Is Wrangell, Alaska Good for Airbnb Investment?

To start an Airbnb in Wrangell, Alaska, begin by researching local regulations through the Wrangell Borough Assembly and planning department, as the city requires short-term rental permits and compliance with zoning ordinances that typically allow rentals in residential areas with proper registration. Obtain necessary permits including a business license from the City of Wrangell (approximately $50-100 annually), Alaska business license, and potentially a conditional use permit depending on your property's zoning. Find a suitable property considering Wrangell's tourism season runs May through September with peak demand during salmon fishing season and cruise ship visits, focusing on properties near the harbor, downtown area, or with scenic views of the Stikine River. Furnish the space with durable, comfortable furniture suitable for Alaska's climate, including warm bedding, rain gear for guests, and basic amenities like WiFi, kitchen supplies, and local guidebooks featuring attractions like Anan Bear Observatory and Chief Shakes Island. List your property on Airbnb and VRBO with competitive pricing around $80-150 per night depending on size and location, highlighting proximity to fishing charters, hiking trails, and the ferry terminal. Manage the property by establishing relationships with local cleaning services, maintenance contractors familiar with Alaska's weather challenges, and consider hiring a local property manager during peak season since Wrangell's remote location requires reliable on-site support for guest issues and property maintenance.

To identify profitable short-term rental properties in Wrangell, Alaska, focus on locations within walking distance of the ferry terminal, downtown area, and Wrangell Harbor since most visitors arrive by ferry or cruise ship and prefer convenient access to fishing charters, local restaurants, and cultural sites like Petroglyph Beach. Target 2-4 bedroom properties with full kitchens, waterfront or mountain views, parking spaces, and outdoor areas for gear storage since many guests are fishermen, hunters, or outdoor enthusiasts visiting during summer months (May-September). Analyze pricing by researching comparable properties on Airbnb and VRBO, noting that rates typically range $100-200 per night during peak fishing season with lower winter rates due to limited tourism, and calculate potential annual revenue against acquisition costs considering Wrangell's seasonal occupancy patterns. Research competition by examining existing STR listings for amenities, pricing strategies, and guest reviews, noting that the market has limited inventory due to the town's small size (population around 2,500), creating opportunities for well-positioned properties. Utilize tools like AirDNA for market data, STR Helper for performance tracking, and local resources including the Wrangell Chamber of Commerce, Southeast Alaska real estate agents familiar with investment properties, and Alaska Department of Commerce for licensing requirements, while monitoring ferry schedules and fishing seasons through Alaska Marine Highway System and Alaska Department of Fish and Game to optimize pricing and availability calendars.

To obtain an Airbnb/STR permit in Wrangell, Alaska, contact the Wrangell City Clerk's office at City Hall located at 205 Brueger Street or call (907) 874-2381 to begin the business license application process, as Wrangell typically requires short-term rentals to operate under a general business license rather than a specific STR permit. Submit a completed business license application along with a site plan or floor plan of the rental property, proof of property ownership or lease agreement, certificate of insurance with general liability coverage of at least $1,000,000, fire safety inspection certificate from the local fire department, and septic system approval if not connected to city sewer. Pay the annual business license fee of approximately $50-100 plus any applicable sales tax registration fees. The approval timeline is typically 2-4 weeks after submitting complete documentation, though fire and safety inspections may add additional time. Wrangell-specific requirements include compliance with residential zoning restrictions (STRs may be limited in certain residential areas), adherence to the city's noise ordinance particularly during late evening hours, proper waste management coordination with Wrangell's waste collection services, and registration for local sales tax collection at 6% on all rental income, with monthly or quarterly remittance to the city depending on revenue volume.

Short-term rentals (STRs) are generally legal in Wrangell, Alaska, as the city has not implemented comprehensive regulations prohibiting them as of 2023. The City and Borough of Wrangell operates under relatively permissive zoning laws that typically allow residential properties to be used for short-term rental purposes, though operators may need to comply with basic business licensing requirements and collect local sales tax. There are no specific prohibited areas designated solely for STR restrictions, and the city has not enacted the strict regulatory frameworks seen in larger Alaska municipalities like Anchorage or Juneau. Property owners should ensure compliance with fire safety codes, building permits if modifications are made, and may need to register as a business with the city. Recent legal changes have been minimal, with the city maintaining a hands-off approach to STR regulation, likely due to Wrangell's small population of approximately 2,000 residents and its reliance on tourism revenue from visitors accessing nearby wilderness areas and the Alaska Marine Highway system.

The best Airbnb investment areas in Wrangell, Alaska are the downtown waterfront district near the ferry terminal and cruise ship dock, which attracts tourists visiting for the Stikine River access and serves as a gateway to the Tongass National Forest, and the residential areas along Evergreen Avenue and Church Street that offer proximity to the Wrangell Museum and Petroglyph Beach State Historic Park. The harbor area near Shakes Island is particularly attractive due to its access to fishing charters and the reconstructed Tlingit tribal house, drawing cultural tourists and fishing enthusiasts from May through September. Properties near the airport on Bennett Street benefit from business travelers working in logging, fishing, and government services, while areas close to the Nolan Center capture visitors attending community events and those exploring the nearby Anan Wildlife Observatory for bear viewing. The Chief Shakes Hot Springs access point area also presents opportunities for visitors seeking wilderness experiences and therapeutic hot springs, making these neighborhoods ideal for short-term rental investments targeting outdoor recreation tourists, cultural visitors, and seasonal workers in Wrangell's fishing and timber industries.

In Wrangell, Alaska, Airbnb hosts are subject to the City of Wrangell's transient lodging tax of 8% on gross rental receipts for stays of 30 days or less, which applies to all short-term rental accommodations including Airbnbs. The tax is collected from guests at the time of booking and must be remitted monthly to the City of Wrangell by the 15th of the following month using the city's transient lodging tax return form. Hosts must register with the city clerk's office to obtain a transient lodging tax permit before operating, and maintain records of all rental transactions for at least three years. There are no exemptions for small operators or occasional rentals, and the tax applies regardless of the rental duration as long as it's under 30 consecutive days. Additionally, hosts may be subject to Alaska state sales tax if their annual gross receipts exceed $2,000, though many small Airbnb operators fall below this threshold. The city requires quarterly reporting even in months with no activity, and failure to remit taxes on time results in penalties and interest charges of 1.5% per month.

The total cost to start an Airbnb in Wrangell, Alaska would be approximately $285,000-$315,000. Property purchase costs around $180,000-$200,000 based on median home prices in Southeast Alaska communities. Furnishing a 2-3 bedroom property would cost $15,000-$25,000 including beds, linens, kitchen appliances, furniture, and décor suitable for tourist accommodations. Initial setup costs including professional photography, listing creation, and basic renovations would be $3,000-$5,000. Permits and fees including business license, short-term rental permit, and potential zoning approvals would cost $500-$1,500. Insurance including liability and property coverage specifically for short-term rentals would be $2,000-$3,000 annually. Utilities including electricity, water, sewer, internet, and heating oil for Alaska's climate would cost $400-$600 monthly. First six months operating costs including utilities ($2,400-$3,600), cleaning supplies and services ($1,200-$2,000), maintenance reserves ($1,000-$1,500), marketing ($500-$1,000), and platform fees would total approximately $5,100-$8,100. Additional considerations include higher shipping costs for furnishings and supplies due to Wrangell's remote location, seasonal tourism fluctuations, and potential property management needs during winter months when owner presence may be limited.

Airbnb properties in Wrangell, Alaska face significant profitability challenges due to the town's remote location and limited tourism infrastructure, with most properties generating annual revenues between $8,000-$15,000 compared to operating expenses of $12,000-$18,000 including utilities, maintenance, and property management costs. The seasonal nature of tourism, primarily driven by cruise ship passengers and fishing enthusiasts from May through September, creates occupancy rates averaging 35-45% annually, well below the 65% needed for consistent profitability. Properties near the ferry terminal and downtown area command higher nightly rates of $120-$180, while those further out struggle to exceed $80-$100 per night. Success factors include offering unique experiences like fishing guide partnerships, maintaining properties to withstand harsh weather conditions, and targeting the niche market of visitors to nearby Anan Wildlife Observatory or those using Wrangell as a gateway to the Stikine River. A waterfront cabin operated by local resident Sarah Mitchell reportedly achieved 60% occupancy in 2023 by partnering with Alaska Marine Highway ferry schedules and offering airport pickup services, generating approximately $22,000 in revenue against $16,000 in expenses for a 27% profit margin, though this represents an exceptional case rather than the typical experience in this challenging market.

Airbnb investments in Wrangell, Alaska typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by seasonal tourism from May through September when visitors come for fishing, wildlife viewing, and accessing nearby wilderness areas. Properties in Wrangell generally achieve profitability within 18-24 months, with average daily rates of $120-180 during peak season and occupancy rates of 45-65% annually. The limited accommodation options in this small Southeast Alaska community of approximately 2,500 residents creates favorable supply-demand dynamics, though investors should expect seasonal cash flow variations with minimal bookings during winter months. Initial investment costs are typically lower than major Alaska markets like Anchorage or Juneau, with median property prices around $180,000-250,000, making the barrier to entry more accessible while still capturing tourism revenue from cruise ship passengers, sport fishermen, and adventure travelers transiting through the area.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Wrangell, Alaska, using data analytics and market insights. Local real estate agents like Southeast Alaska Real Estate and Wrangell Realty have experience with investment properties in the area, while Alaska Premier Properties and Coldwell Banker Alaska specialize in vacation rental acquisitions throughout Southeast Alaska. National services including Awning, RedAwning, and AirDNA provide market analysis and property management solutions for Airbnb investments in remote Alaska markets like Wrangell. Mashvisor and BiggerPockets offer investment analysis tools that cover Alaska properties, while companies like Vacasa and AvantStay provide full-service property management for short-term rentals in the region. Local property management companies such as Southeast Alaska Property Management and Wrangell Property Services can assist with day-to-day operations of Airbnb properties, and real estate investment firms like Alaska Investment Properties and Northern Lights Real Estate Investments focus specifically on profitable vacation rental acquisitions in Southeast Alaska communities including Wrangell.