Is Cascade, Montana Good for Airbnb Investment?

To start an Airbnb in Cascade, Montana, begin by researching local zoning laws and regulations through Cascade County's planning department, as Montana generally allows short-term rentals but local municipalities may have specific requirements including business licenses, occupancy permits, and tax registration with the Montana Department of Revenue for lodging facility use tax (typically 3%) and local option taxes. Contact Cascade County clerk's office to obtain necessary business licenses and permits, which may include a conditional use permit if operating in residential zones, fire safety inspections, and health department approvals for properties hosting more than 4 guests. Find suitable property by working with local real estate agents familiar with investment properties, focusing on areas near outdoor attractions like the Missouri River or within reasonable distance to Great Falls (about 20 miles away), ensuring the property meets Montana's habitability standards and has adequate septic/water systems common in rural areas. Furnish the property with durable, comfortable furniture suitable for Montana's climate, including warm bedding for winter months, outdoor gear storage, and amenities that appeal to tourists visiting for fishing, hunting, or outdoor recreation, purchasing supplies from retailers in Great Falls or online. List your property on Airbnb, VRBO, and other platforms with professional photos highlighting Montana's natural beauty and proximity to attractions like Giant Springs State Park or the Missouri River, setting competitive rates based on similar properties in the Cascade/Great Falls area (typically $75-150/night depending on size and amenities). Manage the property by establishing relationships with local cleaning services, maintenance contractors, and property management companies in the Great Falls area, implementing keyless entry systems suitable for remote locations, and maintaining responsive communication with guests while ensuring compliance with Montana's innkeeper liability laws and maintaining appropriate insurance coverage through providers familiar with short-term rental properties.

To identify profitable short-term rental properties in Cascade, Montana, focus on locations within 10-15 minutes of the Missouri River for fishing access and properties offering mountain or river views, as this small town of approximately 700 residents attracts outdoor enthusiasts year-round. Target 2-4 bedroom homes or cabins built after 1980 with rustic charm, full kitchens, outdoor spaces, and amenities like hot tubs or fire pits, as these features command premium rates of $150-300 per night during peak fishing season (May-September). Analyze comparable properties on Airbnb and VRBO within a 20-mile radius including Great Falls to understand pricing trends, with off-season rates typically 30-40% lower than peak season. Research competition by monitoring occupancy rates of existing STRs through tools like AirDNA or Mashvisor, noting that Cascade has limited lodging options which creates opportunity for well-positioned properties. Utilize resources such as the Cascade County planning department for zoning regulations, local real estate agents familiar with recreational properties, Montana Fish Wildlife & Parks for understanding seasonal tourism patterns, and the Great Falls tourism board for regional visitor data, while considering that properties near popular fishing spots like Hardy Creek or within walking distance of Cascade's few restaurants and services typically achieve 60-75% annual occupancy rates with strong summer performance driven by Missouri River recreation.

To obtain an Airbnb/STR permit in Cascade, Montana, you must first contact the Cascade County Planning Department at 325 2nd Avenue North in Great Falls, Montana, as Cascade is an unincorporated community under county jurisdiction. Submit a completed short-term rental application along with a site plan showing the property layout, proof of property ownership or lease agreement, a floor plan indicating maximum occupancy, proof of liability insurance with minimum $1 million coverage, septic system inspection certificate if applicable, and water quality test results if using a private well. The application fee is approximately $150-200 with an additional $75 annual renewal fee. Required documents also include a business license from the Montana Department of Revenue, which costs $70, and registration for local option tax collection. Cascade County requires STRs to maintain adequate parking (minimum 2 spaces), comply with septic system capacity limits, provide emergency contact information to neighbors within 300 feet, and ensure the property meets International Building Code standards for occupancy. The approval process typically takes 4-6 weeks after submitting a complete application, and you must also register with the Montana Department of Revenue for tax purposes and obtain any necessary state business licenses. Annual inspections may be required, and the permit must be renewed each year by December 31st with updated insurance documentation and compliance certification.

Short-term rentals (STRs) are generally legal in Cascade, Montana, as the state of Montana does not prohibit STRs at the state level, leaving regulation primarily to local jurisdictions. Cascade County and the small town of Cascade (population approximately 700) do not appear to have comprehensive STR-specific ordinances as of 2024, meaning STRs likely operate under general zoning and business licensing requirements. Property owners typically need to comply with basic safety standards, obtain any required business licenses, and ensure their rental activities align with existing residential zoning laws. Unlike larger Montana cities such as Bozeman or Missoula that have implemented detailed STR regulations including registration requirements, occupancy limits, and parking restrictions, rural communities like Cascade have been slower to adopt specific STR legislation. Recent trends across Montana show increasing local regulation due to housing concerns, but smaller communities like Cascade have generally maintained a more permissive approach, though property owners should verify current local requirements with Cascade County and ensure compliance with state tax obligations and any homeowner association rules that may apply.

The best areas for Airbnb investment in Cascade, Montana include the downtown historic district near the Missouri River, which attracts tourists visiting the nearby Giant Springs State Park and Lewis and Clark National Historic Trail, offering year-round appeal for history enthusiasts and nature lovers. The residential neighborhoods within walking distance of Cascade's main street provide excellent opportunities due to proximity to local restaurants and shops while serving business travelers visiting the nearby Malmstrom Air Force Base in Great Falls (approximately 20 minutes away). Properties near the Sun River area are particularly attractive for fishing enthusiasts and outdoor recreation tourists, especially during peak fishing seasons from May through September. The areas close to Highway 89 offer convenient access for travelers heading to Glacier National Park (about 2 hours north) or Yellowstone National Park (3 hours south), making them ideal for multi-day stays. Neighborhoods near the Cascade Creek and surrounding ranch lands appeal to agritourism visitors and those seeking authentic Montana ranch experiences, particularly during summer months when local ranches offer tours and activities.

Airbnb properties in Cascade, Montana are subject to Montana's statewide lodging facility use tax of 3% on gross receipts, which applies to all short-term rental accommodations under 30 days. Cascade County imposes an additional 3% resort tax on lodging facilities, bringing the total occupancy tax rate to approximately 6%. These taxes are typically collected by the host at the time of booking or check-in and must be remitted to the Montana Department of Revenue on a monthly basis if gross receipts exceed $1,000 per month, or quarterly for smaller operators. Hosts must register for a Montana business license and obtain a lodging facility license before operating. The state began requiring platforms like Airbnb to collect and remit these taxes directly in 2019, though individual hosts remain responsible for compliance if the platform doesn't handle collection. Properties rented for 30 days or longer are generally exempt from these occupancy taxes, and certain nonprofit or government-related accommodations may also qualify for exemptions.

To start an Airbnb in Cascade, Montana, expect total costs around $285,000-$320,000. Property purchase represents the largest expense at approximately $220,000-$250,000 based on median home prices in rural Montana markets. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom setup including beds, linens, kitchen essentials, and living room furniture from retailers like IKEA, Wayfair, and local suppliers. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees vary but budget $500-$1,500 for business licenses, short-term rental permits, and potential HOA approvals. Insurance costs approximately $1,200-$2,000 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utility setup and deposits for electricity, water, internet, and cable total around $500-$800. First six months operating costs including utilities ($200-300/month), cleaning services ($75-100 per turnover), supplies and maintenance ($150-250/month), Airbnb fees (3% host fee), and marketing expenses total approximately $4,000-$6,000. Property taxes and potential property management fees (10-20% of revenue) should also be factored into ongoing costs, adding roughly $2,000-$4,000 for the initial six-month period.

Airbnb properties in Cascade, Montana typically generate annual revenues between $15,000-$35,000 for modest 2-3 bedroom homes, with peak summer months (June-August) accounting for 60-70% of bookings due to proximity to outdoor recreation areas like the Missouri River and nearby ski resorts. Operating expenses generally range from $8,000-$18,000 annually, including property management fees (15-25% of revenue), cleaning costs ($75-125 per turnover), utilities ($150-250/month), insurance ($1,200-2,000/year), and maintenance reserves. Net profit margins typically fall between 25-45% for well-managed properties, with successful hosts achieving occupancy rates of 45-65% annually by targeting fishing enthusiasts, hunters, and winter sports visitors. Properties within 30 minutes of Great Falls or featuring river access command premium rates of $120-180/night versus $80-120 for standard rural homes. Success factors include professional photography, responsive communication, local activity partnerships, and seasonal pricing strategies that capitalize on hunting season (September-November) and summer recreation periods, with some operators like those managing cabins near Belt Creek reporting gross yields exceeding 12% on property values averaging $200,000-$350,000.

Airbnb investments in Cascade, Montana typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the area's proximity to outdoor recreation including the Missouri River and nearby ski resorts like Showdown Montana. Properties in Cascade generally achieve profitability within 18-24 months, with peak seasonal demand during summer fishing season (June-September) and winter sports months (December-March) commanding nightly rates of $120-180 for 2-3 bedroom properties. The market benefits from limited hotel inventory in the region, creating strong demand from tourists visiting Great Falls (30 minutes away) and outdoor enthusiasts accessing nearby wilderness areas, though investors should expect occupancy rates of 55-70% annually due to the seasonal nature of tourism in this rural Montana community.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Cascade, Montana. Local real estate agents like those at Berkshire Hathaway HomeServices Montana Properties and Century 21 Big Sky Real Estate have experience with investment properties in the Cascade area and understand the local vacation rental market dynamics. National services include Mashvisor, which provides Airbnb analytics and property search tools, and AirDNA, offering market data and investment analysis for short-term rentals in Montana markets. Vacasa operates in Montana and can provide property management insights for potential Airbnb investments, while AvantStay focuses on group vacation rental properties that could be suitable for the Cascade market. Local property management companies like Montana Vacation Rentals and Big Sky Vacation Rentals can offer guidance on profitable property characteristics and management requirements. RedAwning and Awning also provide vacation rental management services and investment consultation for Montana properties. Real estate investment firms such as Roofstock and Arrived Homes occasionally feature Montana properties, though availability in smaller markets like Cascade may be limited.