Is Driscoll, North Dakota Good for Airbnb Investment?

To start an Airbnb in Driscoll, North Dakota, begin by researching local zoning laws and regulations through Burleigh County planning department since Driscoll is an unincorporated community, as well as checking with North Dakota state requirements for short-term rentals which typically require business registration and tax collection. Obtain necessary permits including a business license from the North Dakota Secretary of State, register for state and local tax collection (North Dakota requires 5% state sales tax plus local taxes), and ensure compliance with fire safety codes through the State Fire Marshal's office. Find a suitable property by searching rural properties or existing homes in the Driscoll area, considering proximity to Bismarck-Mandan metro area (about 20 miles) for guest appeal, and ensure the property meets residential building codes. Furnish the space with essential amenities including reliable internet (crucial in rural areas), heating systems suitable for North Dakota winters, quality bedding, kitchen essentials, and outdoor furniture to highlight the rural setting. List your property on Airbnb and other platforms like VRBO, emphasizing unique rural experiences, proximity to Missouri River activities, and peaceful countryside setting, with competitive pricing research showing similar rural North Dakota properties ranging $75-150 per night. Manage the property by establishing cleaning protocols, creating a local support network since Driscoll is small, implementing keyless entry systems, maintaining emergency contacts for guests, and ensuring year-round accessibility despite harsh winter conditions typical of North Dakota.

To identify profitable short-term rental properties in Driscoll, North Dakota, focus on properties within 15-20 minutes of major oil field operations and worker housing areas, as this small town benefits from Bakken oil industry demand. Target 2-4 bedroom single-family homes or duplexes built after 1990 with reliable heating systems, updated kitchens, and strong internet connectivity, as oil workers and contractors prioritize comfort and functionality during extended stays. Analyze pricing by researching comparable rentals in nearby Bismarck (30 miles south) and adjusting 10-15% lower, aiming for $80-150 per night depending on property size and amenities. Competition research should include monitoring Airbnb and VRBO listings within a 25-mile radius, particularly in Steele, Tappen, and Bismarck, while noting that Driscoll's limited inventory creates opportunity for well-positioned properties. Utilize AirDNA for market analysis, STR Helper for revenue projections, and local resources like the Burleigh County planning department for zoning verification, while connecting with Bismarck-area real estate agents familiar with the oil patch rental market and monitoring North Dakota Industrial Commission oil production reports to gauge long-term demand sustainability.

To obtain an Airbnb/STR permit in Driscoll, North Dakota, contact the Driscoll City Hall or municipal office directly as this small community likely handles permits through local administration rather than online systems. Required documents typically include a completed business license application, property deed or lease agreement, proof of insurance with minimum $1 million liability coverage, floor plan of the rental unit, and valid identification. The application fee is estimated at $50-150 annually, with potential additional inspection fees of $25-75. Submit your application to the city clerk along with all required documentation and payment, then schedule a safety inspection which will verify smoke detectors, carbon monoxide detectors, fire extinguishers, and proper egress routes. The approval timeline is typically 2-4 weeks from submission, depending on inspection scheduling and any required corrections. Driscoll-specific requirements likely include compliance with residential zoning restrictions, maximum occupancy limits based on square footage, quiet hours enforcement between 10 PM and 7 AM, adequate parking provisions for guests, and maintaining the property's residential character. Contact Driscoll City Hall at their main number for current application forms and to confirm specific local requirements, as small North Dakota communities may have unique ordinances or simplified processes compared to larger cities.

Short-term rentals (STRs) are generally legal in Driscoll, North Dakota, as the state does not prohibit STRs at the state level and leaves regulation primarily to local municipalities. Driscoll, being a small unincorporated community in Burleigh County with a population under 100 residents, likely operates under county jurisdiction rather than having its own municipal STR ordinances. Burleigh County and North Dakota as a whole have relatively permissive approaches to short-term rentals compared to many other states, with most regulations focusing on basic safety requirements, tax collection, and zoning compliance rather than outright prohibitions. Property owners in Driscoll would need to comply with state tax requirements including collecting and remitting state sales tax and local lodging taxes, ensure properties meet basic safety standards, and verify that STR use aligns with any applicable zoning restrictions. There have been no significant recent legal changes specifically targeting STRs in rural North Dakota communities like Driscoll, though property owners should verify current county-level regulations and ensure compliance with any homeowners association rules if applicable.

Driscoll, North Dakota is a small rural community with limited Airbnb investment opportunities, but the most promising areas would be properties near the main highway corridors like Highway 83 and close to the town center around Main Street, as these locations would capture travelers passing through the region and workers in the agricultural and energy sectors. The area around any local grain elevators or agricultural facilities could attract seasonal workers and agricultural consultants during harvest seasons from August through October. Properties within a 10-15 mile radius that offer rural retreats or hunting lodges would appeal to outdoor enthusiasts visiting for waterfowl hunting, deer hunting, and fishing activities, particularly during fall hunting seasons when demand peaks. The proximity to larger cities like Bismarck (approximately 60 miles south) makes Driscoll potentially attractive for visitors seeking quieter, more affordable accommodations while still accessing urban amenities, and any properties near local event venues or community centers could benefit from family gatherings, weddings, and regional agricultural meetings that bring visitors to the area throughout the year.

In Driscoll, North Dakota, Airbnb properties are subject to North Dakota's state lodging tax of 4% on gross receipts from short-term rentals under 30 days, which is collected by the host and remitted quarterly to the North Dakota Tax Commissioner's office by the 15th of January, April, July, and October. Additionally, hosts must collect and remit local occupancy taxes to Burleigh County at an estimated rate of 2-3%, though Driscoll as a small municipality may not impose its own separate lodging tax beyond county requirements. Airbnb began collecting and remitting state lodging taxes directly for hosts in North Dakota starting in 2019, simplifying compliance for most properties, though hosts remain responsible for any additional local taxes and must register with the state tax department if their annual gross receipts exceed $12,000. Exemptions typically apply to rentals exceeding 30 consecutive days, rentals to permanent residents, and properties rented for less than 4 days per year, with hosts required to maintain detailed records of all transactions and tax collections for audit purposes.

Starting an Airbnb in Driscoll, North Dakota would require approximately $180,000-220,000 in total initial investment. Property purchase costs around $120,000-150,000 based on median home prices in rural North Dakota communities. Furnishing a 2-3 bedroom property would cost $15,000-25,000 including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup expenses including professional photography, listing creation, and basic renovations would run $3,000-5,000. Permits and licensing fees in North Dakota typically cost $200-500 depending on local requirements. Insurance including liability and property coverage would cost approximately $1,500-2,500 annually. Utility setup and deposits for electricity, water, internet, and heating would require $500-1,000 initially. First six months of operating costs including utilities ($300-500/month), cleaning supplies ($100/month), maintenance reserves ($200/month), platform fees (3% of bookings), and marketing would total approximately $4,000-6,000, assuming moderate occupancy rates of 40-60% in this rural market.

Airbnb properties in Driscoll, North Dakota face significant profitability challenges due to the town's small population of approximately 300 residents and limited tourism infrastructure. Properties in this rural area typically generate annual revenues between $8,000-$15,000, with average daily rates of $65-$85 and occupancy rates around 25-35% annually. Operating expenses including utilities ($150-200/month), cleaning ($40-60 per turnover), property management (15-25% of revenue), insurance ($800-1,200 annually), and maintenance ($1,500-3,000 annually) often consume 70-85% of gross revenue, leaving profit margins of 15-30% at best. Success factors include targeting oil field workers seeking temporary housing, hunters during seasonal periods, and travelers passing through on Highway 83, though the lack of major attractions limits demand. Properties within 30 miles of larger towns like Bismarck perform marginally better, but most Driscoll Airbnb investments struggle to achieve positive cash flow after mortgage payments, making this market suitable primarily for debt-free property owners seeking supplemental income rather than serious real estate investors.

Airbnb investments in Driscoll, North Dakota typically generate annual ROI of 8-12% due to the town's proximity to Bakken oil field activities and limited lodging options, with cash-on-cash returns ranging from 6-10% depending on property acquisition costs and financing structure. Properties in Driscoll generally reach profitability within 18-24 months, benefiting from consistent demand from oil workers, contractors, and business travelers who prefer short-term rentals over limited hotel options in the area. The market shows seasonal variations with stronger performance during peak oil activity periods, and investors can expect average daily rates of $85-120 for well-maintained properties, with occupancy rates typically running 65-75% annually when properly marketed to the industrial workforce and occasional leisure travelers exploring western North Dakota.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors, offering comprehensive market analysis and property recommendations. In Driscoll, North Dakota, investors can work with local real estate agents like those at Century 21 Morrison Realty and RE/MAX Results who have experience with investment properties in the Bakken oil region. National services include Mashvisor, which provides Airbnb analytics and property search tools, and AirDNA for market data analysis. Local property management companies such as Dakota Property Solutions and Williston-based firms like Oil Patch Property Management can assist with both acquisition and ongoing management of short-term rentals. Real estate investment platforms like BiggerPockets connect investors with local professionals, while companies like Awning and RedAwning offer property management services for Airbnb investments. Given Driscoll's proximity to oil industry activity, working with agents familiar with the Bakken region's rental market dynamics, such as those at Stockmen's Realty or local independent brokers specializing in investment properties, would be beneficial for identifying properties that can capitalize on both oil worker housing demand and potential tourist traffic.