Is Powell, Wyoming Good for Airbnb Investment?

To start an Airbnb in Powell, Wyoming, begin by researching local zoning laws and regulations through the City of Powell Planning Department, as Wyoming generally allows short-term rentals but individual municipalities may have specific requirements including business licenses, occupancy permits, and safety inspections. Contact Powell City Hall at 270 North Clark Street to obtain necessary permits, which typically include a business license ($25-50 annually) and potentially a conditional use permit if operating in residential zones. Find a suitable property by working with local real estate agents familiar with Powell's market, focusing on areas near Yellowstone National Park access points or downtown Powell for maximum appeal, with average property prices ranging $200,000-400,000 for suitable homes. Furnish the property with quality, durable furniture from retailers like Home Depot in Cody (30 miles away) or online suppliers, ensuring you include essentials like linens, kitchen supplies, WiFi, and local guidebooks highlighting nearby attractions like Heart Mountain and Yellowstone. List your property on Airbnb, VRBO, and Booking.com with professional photos showcasing mountain views and proximity to outdoor activities, setting competitive rates around $80-150 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 companies like Jackson Hole Property Management for remote oversight, while maintaining compliance with Wyoming's 4% state lodging tax and any local occupancy taxes Powell may require.

To identify profitable short-term rental properties in Powell, Wyoming, focus on locations within 2-3 miles of Yellowstone National Park's east entrance and near recreational areas like the Shoshone River, as Powell serves as a gateway community for park visitors during peak season (May-September). Target 2-4 bedroom single-family homes or cabins with outdoor amenities like hot tubs, fire pits, and mountain views, as these command premium rates of $150-300 per night compared to basic properties at $80-150. Analyze pricing using AirDNA and Mashvisor to track seasonal demand patterns, noting that Powell experiences 60-70% occupancy during summer months but drops to 20-30% in winter. Research competition by monitoring existing STR listings within a 10-mile radius, particularly in nearby Cody which has more established vacation rental markets, and identify gaps in amenities or property types. Utilize tools like Rabbu and STR Helper for market analysis, check Park County zoning regulations and STR licensing requirements, and consider properties near Powell's recreational facilities, golf course, and downtown area to capture both Yellowstone tourists and regional business travelers, with acquisition targets in the $200,000-400,000 range to maintain healthy cash-on-cash returns of 8-15%.

To obtain an Airbnb/STR permit in Powell, Wyoming, contact the Powell City Hall at 270 North Clark Street or call (307) 754-5106 to inquire about short-term rental licensing requirements, as Powell may regulate STRs through business licensing or zoning permits. You'll likely need to submit 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, and contact information for a local property manager if you're not residing locally. The application fee is estimated at $50-150 annually, with possible additional zoning compliance fees of $25-75. Submit your application to the City Clerk's office along with required documentation and payment, then schedule any necessary property inspections with the building department. The approval timeline typically takes 2-4 weeks depending on inspection scheduling and application completeness. Powell-specific requirements may include compliance with residential zoning restrictions, maximum occupancy limits based on square footage, adequate parking provisions, smoke and carbon monoxide detectors, and maintaining a guest registry. You must also register with the Wyoming Department of Revenue for state tax collection purposes and may need to comply with Park County health department regulations for rental properties.

Short-term rentals (STRs) are generally legal in Powell, Wyoming, as the city does not have specific municipal ordinances prohibiting them as of 2023. Powell operates under relatively permissive zoning regulations that typically allow residential properties to be used for short-term rental purposes, though operators must comply with standard business licensing requirements and may need to obtain a business license from the city. The primary restrictions involve adherence to residential zoning requirements, parking regulations, and noise ordinances that apply to all residential properties. There are no specifically prohibited areas within Powell city limits for STRs, though properties must maintain residential character and cannot operate as commercial hotels. Recent legal changes have been minimal at the local level, with Wyoming state law generally supporting property rights and short-term rental operations, though operators should verify current parking requirements, occupancy limits based on septic and water systems, and ensure compliance with state tax collection requirements for lodging. Property owners should contact Powell's city clerk or planning department to confirm current licensing requirements and any recent ordinance updates.

The best Airbnb investment areas in Powell, Wyoming include the downtown historic district near the city center, which attracts visitors to the Heart Mountain Interpretive Center and serves as a gateway to Yellowstone National Park located just 70 miles away. The residential neighborhoods along Lane 11 and Road 8 offer proximity to Northwest College, generating consistent demand from visiting families, prospective students, and academic events throughout the year. Areas near the Powell Recreation District and Washington Park appeal to sports tournament participants and families attending youth events. The neighborhoods closest to the Shoshone River provide scenic appeal for tourists seeking outdoor recreation including fishing, hiking, and wildlife viewing. Properties within walking distance of the Powell Valley Healthcare facility capture medical tourism and visiting family members of patients. The area around Homesteader Park benefits from its central location and access to community events, while neighborhoods near the Powell Municipal Golf Course attract golf enthusiasts and tournament participants during the active season from April through October.

In Powell, Wyoming, Airbnb hosts are subject to Wyoming's state lodging tax of 4% on gross receipts from short-term rental accommodations, which applies to rentals of less than 30 consecutive days. Park County, where Powell is located, imposes an additional 2% county lodging tax, bringing the total lodging tax rate to approximately 6%. These taxes are typically collected from guests at the time of booking through Airbnb's automatic tax collection system, which remits payments directly to the Wyoming Department of Revenue on a monthly basis for properties enrolled in their voluntary collection agreement program. Hosts not participating in Airbnb's automatic collection must register with the Wyoming Department of Revenue, collect taxes from guests, and remit payments monthly by the 20th of the following month using Form WY-1. Properties rented for 30 days or more consecutively are generally exempt from lodging taxes, as are rentals to permanent residents, and some agricultural or business-related exemptions may apply under specific circumstances outlined in Wyoming Statute 39-15-101.

To start an Airbnb in Powell, Wyoming, expect total costs around $285,000-$320,000. Property purchase represents the largest expense at approximately $220,000-$250,000 based on median home prices in the Powell area as of 2023. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom property including beds, linens, kitchen essentials, living room furniture, and décor. Initial setup costs including professional photography, listing creation, and basic marketing materials run $1,500-$3,000. Permits and fees vary but budget $500-$1,500 for business licenses, short-term rental permits, and any required inspections through Park County. Insurance costs approximately $1,200-$2,000 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits for electricity, gas, water, internet, and cable total around $500-$800 initially. First six months operating costs including utilities ($200-$300 monthly), cleaning supplies and services ($150-$250 monthly), maintenance reserves ($100-$200 monthly), platform fees to Airbnb and VRBO (3% of bookings), and marketing expenses total approximately $4,000-$7,000, assuming moderate occupancy rates during the initial period.

Airbnb properties in Powell, Wyoming typically generate annual revenues between $15,000-$35,000 for well-positioned properties, with average daily rates ranging from $80-$150 depending on property type and seasonality. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25% of revenue), utilities ($150-300 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties near Yellowstone National Park's east entrance command premium rates during summer months (June-September), with occupancy rates reaching 70-85%, while winter occupancy drops to 25-40%. A typical 3-bedroom home purchased for $300,000-400,000 in Powell can achieve net profit margins of 15-25% after all expenses, translating to $3,000-8,000 annual profit. Success factors include proximity to Yellowstone (properties within 30 minutes see 20-30% higher rates), professional photography, responsive guest communication, and strategic pricing during peak tourist seasons. Properties featuring outdoor amenities like hot tubs or fire pits typically achieve 10-15% higher occupancy rates, while those offering unique experiences such as ranch stays or wildlife viewing access can command 25-40% premium pricing over standard residential rentals.

Based on Powell, Wyoming market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the city. Properties near Yellowstone National Park access points and downtown Powell command higher returns, with vacation rentals averaging $85-120 per night during peak summer months (June-September) and $45-65 during off-season. Initial profitability usually occurs within 18-24 months for well-positioned properties, with full investment recovery expected in 7-10 years. The market benefits from consistent tourist traffic to nearby Yellowstone, Northwest College events, and regional business travel, though seasonal fluctuations significantly impact occupancy rates with summer months achieving 70-85% occupancy while winter months drop to 25-40%. Property acquisition costs average $180,000-280,000 for suitable rental properties, with annual operating expenses including utilities, maintenance, and platform fees typically consuming 35-45% of gross rental income.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Powell, Wyoming. In the Powell area, local real estate agents like those at Century 21 BHJ Realty and Coldwell Banker The Legacy Group have experience with investment properties and vacation rentals in the Bighorn Basin region. National services include Mashvisor, which provides Airbnb analytics and market data for Wyoming markets, and AirDNA for short-term rental performance insights. Roofstock and Awning (now part of RedAwning) offer turnkey short-term rental investment opportunities that may include Wyoming properties. Local property management companies like Park County Property Management can assist with ongoing Airbnb operations, while national firms such as AvantStay and RedAwning provide full-service short-term rental management. Real estate investment platforms like BiggerPockets connect investors with local professionals familiar with the Powell market, and vacation rental consultants such as those at STR Wealth can provide market analysis specific to Wyoming's tourism patterns around Yellowstone National Park proximity.