Is Sheridan, Wyoming Good for Airbnb Investment?

To start an Airbnb in Sheridan, Wyoming, begin by researching local regulations through the Sheridan City Planning Department and Sheridan County offices, as Wyoming generally has fewer restrictions than major cities but may require business licenses and compliance with zoning laws for short-term rentals. Obtain necessary permits including a Wyoming business license through the Secretary of State's office (approximately $100-200), potential city business license from Sheridan City Hall, and ensure compliance with fire safety codes and building inspections. Find a suitable property by working with local real estate agents like Century 21 BHC Realty or Sheridan Real Estate, focusing on areas near downtown Sheridan, the Historic Sheridan Inn, or properties with mountain views that attract tourists visiting the Bighorn Mountains. Furnish the property with Western/rustic décor appropriate to Wyoming's aesthetic, including quality bedding, kitchen essentials, WiFi, and outdoor furniture for patios, sourcing items from local stores like Walmart Supercenter or online retailers, budgeting $5,000-15,000 for a complete setup. List your property on Airbnb, VRBO, and Booking.com with professional photos highlighting mountain views and proximity to attractions like the King's Saddlery Museum and Bighorn National Forest, setting competitive rates around $80-150 per night based on local market analysis. Manage the property by establishing cleaning protocols with local services like Sheridan Cleaning Company, implementing self-check-in systems, maintaining responsive communication with guests, and ensuring compliance with Wyoming's 4% state sales tax and any applicable local lodging taxes while keeping detailed records for tax purposes.

To identify profitable STR properties in Sheridan, Wyoming, focus on locations within 10-15 minutes of downtown Sheridan's historic Main Street district, near outdoor recreation access points like the Bighorn National Forest entrances, or properties with mountain views and proximity to fishing areas along the Tongue River. Target 2-4 bedroom properties built after 1980 with updated kitchens, reliable heating systems for harsh winters, outdoor spaces like decks or patios, and unique features such as rustic charm or modern mountain aesthetics that appeal to tourists visiting for hunting, fishing, and outdoor adventures. Conduct pricing analysis by researching comparable STR properties on Airbnb and VRBO within a 20-mile radius, aiming for properties that can command $150-300 per night depending on size and amenities, while ensuring purchase prices allow for 15-20% annual returns after expenses. Research competition by analyzing occupancy rates and pricing strategies of existing STRs in Sheridan, noting that the market experiences peak demand during summer months (June-September) and hunting seasons, with lower winter occupancy requiring competitive pricing. Utilize tools like AirDNA for market analysis, Mashvisor for investment property evaluation, and local resources including the Sheridan County Chamber of Commerce for tourism data, local real estate agents familiar with STR regulations, and Wyoming's relatively STR-friendly regulatory environment to identify properties that can capitalize on Sheridan's growing tourism industry driven by outdoor recreation and proximity to Yellowstone National Park.

To obtain an Airbnb/STR permit in Sheridan, Wyoming, you must first contact the Sheridan City Planning Department at City Hall located at 55 North Gould Street to determine if short-term rentals are permitted in your specific zoning district, as residential zones may have restrictions. Submit an application for a Conditional Use Permit or Business License (estimated $150-300 fee) along with required documents including property deed, site plan showing parking and access, proof of liability insurance (minimum $1 million coverage), floor plans indicating maximum occupancy, and a management plan detailing noise control and guest supervision procedures. Sheridan typically requires STRs to maintain off-street parking for each rental unit, limit occupancy to 2 people per bedroom plus 2 additional guests, prohibit events or parties, and designate a local contact person available 24/7 for neighbor concerns. The application process generally takes 30-60 days including a public hearing before the Planning Commission, and you may need to notify adjacent property owners within 200 feet of your intent to operate a short-term rental. Once approved, you must also obtain a Wyoming state business license and register for local lodging taxes, with annual permit renewals required along with compliance inspections to ensure adherence to fire safety codes and occupancy limits.

Short-term rentals (STRs) are generally legal in Sheridan, Wyoming, as the city does not have comprehensive regulations specifically prohibiting them as of 2023. However, STR operators must comply with standard business licensing requirements and zoning regulations that may restrict commercial activities in certain residential areas. The city requires STR operators to obtain a business license and comply with health and safety codes, fire safety requirements, and occupancy limits. Some residential neighborhoods may have deed restrictions or homeowners association rules that limit short-term rental activities. Wyoming state law generally favors property rights and allows municipalities to regulate but not ban STRs outright, though Sheridan has not implemented the detailed regulatory frameworks seen in larger cities like Jackson. Recent discussions at the city council level have focused on potential registration requirements and tax collection mechanisms, but no major restrictive legislation has been enacted specifically targeting short-term rentals in Sheridan as of late 2023.

The best areas for Airbnb investment in Sheridan, Wyoming include the Historic Downtown District, which attracts tourists visiting the WYO Performing Arts Center, local museums, and western heritage sites, plus business travelers attending conferences and meetings at downtown venues. The South Sheridan residential area near the Big Horn Mountains foothills is ideal for outdoor enthusiasts accessing hiking, fishing, and hunting opportunities, particularly during summer and fall seasons. The area around Sheridan College draws visitors for sporting events, graduations, and academic conferences throughout the year. Properties near the Sheridan County Airport and along the I-90 corridor capture business travelers and tourists passing through to Yellowstone National Park (90 minutes away) or the Black Hills. The neighborhoods surrounding Kendrick Park and the Sheridan Recreation District benefit from families attending youth sports tournaments and events at the various athletic facilities, while the historic residential areas near Trail End State Historic Site appeal to heritage tourists and visitors attending the annual Sheridan WYO Rodeo in July, which draws approximately 15,000 visitors annually.

In Sheridan, 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. Sheridan County imposes an additional 2% lodging tax, bringing the total occupancy tax rate to 6%. The City of Sheridan also levies a 2% city lodging tax, making the combined rate approximately 8% for short-term rentals within city limits. These taxes are typically collected from guests at the time of booking through Airbnb's automated tax collection system, which remits payments directly to the Wyoming Department of Revenue on a monthly basis. Property owners who collect taxes independently must register with the state and file monthly returns by the 20th of the following month, remitting payments to the Wyoming Department of Revenue and applicable local jurisdictions. Exemptions generally include stays of 30 days or longer, government employees on official business, and certain nonprofit organization bookings, though documentation may be required to qualify for these exemptions.

To start an Airbnb in Sheridan, Wyoming, expect total costs around $385,000-$425,000. Property purchase represents the largest expense at $320,000-$350,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom setup including furniture, bedding, kitchenware, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic marketing materials run approximately $1,500-$2,500. Permits and fees vary but budget $500-$1,200 for business licenses, short-term rental permits, and any required inspections depending on local Sheridan regulations. Insurance costs including landlord coverage and short-term rental protection average $2,000-$3,500 annually, so factor $1,000-$1,750 for six months. Utility setup and deposits for electricity, gas, water, internet, and cable typically cost $800-$1,200 initially. First six months operating costs including utilities ($600-$900 monthly), cleaning supplies, maintenance reserves, platform fees to Airbnb/VRBO, and property management if outsourced total approximately $8,000-$12,000. Additional considerations include potential HOA fees, property taxes, and a cash reserve for unexpected repairs or vacancy periods.

Airbnb properties in Sheridan, Wyoming typically generate annual revenues between $15,000-$35,000 for standard 2-3 bedroom homes, with peak summer months (June-August) commanding $120-180 per night due to proximity to Bighorn National Forest and Devils Tower. Operating expenses generally run 40-50% of gross revenue, including property management fees (15-25%), cleaning costs ($75-100 per turnover), utilities ($200-300 monthly), insurance ($1,500-2,500 annually), and maintenance reserves. Properties near downtown Sheridan or with mountain views achieve higher occupancy rates of 60-70% versus 45-55% for standard residential locations. A typical 3-bedroom ranch home purchased for $350,000 in 2022 generates approximately $28,000 annual revenue with $14,000 in expenses, yielding 4% net cash flow before mortgage payments. Success factors include professional photography, responsive guest communication, proximity to outdoor recreation areas, and seasonal pricing strategies that capitalize on hunting season (September-October) and summer tourism. Properties offering unique amenities like hot tubs, fire pits, or ranch experiences command 20-30% premium rates, while those managed by local companies like Big Horn Mountain Properties report average profit margins of 12-18% for well-positioned properties.

Airbnb investments in Sheridan, Wyoming typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, driven by the area's proximity to Bighorn National Forest and seasonal tourism patterns. Properties near downtown Sheridan or with mountain views can achieve higher returns of 12-15% annually, while standard residential properties converted to short-term rentals average 8-10% ROI. Cash-on-cash returns generally fall between 7-9% for most investors, with luxury cabins or unique properties potentially reaching 12-14%. The timeframe to profitability typically ranges from 18-24 months, considering initial renovation costs, furnishing expenses, and market establishment, though well-positioned properties in prime locations near outdoor recreation areas may achieve profitability within 12-15 months. Peak earning months occur during summer (June-August) and hunting seasons, with winter months showing reduced occupancy rates of 40-50% compared to summer peaks of 75-85%, making annual cash flow projections dependent on effective seasonal pricing strategies and property management efficiency.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for Airbnb investors and provides market analysis for areas including Sheridan, Wyoming. In the Sheridan market, local real estate agents like those at Century 21 BHJ Realty, Sheridan Real Estate Group, and RE/MAX Professionals have experience with investment properties and vacation rentals in the area. National services such as Mashvisor, AirDNA, and RedAwning offer market analytics and property identification tools for Sheridan's short-term rental market. Local property management companies like Big Horn Property Management and Sheridan Property Services can assist with identifying investment opportunities while also providing ongoing management services. Additionally, national investment-focused real estate companies such as Roofstock, Awning, and AvantStay have expanded their services to smaller markets like Sheridan, helping investors identify cash-flowing Airbnb properties in this Wyoming mountain town market.