Encampment has six motel rooms, about 450 residents and a long-running shortage of homes that local workers can afford. Now the little Carbon County town is trying to decide what to do about short-term rentals, and it isn't easy.
The Town Council adopted a moratorium on new conditional-use permits for short-term rentals in October 2025, Bigfoot 99 Radio reported. It came after a string of applications arrived at once. Councilman Steve Reichert, who also chairs the Planning Commission, said three or four came in together, which spooked some residents and led to calls for an outright ban.
Bigfoot 99 reported that 15 properties hold short-term rental permits, though some aren't currently for rent, and that no one has applied since the moratorium took effect.
Looking to Jackson
At an Aug. 20 workshop, council members and planning commissioners agreed the town's ordinances need to change. Planning Commission member Carl Lembke said the town's attorney advised replacing the moratorium with a formal ordinance and keeping property-rights liability in mind.
That would mean amending two parts of the town code: the section on continuing existing uses and the section on conditional uses. Today, a conditional-use permit for a short-term rental stays with the property when it's sold. Lembke suggested tying the permit to the owner instead. Others at the workshop floated an annual license with a renewal fee, occupancy limits, regular safety-equipment checks and requiring lodging-tax registration before a permit is issued.
Any ordinance change has to pass three readings at three separate public hearings.
Town officials have pointed to Jackson as a possible model, Cowboy State Daily reported on Oct. 7. In Jackson's residential areas outside its lodging overlay and resort district, short-term rentals are limited to three separate stays and no more than 60 nights a year. Encampment hasn't said which parts of Jackson's rules it might borrow. Reichert said another town meeting was set for Thursday, Oct. 8, where the topic could come up again.
The comparison hasn't gone over well with everyone. "We are NOT Jackson," longtime resident Mary Martin wrote in a Facebook post. Martin, who has lived in Encampment for 46 years, said the housing shortage is decades older than Airbnb. She argues that restrictions won't turn vacation homes into year-round housing. They'll just leave them empty.
A divided town
Reichert said the town is struggling to reach any consensus, and some meetings have turned into shouting matches. He'd rather tweak the application process and keep allowing rentals, partly because the town needs more lodging for visitors. "There's maybe 15 of them we know of in the town," he said.
Councilwoman Susan Munson, who has mostly opposed restrictions, said the town is still early in the process. She sees the housing shortage as part of a statewide and national trend and doesn't think limiting rentals will change much. Cowboy State Daily said it couldn't reach supporters of tighter rules or Mayor Shannon Fagan.
Data from AirDNA supplied to Cowboy State Daily showed the number of rentals within town limits fell from eight to seven over the past year. The surrounding area kept growing. It averaged 21 active listings a month from October 2025 through September 2026, up 11.5%. Rental revenue rose 31.5% to about $609,000, booked nights climbed nearly 27% and occupancy reached about 56%.
Reichert pointed to another force: buyers who sold homes in pricier places. "The price of real estate in this little town anymore is just unreal," he said. Some new homes are being built, he said, but not at prices a beginning teacher or law enforcement officer can afford.
Why it matters for Contractors
For builders in the area, Encampment's debate is a reminder that the housing shortage there isn't just about rentals. It's about what gets built and who can afford it. Reichert said new homes are going up, just not at prices local workers can pay. Contractors who can deliver smaller, simpler homes at lower price points may have a market that nobody is filling.
The rules themselves could affect remodel work. If the town adopts licensing, occupancy limits and safety checks, existing rental owners may need safety-equipment upgrades to pass inspections. If permits get tied to owners instead of properties, buyers may think twice before paying a premium for a rental-ready house, which could change what investors ask builders to put up.
Contractors who work in Encampment should follow the ordinance as it moves through its three hearings. Builders see firsthand who's buying and who's left out.