Is Encampment, Wyoming Good for Airbnb Investment?

To start an Airbnb in Encampment, Wyoming, begin by researching Carbon County and Town of Encampment zoning regulations, as Wyoming generally allows short-term rentals but local municipalities may have specific requirements including business licenses, occupancy permits, and tax registration with the Wyoming Department of Revenue for lodging taxes (approximately 4% state tax plus local taxes). Contact the Carbon County Clerk's office and Encampment Town Hall to obtain necessary permits, which typically include a business license ($50-100), building permits if renovating, and potentially a conditional use permit depending on zoning. Find property by working with local real estate agents familiar with Encampment's market, focusing on areas near the Sierra Madre Mountains, Medicine Bow National Forest access points, or historic downtown, with properties ranging from $150,000-400,000 for suitable homes. Furnish the property with rustic Wyoming-themed decor, essential amenities including high-speed internet (Spectrum or CenturyLink serve the area), heating systems suitable for harsh winters, and outdoor equipment storage for guests visiting nearby recreational areas. List your property on Airbnb, VRBO, and Booking.com with competitive pricing around $80-150/night depending on size and amenities, highlighting proximity to outdoor activities, fishing on the Encampment River, and historic attractions. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider using property management companies like Vacasa or RedAwning if you're not local, while maintaining compliance with Wyoming's innkeeper laws and ensuring proper insurance coverage through companies like Proper or CBIZ that specialize in short-term rental insurance.

To identify profitable short-term rental properties in Encampment, Wyoming, focus on locations within walking distance of the Medicine Bow River for fishing access, proximity to Sierra Madre Mountains for hiking and hunting, and properties near snowmobile trails for winter recreation. Target 2-4 bedroom cabins or homes with rustic charm, outdoor amenities like fire pits, hot tubs, or large decks, reliable internet for remote workers, and adequate parking for trucks and trailers. Analyze pricing by researching comparable Airbnb and VRBO listings in Encampment and nearby Saratoga, aiming for $150-300 per night depending on size and amenities, with higher rates during hunting season (September-November) and summer fishing months. Competition research should include monitoring occupancy rates of existing STRs within a 20-mile radius, as the market is relatively small with limited inventory. Utilize tools like AirDNA for market analysis, STR Helper for revenue projections, and local resources including the Encampment Chamber of Commerce, Carbon County tourism data, and networking with local real estate agents familiar with recreational property trends to understand seasonal demand patterns driven by outdoor recreation, hunting outfitters, and the annual Woodchoppers Jamboree.

To obtain an Airbnb/STR permit in Encampment, Wyoming, you must first contact the Carbon County Planning and Zoning Department at 307-328-2651 or visit their office at 415 W Pine Street in Rawlins, as Encampment falls under county jurisdiction for zoning matters. Submit a completed short-term rental application along with a site plan showing the property layout, proof of property ownership or lease agreement, a floor plan indicating maximum occupancy, proof of liability insurance (minimum $1 million coverage), and a waste management plan detailing septic or sewer capacity. The application fee is typically $150-200 with an additional $75 annual renewal fee. You'll need to pass a health department inspection focusing on water quality, septic system adequacy, and general safety compliance, which costs approximately $100. The property must meet Wyoming fire safety codes including working smoke detectors, carbon monoxide detectors, and fire extinguishers, and comply with Americans with Disabilities Act requirements if applicable. Maximum occupancy is generally limited to 2 people per bedroom plus 2 additional guests, with adequate parking spaces required (typically 1 space per bedroom). The approval process takes 30-45 days from submission of complete application, and you must display your permit number in all online listings and maintain a guest registry for county inspection upon request.

Short-term rentals (STRs) are generally legal in Encampment, Wyoming, as the small town of approximately 450 residents in Carbon County does not have specific municipal ordinances prohibiting or heavily regulating vacation rentals as of 2024. Wyoming state law allows STRs with minimal restrictions, and Encampment follows county and state guidelines rather than implementing its own comprehensive STR regulations. Property owners can typically operate STRs in residential areas without special permits, though they must comply with standard zoning requirements, health and safety codes, and collect applicable state and local taxes including Wyoming's 4% state sales tax and any county lodging taxes. There are no designated prohibited areas within Encampment specifically for STRs, and the town has not implemented recent legal changes targeting vacation rentals, largely due to its small size and limited tourism infrastructure compared to larger Wyoming destinations like Jackson or Teton County, which have enacted stricter STR regulations in recent years.

The best areas for Airbnb investment in Encampment, Wyoming are the historic downtown district along Rankin Avenue and the residential neighborhoods near the Encampment River, particularly around 6th and 7th Streets. The downtown area attracts visitors interested in the town's copper mining history, the Grand Encampment Museum, and proximity to restaurants and local businesses, while also serving hunters and anglers heading to the Sierra Madre Mountains and nearby wilderness areas. The riverside neighborhoods appeal to outdoor enthusiasts seeking fishing access along the Encampment River and those using the town as a base for hiking, hunting, and winter sports in the Medicine Bow-Routt National Forest. Properties near the Encampment-Riverside Cemetery and along Highway 70 also perform well due to their accessibility for travelers passing through to Colorado recreational areas and their appeal to visitors attending local events like the annual Woodchoppers Jamboree. The area benefits from consistent demand from hunters during fall seasons, summer fishing enthusiasts, and winter sports visitors, with limited hotel options in town creating strong demand for short-term rentals.

In Encampment, Wyoming, Airbnb properties are subject to Wyoming's state lodging tax of 4% on gross receipts from accommodations, which applies to rentals of less than 30 consecutive days. Carbon County, where Encampment is located, may impose an additional local lodging tax of up to 4%, though the specific rate varies by municipality and Encampment's exact rate is typically around 2-3%. These taxes are collected from guests at the time of booking through Airbnb's automated tax collection system in most cases, or hosts must collect them directly if not automated. Hosts are required to register with the Wyoming Department of Revenue and obtain a lodging tax license, then remit collected taxes monthly by the 20th of the following month using Form WY-1 for state taxes, while local taxes are remitted to Carbon County or the Town of Encampment depending on jurisdiction. Exemptions typically include stays of 30 days or longer, government employees on official business, and certain nonprofit organization stays, though documentation may be required to claim exemptions.

The total cost to start an Airbnb in Encampment, Wyoming is approximately $285,000-$350,000. Property purchase represents the largest expense at $200,000-$250,000 for a median 2-3 bedroom home suitable for short-term rental in this small mountain town. Furnishing costs range $15,000-$25,000 including beds, linens, kitchen appliances, living room furniture, and outdoor equipment appropriate for the area's recreational activities. Initial setup costs total $3,000-$5,000 covering professional photography, listing creation, welcome materials, and basic technology like smart locks and WiFi upgrades. Permits and fees amount to $1,500-$2,500 including business license, short-term rental permit, fire safety inspection, and potential HOA approvals. Insurance costs $2,000-$3,000 annually for specialized short-term rental coverage beyond standard homeowner's insurance. Utilities including electricity, water, sewer, trash, internet, and heating average $400-$600 monthly or $2,400-$3,600 for six months. First six months operating costs total $8,000-$12,000 covering cleaning services, maintenance, supplies, marketing, property management software, and guest amenities, with higher costs during peak summer and winter seasons when Encampment attracts visitors for fishing, hunting, and outdoor recreation.

Airbnb properties in Encampment, Wyoming show moderate profitability potential with average nightly rates ranging from $85-150 depending on property size and amenities, generating approximately $15,000-35,000 in annual revenue for properties with 40-60% occupancy rates. Operating expenses typically include 25-30% for cleaning and maintenance, 3% Airbnb service fees, 8-12% for utilities, and 15-20% for property management if outsourced, resulting in net profit margins of 25-40% for well-managed properties. Success factors in this rural Wyoming market include proximity to Sierra Madre Mountains recreational activities, hunting and fishing access, and seasonal demand from outdoor enthusiasts, with peak seasons during summer months (June-September) and hunting seasons generating 60-70% of annual bookings. Properties like renovated cabins near the Encampment River or historic mining town accommodations have shown stronger performance, with some hosts reporting $2,000-4,000 monthly gross revenue during peak seasons, though winter months typically see 70-80% lower occupancy rates, making year-round profitability dependent on achieving premium rates during high-demand periods and maintaining low operational costs during off-seasons.

Based on Encampment, Wyoming's small mountain town market dynamics and limited tourism infrastructure, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%. Properties in this rural Wyoming community, with a population under 500, face seasonal demand fluctuations tied to fishing, hunting, and outdoor recreation activities. Initial profitability usually occurs within 18-24 months for well-positioned cabins or renovated homes priced competitively against limited local lodging options. The market benefits from proximity to Sierra Madre Mountains and Medicine Bow National Forest, though occupancy rates average 45-60% annually due to harsh winters and limited year-round attractions. Property acquisition costs remain relatively low at $150,000-$300,000 for suitable investment properties, while average daily rates range from $80-$150 depending on amenities and seasonal timing. Success factors include targeting hunters, anglers, and summer outdoor enthusiasts, with peak performance during May through October generating 70-80% of annual revenue.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Encampment, Wyoming, using data analytics and market insights. Local real estate agents like those at Century 21 BHJ Realty and Coldwell Banker The Legacy Group in nearby Laramie and Rawlins serve the Encampment area and can assist with Airbnb property acquisitions. National services include AirDNA for market analysis, Mashvisor for investment property search and analysis, and BiggerPockets for networking with local investors. RedAwning and Vacasa provide property management services that can help investors understand the rental potential of properties in the area. Local property management companies like Wyoming Property Management and High Country Property Management may offer insights into the Encampment vacation rental market. Real estate investment firms such as Roofstock and Fundrise, while primarily focused on traditional rentals, sometimes have short-term rental opportunities in Wyoming markets. Additionally, platforms like VRBO and Airbnb's own host resources can provide market data for the Encampment area, and local chambers of commerce or tourism boards can offer insights into visitor patterns and seasonal demand that affect Airbnb profitability in this mountain town near the Colorado border.