Is Bismarck, North Dakota Good for Airbnb Investment?

To start an Airbnb in Bismarck, North Dakota, begin by researching local zoning laws and regulations through the Bismarck-Mandan Planning Department, as the city requires short-term rental operators to obtain a business license and comply with residential zoning restrictions that may limit rentals to owner-occupied properties or specific districts. Contact the North Dakota Department of Commerce and Bismarck City Hall to secure necessary permits including a business license ($50-100 annually), sales tax permit for collecting the state's 5% sales tax plus local lodging taxes of approximately 3%, and ensure compliance with fire safety codes and building inspections. Find a suitable property by focusing on areas near downtown Bismarck, the State Capitol, or University of Mary, considering properties that meet the city's requirement for adequate parking and neighbor notification procedures. Furnish the space with durable, comfortable furniture suitable for North Dakota's harsh winters, including quality heating systems, warm bedding, and local amenities information highlighting attractions like Fort Abraham Lincoln State Park and the Missouri River. List your property on Airbnb and VRBO with competitive pricing around $75-120 per night based on Bismarck's market rates, emphasizing proximity to government buildings, outdoor recreation, and oil industry accommodations for Bakken workers. Manage the property by establishing relationships with local cleaning services, maintenance contractors familiar with winter property care, and consider using property management companies like RedAwning or local firms that understand Bismarck's seasonal tourism patterns and business traveler needs while maintaining compliance with the city's noise ordinances and occupancy limits.

To identify profitable short-term rental properties in Bismarck, North Dakota, focus on locations within 2-3 miles of downtown, near the State Capitol complex, Bismarck State College, or major employers like Sanford Health and Basin Electric Power Cooperative. Target 2-4 bedroom single-family homes or condos built after 1990 with modern amenities, full kitchens, parking, and outdoor spaces that appeal to business travelers and oil industry workers. Analyze pricing by researching comparable Airbnb listings in the $80-150 nightly range, considering Bismarck's seasonal demand fluctuations with peak periods during legislative sessions (January-April) and summer months. Study competition density using AirDNA or Mashvisor to identify underserved neighborhoods, particularly areas near the Missouri River or newer developments in north Bismarck. Leverage local resources including the Bismarck-Mandan Convention and Visitors Bureau for tourism data, connect with local real estate agents familiar with investment properties, monitor the Bakken oil activity impact on temporary housing demand, and use STR-specific analytics tools to track occupancy rates and revenue potential while ensuring compliance with city zoning regulations that may restrict short-term rentals in certain residential areas.

To obtain an Airbnb/STR permit in Bismarck, North Dakota, you must first contact the Bismarck Planning and Zoning Department at City Hall located at 221 North 5th Street to determine if short-term rentals are permitted in your specific zoning district, as the city implemented regulations around 2019-2020. You'll need to submit an application that includes a completed short-term rental permit form, proof of property ownership or lease agreement, a site plan showing parking arrangements, proof of liability insurance (typically $1 million minimum), a floor plan of the rental unit, contact information for a local responsible party available 24/7, and evidence of compliance with fire safety codes including smoke and carbon monoxide detectors. Required documents also include a business license from the North Dakota Secretary of State if operating as a business entity, sales tax permit from the North Dakota Tax Department, and neighbor notification forms. The application fee is approximately $150-250 with annual renewal fees around $100-150, and the process typically takes 30-45 days for approval. Bismarck-specific requirements include maintaining occupancy limits based on bedrooms (generally 2 people per bedroom plus 2 additional), providing adequate off-street parking (usually 1 space per bedroom), ensuring the property meets residential building codes, and maintaining a complaint log that must be available for city inspection.

Short-term rentals (STRs) are legal in Bismarck, North Dakota, but operate under specific regulations established by the city. As of 2023, Bismarck requires STR operators to obtain a business license and comply with zoning restrictions that primarily allow STRs in residential areas with certain limitations on the number of guests and parking requirements. The city prohibits STRs in some residential zones and requires operators to maintain liability insurance, provide emergency contact information, and ensure properties meet safety standards including smoke and carbon monoxide detectors. Recent changes around 2022-2023 have included stricter enforcement of noise ordinances and neighbor notification requirements, with the city implementing a complaint-based system for violations. Properties must also comply with occupancy limits based on bedroom count and square footage, and operators face penalties for repeated violations including potential license revocation, making Bismarck's approach more regulated than some North Dakota municipalities while still permitting the practice under controlled conditions.

The best Airbnb investment areas in Bismarck, North Dakota include the downtown Historic District near Main Avenue and 4th Street, which attracts business travelers visiting government offices, corporate headquarters like MDU Resources, and tourists exploring local attractions. The Capitol District surrounding the North Dakota State Capitol building offers strong potential due to consistent government employee and lobbyist travel, particularly during legislative sessions from January to April. The Missouri River waterfront area near Fort Abraham Lincoln State Park and the Lewis & Clark Riverboat provides excellent opportunities for leisure travelers and families visiting historical sites. The Kirkwood Mall vicinity on State Street captures both business travelers needing convenient shopping access and families attending events at the Bismarck Event Center. Areas near Bismarck State College campus attract visiting families, prospective students, and academic conference attendees throughout the year. The Gateway Fashion Mall district benefits from its proximity to restaurants, entertainment venues, and the Bismarck Civic Center, which hosts concerts, trade shows, and sporting events that drive temporary accommodation demand.

In Bismarck, North Dakota, Airbnb hosts are subject to both state and local lodging taxes. The state of North Dakota imposes a 4% state sales tax on lodging accommodations, while Bismarck levies an additional 3% city lodging tax, bringing the total occupancy tax rate to approximately 7%. These taxes apply to all short-term rental stays of less than 30 consecutive days. Airbnb typically collects and remits these taxes automatically on behalf of hosts through their platform since around 2019, streamlining the process for property owners. However, hosts should verify their tax obligations and may need to register with the North Dakota Tax Commissioner's office and obtain a sales tax permit. The taxes are generally remitted monthly or quarterly depending on the volume of transactions. Exemptions may apply for stays exceeding 30 days, certain government employees on official business, and some nonprofit organization bookings, though hosts should confirm current exemption criteria with local tax authorities as regulations can change.

Starting an Airbnb in Bismarck, North Dakota requires approximately $180,000-220,000 in total initial investment. Property purchase costs average $165,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property typically runs $8,000-12,000 including beds, linens, kitchen essentials, living room furniture, and basic appliances. Initial setup costs including professional photography, listing creation, and basic renovations total around $2,000-3,000. Permits and fees vary but expect $300-800 for business licenses, short-term rental permits, and city registration requirements. Insurance premiums for short-term rental coverage average $1,200-1,800 annually, with the first year paid upfront. Utility deposits and initial connections for electricity, gas, water, internet, and cable run approximately $500-800. First six months of operating costs including utilities ($150/month), cleaning supplies ($100/month), maintenance reserves ($200/month), and platform fees (3% of estimated $1,800 monthly revenue) total roughly $3,200, bringing the complete startup investment to between $180,000-220,000 depending on property condition and furnishing choices.

Airbnb properties in Bismarck, North Dakota typically generate annual revenues between $15,000-$35,000 for entire homes, with average daily rates ranging from $75-$120 depending on property size and location. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), utilities ($150-$250 monthly), property management (10-20% of revenue), insurance ($800-$1,200 annually), and maintenance costs. Profit margins typically range from 15-25% after all expenses, with properties near downtown Bismarck or the Missouri River commanding premium rates. Success factors include proximity to Bismarck State College, the State Capitol, and major employers like Sanford Health and Basin Electric Power Cooperative, which drive consistent demand from business travelers and visiting families. Properties targeting oil industry workers during Bakken boom periods (2010-2014) achieved higher occupancy rates of 70-85%, though current occupancy averages 45-65% annually. A typical 3-bedroom home purchased for $200,000 and generating $28,000 in annual revenue with $18,000 in expenses yields approximately $10,000 net profit, representing a 5% cash-on-cash return before mortgage considerations, making Bismarck a moderately profitable but stable Airbnb market compared to major tourist destinations.

Airbnb investments in Bismarck, North Dakota typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the city's stable oil industry workforce and limited hotel inventory. Properties near downtown Bismarck or close to major employers like Sanford Health and the State Capitol tend to achieve occupancy rates of 65-75% annually, with average daily rates between $85-120 depending on property size and amenities. Initial profitability usually occurs within 18-24 months for well-positioned properties, with break-even points accelerated by Bismarck's consistent demand from business travelers, medical patients visiting Sanford facilities, and seasonal workers in the Bakken oil region. The market benefits from relatively low property acquisition costs compared to major metropolitan areas, though investors should factor in North Dakota's harsh winters which can reduce occupancy during December through February, and the cyclical nature of oil industry demand which has historically influenced rental rates by 15-20% during market fluctuations.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Bismarck, North Dakota. Local real estate agents specializing in investment properties include Century 21 Morrison Realty, Coldwell Banker The Real Estate Group, and RE/MAX Professionals who have experience with vacation rental investments in the Bismarck-Mandan area since 2018. National services like Mashvisor, AirDNA, and BiggerPockets offer market analysis tools and investment calculators for the North Dakota market. Vacasa and RedAwning provide property management services for short-term rentals in the region, while local property management companies such as Dakota Property Management and Bismarck Property Services have expanded into Airbnb management since 2019. Investment-focused real estate companies like Roofstock and Awning (formerly known as Awning.com) help investors identify and purchase turnkey short-term rental properties, though their North Dakota inventory is limited. Local mortgage brokers such as Bell Bank and First International Bank & Trust offer specialized financing for investment properties, and companies like Furnished Finder and Corporate Housing by Owner can help identify properties suitable for conversion to profitable short-term rentals in the Bismarck market.