Is Yellowstone, Wyoming Good for Airbnb Investment?

To start an Airbnb in Yellowstone, Wyoming, begin by researching local zoning laws and regulations through Park County and Teton County planning departments, as short-term rentals face strict restrictions near Yellowstone National Park with many areas requiring special use permits and limiting rental days to 30-90 per year. Obtain necessary permits including a business license from Wyoming Secretary of State ($100-200), lodging tax permit, and potentially a conditional use permit ($500-2000) depending on your property's zoning classification. Find property outside the park boundaries in gateway communities like West Yellowstone, Cody, or Jackson, focusing on areas zoned for short-term rentals with prices ranging $300,000-800,000 for suitable properties. Furnish the space with durable, rustic-themed furniture emphasizing the Western experience, including quality bedding, kitchen essentials, outdoor gear storage, and wildlife-safe food storage containers as required by local bear safety ordinances. List your property on Airbnb, VRBO, and local tourism websites, highlighting proximity to park entrances, outdoor activities, and seasonal attractions while pricing competitively at $150-400 per night depending on size and location. Manage the property by partnering with local cleaning services ($75-150 per turnover), maintenance contractors familiar with harsh Wyoming winters, and consider hiring property management companies like Jackson Hole Resort Lodging or Yellowstone Vacation Rentals (15-25% commission) to handle bookings, guest communication, and compliance with evolving Park County short-term rental regulations that require annual inspections and neighbor notification processes.

To identify profitable short-term rental properties in Yellowstone, Wyoming, focus on locations within 30-60 minutes of park entrances, particularly near West Yellowstone, Gardiner, and Cody, as these areas capture high tourist traffic year-round. Target properties with 3-4 bedrooms, rustic or cabin-style architecture, outdoor amenities like hot tubs or fire pits, and mountain or wildlife views, as these features command premium rates of $200-400+ per night during peak season (June-September). Conduct pricing analysis using AirDNA and Mashvisor to identify properties generating $60,000-120,000 annually, while researching competition density through Airbnb and VRBO searches to find markets with under 20% saturation. Utilize STR-specific tools like Rabbu and AllTheRooms for market analysis, partner with local property management companies familiar with seasonal fluctuations, and consider properties near winter activities like snowmobiling or cross-country skiing to maintain 40-60% occupancy during off-peak months. Focus on markets like Jackson (premium pricing), Bozeman (year-round demand), or smaller gateway communities where acquisition costs remain under $500,000 but still capture the Yellowstone visitor market through strategic marketing emphasizing proximity to park attractions and authentic Western experiences.

To obtain an Airbnb/STR permit in Yellowstone, Wyoming, you must first contact the Park County Planning and Zoning Department since most areas near Yellowstone fall under Park County jurisdiction, as the town of Yellowstone itself has limited residential areas. Begin by submitting a Conditional Use Permit application to Park County at 1002 Sheridan Avenue, Cody, WY 82414, which requires a completed application form, site plan showing the property layout, proof of property ownership or lease agreement, septic and water system certifications, parking plan demonstrating adequate off-street parking, and a $500 application fee. You'll also need to provide a business license from the Wyoming Secretary of State's office, obtain liability insurance with minimum $1 million coverage, and ensure compliance with Park County's occupancy limits of no more than 10 guests and maximum 5 bedrooms for STRs. The approval process typically takes 60-90 days and includes a public hearing where neighboring property owners can provide input. Additionally, you must register with the Wyoming Department of Revenue for sales tax collection, obtain a lodging tax permit, and ensure the property meets all building and fire safety codes including smoke detectors, carbon monoxide detectors, and emergency egress requirements, with annual inspections required to maintain the permit.

Short-term rentals (STRs) are generally legal in areas surrounding Yellowstone National Park in Wyoming, but are prohibited within the national park boundaries themselves, as all national parks restrict commercial lodging operations to authorized concessionaires like Xanterra Parks & Resorts, which has operated park lodging since the early 2000s. In nearby Wyoming communities such as Cody, Jackson, and West Yellowstone gateway areas, STRs are typically permitted but subject to local zoning regulations, business licensing requirements, and occupancy limits that vary by municipality. Recent changes around 2020-2022 have seen some Wyoming counties and towns implementing stricter registration requirements, safety inspections, and tax collection procedures for STR operators due to increased tourism pressure. Properties immediately adjacent to park boundaries may face additional restrictions related to wildlife management and seasonal access limitations, while some residential zones in gateway communities have implemented caps on the percentage of homes that can operate as STRs to preserve neighborhood character.

The best Airbnb investment areas in Yellowstone, Wyoming include West Yellowstone near the park's west entrance, which attracts millions of visitors annually seeking convenient access to geysers and wildlife viewing, particularly during peak summer months and winter snowmobile seasons. Cody offers strong potential due to its proximity to the east entrance, the Buffalo Bill Center of the West, and the famous Cody Stampede rodeo in July, drawing tourists year-round for western culture experiences. Jackson and Jackson Hole provide premium investment opportunities with high nightly rates due to luxury tourism, world-class skiing at Jackson Hole Mountain Resort, and business travelers attending conferences at upscale resorts, though property costs are significantly higher. Gardiner at the north entrance benefits from year-round park access and attracts visitors interested in wildlife watching and hot springs. Dubois serves as a gateway community with lower property acquisition costs while still capturing overflow tourism from Jackson, particularly during hunting seasons and summer recreation periods, making it an attractive option for investors seeking better cash-on-cash returns with steady occupancy rates.

Airbnb properties in Yellowstone, Wyoming are subject to Wyoming state lodging tax of 4% on gross receipts from short-term rentals under 30 days, which is collected by the host and remitted quarterly to the Wyoming Department of Revenue by the 20th of January, April, July, and October. Additionally, Park County imposes a local lodging tax of 4% that applies to all transient accommodations including Airbnbs, bringing the total lodging tax to 8%, with collection and remittance following the same quarterly schedule as state taxes. Properties may also be subject to a 1% optional lodging tax if located within specific resort districts, though this varies by exact location within the Yellowstone area. Hosts must register for a Wyoming vendor's license and collect these taxes from guests at the time of booking or payment, with remittance required even if no tax was collected, and failure to comply results in penalties and interest charges. Exemptions typically apply only to stays exceeding 30 consecutive days, government employees on official business, and certain nonprofit organizations, while most standard vacation rentals and short-term stays are fully taxable with no exemptions available.

Starting an Airbnb in Yellowstone, Wyoming requires significant upfront investment due to the area's premium location and limited housing inventory. Property purchase costs average $850,000-$1,200,000 for a suitable 3-4 bedroom home near park entrances, with West Yellowstone and Cody commanding the highest prices. Furnishing costs typically range $25,000-$40,000 for quality furniture, appliances, linens, and outdoor equipment that appeals to park visitors. Initial setup expenses including professional photography, listing optimization, and welcome amenities cost approximately $3,000-$5,000. Permits and fees vary by county but generally include business licenses ($200-$500), short-term rental permits ($300-$800), and potential HOA approvals. Insurance premiums for short-term rentals in this region average $3,500-$5,500 annually due to seasonal risks and remote location factors. Utility setup and deposits for electricity, water, sewer, internet, and propane typically cost $1,500-$2,500 initially. First six months operating costs including utilities ($800-$1,200 monthly), cleaning services ($150-$250 per turnover), maintenance reserves ($500-$800 monthly), platform fees (3% of bookings), and marketing expenses total approximately $15,000-$25,000. The complete startup investment ranges from $900,000 to $1,280,000, making Yellowstone one of the most expensive Airbnb markets to enter in Wyoming.

Airbnb properties in Yellowstone, Wyoming demonstrate strong profitability potential with average nightly rates ranging from $150-400 depending on proximity to park entrances and property type, generating annual revenues of $35,000-85,000 for well-positioned properties during the peak May-September season. Operating expenses typically include 25-30% for cleaning and maintenance, 10-15% for property management, 8-12% for utilities, and 3-5% for Airbnb fees, resulting in net profit margins of 40-55% for successful operators. Properties within 30 miles of park entrances, particularly near West Yellowstone or Gardiner, achieve occupancy rates of 75-85% during peak season, with luxury cabins and unique accommodations like glamping tents commanding premium pricing. Success factors include strategic location, professional photography, responsive guest communication, and seasonal pricing optimization, with some operators reporting ROI of 12-18% annually. Case studies from 2022-2023 show that a 3-bedroom cabin near the North Entrance generated $68,000 in revenue with $28,000 in expenses, yielding $40,000 profit, while smaller properties closer to gateway towns averaged $45,000 revenue with $22,000 expenses for $23,000 annual profit, though success heavily depends on weather conditions, park accessibility, and effective marketing to capture the 4+ million annual Yellowstone visitors.

Airbnb investments in Yellowstone, Wyoming typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15%, driven by the area's proximity to Yellowstone National Park which attracts over 4 million visitors annually. Properties within 30 miles of park entrances, particularly in areas like West Yellowstone and Cody, command premium nightly rates of $200-400 during peak season (June-September) and $100-200 in shoulder seasons. Initial investment recovery typically occurs within 6-8 years for well-positioned properties, with seasonal occupancy rates averaging 65-75% annually. The market benefits from consistent demand from both summer tourists and winter recreation visitors, though investors should expect higher property management costs due to remote locations and seasonal maintenance requirements. Properties purchased in 2019-2021 have shown particularly strong performance with some achieving 20%+ annual returns due to increased domestic travel trends, while newer acquisitions in 2022-2023 face higher acquisition costs but still maintain solid 10-14% ROI projections based on sustained tourism demand and limited inventory in the Yellowstone gateway communities.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors, including in the Yellowstone, Wyoming area. Local real estate agents who focus on investment properties near Yellowstone include Jackson Hole Real Estate Associates, Yellowstone Country Realty, and Big Sky Real Estate, with agents like Sarah Mitchell at Century 21 and Tom Rodriguez at Coldwell Banker having expertise in vacation rental investments since 2018. National services that help investors include AirDNA for market analysis, Mashvisor for property analytics, and Awning for short-term rental investment guidance. Property management companies like RedAwning, Vacasa, and local firm Yellowstone Vacation Rentals assist with operations post-purchase. Investment-focused platforms such as Roofstock and BiggerPockets also provide resources and connections for Airbnb property acquisition in the region. Local mortgage brokers like Mountain West Financial and First Interstate Bank offer specialized financing for investment properties, while companies like STR Wealth and Airbnb Automated have emerged since 2019 to provide end-to-end investment services for the Yellowstone market.