Is Drummond, Montana Good for Airbnb Investment?

To start an Airbnb in Drummond, Montana, begin by researching local zoning laws and regulations through Granite County's planning department, as Drummond typically falls under county jurisdiction rather than municipal oversight. Contact Granite County at 406-859-3771 to verify short-term rental requirements, which may include business licenses, safety inspections, and occupancy permits. Find a suitable property by working with local real estate agents like Century 21 or Berkshire Hathaway HomeServices, focusing on properties near Drummond's outdoor recreation areas or along Highway 12 for traveler convenience. Obtain necessary permits including a Montana business license through the Secretary of State's office, potential fire safety inspections from the local fire department, and ensure compliance with septic and well water regulations common in rural Montana properties. Furnish the property with durable, comfortable furniture suitable for outdoor enthusiasts, including quality bedding, kitchen essentials, and outdoor gear storage, sourcing items from retailers in nearby Missoula or online. Create your Airbnb listing with professional photos highlighting Montana's natural beauty, competitive pricing around $75-150 per night based on property size and amenities, and emphasize proximity to activities like fishing the Clark Fork River, hiking, and winter sports. Manage the property by establishing relationships with local cleaning services in Philipsburg or Anaconda, coordinate with property management companies like Vacasa or RedAwning if needed, maintain responsive communication with guests, and ensure year-round accessibility given Montana's harsh winter conditions.

To identify profitable short-term rental properties in Drummond, Montana, focus on properties within 2-3 miles of the Clark Fork River and near Highway 12 for easy access, as this small town of approximately 1,200 residents attracts visitors for fishing, hunting, and outdoor recreation. Target 2-4 bedroom homes or cabins with rustic charm, outdoor amenities like fire pits or decks, and modern conveniences including reliable internet and updated kitchens, as properties typically rent for $80-150 per night depending on size and amenities. Analyze pricing by researching comparable listings on Airbnb and VRBO within a 20-mile radius including nearby Philipsburg and Anaconda, while considering seasonal fluctuations with peak rates during summer fishing season (June-September) and hunting seasons. Competition research should focus on the limited existing STR inventory in Drummond proper, examining occupancy rates and guest reviews of properties in Granite County, and identifying gaps in amenities or property types. Utilize tools like AirDNA for market analysis, STR Helper for revenue projections, Mashvisor for investment analysis, and local resources including the Drummond Chamber of Commerce, Granite County planning department for zoning regulations, and Montana Fish Wildlife & Parks for understanding seasonal tourism patterns that drive demand in this rural market.

To obtain an Airbnb/STR permit in Drummond, Montana, you must first contact the Granite County Planning Department at 220 North Sansome Street in Philipsburg, Montana, as Drummond falls under county jurisdiction rather than having its own municipal permitting system. You'll need to submit a conditional use permit application along with required documents including a detailed site plan, proof of property ownership or lease agreement, septic system compliance certificate, well water testing results if applicable, parking plan showing adequate guest parking, and a neighborhood impact statement. The application fee is typically around $350-500 with additional inspection fees of approximately $150. Required documents also include proof of liability insurance (minimum $1 million coverage), emergency contact information for a local property manager, maximum occupancy plan based on septic capacity, and compliance with Montana's lodging facility regulations. The timeline for approval generally takes 60-90 days including a public hearing before the Granite County Planning Board, site inspection, and final approval. Specific Drummond area requirements include adherence to rural residential zoning restrictions, maintaining the agricultural character of the area, ensuring adequate road access for emergency vehicles, and compliance with any homeowners association covenants if applicable. Once approved, you must also register with the Montana Department of Revenue for lodging facility tax collection and may need additional permits from the Montana Department of Public Health and Human Services depending on the size and scope of your operation.

Short-term rentals (STRs) in Drummond, Montana are generally legal but subject to state and local regulations. Montana state law allows STRs with basic requirements including registration, tax collection, and safety standards compliance. Drummond, located in Granite County, follows county-level zoning ordinances that typically permit STRs in residential areas with some restrictions on occupancy limits, parking requirements, and noise ordinances. The town does not appear to have specific STR prohibitions, though operators must obtain proper business licenses and collect applicable lodging taxes. Recent changes around 2022-2023 have seen Montana strengthen STR regulations statewide, requiring platforms like Airbnb to collect taxes and mandating better registration processes. Property owners in Drummond should verify compliance with Granite County zoning laws, obtain necessary permits, and ensure properties meet fire safety and building code requirements, while being mindful of neighborhood compatibility and parking availability given the small town setting.

The best areas for Airbnb investment in Drummond, Montana include the historic downtown district near the railroad heritage sites, which attracts visitors interested in the town's mining and railroad history, and properties along the Clark Fork River corridor that appeal to fishing enthusiasts and outdoor recreationists year-round. The residential areas near Highway 10A offer convenient access for business travelers working with local ranching operations and those passing through to Glacier National Park or Yellowstone. Properties within walking distance of the Drummond Community Center and local events venues perform well during summer festivals and community gatherings. The outskirts near working ranches provide unique agritourism opportunities for guests seeking authentic Montana ranch experiences, while locations with mountain views toward the Garnet Range attract photographers and nature lovers, particularly during fall foliage season from September through October.

Airbnb properties in Drummond, 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. Powell County, where Drummond is located, may impose an additional local option tax of up to 3% on lodging facilities, though the specific rate varies by jurisdiction and would need to be confirmed with county officials. The Montana Department of Revenue requires hosts to register for a lodging facility license and collect taxes from guests at the time of booking or check-in, with monthly remittance due by the 15th of the following month for properties with regular bookings. Airbnb may collect and remit these taxes automatically for hosts in some Montana jurisdictions through their platform, but hosts remain ultimately responsible for compliance and should verify collection with the Montana Department of Revenue. Exemptions typically include stays of 30 days or longer, which are considered long-term rentals rather than transient lodging, and accommodations provided to certain government employees or during specific emergency situations as defined by state statute.

Starting an Airbnb in Drummond, Montana requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000-180,000 based on median home prices in rural Montana markets. Furnishing a 2-3 bedroom property costs $8,000-12,000 including beds, linens, kitchen essentials, living room furniture, and basic appliances. Initial setup expenses total $2,000-3,000 covering professional photography, listing creation, welcome materials, and basic renovations or repairs. Permits and fees range from $500-1,500 including business license, short-term rental permit, and potential zoning compliance costs through Granite County. Insurance premiums for short-term rental coverage cost $1,200-2,000 annually, with the first year paid upfront. Utility setup and deposits require $500-800 for electricity, water, sewer, internet, and cable services. First six months operating costs total $6,000-9,000 including utilities ($200-300/month), cleaning services ($75-100 per turnover), supplies and maintenance ($150-250/month), platform fees (3% of bookings), and marketing expenses, assuming 40-60% occupancy rates during the initial period.

Airbnb properties in Drummond, Montana show moderate profitability potential with average nightly rates ranging from $75-120 for typical 2-3 bedroom properties, generating approximately $18,000-35,000 in annual revenue based on 40-60% occupancy rates driven by seasonal tourism and proximity to outdoor recreation areas like the Flint Creek Range. Operating expenses typically consume 35-45% of gross revenue, including property management fees (10-15%), cleaning costs ($40-60 per turnover), utilities ($150-250 monthly), insurance premiums ($1,200-2,000 annually), and maintenance averaging $2,000-4,000 yearly. Net profit margins generally range from 15-25% for well-managed properties, with successful hosts like those operating renovated ranch-style homes near Drummond's historic downtown achieving higher margins through strategic pricing during peak summer months and hunting seasons. Key success factors include professional photography, responsive guest communication, local activity partnerships, and maintaining properties that highlight Montana's rustic charm while offering modern amenities, with properties featuring hot tubs, fire pits, and mountain views commanding premium rates and achieving occupancy rates exceeding 65% during 2022-2023.

Airbnb investments in Drummond, Montana typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, though these figures are conservative due to the town's small population of approximately 300 residents and limited tourist infrastructure. Properties in this rural Phillips County location generally achieve profitability within 18-24 months, with average nightly rates of $75-120 depending on property size and amenities. The market benefits from proximity to outdoor recreation areas and hunting opportunities, but faces challenges from seasonal demand fluctuations and limited year-round visitor traffic. Investors should expect occupancy rates of 35-50% annually, with stronger performance during summer months and hunting seasons. Initial investment recovery typically occurs within 3-4 years for well-positioned properties, though the limited local market size means competition is minimal but demand is also constrained compared to larger Montana tourism destinations like Bozeman or Whitefish.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental investment properties across markets including Drummond, Montana. Local real estate agents in the Drummond area who focus on investment properties include Century 21 Glacier Real Estate and Berkshire Hathaway HomeServices Montana Properties, both of which have agents experienced in vacation rental investments. National services like Awning, Mashvisor, and AirDNA provide market analysis and property identification tools for Airbnb investors targeting smaller Montana markets. BiggerPockets marketplace and Roofstock occasionally feature Montana investment properties suitable for short-term rentals. Local property management companies such as Montana Vacation Rentals and Glacier Country Properties can assist with both acquisition advice and ongoing management of Airbnb investments in the Drummond region. RedAwning and Vacasa also operate in Montana markets and can provide insights into profitable property characteristics for the area. Real estate investment firms like HomeVestors and local Montana-based investment groups often have connections to properties suitable for Airbnb conversion in rural markets like Drummond.