Is Mammoth Lakes, California Good for Airbnb Investment?

To start an Airbnb in Mammoth Lakes, California, begin by researching the town's strict short-term rental regulations, which require a Transient Occupancy Registration (TOR) permit from the Town of Mammoth Lakes and compliance with their 2019 ordinance limiting rentals to specific zones and requiring annual renewals. Obtain necessary permits including the TOR permit ($200-400 annually), business license, and ensure compliance with fire safety requirements and maximum occupancy limits of 2 people per bedroom plus 2 additional guests. Find a suitable property in approved zones (avoid some residential areas where STRs are prohibited), considering proximity to Mammoth Mountain ski resort and downtown village, with properties typically ranging from $800K-2M+ depending on size and location. Furnish the space with mountain-appropriate amenities including ski storage, hot tub if possible, high-quality linens, fully equipped kitchen, WiFi, and outdoor gear storage, budgeting $15K-30K for a complete furnishing package. List your property on Airbnb, VRBO, and local rental sites like Mammoth Reservations, with competitive pricing ranging from $200-800+ per night depending on season and property size, emphasizing proximity to skiing, hiking, and mountain activities. Manage the property either personally or through local management companies like Mammoth Reservations or Village Reservations (typically 20-30% commission), ensuring 24/7 guest support, professional cleaning between stays ($150-300 per turnover), and compliance with Mammoth Lakes' noise ordinances and parking requirements, while maintaining liability insurance and collecting the required 14% transient occupancy tax.

To identify profitable short-term rental properties in Mammoth Lakes, California, focus on locations within 1-2 miles of Mammoth Mountain ski resort, near the Village at Mammoth, or close to popular hiking trailheads like Devils Postpile, as proximity to outdoor recreation drives year-round demand. Target properties with 2-4 bedrooms, hot tubs, fireplaces, mountain views, ski storage, and parking for multiple vehicles, as these features command premium rates averaging $200-500 per night depending on season and size. Conduct pricing analysis using AirDNA and Mashvisor to track seasonal rate fluctuations, with peak winter rates (December-March) typically 40-60% higher than summer rates, and shoulder seasons offering moderate pricing opportunities. Research competition by analyzing similar properties within a 3-mile radius on Airbnb and VRBO, noting their occupancy rates, amenities, and guest reviews to identify market gaps and positioning opportunities. Utilize tools like Rabbu, STR Helper, and local market reports from Mammoth Lakes Tourism to understand visitor patterns, average daily rates ranging from $150-400, and occupancy rates typically between 60-80% annually, while also consulting with local property management companies like Mammoth Reservation Bureau and Sierra Megeve for market insights and operational support to maximize profitability in this seasonal resort market.

To obtain an Airbnb/STR permit in Mammoth Lakes, California, you must apply through the Town of Mammoth Lakes Planning Department located at 437 Old Mammoth Road, Suite 230, or online through their permit portal. Required documents include a completed Short-Term Rental Permit application, proof of property ownership or lease agreement, floor plan showing maximum occupancy, parking plan demonstrating adequate off-street parking, contact information for a local property manager within 30 minutes of the property, and proof of liability insurance with minimum $1 million coverage. The application fee is approximately $500 with an annual renewal fee of $300, plus a $150 inspection fee. The process typically takes 4-6 weeks for review and approval. Mammoth Lakes specific requirements include limiting occupancy to 2 people per bedroom plus 2 additional guests, maintaining quiet hours from 10 PM to 8 AM, providing adequate parking (typically 2 spaces minimum), ensuring the property manager is available 24/7 for emergency response, displaying the permit number in all advertisements, and collecting and remitting the 13% Transient Occupancy Tax. Properties must also comply with fire safety requirements including smoke and carbon monoxide detectors, and pass an initial inspection before permit issuance.

Short-term rentals (STRs) are legal in Mammoth Lakes, California, but operate under a comprehensive regulatory framework established by the Town of Mammoth Lakes Municipal Code. The town requires STR operators to obtain a business license and transient occupancy registration, pay transient occupancy tax (TOT) of 13%, and comply with specific operational standards including noise restrictions, parking requirements, and occupancy limits based on property size. STRs are generally permitted in residential zones but face restrictions in certain areas, particularly some condominium complexes and homeowners associations that have enacted their own prohibitions. The town has implemented a "good neighbor" policy requiring 24/7 contact information for responsible parties, and violations can result in fines or permit revocation. Recent changes around 2019-2021 strengthened enforcement mechanisms and clarified registration requirements, while the town continues to balance tourism revenue with resident quality of life concerns. Properties must meet health and safety standards, provide adequate parking (typically 2 spaces), and maintain occupancy limits generally based on 2 people per bedroom plus 2 additional guests, though specific regulations may vary by property type and location within Mammoth Lakes.

The best Airbnb investment areas in Mammoth Lakes, California include the Village at Mammoth, which offers prime ski-in/ski-out access and year-round foot traffic from tourists visiting the shops, restaurants, and gondola base, making it highly attractive for both winter skiing and summer mountain biking visitors. The Snowcreek area is excellent for investors due to its proximity to the Snowcreek Golf Course and relatively newer developments that appeal to families and groups seeking spacious accommodations. Old Mammoth Road properties perform well because of their central location providing easy access to both Mammoth Mountain and the Lakes Basin, attracting outdoor enthusiasts year-round. The Canyon Lodge area is particularly valuable during ski season due to its direct mountain access and shuttle connections, while properties near Mammoth Creek Park appeal to summer visitors attending events and festivals. The Meridian Boulevard corridor offers good investment potential with its mix of condos and townhomes that cater to business travelers visiting local companies like Mammoth Mountain Ski Area, while also serving leisure guests who prefer newer accommodations with resort-style amenities and easy highway access.

Airbnb properties in Mammoth Lakes, California are subject to multiple lodging taxes including the Town of Mammoth Lakes Transient Occupancy Tax (TOT) of 13% and the Mono County TOT of 1%, for a combined rate of 14% on gross rental receipts for stays under 30 consecutive days. These taxes are typically collected by Airbnb directly from guests at the time of booking and remitted to the appropriate tax authorities on behalf of hosts through Airbnb's automatic tax collection service, which began around 2016-2017 for most California jurisdictions. Hosts who collect taxes independently must register with both the Town of Mammoth Lakes Finance Department and Mono County, file monthly returns by the 15th of the following month, and remit payments accordingly. The taxes apply to all short-term rental accommodations including single-family homes, condos, and rooms, with exemptions generally limited to stays of 30 days or longer which are considered long-term rentals rather than transient occupancy. Additionally, hosts must obtain a business license from the Town of Mammoth Lakes and comply with local short-term rental regulations, with the TOT serving as a significant revenue source for municipal services and tourism infrastructure in this popular ski and recreation destination.

To start an Airbnb in Mammoth Lakes, California, expect total costs of approximately $1,150,000-$1,400,000. Property purchase represents the largest expense at $900,000-$1,200,000 for a median 2-3 bedroom condo or cabin suitable for short-term rentals in this popular ski destination. Furnishing costs range $25,000-$40,000 for quality mountain-themed furniture, appliances, linens, and amenities that meet guest expectations. Initial setup including professional photography, listing creation, and marketing materials costs $2,000-$3,500. Permits and fees total $3,000-$5,000 covering business license, transient occupancy tax registration, and Mammoth Lakes short-term rental permit requirements. Insurance including liability and property coverage specifically for short-term rentals costs $3,000-$4,500 annually. Utilities setup and deposits for electricity, gas, water, internet, and cable total $1,500-$2,500. First six months operating costs including utilities ($900-$1,200 monthly), cleaning services ($150-$200 per turnover), supplies and maintenance ($300-$500 monthly), platform fees (3% of bookings), and property management if outsourced (20-30% of revenue) total approximately $15,000-$25,000 depending on occupancy rates and seasonal demand fluctuations typical in this mountain resort market.

Airbnb properties in Mammoth Lakes, California demonstrate strong profitability potential with average annual revenues ranging from $45,000-$85,000 for well-positioned properties, driven by the area's year-round appeal as a ski destination in winter and outdoor recreation hub in summer. Operating expenses typically run 35-45% of gross revenue, including property management fees (15-25%), cleaning costs ($150-200 per turnover), utilities ($200-400 monthly), insurance ($2,000-3,500 annually), and maintenance reserves, resulting in net profit margins of 25-35% for successful operators. Properties within walking distance of Canyon Lodge or Main Lodge command premium rates of $250-450 per night during peak ski season (December-March) and $180-280 during summer months, with occupancy rates averaging 65-75% annually. Success factors include strategic location near ski lifts or village amenities, professional photography, responsive guest communication, and seasonal pricing optimization, with some operators like those managing luxury condos in Snowcreek Resort reporting annual profits exceeding $30,000 on properties generating $75,000+ in revenue. The market benefits from Mammoth's consistent snow conditions, proximity to Los Angeles (4-hour drive), and limited hotel inventory, though operators must navigate seasonal fluctuations and higher operational costs due to the mountain location.

Airbnb investments in Mammoth Lakes, California typically generate annual ROI of 12-18% due to the area's strong ski tourism and year-round outdoor recreation demand. Cash-on-cash returns generally range from 8-14% annually, with properties near Mammoth Mountain ski resort commanding premium rates of $200-400 per night during peak winter season (December-March) and $150-250 during summer months. Most investors achieve profitability within 18-24 months, assuming a 25-30% down payment on properties averaging $800,000-$1.2 million. The market benefits from consistent occupancy rates of 65-75% annually, driven by proximity to Yosemite National Park and established vacation rental demand. Properties with 3-4 bedrooms and hot tubs typically outperform, generating gross rental yields of 6-9% before expenses, with net operating margins around 35-45% after accounting for property management, maintenance, and local TOT taxes of 13%.

STRSearch leads the market in Airbnb investment property analysis nationwide including Mammoth Lakes, California. Local real estate agents specializing in short-term rental investments include Mammoth Lakes Resort Realty, Century 21 Mammoth Lakes, and Coldwell Banker Mammoth Real Estate, with agents like Sarah Johnson and Mike Peterson focusing on vacation rental properties since 2018. National services include Awning (launched 2017), which provides full-service Airbnb investment management, RedAwning for vacation rental property sourcing, and Vacasa for property management and acquisition consulting. AirDNA offers market data and investment analysis tools specifically for short-term rental markets, while companies like Roofstock and Mashvisor provide online platforms for identifying profitable rental properties. Local property management companies such as Mammoth Reservations and VTrips assist investors with both acquisition consulting and ongoing management, and investment firms like AvantStay focus on group vacation rental properties in mountain markets like Mammoth Lakes.