Is Butte, Montana Good for Airbnb Investment?

To start an Airbnb in Butte, Montana, begin by researching local regulations through the Butte-Silver Bow County Planning Department, as the city requires short-term rental operators to obtain a Conditional Use Permit and business license, with properties needing to comply with zoning restrictions that typically allow STRs in residential areas with proper permits. Contact the Butte-Silver Bow Health Department for health and safety inspections, and ensure compliance with Montana state tax requirements by registering with the Montana Department of Revenue for lodging facility use tax (around 3%) and local option tax. Find a suitable property by working with local real estate agents familiar with STR-friendly neighborhoods like Uptown Butte or the Flats area, ensuring the property meets minimum square footage and parking requirements. Furnish the space with durable, mountain-themed décor appropriate for Butte's mining heritage and outdoor recreation visitors, including essentials like high-speed internet, heating systems capable of handling Montana winters, and outdoor gear storage. Create your Airbnb listing with professional photos highlighting proximity to attractions like the Berkeley Pit, Montana Tech, and outdoor activities, pricing competitively with other Butte listings (typically $75-150/night depending on size and amenities). Manage the property by establishing relationships with local cleaning services, maintenance contractors familiar with older Butte housing stock, and consider using property management companies like Vacasa or local operators if you're not residing in Butte, while maintaining 24/7 guest communication and emergency contacts for the harsh winter conditions common in the area.

To identify profitable short-term rental properties in Butte, Montana, focus on locations within walking distance of the historic uptown district, near Montana Tech campus for visiting families and researchers, or properties with mountain views and outdoor access given Butte's proximity to skiing and hiking. Target 2-4 bedroom homes built between 1900-1950 with period charm, or modern properties with amenities like hot tubs, fireplaces, and parking, as these appeal to tourists exploring Montana's mining history and outdoor enthusiasts. Analyze pricing by researching comparable Airbnb listings in Butte averaging $80-150 per night, calculating potential annual revenue against acquisition costs, property taxes (typically 1.2-1.8% in Silver Bow County), and maintenance expenses. Research competition using AirDNA, STR Helper, or manual Airbnb searches to identify gaps in the market, noting that Butte has limited STR inventory compared to Bozeman or Missoula, creating opportunities for well-positioned properties. Utilize tools like Mashvisor for market analysis, connect with local real estate agents familiar with STR regulations, monitor the Butte-Silver Bow planning department for zoning requirements, and leverage Montana's tourism data showing increased visitation to mining heritage sites and outdoor recreation areas, while considering seasonal fluctuations with peak demand during summer months and Montana Tech's academic calendar.

To obtain an Airbnb/STR permit in Butte, Montana, you must first contact the Butte-Silver Bow Planning Department at 155 West Granite Street to determine if your property is zoned for short-term rentals, as residential zones may require conditional use permits. Submit an application including property deed, floor plans, proof of insurance with minimum $1 million liability coverage, fire safety inspection certificate from Butte-Silver Bow Fire Department, septic system inspection (if applicable), and business license from the Montana Department of Revenue. Required documents also include a site plan showing parking spaces (minimum 2 per unit), emergency contact information for 24/7 availability, and neighbor notification letters within 200 feet of the property. Application fees typically range from $150-300 for the STR permit plus $75-150 for conditional use permits if required, with additional costs for inspections ($50-100 each). The approval timeline generally takes 30-60 days for standard applications or 60-90 days if public hearings are required for conditional use permits. Butte-specific requirements include maximum occupancy limits of 2 people per bedroom plus 2 additional guests, mandatory smoke and carbon monoxide detectors in all sleeping areas, annual permit renewals, and compliance with the city's noise ordinance with quiet hours from 10 PM to 7 AM.

Short-term rentals (STRs) are legal in Butte, Montana, but operate under city regulations that require property owners to obtain a business license and comply with zoning restrictions. The city allows STRs in most residential zones but prohibits them in certain historic districts and areas zoned specifically for long-term housing. Property owners must register their rentals with the city, maintain liability insurance, and ensure compliance with fire safety codes and occupancy limits. Butte implemented these regulations around 2019-2020 in response to growing concerns about housing availability and neighborhood character, requiring existing operators to come into compliance within a specified grace period. The city also imposes restrictions on the number of guests, parking requirements, and noise ordinances, with violations potentially resulting in license revocation. Recent changes have included stricter enforcement mechanisms and increased fees for non-compliance, reflecting the city's effort to balance tourism revenue with resident concerns about housing stock and community stability.

The best areas for Airbnb investment in Butte, Montana include the Historic Uptown district, which attracts tourists interested in the city's rich mining heritage and Victorian architecture, particularly around West Park Street and Main Street where visitors can walk to attractions like the World Museum of Mining and historic mansions. The Montana Tech University area near West Park Street offers consistent demand from visiting families, prospective students, and academic conference attendees throughout the academic year. The Walkerville neighborhood, perched on the hillside, provides scenic views and proximity to outdoor recreation while maintaining easy access to downtown attractions. The area around the Butte Civic Center and Mother Lode Theatre captures business travelers and event attendees, especially during the annual Montana Folk Festival which draws thousands of visitors each July. Properties near the Continental Divide Trail access points appeal to outdoor enthusiasts and hikers, while the neighborhoods surrounding St. James Hospital attract medical tourists and families of patients seeking extended stays.

In Butte, Montana, Airbnb hosts are subject to both state and local lodging taxes. Montana imposes a 4% state accommodations tax on short-term rentals under 30 days, which applies to the total rental amount including cleaning fees. Silver Bow County (where Butte is located) levies an additional 3% local option tax on lodging accommodations, bringing the total tax rate to approximately 7%. These taxes are typically collected from guests at the time of booking through Airbnb's automatic tax collection system, which remits payments directly to the Montana Department of Revenue on a monthly basis for registered properties. Hosts who are not enrolled in Airbnb's automatic collection must register with the Montana Department of Revenue, obtain a lodging facility license, and remit taxes quarterly using Form LOD-1. The city of Butte may also require a business license for short-term rental operations, with fees around $25-50 annually. Exemptions generally apply to rentals exceeding 30 consecutive days, government employees on official business, and certain nonprofit organization stays, though documentation is required to claim these exemptions.

The total cost to start an Airbnb in Butte, Montana is approximately $185,000-$225,000. Property purchase costs around $150,000-$180,000 based on median home prices in Butte as of 2023-2024. Furnishing a 2-3 bedroom property runs $8,000-$12,000 including beds, linens, kitchen essentials, living room furniture, and décor. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$4,000. Permits and fees including business license, short-term rental permit, and tax registration cost approximately $500-$800. Insurance including landlord and short-term rental coverage adds $1,200-$2,000 annually. Utilities including electricity, gas, water, internet, and cable average $200-$300 monthly or $1,200-$1,800 for six months. First six months operating costs including cleaning services, supplies, maintenance, property management software, and marketing total $3,000-$5,000. Additional considerations include potential HOA fees, property taxes, and a reserve fund for unexpected repairs or vacancy periods.

Airbnb properties in Butte, Montana typically generate modest returns with average daily rates ranging from $75-120 depending on property size and location, with occupancy rates averaging 45-60% annually due to seasonal tourism patterns and mining industry business travel. A typical 2-bedroom property might gross $18,000-28,000 annually, but after expenses including mortgage payments ($800-1,200/month), utilities ($150-250/month), cleaning fees ($40-60 per turnover), property management (15-25% of revenue), insurance ($1,200-1,800/year), and maintenance costs, net profit margins generally fall between 15-25% for well-managed properties. Success factors include proximity to Montana Tech university for student housing demand, historic district locations that attract tourists visiting the Berkeley Pit and mining heritage sites, and properties that can accommodate contractors and business travelers from mining operations like Montana Resources. Properties near uptown Butte or with mountain views tend to command premium rates of $100-150/night, while basic accommodations average $60-90/night, with peak seasons during summer months (June-August) and university events driving higher occupancy, though winter months often see occupancy drop to 30-40% making year-round profitability challenging without strategic pricing and marketing to business travelers.

Airbnb investments in Butte, Montana typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, largely driven by the city's proximity to outdoor recreation areas and Montana Tech University creating steady demand from students, visiting families, and outdoor enthusiasts. Properties in Butte's historic uptown district and near the university campus show stronger performance, with investors commonly achieving profitability within 18-24 months due to relatively low property acquisition costs averaging $150,000-$250,000 for suitable rental properties. The market benefits from limited hotel inventory and seasonal tourism peaks during summer months and university events, though winter occupancy rates typically drop 20-30%, requiring investors to maintain 3-4 months of operating reserves. Average daily rates range from $75-$120 depending on property size and location, with annual occupancy rates of 60-70% being realistic expectations for well-managed properties in prime locations.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Butte, Montana. In the Butte area, local real estate agents like those at Berkshire Hathaway HomeServices Montana Properties and ERA Landmark Real Estate have experience with investment properties and can assist with Airbnb acquisitions. National services include Mashvisor, which provides rental property analytics and market data for Montana markets, and BiggerPockets, which connects investors with local professionals. AirDNA offers short-term rental market analysis specific to Butte and surrounding areas. Local property management companies like Butte Property Management and Montana Property Solutions can provide insights into rental markets and help identify suitable properties. RedAwning and Awning.com are national platforms that specialize in vacation rental property investments and can assist with market analysis in the Butte region. Additionally, local mortgage brokers and real estate investment groups in the greater Butte-Silver Bow area often have networks and knowledge of properties suitable for short-term rental conversions.