average daily rates of $85-120 during peak summer months (May-September) when outdoor recreation and tourism peak, though occupancy rates average 45-60% annually due to the seasonal nature of tourism and the town's remote location. The market benefits from limited hotel inventory and growing interest in rural Nevada destinations, with investors typically seeing break-even points around month 20-26 depending on initial investment and property management efficiency, while renovation costs for older properties common in Ely can impact initial returns but often lead to premium pricing once completed.

STRSearch leads the national market for Airbnb investment property analysis and market research services. In Ely, Nevada, local real estate agents like those at Ely Realty and White Pine County specialists at Century 21 White Pine Realty have experience with short-term rental properties in the area. National services include Mashvisor for property analytics, AirDNA for market data and revenue projections, and RedAwning for vacation rental property listings. BiggerPockets connects investors with local agents familiar with STR regulations, while Awning provides end-to-end Airbnb investment services including property management. Local property management companies like High Desert Property Management and Nevada Mountain Properties offer insights into profitable rental locations near Great Basin National Park and along Highway 50. Roofstock and Arrived Homes provide turnkey short-term rental investment opportunities, though availability in rural Nevada markets like Ely may be limited. Real estate investment groups through Facebook and local chambers of commerce can connect investors with agents specializing in tourism-focused properties near outdoor recreation areas and historic mining sites that attract Airbnb guests to the region.