Overview: Are Short-Term Rentals Allowed in Jackson, WY?

Yes, short-term rentals are explicitly allowed in Jackson, Wyoming, but only under very specific and highly regulated conditions. Short-term rentals are defined as the rental of all or a portion of a residential unit such that occupancy is limited to fewer than 30 consecutive days.

However, investors must understand that Jackson operates under a dual regulatory system with vastly different rules depending on location:

• Town of Jackson: Allows short-term rentals in residential areas with strict limitations (effective January 1, 2024)
• Teton County: Prohibits short-term rentals in most residential areas unless located in specific approved developments

This creates a complex regulatory environment where property location within the same general area can mean the difference between a viable STR investment and a prohibited use.

---

How to Start a Short-Term Rental Business in Jackson, WY

Step 1: Determine Your Property's Regulatory Jurisdiction

Your first critical step is identifying whether your property falls under Town of Jackson or Teton County regulations, as the requirements differ dramatically:

Town of Jackson Properties:

• Located within town limits
• Must comply with the new 2024 STR regulations
• Two distinct regulatory zones: inside vs. outside the Lodging Overlay

Teton County Properties:

• Located outside town limits but within county boundaries
• Subject to county LDRs (Land Development Regulations)
• Most residential properties prohibited from STR use

Step 2: Secure Required Authorization

For Town of Jackson Properties:

You must obtain both of the following permits:

1. Business License (from Finance Department)

   • Annual renewal required
   • Can be applied for concurrently with BUP to save time

2. Basic Use Permit (BUP) (from Planning Department)

   • Requirements differ based on location relative to Lodging Overlay
   • Inside Lodging Overlay: Standard BUP, no annual renewal required
   • Outside Lodging Overlay: BUP-Short Term Rentals with annual renewal required

For Teton County Properties:

Short-term rentals are generally prohibited unless your property is located within one of the specifically approved developments:

• The Aspens (condominiums and single-family homes)
• Crescent H "Fish Lodges" (Crescent H lot 8)
• Golf Creek (condominiums only)
• Teton Shadows (condominiums only)
• Jackson Hole Racquet Club Resort Commercial Area (Teton Pines 64 lodging units)
• Spring Creek Ranch (up to 200 units of the 301 dwelling units permitted)
• Teton Village Area I (condominiums and single-family homes)
• Teton Village Area II (condominiums and townhouses)
• Snake River Sporting Club Resort Area II & III
• Jackson Hole Golf & Tennis Resort (cabins only)
• Grand Targhee Resort

If your property is not in one of these approved locations, short-term rental operations are prohibited under county regulations.

---

Required Documents, Permits, Licenses, and Guidelines

Business License Requirements (Town of Jackson)

Application Process:

• Apply through Town's Finance Department
• Must be renewed annually
• Processing time: Up to 30 days
• Application can be submitted concurrently with BUP

Renewal Requirements:

• Annual renewal required
• Information regarding renewals available through Permits & Applications section

Basic Use Permit Requirements

For Properties Inside Lodging Overlay/Planned Resort Zone

Application Process:

• Submit standard BUP application via email to planning@jacksonwy.gov
• Paper applications not accepted
• Town will contact you for payment once application is processed

Required Documents:

• Standard BUP application materials
• No annual renewal required
• No neighbor noticing required

For Properties Outside Lodging Overlay (Residential Zones)

Application Process:

• Must use SmartGov Public Portal (twn-jackson-wy.smartgovcommunity.com/Public/Home)
• No email or paper applications accepted
• Annual renewal required

Required Submittal Materials:

1. Completed Submittal Checklist Form
2. Narrative Description of the intended use
3. Rental Dates and Number of Nights Rented Form (fillable PDF)
   • Must be submitted to planning@jacksonwy.gov for all updates
   • Can be submitted with application or after approval when dates are confirmed
4. Notarized Letter of Authorization or Warranty Deed
5. Notice to Neighbors within 200 feet (including HOA notice if applicable)
6. Parking Plan
7. Floor Plan

Additional Requirements for All Town STR Properties

HOA Compliance:

• If property is within a development with Homeowner's Association, you must provide proof of notification to the HOA regarding intent to operate as STR
• This can be accomplished using the neighbor notification form

Insurance and Safety:

• Standard property insurance required
• Compliance with all applicable building and safety codes assumed

---

Specific Regulations for Short-Term Rentals

Town of Jackson Regulations (Inside Lodging Overlay)

Permitted Uses:

• Short-term rentals are permitted as-of-right
• No annual caps on rental nights or frequency
• No annual renewal requirements for BUP

Operational Requirements:

• Must maintain valid business license
• Standard BUP requirements apply
• No neighbor notification requirements
• Governed by Ordinance 1402 for size restrictions

Town of Jackson Regulations (Outside Lodging Overlay - Residential Zones)

Effective Date: January 1, 2024

Annual Limits:

• Maximum of 3 separate stays per calendar year per housing unit
• Maximum of 60 total rental nights per calendar year per STR unit
• These limits apply to the entire property regardless of number of bedrooms

Zoning Requirements:

• STRs are limited to the following zones:
  • NL-1 to NL-5 (Neighborhood Low Density)
  • NM-1, NM-2 (Neighborhood Medium Density)
  • NH-1 (Neighborhood High Density)
  • R (Rural)
  • MHP (Mobile Home Park)
  • OR (Office Residential)

Neighbor Notification:

• Annual neighbor notification required within 200 feet of STR property
• Required for each year of operation
• Must include notice to HOA if applicable
• Failure to provide timely and accurate rental information to Town may result in permit denial

Permit Expiration and Renewal:

• BUP expires each year on December 31
• Must be renewed annually to continue STR operation
• Renewal requires same submittal materials as new application
• Annual neighbor noticing required for each renewal

Violation Penalties:

• Properties violating STR requirements will not be issued a BUP for minimum five years
• Violations include exceeding annual limits, failing to notify neighbors, or operating without proper permits

Lease Agreement Restrictions:

• Lease agreements for 30 days or more that limit occupancy to less than 30 days (e.g., two-week maximum) are considered short-term leases
• These agreements must comply with all STR requirements listed above

Tax Compliance:

• Operators must comply with all applicable state and local tax requirements
• See tax section below for detailed requirements

Teton County Regulations

Prohibition Status:

• Short-term rentals (rentals for less than 31 days) are prohibited in most residential areas of Teton County
• Only allowed in specifically approved resort and commercial developments

Approved Location Requirements:

• Properties must be within one of the specifically enumerated approved developments
• Each development has specific unit limitations and requirements
• Operators must comply with all development-specific rules and regulations

Accessory Residential Units (ARUs):

• ARUs may only be rented under very limited circumstances:
  • Occupancy limited to persons employed within Teton County, family members, or guests of the family occupying the main house
  • Guests must be free of payment or in-kind services
  • Rental periods must be a minimum of 90 days
• Renting outside these parameters may result in immediate revocation of ARU permit

Family Occupancy Requirements:

• Most homes in Teton County were approved as single-family homes
• When rented long-term, occupants must comply with "family" definition in LDRs
• Family means one or more individuals related by blood, marriage, adoption, or guardianship, or not more than six individuals not so related, occupying a dwelling unit and living as a single housekeeping unit

Enforcement and Penalties:

• Violations are forwarded to County Attorney as violations of Teton County Land Development Regulations
• Wyoming Statutes authorize:
  • Abatement of violations
  • Fines up to $750 per offense
  • Each day's continuation of violation constitutes separate offense

---

Tax Requirements and Compliance

State-Level Requirements

Wyoming State Registration:

• STR operators must register with Wyoming Department of Revenue for sales tax license
• Required when not all transactions go through platforms that collect taxes

State Tax Obligations:

• Short-term rental hosts must collect and remit applicable taxes from guests
• File regular tax returns with state authorities

Local Tax Requirements

Marketplace Collection:

• Major booking platforms (Airbnb, Vrbo) are required to collect lodging taxes on behalf of hosts when guests pay through their platforms
• If ALL transactions go through platforms that collect lodging taxes, operators may not need separate registration

Direct Booking Responsibilities:

• If guests book directly with operators (not through platforms), operators are responsible for lodging tax compliance
• Must register with appropriate local tax authorities and collect/remit taxes

Recommended Tax Compliance Approach

Professional Tax Services:

• Consider using specialized services like MyLodgeTax for automated tax compliance
• Services can handle registration, collection, and filing requirements
• Particularly valuable for operators with multiple properties or complex tax situations

Record Keeping:

• Maintain detailed records of all rental income and occupancy
• Track taxes collected and remitted
• Document platform vs. direct booking revenue streams

---

Contact Information for Local Authorities

Town of Jackson Contacts

Planning Department (BUP Applications and Questions):

• Email: planning@jacksonwy.gov
• Phone: 307-733-3932
• Address:
  • Town of Jackson
  • 150 E Pearl Avenue
  • PO Box 1687
  • Jackson, WY 83001
• SmartGov Portal: twn-jackson-wy.smartgovcommunity.com/Public/Home
• Special Instructions:
  • Email applications accepted only for STRs inside Lodging Overlay
  • SmartGov portal required for STRs outside Lodging Overlay
  • Email rental date updates to planning@jacksonwy.gov

Finance Department (Business Licenses):

• Phone: 307-733-3932
• Website: Business Licenses section of town website
• Processing Time: Up to 30 days

General Town Information:

• Phone: 307-733-3932
• Website: www.jacksonwy.gov

Teton County Contacts

Planning & Building Department:

• Phone: 307-732-8200
• Code Compliance: 307-733-3959
• Address:
  • Physical: 200 S Willow Street, Jackson, WY 83001
  • Mailing: P.O. Box 1727, Jackson, WY 83001-1727
• Fax: 307-739-8681
• SmartGov Portal: co-teton-wy.smartgovcommunity.com/Public/Home
• Code Violation Reporting: co-teton-wy.smartgovcommunity.com/CodeEnforcement/CodeEnforcementHome

Violation Reporting:

• Phone: 307-733-3959
• Online Portal: Available through SmartGov Code Enforcement system

State of Wyoming Contacts

Wyoming Department of Revenue:

• Phone: Contact state directly for sales tax registration
• Website: state.wy.us (for department information)

---

Links to Source Pages

Town of Jackson Resources

1. Main STR Information Page: www.jacksonwy.gov/335/Short-Term-Rentals
2. Business Licenses: www.jacksonwy.gov/162/Finance
3. Permits & Applications: www.jacksonwy.gov/325/Permits-Applications
4. Basic Use Permit Information: www.jacksonwy.gov/247/Basic-Use
5. SmartGov Portal: twn-jackson-wy.smartgovcommunity.com/Public/Home
6. Lodging Overlay Map: www.jacksonwy.gov/DocumentCenter/View/378
7. LDR Section 6.1.5: library.municode.com/wy/jackson/codes/land_development_regulations_?nodeId=ART6USSTAPALZO_DIV6.1ALUS_6.1.5LOUS
8. Ordinance 1402: library.municode.com/wy/jackson/munidocs/munidocs?nodeId=773edcde8f503
9. Fee Schedule: library.municode.com/wy/jackson/munidocs/munidocs?nodeId=resolutions

Teton County Resources

1. STR Violations Information: www.tetoncountywy.gov/653/Short-Term-Rental-Violations
2. Planning Uses FAQ: www.tetoncountywy.gov/Faq.aspx?QID=362
3. Code Compliance Portal: co-teton-wy.smartgovcommunity.com/CodeEnforcement/CodeEnforcementHome
4. LDR Section 6.1.4.A: www.jacksontetonplan.com/DocumentCenter/View/1593
5. LDR Section 6.1.5: www.jacksontetonplan.com/DocumentCenter/View/932/Teton-County-Land-Development-Regulations---updated-1521-PDF?bidId=#page=287
6. ARU Regulations: www.jacksontetonplan.com/DocumentCenter/View/932/Teton-County-Land-Development-Regulations---updated-1521-PDF?bidId=#page=318

Supporting Documentation

1. Neighbor Notice Template: www.jacksonwy.gov/DocumentCenter/View/375/Neighbor-Notice-Template-PDF
2. STR Dates Fillable PDF: www.jacksonwy.gov/DocumentCenter/View/7751/Short-Term-Rental-Dates-Fillable-PDF
3. Letter of Authorization: www.jacksonwy.gov/DocumentCenter/View/115/Letter-of-Authorization-PDF
4. BUP Submittal Checklist: www.jacksonwy.gov/DocumentCenter/View/7749/Basic-Use-Permit--STR-Submittal-Checklist-2023
5. SmartGov User Instructions: www.jacksonwy.gov/DocumentCenter/View/7793

News and Analysis Sources

1. Buckrail Article: buckrail.com/town-of-jackson-announces-new-short-term-rental-rules/
2. Avalara Tax Guide: www.avalara.com/mylodgetax/en/blog/2024/02/str-hosts-in-jackson-wyoming-face-new-regulations.html
3. Checkmate Rentals Guide: www.checkmaterentals.com/blog/wyoming-short-term-rental-regulations

---

Critical Investment Considerations

Regulatory Complexity: Jackson's regulatory environment is exceptionally complex, with different rules applying based on exact location. This creates both opportunities and significant risks for investors.

Limited Supply: The strict limitations on STRs in residential zones (3 stays, 60 nights annually) means even permitted properties have severely limited revenue potential compared to traditional STR markets.

Enforcement Risk: Both jurisdictions actively enforce their regulations with significant penalties, including multi-year prohibition periods for violations.

HOA Dependencies: Many properties require HOA approval, creating an additional approval layer that can be difficult to obtain.

Tax Compliance: The dual requirements of state and local taxes, combined with different platform vs. direct booking obligations, create significant administrative complexity.

Market Dynamics: The restrictive regulatory environment, while limiting competition for permitted properties, also severely limits the potential STR market in residential areas, affecting both property values and rental income potential.

Investors should carefully consider whether the significant regulatory burden and limited operational parameters align with their investment objectives and risk tolerance.