Is Alexander, North Dakota Good for Airbnb Investment?

To start an Airbnb in Alexander, North Dakota, begin by researching local zoning laws and regulations through McKenzie County planning department, as Alexander typically falls under county jurisdiction rather than having its own municipal short-term rental ordinances. Contact McKenzie County at (701) 444-3452 to verify if short-term rentals are permitted in your intended location and obtain any required business licenses or permits, which may include a general business license costing approximately $50-100 annually. Find a suitable property by searching local real estate listings through agents familiar with the Bakken oil field area, considering properties near worker housing demand or along Highway 85, with typical purchase prices ranging $150,000-300,000 for suitable homes. Furnish the property with durable, comfortable furniture focusing on functionality for oil field workers or travelers, budgeting $15,000-25,000 for complete furnishing including beds, kitchen essentials, Wi-Fi setup, and basic amenities. List your property on Airbnb, VRBO, and local Facebook groups targeting Bakken area workers, setting competitive rates around $80-150 per night based on local hotel pricing in Williston (30 miles away). Manage the property by establishing relationships with local cleaning services like those in nearby Watford City, installing keyless entry systems, and maintaining responsive communication with guests, while considering property management companies in Williston if you live remotely, though many Alexander Airbnb owners self-manage due to the small community size.

To identify profitable short-term rental properties in Alexander, North Dakota, focus on locations near oil field operations, major highways like US-85, and proximity to Williston (15 miles south) where many oil workers and contractors stay. Target 2-4 bedroom single-family homes or duplexes built after 2010 with full kitchens, laundry facilities, reliable internet, and parking for multiple vehicles, as oil workers often travel in crews and stay for extended periods. Analyze pricing by researching current STR rates in Alexander ($80-150/night) and comparing to nearby Williston ($100-200/night), while calculating potential monthly revenue against mortgage, utilities, and management costs. Research competition using Airbnb and VRBO searches within 25-mile radius, noting that Alexander has limited STR inventory compared to Williston, creating opportunity for well-positioned properties. Utilize tools like AirDNA for market analysis, Mashvisor for investment calculations, and local resources including McKenzie County economic development data, Bakken oil production reports, and networking with local real estate agents familiar with workforce housing demand, while monitoring oil price trends and drilling activity through North Dakota Industrial Commission reports since the market heavily depends on energy sector employment.

To obtain an Airbnb/STR permit in Alexander, North Dakota, you must first contact the Alexander City Hall at 701-828-3274 or visit their office at 109 3rd Avenue West to inquire about short-term rental licensing requirements, as this small city may have recently implemented or be developing STR regulations. You'll likely need to submit a completed business license application, provide proof of property ownership or lease agreement with landlord consent, submit a site plan or floor plan of the rental property, obtain a certificate of occupancy, provide proof of liability insurance (typically $1 million minimum), and pass any required safety inspections including smoke and carbon monoxide detectors. The application fee is estimated at $50-150 annually, with potential additional inspection fees of $25-75. You may also need to register with the North Dakota Tax Commissioner for state lodging tax collection and obtain a North Dakota sales tax permit. The approval timeline typically ranges from 2-6 weeks depending on inspection scheduling and document completeness. Alexander may require compliance with residential zoning restrictions, parking requirements (usually one space per bedroom), occupancy limits based on square footage, and adherence to noise ordinances, so contact the city directly to confirm current requirements as regulations for STRs in smaller North Dakota municipalities are evolving.

Short-term rentals (STRs) are generally legal in Alexander, North Dakota, as the city does not have specific municipal ordinances prohibiting them as of 2024. However, operators must comply with North Dakota state regulations and may need to obtain proper business licenses and collect state sales tax on rental income. The city follows standard zoning regulations where residential properties can typically be used for short-term rentals unless specifically restricted by homeowners associations or deed restrictions. There are no known prohibited areas within Alexander city limits specifically for STRs, though operators should verify compliance with residential zoning requirements and any applicable fire safety codes. Recent legal changes have been minimal at the local level, with most regulatory activity occurring at the state level regarding taxation and business registration requirements. Property owners should check with McKenzie County for any county-level regulations and ensure compliance with state tax obligations through the North Dakota Tax Commissioner's office.

The best areas for Airbnb investment in Alexander, North Dakota are primarily concentrated around the downtown core and residential neighborhoods within 2-3 miles of major oil industry facilities and Highway 85. The downtown Alexander area offers proximity to local businesses, restaurants, and services that attract both short-term workers and travelers passing through on Highway 85. The residential areas along Main Street and the neighborhoods near Alexander Public School are attractive due to their quiet, family-friendly atmosphere while remaining accessible to industrial sites. The western edge of town near agricultural areas appeals to hunting and outdoor recreation visitors, particularly during fall hunting seasons. Areas close to the railroad infrastructure attract business travelers and contractors working on transportation projects. The proximity to the Little Missouri National Grassland makes certain neighborhoods appealing to nature tourists and researchers. Oil field workers represent the primary market, with companies like Hess Corporation, Continental Resources, and Whiting Petroleum maintaining significant operations in the region since the Bakken boom began around 2008, creating consistent demand for temporary housing that traditional hotels cannot fully accommodate.

Alexander, North Dakota does not have a specific municipal lodging tax, but Airbnb hosts are subject to North Dakota state sales tax of 5% on short-term rental income, which is collected by the host and remitted monthly to the North Dakota Tax Commissioner if gross receipts exceed $100 annually. McKenzie County, where Alexander is located, does not impose a separate lodging tax, though some counties in North Dakota have implemented lodging taxes ranging from 2-4%. Hosts must register for a sales tax permit with the state, collect the 5% tax from guests, and file returns by the 15th of the month following the reporting period using Form SFN 10000 or through the state's online portal. There are no specific exemptions for short-term rentals under 30 days, and all transient lodging is subject to the state sales tax requirement, with penalties for non-compliance including interest charges and potential permit revocation.

To start an Airbnb in Alexander, North Dakota, expect total costs around $185,000-$220,000. Property purchase represents the largest expense at approximately $150,000-$180,000 for a median 2-3 bedroom home in this oil boom region. Furnishing costs typically range $8,000-$12,000 including beds, living room furniture, kitchen essentials, linens, and décor to create an attractive rental space. Initial setup costs add $2,000-$3,500 covering professional photography, listing creation, welcome materials, and basic renovations or deep cleaning. Permits and fees total $500-$1,200 including business license, short-term rental permit, and potential HOA approvals. Insurance increases $1,200-$2,400 annually for short-term rental coverage beyond standard homeowner's policy. Utilities average $200-$300 monthly in North Dakota's climate, totaling $1,200-$1,800 for six months of electricity, gas, water, internet, and cable. First six months operating costs add $3,000-$5,000 including cleaning services between guests, maintenance supplies, guest amenities, platform fees to Airbnb and VRBO, marketing expenses, and emergency repair fund. Additional considerations include higher utility costs during harsh winters and potential income fluctuations due to oil industry workforce housing demand in the Bakken region.

Airbnb properties in Alexander, North Dakota, face challenging profitability conditions due to the town's small population of approximately 300 residents and limited tourism infrastructure, with average daily rates typically ranging from $60-90 compared to state averages of $85-120. Properties in Alexander generally generate annual revenues between $8,000-15,000, while expenses including mortgage payments, utilities, cleaning fees, insurance, and maintenance typically consume 70-85% of gross income, resulting in net profit margins of 15-30% at best. The Bakken oil boom period from 2010-2014 created temporary opportunities with higher occupancy rates reaching 60-70% due to worker housing demand, but current occupancy rates have stabilized around 25-40% annually. Success factors include targeting hunting and fishing enthusiasts during fall seasons, marketing to oil field contractors during periodic activity surges, and maintaining properties that can accommodate extended stays, though the limited local amenities and distance from major attractions like Theodore Roosevelt National Park (45 miles away) constrain year-round demand. Properties that have achieved better performance typically offer competitive pricing 10-15% below regional averages, provide reliable internet for remote workers, and maintain flexible cancellation policies to attract the transient workforce that occasionally passes through the area.

Airbnb investments in Alexander, North Dakota typically generate annual ROI of 8-12% due to the town's proximity to oil industry activity in the Bakken formation, with cash-on-cash returns ranging from 6-10% depending on property acquisition costs and financing structure. Properties in Alexander generally reach profitability within 18-24 months, benefiting from consistent demand from oil workers, contractors, and business travelers who prefer short-term rentals over limited hotel options in the area. The market shows seasonal variations with stronger performance during peak drilling months (spring through fall), and investors can expect gross rental yields of 12-16% annually on well-positioned properties near industrial sites, though occupancy rates average 65-75% year-round due to the cyclical nature of energy sector employment in western North Dakota.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Alexander, North Dakota. Local real estate agents like those at Century 21 Morrison Realty and RE/MAX Bakken Realty have experience with investment properties in the Bakken oil region and understand the unique rental dynamics of Alexander. Awning and Mashvisor provide national data analytics and property search services that can help identify profitable Airbnb opportunities in smaller North Dakota markets. RedAwning offers vacation rental investment consulting services that extend to emerging markets like Alexander. Local property management companies such as Bakken Property Management and Western Dakota Property Services can assist with both acquisition and ongoing management of short-term rentals. AirDNA provides market data and analytics specifically for Airbnb investments that covers North Dakota markets including Alexander. Roofstock and Arrived Homes are national platforms that occasionally feature investment properties in North Dakota oil boom towns. Local banks like American State Bank & Trust and Gate City Bank have experience financing investment properties in the region and can provide insights into profitable opportunities.