Mammoth Lakes, California, has long been a sought-after destination for outdoor enthusiasts, offering world-class skiing, hiking, and year-round adventure. But beyond its appeal as a travel destination, Mammoth Lakes is also a lucrative market for real estate investors—particularly those looking to capitalize on the short-term rental (STR) industry. With strong tourism numbers, high occupancy rates, and rising property values, investing in Mammoth Lakes vacation rentals can provide a steady stream of passive income and long-term appreciation.
Why Invest in Mammoth Lakes Real Estate?
Mammoth Lakes is one of California’s top mountain resort towns, attracting more than 2.8 million visitors annually. Its proximity to Los Angeles (approximately 5 hours by car or a 1-hour flight) makes it a convenient getaway for city dwellers looking for a retreat in the Sierra Nevada mountains.
Additionally, the town’s commitment to infrastructure improvements—including airport expansion plans and enhanced resort amenities—continues to drive property values and rental demand.
Historical Growth of Mammoth Lakes Real Estate
Mammoth Lakes real estate has shown consistent appreciation over the past decade. According to data from Zillow, the median home price in Mammoth Lakes was $1.1 million as of early 2024, reflecting a 12% year-over-year increase. This upward trend has been largely fueled by:
- Increased demand for vacation rentals.
- The town’s limited land availability, which restricts new development.
- A growing number of remote workers relocating to mountain towns.
Short-Term Rental Performance in Mammoth Lakes
Vacation rentals in Mammoth Lakes perform exceptionally well compared to many other STR markets. Here are some key performance metrics:
- Average Nightly Rate (ANR): $300–$600 per night, depending on property size and season.
- Occupancy Rate: 60%–85%, with peak months in winter (December–March) and summer (June–August).
- Annual Revenue Potential: A well-managed, 2-bedroom condo can generate between $50,000 and $100,000 per year, while larger homes can exceed $150,000 annually.
Mammoth Lakes has an average rental yield of 7%–10%, making it a competitive investment compared to other mountain resort towns like Lake Tahoe and Aspen.
Understanding Mammoth Lakes’ Short-Term Rental Market
Before investing, it’s crucial to understand the town’s regulations for short-term rentals. Mammoth Lakes allows STRs in designated zones, but properties must be registered and adhere to the town’s Transient Occupancy Tax (TOT), which is 14% of nightly rental revenue. Additionally, Mammoth Lakes has been proactive in balancing tourism with community needs, implementing caps on rental permits in certain areas to prevent oversaturation.
Types of Properties That Perform Best
Investors should focus on properties that cater to both winter and summer visitors. The most profitable rental types include:
- Ski-in/Ski-out Condos – These command premium pricing due to their proximity to Mammoth Mountain ski lifts.
- Luxury Cabins with Hot Tubs – High-end rentals with amenities like hot tubs, fireplaces, and mountain views perform exceptionally well.
- Larger Homes (4+ Bedrooms) – Ideal for groups and families, these properties have high occupancy rates and generate significant revenue during peak seasons.
Cost Considerations & ROI
Upfront Costs
- Property Price: $800,000 – $2.5 million (depending on size and location).
- Furnishing & Setup: $30,000 – $75,000 for high-end, guest-friendly furnishings.
- Property Management Fees: 20%–30% of rental revenue if using a professional management company.
Ongoing Expenses
- Property Taxes: Typically 1.1% of the assessed value.
- HOA Fees: Range from $300 to $1,000 per month for condos.
- Maintenance & Utilities: Estimated at $500 – $1,500 per month, depending on the property.
Comparing Mammoth Lakes to Other Short-Term Rental Markets
| Market | Median Home Price (2024) | Average Nightly Rate | Annual Occupancy Rate | Avg. Revenue Potential |
|---|---|---|---|---|
| Mammoth Lakes, CA | $1.1M | $300–$600 | 60%–85% | $50K–$150K |
| Lake Tahoe, CA/NV | $1.2M | $250–$500 | 55%–80% | $45K–$130K |
| Park City, UT | $1.5M | $350–$700 | 65%–85% | $70K–$200K |
| Aspen, CO | $2.5M+ | $500–$1,200 | 50%–75% | $100K–$300K |
Mammoth Lakes remains one of the most affordable ski resort markets while offering strong rental income potential, making it an attractive investment for both new and experienced investors.
Tips for Maximizing Your Investment
- Optimize for Year-Round Bookings: Offer seasonal amenities such as ski storage for winter guests and hiking/biking gear for summer visitors.
- Professional Photography & Marketing: High-quality listings with strong visuals and compelling descriptions increase occupancy.
- Dynamic Pricing Strategies: Use software like Beyond Pricing or PriceLabs to adjust rates based on demand.
- Consider Property Management: Hiring a professional manager can streamline operations and maximize revenue, especially for remote investors.
Conclusion: Is Mammoth Lakes a Good Investment for Short-Term Rentals?
Mammoth Lakes remains a top-tier destination for STR investments due to its consistent tourism, strong rental demand, and rising property values. While initial costs may be high, the potential for strong cash flow and long-term appreciation makes it a compelling market for investors.
With proper research, the right property, and effective management, an investment in Mammoth Lakes can provide strong returns and a profitable, sustainable income stream for years to come.
Thinking About Investing?
If you’re considering purchasing a vacation rental in Mammoth Lakes, working with a knowledgeable local real estate agent and a reputable property management company can help you navigate the market and maximize your investment. Contact us here if you’re looking to either purchase a home or would like to know how much revenue your home could be making you!
