Is Yosemite, California Good for Airbnb Investment?

Starting an Airbnb in Yosemite, California requires navigating strict regulations due to the area's proximity to Yosemite National Park and environmental protections. Begin by researching Mariposa County's short-term rental ordinances, which typically require a Transient Occupancy Registration Certificate and compliance with zoning laws that may restrict rentals in certain residential areas. Obtain necessary permits including a business license from Mariposa County ($50-150), a TOT (Transient Occupancy Tax) permit for collecting the 10% county tax, and potentially a conditional use permit if your property isn't in a commercially zoned area. Find property within gateway communities like Mariposa, Midpines, or Fish Camp, as properties directly within the national park are prohibited from short-term rentals; expect to pay $400,000-800,000 for suitable properties given the area's premium location. Furnish with rustic, nature-themed decor emphasizing comfort and outdoor gear storage, including essentials like quality bedding, full kitchen amenities, outdoor furniture, and emergency supplies since cell service can be spotty. List on Airbnb and VRBO with professional photography highlighting proximity to park entrances (typically 30-60 minutes), outdoor activities, and seasonal attractions, pricing seasonally from $150-400/night with peak rates during summer months. Manage through local property management companies like Yosemite Region Resorts or self-manage with reliable cleaning services, 24/7 guest communication systems, and partnerships with local tour operators, while maintaining compliance with fire safety regulations and septic system requirements common in the rural mountain area.

For identifying profitable STR properties in Yosemite, California, focus on locations within 30-45 minutes of park entrances, particularly in Groveland, Mariposa, Fish Camp, and Oakhurst, as properties closer to gates command premium rates of $200-400+ per night during peak season (May-September). Target 2-4 bedroom cabins or mountain homes with rustic charm, outdoor amenities like hot tubs, fire pits, and decks, plus modern conveniences including WiFi and full kitchens, as these features can increase occupancy rates to 70-85% annually. Conduct pricing analysis using AirDNA and Mashvisor to identify properties generating $60,000-120,000 annual revenue, with acquisition costs under $500,000-800,000 to maintain healthy cap rates of 8-12%. Research competition through Airbnb, VRBO, and local property management companies like Yosemite Region Resorts and RedAwning to understand market saturation and identify underserved niches. Utilize tools like STR Helper for market analysis, connect with local realtors specializing in vacation rentals such as Century 21 Ditton Realty, and monitor Madera and Mariposa County STR regulations, as both counties require permits and have occupancy limits that affect profitability, with some areas experiencing 60-80% occupancy rates and average daily rates ranging from $150-350 depending on proximity to park entrances and property amenities.

To obtain an Airbnb/STR permit in Yosemite, California, you must apply through Mariposa County since Yosemite Valley falls under county jurisdiction, as the National Park Service prohibits commercial short-term rentals within park boundaries. Contact the Mariposa County Planning Department at 5100 Bullion Street, Mariposa, CA 95338, and submit a Transient Rental Permit application along with required documents including property deed or lease agreement, site plan showing parking and access, septic system certification, fire safety inspection from Mariposa County Fire Department, business license, liability insurance certificate ($1 million minimum), and completed environmental review questionnaire. Pay the application fee of approximately $500-800 plus annual renewal fees of $200-400, and expect a 60-90 day processing timeline including public notice period and potential planning commission review. Specific Yosemite area requirements include maximum occupancy limits based on septic capacity (typically 2 people per bedroom plus 2), mandatory 24/7 local contact person within 30 minutes of property, compliance with fire evacuation procedures, bear-proof storage containers, water conservation measures during drought periods, and adherence to quiet hours from 10 PM to 7 AM due to wildlife protection concerns.

Short-term rentals (STRs) are heavily restricted in and around Yosemite National Park, with the National Park Service prohibiting commercial STR operations within park boundaries since approximately 2019-2020. Within Yosemite National Park itself, only authorized concessionaire accommodations like those operated by Aramark are permitted, and private STR operations are explicitly banned. In the surrounding gateway communities of Mariposa County, STRs are legal but subject to strict regulations including permit requirements, occupancy limits, parking restrictions, and noise ordinances implemented around 2018-2019 to address overtourism concerns. The towns of Mariposa, Midpines, and El Portal have varying local ordinances, with some areas requiring conditional use permits and limiting the total number of STR permits issued. Recent changes have included increased enforcement of existing regulations and stricter application processes, particularly in areas experiencing high visitor density, though complete prohibition has been avoided in most gateway communities due to economic dependence on tourism revenue.

The best areas for Airbnb investment near Yosemite include Mariposa, which serves as the primary gateway town offering year-round tourism access with proximity to the park's main entrance and historic charm dating back to the Gold Rush era. Oakhurst provides excellent investment potential as the southern gateway community with strong tourism infrastructure, restaurants, and shopping, attracting visitors heading to Wawona and Glacier Point. Fish Camp offers premium investment opportunities due to its location just outside the park's southern entrance, home to the popular Yosemite Mountain Sugar Pine Railroad, and provides a mountain cabin experience highly sought by tourists. Groveland, particularly near the Big Oak Flat entrance, attracts investors due to its historic downtown, proximity to Hetch Hetchy, and appeal to visitors exploring the park's northern regions. El Portal, though smaller, offers unique investment potential as an actual gateway community within park boundaries, providing unparalleled access for guests. Bass Lake area, about 30 minutes from the park, provides strong rental demand due to its dual appeal of lake recreation and Yosemite proximity, attracting both park visitors and water sports enthusiasts, making it ideal for year-round bookings and higher rental rates.

Airbnb properties in the Yosemite area of California are subject to multiple lodging taxes that vary by specific location within the region. In Mariposa County, which encompasses much of the Yosemite gateway area, short-term rentals typically face a Transient Occupancy Tax (TOT) of 10-12% collected on gross rental receipts, with Airbnb automatically collecting and remitting these taxes directly to the county since 2018. The City of Mariposa imposes an additional 2% municipal TOT, bringing the total to approximately 14% for properties within city limits. Tuolumne County areas near Yosemite charge a 10% TOT, while Mono County locations on the eastern side impose a 13% rate. California state sales tax of 7.25% plus local district taxes (typically 1-3% additional) also apply to short-term rental stays under 30 days. Property owners must register with their respective county tax collector's office and obtain TOT certificates, though Airbnb's automatic collection system handles most remittance requirements quarterly. Exemptions generally apply to stays exceeding 30 consecutive days, government employees on official business, and certain nonprofit organization bookings, though documentation requirements vary by jurisdiction and hosts remain responsible for verifying exemption eligibility.

Starting an Airbnb in Yosemite, California requires significant upfront investment due to the area's premium location and strict regulations. Property purchase costs average $800,000-$1,200,000 for a suitable cabin or home near Yosemite National Park, with median prices around $950,000 as of 2023. Furnishing costs typically range $25,000-$40,000 for a complete setup including beds, linens, kitchen appliances, outdoor furniture, and decor that appeals to nature-loving guests. Initial setup expenses include professional photography ($500-$1,500), listing creation, and marketing materials totaling approximately $3,000. Permits and fees are substantial, including Mariposa County short-term rental permits ($2,000-$5,000), business licenses ($200-$500), and potential homeowner association fees ($1,000-$3,000 annually). Insurance costs run $3,000-$6,000 annually for comprehensive short-term rental coverage through companies like Proper Insurance or CBIZ. Utilities including electricity, water, internet, and waste management average $300-$500 monthly in the region. First six months operating costs encompass cleaning services ($150-$250 per turnover), maintenance reserves ($2,000), property management software subscriptions ($600), and marketing expenses ($1,500), totaling approximately $8,000-$12,000. The complete startup investment ranges from $990,000 to $1,270,000, making Yosemite one of California's most expensive Airbnb markets to enter.

Airbnb properties near Yosemite, California demonstrate strong profitability potential with average nightly rates ranging from $150-400 depending on proximity to park entrances and property amenities, generating annual revenues of $35,000-85,000 for well-managed properties with 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($75-150 per turnover), property management (15-25% of revenue), utilities ($200-400 monthly), insurance ($2,000-4,000 annually), and maintenance costs averaging $3,000-6,000 yearly. Properties within 30 minutes of Yosemite's gates command premium pricing and achieve profit margins of 25-35%, while those further away see margins of 15-25%. Success factors include strategic location near park entrances like Mariposa or Groveland, distinctive amenities such as hot tubs or mountain views, professional photography, dynamic pricing strategies, and exceptional guest communication. A case study from 2023 showed a 3-bedroom cabin in Midpines generating $72,000 annually with $31,000 in expenses, yielding a 57% profit margin, while Host & Stay property management reported their Yosemite-area portfolio averaging 68% occupancy with $280 average daily rates during peak season (May-September) and $180 during off-season, resulting in typical net profits of $20,000-45,000 annually for standard 2-3 bedroom properties.

Airbnb investments in Yosemite, California typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15%, driven by the area's proximity to Yosemite National Park which attracts over 4 million visitors annually. Properties within 30 miles of the park entrance command premium nightly rates of $200-400 during peak season (May-September) and $120-250 in off-season, with occupancy rates averaging 65-75% year-round. Initial profitability usually occurs within 18-24 months for well-positioned properties, with investors typically requiring $150,000-300,000 in initial capital for suitable vacation rental properties. The market benefits from consistent demand due to Yosemite's status as a UNESCO World Heritage site, though seasonal fluctuations and local regulations in Mariposa and Tuolumne counties can impact returns, with some areas experiencing permit limitations that create supply constraints and support higher rental rates for compliant properties.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors, including those near Yosemite, California. Local real estate agents like Sierra Nevada Properties and Yosemite Real Estate Group have extensive knowledge of the Mariposa and Tuolumne County markets surrounding Yosemite National Park. National services include AirDNA for market analytics, Mashvisor for investment property analysis, and BiggerPockets for investor networking and deal sourcing. Regional companies such as Mountain High Real Estate in Oakhurst and High Sierra Realty in Groveland specialize in vacation rental properties near Yosemite. Additional services include RedAwning for short-term rental management consultation, Vacasa for property management and acquisition advice, and local property management companies like Yosemite Vacation Rentals and Sierra Vacation Rentals that often help investors identify profitable properties in gateway communities like Mariposa, Fish Camp, and El Portal. Investment-focused platforms like Roofstock and Awning also occasionally feature Airbnb-suitable properties in the Yosemite region, while local mortgage brokers and vacation rental consultants provide specialized financing and setup services for investors targeting this high-demand tourist destination market.