Sundance, Wyoming Short Term Rental Regulations Guide for Airbnb hosts

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

Short-term rentals appear to be allowed in Sundance, Wyoming without city-specific restrictions. Based on the available information, Sundance does not have explicit short-term rental ordinances that prohibit STR operations. As the county seat of Crook County with a population of approximately 1,182 residents, Sundance operates under Wyoming's state-level framework, which places primary regulatory authority at the county and municipal levels.

Key Finding: Unlike Jackson or Cody, Sundance has not enacted city-specific STR regulations. This creates a relatively permissive environment for short-term rental operations, though investors must still comply with state tax obligations and should verify any county-level requirements with local authorities.

What do Airbnb hosts actually earn in Sundance?

Sundance hosts earn a median $25,710/year with $214 ADR and 59% occupancy.

Top performers pull in $35,582+ per year.

See the full Sundance market breakdown

How to Start a Short-Term Rental Business in Sundance

Market Positioning Strategy

Sundance's proximity to Devils Tower National Monument and Terry Peak Ski Area positions it as a tourism-friendly market. The town serves as a gateway to outdoor recreation, making it attractive for:

Weekend getaway rentals
Outdoor enthusiast accommodations
Tourism proximate to Devils Tower
Ski season rentals near Terry Peak

Operational Framework

Property Acquisition: Focus on properties in areas suitable for transient lodging
Insurance Compliance: Secure comprehensive short-term rental insurance coverage
Tax Registration: Register for state and local tax obligations
Marketing Preparation: Develop professional listing materials and pricing strategy
Guest Experience: Establish check-in/out procedures and guest communication protocols

Business Setup Timeline

Phase 1: Property acquisition and insurance (2-4 weeks)
Phase 2: Tax registration and permit verification (2-3 weeks)
Phase 3: Property preparation and listing creation (3-4 weeks)
Phase 4: Marketing launch and guest booking management (ongoing)

Required Documents, Permits, Licenses, and Guidelines

State-Level Requirements

Tax Registration:

Wyoming Sales Tax License (4% state sales tax)
Wyoming Lodging Tax Registration (5% state lodging tax)
Local tax registration as applicable to Crook County

Documentation Needed:

Property ownership documents or lease agreement
Business registration (if operating as business entity)
Insurance policy documentation
Tax exemption certificates (if applicable)

Local Compliance

Crook County Requirements:

Verify zoning compliance for STR operations
Confirm any local licensing requirements
Check building and safety code compliance
Review any homeowner association restrictions

Insurance Documentation

Comprehensive short-term rental insurance policy
Liability coverage documentation
Property damage coverage confirmation
Additional endorsements for amenity-related incidents

Specific Regulations: City, County, and State Level

State of Wyoming Regulations

Tax Obligations:

State Sales Tax: 4% on total listing price (including cleaning/guest fees) for stays 29 nights or less
State Lodging Tax: 5% on total listing price for stays 29 nights or less
Local Taxes: Varies by county (typically 1-2% local sales tax + 1-4% local lodging tax)

Regulatory Framework:

No statewide STR-specific regulations
Governed primarily by local jurisdictions
State-level compliance through tax collection and remittance

Crook County Regulations

Current Status: No specific short-term rental regulations identified in provided content.

Potential Considerations:

Zoning compliance for transient lodging
Building and safety code adherence
Local tax collection requirements
Business license obligations (if applicable)

Sundance Municipal Regulations

Current Status: No city-specific short-term rental ordinances identified.

Operational Freedom:

No permits or licenses required specifically for STR operations
Standard business and tax obligations apply
Property must comply with general building and safety codes

Tax Structure for Sundance STR Operations

State Tax Obligations

Wyoming Sales Tax (4%):

Applied to gross receipts from STR operations
Includes accommodation charges, cleaning fees, and guest charges
Remitted monthly or quarterly to Wyoming Department of Revenue

Wyoming Lodging Tax (5%):

Applied to same base as sales tax for stays under 30 days
Additional state-level lodging assessment
Administered through Department of Revenue

Local Tax Considerations

Crook County Local Taxes:

Local sales tax (estimated 1-2% range)
Local lodging tax (estimated 1-4% range)
Verify current rates with Crook County Treasurer

Tax Collection Strategy:

Implement automated tax calculation in booking platform
Maintain detailed records of all transactions
Set aside appropriate percentages for tax remittance
Consult tax professional for complex situations

Contact Information for Local Authorities

Sundance Municipal Contacts

Sundance Town Hall:

Address: Sundance, WY (specific address requires verification)
Phone: Requires verification with local directory
Website: Likely available through Crook County government portal

Crook County Government

Crook County Commissioners:

Address: Crook County Courthouse, Sundance, WY
Phone: Requires verification through county directory
Email: Contact information available through county website

Wyoming Department of Revenue

Taxation Division:

Website: revenue.wyo.gov
Phone: Contact through main department number
Email: Available through official state website

Local Office Verification Needed:

Crook County Treasurer's Office
Local business licensing department
Building and safety compliance office

Important Considerations for STR Investors

Compliance Verification

Zoning Confirmation: Verify STR operations are permitted in target property zone
Insurance Adequacy: Ensure comprehensive coverage for STR-specific risks
Tax Registration: Complete all required state and local tax registrations
Neighbor Relations: Maintain good relationships with surrounding property owners
Property Standards: Meet or exceed safety and cleanliness standards

Risk Management

Legal Considerations:

Monitor for future regulatory changes
Maintain compliance with evolving tax requirements
Consider legal consultation for complex situations
Document all compliance activities

Insurance Coverage:

General liability protection
Property damage coverage
Guest-caused theft and damage
Amenity-related incident coverage
Business interruption protection

Source Documentation

Based on the provided content, the following sources inform this analysis:

Hostaway Wyoming STR Rules Analysis: Airbnb Rules in Wyoming | Laws, Regulations, and Taxes
Steadily Wyoming STR Legal Guide: Airbnb & Short Term Rental Laws and Regulations In Wyoming
Sundance Legal Framework: Provision and Laws in Sundance, WY

Note: For definitive regulatory guidance, investors should verify current requirements with local Sundance and Crook County authorities, as regulations can change and local interpretations may vary.

This analysis is based on available information as of the provided search results. Investors should conduct independent verification of all regulatory requirements before proceeding with short-term rental operations in Sundance, Wyoming.

Next step

Found a property in Sundance?

Paste any address and get estimated revenue, cash-on-cash return, and comparable STR performance in under 5 minutes. 3 free analyses per day.

Ask the AI Advisor about Sundance

Sundance is a small town in Crook County, Wyoming, with a population of roughly 1,000 residents. It serves as the county seat and sits in the Bear Lodge Mountains, a subrange of the larger Black Hills that straddle the Wyoming–South Dakota border. The town has a quiet, frontier-era character, with a compact main street and an open, high-plains feel that reflects its ranching heritage. Sundance is best known for its role in the region's history and as a gateway to some of the most striking natural landmarks in the northern Black Hills. The nearest major city is Rapid City, South Dakota, located approximately 100 miles to the northeast, or about a two-hour drive.

The closest major attraction is Devils Tower National Monument, the country's first designated national monument, an imposing igneous rock formation that rises about 867 feet above the Belle Fourche River. It sits roughly 20 to 25 miles east of Sundance, a drive of about 30 to 40 minutes. Visitors come for the hiking loops around its base, the world-class rock climbing routes on its columnar walls, and its cultural significance to multiple Northern Plains Indigenous nations. The monument's visitor center and nearby campgrounds make it easy to spend a full day exploring the area.

A short drive beyond Devils Tower, the rolling ponderosa pine forests of the Black Hills National Forest extend into Wyoming, offering miles of hiking, horseback riding, and scenic drives. The forest is also popular for wildlife viewing, with elk, deer, and wild turkey common throughout the warmer months. Closer to town, the Bear Lodge Mountains themselves provide quieter alternatives for outdoor recreation, including fishing streams, dispersed camping, and access to the Black Hills scenic byway system.

Sundance carries its own small but genuine dose of Old West history. The town took its name from Harry Longabaugh, the outlaw better known as the Sundance Kid, who was imprisoned in the local jail in 1887 before eventually joining Butch Cassidy's Wild Bunch. The historic Crook County Courthouse still anchors the town center, and the surrounding countryside preserves a sense of the late-nineteenth-century cattle-ranching era. Travelers interested in regional history will find the area layered with tales of outlaws, ranchers, and homesteaders.

For short-term rental owners, Sundance offers a compelling combination of small-town character and access to marquee regional attractions. Its position near Devils Tower and the Black Hills, paired with its quieter, less commercialized feel, makes it an attractive base for travelers who want proximity to major draws without the crowds of the more developed South Dakota destinations.