Is Rawlins, Wyoming Good for Airbnb Investment?

To start an Airbnb in Rawlins, Wyoming, begin by researching local regulations through the Rawlins City Hall and Carbon County offices, as Wyoming generally has minimal state-level short-term rental restrictions but municipalities may have specific requirements including business licenses, occupancy permits, and tax registration with the Wyoming Department of Revenue for lodging taxes (typically 4% state tax plus local taxes). Obtain necessary permits including a business license from Rawlins City Clerk, ensure your property meets fire safety and building codes, and register for sales tax collection with Wyoming Department of Revenue. Find a suitable property by researching neighborhoods near Interstate 80, downtown Rawlins, or areas close to attractions like the Carbon County Museum, considering that median home prices in Rawlins range around $150,000-$200,000 making it relatively affordable for investment properties. Furnish the space with essential amenities including reliable Wi-Fi, comfortable bedding, kitchen basics, and local guidebooks highlighting nearby attractions like Seminoe State Park and the historic Lincoln Highway, ensuring the property can accommodate travelers passing through on I-80 or visiting for outdoor recreation. List your property on Airbnb and other platforms like VRBO with professional photos, competitive pricing around $75-$125 per night based on local market rates, and descriptions emphasizing Rawlins' location as a gateway to outdoor adventures and historic sites. Manage your listing by maintaining quick response times, coordinating cleaning between guests, monitoring reviews, keeping detailed records for tax purposes, and potentially partnering with local cleaning services or property management companies if you're not locally based, while staying compliant with any evolving city ordinances regarding short-term rentals.

To identify profitable short-term rental properties in Rawlins, Wyoming, focus on locations near Interstate 80 for traveler convenience, proximity to the Carbon County Museum and downtown historic district, and areas with easy access to outdoor recreation like the Medicine Bow National Forest. Target 2-4 bedroom single-family homes or larger apartments built after 1980 with reliable heating systems, updated kitchens and bathrooms, parking availability, and strong Wi-Fi infrastructure essential for business travelers and remote workers. Conduct pricing analysis using AirDNA and Mashvisor to benchmark nightly rates between $75-150 depending on property size and amenities, while analyzing seasonal demand patterns driven by summer tourism and winter oil/gas worker housing needs. Research competition through Airbnb and VRBO searches within a 5-mile radius, noting occupancy rates, guest reviews, and pricing strategies of similar properties, particularly focusing on properties serving the energy sector workforce and travelers stopping between Denver and Salt Lake City. Utilize tools like STR Helper for market analysis, connect with local real estate agents familiar with Rawlins' rental regulations, consult the Carbon County Planning Department for zoning compliance, and monitor local economic indicators including Union Pacific Railroad operations and energy sector employment trends that drive consistent demand for temporary housing in this small Wyoming community of approximately 8,000 residents.

To obtain an Airbnb/STR permit in Rawlins, Wyoming, you must first contact the Rawlins City Clerk's Office at City Hall located at 555 West Spruce Street to inquire about short-term rental licensing requirements, as Wyoming municipalities individually regulate STRs. You'll likely need to submit a business license application along with required documents including 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 completed safety inspection checklist. The application fee is estimated at $150-300 annually, with additional inspection fees of approximately $75-150. Required documents should include your driver's license, property deed or lease, zoning compliance verification, and neighbor notification forms. The timeline typically takes 30-60 days from submission to approval, depending on inspection scheduling and any required corrections. Specific Rawlins requirements likely include compliance with residential zoning laws, maximum occupancy limits based on square footage, adequate parking provisions, proper waste management arrangements, and maintaining a 24-hour contact number for guest issues. You must also register with the Wyoming Department of Revenue for state lodging tax collection and remit both state (4%) and local lodging taxes quarterly.

Short-term rentals (STRs) are generally legal in Rawlins, Wyoming, as the city does not have specific municipal ordinances prohibiting or heavily regulating vacation rentals as of 2024. Wyoming state law tends to favor property rights and minimal regulation, and Rawlins follows this approach by not implementing restrictive STR policies that some larger cities have adopted. Property owners can typically operate STRs in residential areas without special permits or licenses, though they must comply with standard zoning regulations, building codes, and collect applicable state and local taxes including Wyoming's 4% state sales tax and Carbon County's local option tax. There are no designated prohibited areas specifically for STRs within city limits, and the city has not enacted recent legal changes targeting short-term rentals, unlike municipalities such as Jackson or Teton County which have implemented more restrictive regulations. However, operators should ensure compliance with basic safety requirements, noise ordinances, and parking regulations that apply to all residential properties, and it's advisable to verify current status with Rawlins city officials as local regulations can evolve.

The best areas for Airbnb investment in Rawlins, Wyoming are downtown Rawlins near the historic Union Pacific Railroad Depot and Carbon County Museum, which attracts tourists interested in railroad history and serves business travelers visiting local government offices and the Wyoming State Penitentiary Historic Site. The neighborhoods around Sinclair Refinery and surrounding industrial areas offer opportunities for corporate housing for oil and gas workers, with companies like Sinclair Oil Corporation maintaining operations there since the 1930s. The residential areas near Memorial Hospital and the Carbon County Fairgrounds provide good investment potential due to medical tourism and seasonal events, particularly during the Carbon County Fair held annually in July. Properties near Interstate 80 corridor and truck stops capture transient travelers and long-haul truckers needing overnight accommodations, while areas close to the Rawlins Municipal Airport serve private aviation travelers and energy sector executives visiting the region's coal, oil, and natural gas operations that have been active since the early 1900s.

Airbnb properties in Rawlins, 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. Carbon County, where Rawlins is located, imposes an additional 2% county lodging tax that applies to all accommodations including Airbnbs, bringing the total lodging tax to 6%. The city of Rawlins also levies a 2% municipal lodging tax on short-term rentals, making the combined rate 8% for Airbnb properties. These taxes are typically collected from guests at the time of booking through Airbnb's automatic tax collection system in many cases, though hosts remain ultimately responsible for ensuring proper remittance to the Wyoming Department of Revenue, Carbon County Treasurer, and Rawlins city offices respectively. Exemptions generally apply to stays of 30 days or longer, which are considered long-term rentals rather than transient lodging, and some exemptions may apply for certain government or non-profit travelers, though hosts should verify current exemption criteria with each taxing jurisdiction as requirements can change.

The total cost to start an Airbnb in Rawlins, Wyoming is approximately $185,000-$220,000. Property purchase costs around $150,000 based on the median home price in this small Wyoming town of about 9,000 residents. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for essential furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$3,000. Permits and fees are minimal in Carbon County, typically $200-$500 for business licenses and short-term rental permits. Insurance including liability and property coverage specifically for short-term rentals costs $1,200-$1,800 annually. Monthly utilities including electricity, gas, water, internet, and cable average $200-$300 per month. First six months of operating costs including utilities ($1,500), cleaning supplies and services ($600), maintenance reserves ($800), marketing ($300), and platform fees on estimated bookings ($1,200) total approximately $4,400. Additional startup reserves of $15,000-$20,000 are recommended for unexpected repairs, vacancy periods, and working capital during the initial months of operation.

Airbnb properties in Rawlins, Wyoming typically generate modest returns due to the town's small population of approximately 8,800 and limited tourism infrastructure, with average nightly rates ranging from $65-$95 for entire homes and occupancy rates averaging 35-45% annually. Properties near the Wyoming Frontier Prison Museum or along Interstate 80 corridor perform better, generating gross revenues of $8,000-$15,000 annually, while expenses including mortgage, utilities, cleaning, and maintenance typically consume 60-75% of gross income, resulting in net profit margins of 15-25% for debt-free properties. Success factors include targeting business travelers, hunters during fall season, and families visiting the prison museum, with properties featuring amenities like full kitchens, parking, and pet-friendly policies commanding premium rates. A typical 3-bedroom home purchased for $180,000 might generate $12,000 in annual gross revenue with $8,500 in expenses, yielding approximately $3,500 in net profit, representing a 1.9% return on investment, making Rawlins a challenging market compared to more established tourist destinations in Wyoming like Jackson or Cody.

Airbnb investments in Rawlins, Wyoming 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 outdoor recreation areas and its role as a stopover for travelers on Interstate 80. Properties in Rawlins generally reach profitability within 18-24 months, with average daily rates of $85-120 and occupancy rates of 45-60% annually, supported by consistent demand from hunters, fishermen, and tourists visiting nearby attractions like the Medicine Bow National Forest and Seminoe State Park. The market benefits from limited hotel inventory and growing interest in authentic Western experiences, though seasonal fluctuations mean stronger performance during summer months (June-September) and hunting seasons, with winter months showing reduced occupancy that impacts overall returns.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Rawlins, Wyoming, using data analytics and market insights. Local real estate agents like those at Century 21 BHJ Realty and Rawlins Real Estate Company have experience with investment properties in the area and understand the local vacation rental market dynamics. National services including Mashvisor, AirDNA, and BiggerPockets provide market analysis and property search tools for Rawlins STR investments. RedAwning and Vacasa offer property management services that can help investors evaluate potential returns on Airbnb properties in the region. Local property management companies such as High Plains Property Management and Wyoming Property Solutions can provide insights into rental demand and help manage short-term rental operations. Real estate investment firms like Roofstock and Awning (formerly known as RedAwning's investment arm) occasionally feature Wyoming properties including those in smaller markets like Rawlins. Additionally, local contractors and renovation specialists familiar with converting properties for short-term rentals can be found through the Rawlins Chamber of Commerce, while platforms like VRBO and Airbnb's own host resources provide market data for the Carbon County area.