Is Devils Lake, North Dakota Good for Airbnb Investment?

To start an Airbnb in Devils Lake, North Dakota, begin by researching local zoning laws and regulations through the Devils Lake Planning and Zoning Department, as the city may require short-term rental permits or business licenses, and contact the North Dakota Department of Commerce for state tax requirements including sales tax registration. Obtain necessary permits from Devils Lake City Hall, which typically includes a business license (approximately $50-100) and potentially a short-term rental permit if required by local ordinance. Find a suitable property by searching Devils Lake's residential areas near Grahams Island State Park or downtown, considering properties with 2-3 bedrooms that can accommodate fishing and outdoor enthusiasts visiting the area, with average property prices ranging $80,000-150,000. Furnish the property with durable, comfortable furniture including quality beds, a fully equipped kitchen, fishing equipment storage, and outdoor gear storage, budgeting $8,000-15,000 for complete furnishing. Create your Airbnb listing with professional photos highlighting lake views, proximity to Devils Lake for fishing, and nearby attractions like Fort Totten State Historic Site, setting competitive rates around $75-125 per night based on seasonal demand. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges or installing smart locks, maintaining the property regularly, and ensuring compliance with North Dakota's 5% state sales tax on short-term rentals while keeping detailed records for tax purposes.

To identify profitable short-term rental properties in Devils Lake, North Dakota, focus on locations within 1-2 miles of Devils Lake itself, near Fort Totten State Historic Site, or close to downtown areas with easy highway access, as this region attracts fishing enthusiasts, hunters, and tourists visiting Sullys Hill National Game Preserve. Target 2-4 bedroom properties with lake views, boat parking, fish cleaning stations, and outdoor amenities like fire pits or decks, as these features command premium rates during peak fishing seasons (May-October). Analyze pricing by researching comparable Airbnb and VRBO listings in the $80-150 per night range, with higher rates during walleye and northern pike seasons, while calculating potential annual revenue of $15,000-35,000 depending on property size and location. Study competition through platforms like AirDNA, STR Helper, and direct searches on Airbnb/VRBO to identify gaps in amenities or underserved areas, particularly properties lacking fishing-specific features or those with poor online presence. Utilize resources such as the Devils Lake Tourism Bureau for seasonal demand data, North Dakota MLS systems for property acquisition, local fishing guides and bait shops for market insights, and tools like Mashvisor or BiggerPockets for rental analysis, while considering that properties near Grahams Island State Park or with private lake access typically generate 20-30% higher revenues than standard residential properties.

To obtain an Airbnb/STR permit in Devils Lake, North Dakota, contact the Devils Lake City Hall at 220 4th Street NE or call (701) 662-7000 to inquire about short-term rental licensing requirements, as the city may have implemented regulations between 2020-2023 following statewide trends. You'll likely need to submit a business license application, provide proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, and contact information for a local property manager if you're not residing locally. Required documents typically include a completed STR permit application, North Dakota sales tax permit, fire safety inspection certificate, and zoning compliance verification. Application fees generally range from $100-300 annually, with additional inspection fees of $50-150. The approval timeline is usually 30-60 days after submitting complete documentation. Devils Lake specific requirements may include maximum occupancy limits based on bedrooms and square footage, mandatory smoke and carbon monoxide detectors, adequate parking spaces, noise ordinance compliance, and maintaining a guest registry. Submit your application to the Devils Lake Planning and Zoning Department, ensure your property meets residential zoning requirements, and schedule required inspections before beginning operations.

Short-term rentals (STRs) are generally legal in Devils Lake, North Dakota, as the city does not have comprehensive regulations specifically prohibiting them as of 2023. Devils Lake operates under relatively permissive zoning laws that typically allow residential properties to be used for short-term rental purposes, though operators must comply with basic business licensing requirements and state tax obligations including collecting and remitting state sales tax and local lodging taxes. The city requires STR operators to obtain a business license and ensure compliance with fire safety codes and occupancy limits, while properties must meet standard health and safety requirements. There are no specific prohibited areas within Devils Lake city limits for STRs, though properties must be in compliance with existing residential zoning regulations. Recent legal changes have been minimal, with the state of North Dakota generally maintaining a hands-off approach to STR regulation, leaving most decisions to local municipalities, and Devils Lake has not implemented the stricter registration or permit systems seen in larger North Dakota cities like Fargo or Bismarck.

The best areas for Airbnb investment in Devils Lake, North Dakota are the Lakefront District along the southern shore of Devils Lake itself, particularly near Grahams Island State Park and the Woodland Resort area, which attracts tourists year-round for fishing, boating, and outdoor recreation. The Downtown Historic District offers potential for business travelers visiting local government offices, healthcare facilities, and the regional medical center. The West End residential area near Highway 2 provides easy access for travelers passing through or visiting nearby attractions while offering more affordable property prices. The area around Sullys Hill National Game Preserve and Fort Totten Historic Site, approximately 15 miles south, captures tourism related to Native American heritage and wildlife viewing. Properties near the Devils Lake Regional Airport serve business travelers and those accessing the oil fields in western North Dakota. The lakefront areas are particularly attractive due to Devils Lake being one of the largest natural lakes in North Dakota, drawing fishing enthusiasts, hunters, and summer recreation visitors, while the proximity to tribal gaming facilities and cultural sites provides additional tourist draw throughout the year.

In Devils Lake, North Dakota, Airbnb properties are subject to North Dakota's state lodging tax of 4% on gross receipts from accommodations, which applies to rentals of less than 30 consecutive days. The city of Devils Lake imposes an additional local lodging tax of 3%, bringing the total occupancy tax rate to 7% for short-term rentals. These taxes are collected from guests at the time of booking through Airbnb's automatic tax collection system, which remits payments directly to the North Dakota State Tax Department on a monthly basis for properties that have opted into this service. Property owners who haven't enrolled in Airbnb's automatic collection must register with the state, collect taxes from guests manually, and file monthly returns by the 15th of the following month along with payment. Exemptions include stays of 30 days or longer, accommodations provided to permanent residents, and rentals to government employees on official business, though documentation may be required to claim these exemptions.

To start an Airbnb in Devils Lake, North Dakota, expect total costs around $185,000-$220,000. Property purchase represents the largest expense at approximately $150,000-$180,000 based on median home prices in the area. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom property including beds, linens, kitchen essentials, living room furniture, and décor. 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 premiums for short-term rental coverage run $1,200-$2,000 annually. Utility deposits and connections cost approximately $500-$800. First six months operating costs including utilities ($150-$250 monthly), cleaning services ($75-$100 per turnover), Airbnb platform fees (3% host fee), supplies and maintenance ($200-$400 monthly), property management software ($50-$100 monthly), and marketing expenses total roughly $4,000-$7,000. Additional considerations include potential property management fees if outsourced (20-30% of revenue) and emergency repair funds of $2,000-$3,000.

Airbnb properties in Devils Lake, North Dakota typically generate modest returns with average daily rates ranging from $75-120 during peak summer months and $50-80 in winter, resulting in annual revenues of $15,000-25,000 for well-managed properties with 60-70% occupancy rates. Operating expenses including property taxes ($1,200-2,500 annually), utilities ($150-250 monthly), cleaning fees ($30-50 per turnover), insurance ($800-1,200 yearly), and maintenance costs typically consume 40-55% of gross revenue, leaving profit margins of 20-35% for successful operators. Properties near Grahams Island State Park and lake access points command premium rates, with some lakefront cabins achieving $150+ nightly rates during fishing season (May-September), while basic residential properties in town average lower returns. Success factors include strategic pricing during Devils Lake's fishing tournaments, Fort Totten events, and summer recreation season, professional photography showcasing lake proximity, responsive guest communication, and maintaining clean, well-equipped spaces that cater to fishing enthusiasts and outdoor recreation visitors. The market remains relatively small with limited competition, allowing dedicated hosts to achieve consistent bookings, though seasonal fluctuations require careful cash flow management during slower winter months when occupancy can drop to 30-40%.

Based on Devils Lake, North Dakota market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location proximity to Devils Lake recreational areas. Properties near the lake or downtown area command higher nightly rates of $80-120, while standard residential properties average $60-90 per night with occupancy rates of 45-65% annually due to seasonal fishing and hunting tourism. Initial profitability usually occurs within 18-24 months for well-positioned properties, with break-even points accelerated by North Dakota's relatively low property taxes and Devils Lake's growing reputation as a premier fishing destination. Cash-on-cash returns are optimized when leveraging 70-80% financing on properties valued between $150,000-250,000, with gross rental yields typically reaching 10-15% before expenses, though seasonal fluctuations mean strongest performance occurs May through October when outdoor recreation peaks.

STRSearch is a national platform that helps investors identify profitable short-term rental properties including in Devils Lake, North Dakota. Local real estate agents who may assist with Airbnb investment properties in the Devils Lake area include Century 21 Morrison Realty, Coldwell Banker King, and RE/MAX of Devils Lake, though specific Airbnb specialization would need to be confirmed. National services that help investors find profitable short-term rental properties include AirDNA for market analysis, Mashvisor for investment property analysis, BiggerPockets for networking and education, Awning for property management, RedAwning for vacation rental management, and Vacasa for full-service property management. Additional local real estate professionals who may work with investors include agents from Berkshire Hathaway HomeServices and independent brokers familiar with the Devils Lake tourism market near the lake and Fort Totten area. Property management companies like Evolve Vacation Rental and TurnKey Vacation Rentals also operate in North Dakota markets and can assist with the operational aspects of Airbnb investing in smaller markets like Devils Lake.