Is Beach, North Dakota Good for Airbnb Investment?

To start an Airbnb in Beach, North Dakota, begin by researching local zoning laws and contacting the Beach City Hall to understand short-term rental regulations, as many small North Dakota towns require business licenses or special permits for vacation rentals. Obtain necessary permits including a business license from the city (typically $25-50 annually) and register with the North Dakota Tax Commissioner for sales tax collection, as short-term rentals are subject to state lodging taxes. Find a suitable property by searching local real estate listings or consider converting an existing home, keeping in mind that Beach's proximity to the Badlands and Theodore Roosevelt National Park makes it attractive to tourists, with properties near Highway 16 or with prairie views being most desirable. Furnish the space with durable, comfortable furniture focusing on a rustic or western theme that appeals to visitors exploring the area's outdoor attractions, ensuring you include essential amenities like Wi-Fi, heating for harsh winters, and air conditioning for summer months. List your property on Airbnb and other platforms like VRBO, highlighting nearby attractions such as the Little Missouri River, Burning Coal Vein, and proximity to Medora (about 45 minutes away), with competitive pricing around $75-125 per night based on local market rates. Manage your property by establishing relationships with local cleaning services, maintenance contractors, and consider using property management software to handle bookings, communicate with guests, and coordinate turnover between stays, while maintaining compliance with North Dakota's consumer protection laws and keeping detailed records for tax purposes.

For identifying profitable short-term rental properties in Beach, North Dakota, focus on locations within 2-3 miles of the Bakken oil fields and major industrial sites, as this drives consistent business traveler demand year-round with rates averaging $120-180 per night. Target 2-3 bedroom properties built after 1990 with dedicated parking, reliable internet, and basic amenities since oil workers prioritize functionality over luxury. Conduct pricing analysis using AirDNA and compare against local hotels like AmericInn and Super 8 which typically charge $90-130 nightly, allowing STRs to command premium rates. Research competition through Airbnb and VRBO searches revealing limited inventory of 15-25 active listings in the area, creating opportunity for new entrants. Utilize Mashvisor for rental yield analysis, STR Helper for market data, and connect with local property management companies like Western Dakota Property Management who understand the oil industry's seasonal patterns and can provide insights on optimal property locations near Hess, Continental Resources, and other major operators driving accommodation demand in this market.

To obtain an Airbnb/STR permit in Beach, North Dakota, you must first contact the Beach City Hall at 104 Main Street or call (701) 872-4343 to inquire about short-term rental regulations, as this small city of approximately 1,000 residents may have recently implemented or be developing STR ordinances similar to other North Dakota municipalities. You'll likely need to submit a business license application ($25-50 fee), provide proof of property ownership or lease agreement, submit a floor plan of the rental property, obtain liability insurance coverage of at least $1 million, and pass a safety inspection that includes working smoke detectors, carbon monoxide detectors, and fire extinguishers. Additional requirements may include a completed STR permit application ($100-200 fee), tax registration with the North Dakota Tax Commissioner for collecting state and local lodging taxes (currently 7% state tax plus potential local taxes), neighbor notification letters for properties within 200 feet, and parking compliance verification. The timeline typically ranges from 30-60 days after submitting complete documentation, and you may need to attend a city council meeting if your property is in a residential zone, with annual permit renewals required thereafter.

Short-term rentals (STRs) are generally legal in Beach, North Dakota, as the small city of approximately 1,000 residents does not appear to have specific municipal ordinances prohibiting or heavily regulating vacation rentals as of 2024. Beach operates under basic zoning regulations that typically allow residential properties to be used for short-term rental purposes, though property owners must comply with standard business licensing requirements and state tax obligations including North Dakota's 5% state sales tax and any applicable local lodging taxes. The city has not implemented recent restrictions or prohibited areas specifically targeting STRs, likely due to its small size and limited tourism pressure compared to larger North Dakota cities like Fargo or Bismarck. Property owners should verify current zoning compliance and obtain any necessary business licenses from the city, but Beach has not enacted the type of comprehensive STR regulations seen in more tourist-heavy destinations, making it relatively permissive for short-term rental operations within residential zones.

Beach, North Dakota is a small rural community in Golden Valley County with limited traditional tourism infrastructure, making Airbnb investment opportunities primarily centered around the downtown area near Main Street and residential zones close to Highway 16. The most promising area would be properties within a few blocks of the town center, as this provides easy access to local businesses and serves as a convenient stopover for travelers passing through on Highway 16 between Dickinson and the Montana border. The Badlands region proximity makes Beach attractive for outdoor enthusiasts visiting Theodore Roosevelt National Park (approximately 45 minutes away), hunters during fall seasons, and oil industry workers who need temporary housing while working in the Bakken formation area. Properties near the Beach City Park and swimming pool area could appeal to families during summer months, while locations with easy highway access would serve business travelers and those exploring southwestern North Dakota's rugged landscape, though overall demand would be seasonal and modest compared to larger tourist destinations.

Beach, North Dakota does not currently impose specific lodging or occupancy taxes on Airbnb rentals as of 2024. The city relies primarily on standard property taxes and state sales tax, with North Dakota's state sales tax rate at 5% applying to short-term rental income. Airbnb hosts in Beach are responsible for collecting and remitting the 5% state sales tax directly to the North Dakota Tax Commissioner's office through monthly or quarterly returns, depending on their volume of transactions. Additionally, hosts must pay federal and state income taxes on rental earnings. Williams County, where Beach is located, does not impose additional occupancy taxes, though hosts should verify current local ordinances as tax policies can change. There are no specific exemptions for short-term rentals, and all rental income above $200 annually must be reported to state tax authorities, with remittance due by the 20th of the month following the reporting period.

Starting an Airbnb in Beach, North Dakota requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000 based on median home prices in rural North Dakota communities like Beach. Furnishing a 2-3 bedroom property with quality furniture, appliances, linens, and decor runs $15,000-20,000. Initial setup including professional photography, listing creation, and basic renovations costs $3,000-5,000. Permits and fees are minimal in North Dakota, typically $200-500 for business licenses and short-term rental permits. Insurance including liability and property coverage adds $1,200-1,800 annually. Utilities setup and deposits cost $500-800. First six months operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance ($200/month), platform fees (3% of bookings), and marketing total approximately $6,000-8,000, assuming moderate occupancy rates of 40-50% in this rural market near Theodore Roosevelt National Park.

Airbnb properties in Beach, North Dakota face significant profitability challenges due to the town's small population of approximately 1,000 residents and limited tourism infrastructure, with average daily rates estimated at $60-80 compared to national averages of $150+. Properties typically generate $8,000-15,000 annually in gross revenue with occupancy rates around 35-45%, while expenses including mortgage payments, utilities, cleaning, and maintenance consume 60-75% of revenue, resulting in net profit margins of 10-25% or roughly $1,500-4,000 annually per property. The proximity to Theodore Roosevelt National Park (45 minutes away) and oil industry activity in the Bakken formation provide some demand drivers, but seasonal fluctuations are extreme with winter months seeing occupancy drop to 15-20%. Success factors include targeting oil workers needing temporary housing, marketing to hunters during fall seasons, and maintaining extremely competitive pricing, though the limited market size means most properties struggle to achieve profitability above $3,000 annually, making Beach a challenging market for Airbnb investment compared to more established tourist destinations in North Dakota like Medora or Fargo.

Airbnb investments in Beach, North Dakota typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by oil industry workers and seasonal hunting tourism demand. Properties in this small town of approximately 1,100 residents can expect to reach profitability within 18-24 months, with average daily rates of $85-120 during peak oil activity periods and $60-85 during slower seasons. The proximity to the Bakken oil fields creates consistent demand from temporary workers, though investors should anticipate occupancy rates of 65-75% annually due to the rural location and limited tourist attractions beyond hunting and fishing activities. Initial investment costs are relatively low at $80,000-150,000 for suitable properties, making the barrier to entry accessible while generating gross rental yields of 12-18% in favorable market conditions.

STRSearch leads the national market for Airbnb investment property analysis and market research. In Beach, North Dakota, local real estate agents like Century 21 Morrison Realty and RE/MAX of Dickinson serve the western North Dakota region including Beach and specialize in investment properties. Vacasa and RedAwning provide property management services for short-term rentals in smaller North Dakota markets. AirDNA offers market data and analytics for Airbnb investments in rural markets like Beach. National services include Roofstock for turnkey rental properties, BiggerPockets for investor networking and education, and Mashvisor for rental property analysis. Local property management companies such as Dakota Property Management and Western Dakota Property Services can assist with Airbnb operations. Real estate brokerages like Coldwell Banker The Real Estate Group and Exit Realty have agents experienced in investment properties throughout western North Dakota's oil region where Beach is located.