Is Drummond, Montana Good for Airbnb Investment?

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Drummond, Montana market research

Drummond, Montana Airbnb Investment Overview

$800–$2,200Typical monthly host earnings
8–12%Typical annual ROI
45–55%Average annual occupancy
VariesCombined taxes and local fees
Investment

Is Airbnb a Good Investment in Drummond, Montana?

Potentially—Drummond, Montana combines visitor demand with long-term real estate upside.

  • Presents a more challenging opportunity compared to major metropolitan markets.
  • This small rural community of fewer than 400 residents offers limited tourism infrastructure and seasonal demand primarily driven by outdoor recreation activities like fishing, hunting.
  • While property acquisition costs are significantly lower than urban markets, the potential for consistent rental income is constrained by the town's remote location, limited amenities.
  • The market relies heavily on seasonal outdoor enthusiasts and travelers seeking authentic rural Montana experiences.
  • Investors should carefully evaluate the sporadic demand patterns, limited local services, and the need for hands-on property management in a remote location.
Earnings

How Much Does an Average Airbnb Earn in Drummond?

$800–$2,200 based on location, season, and property quality.

  • Based on available market data and regional analysis, Airbnb properties in Drummond, Montana typically generate between $800-$2,200 in monthly revenue.
  • Summer months (June through August) represent peak earning potential with properties averaging $1,800-$2,500 monthly.
  • Properties with 2-3 bedrooms that accommodate fishing enthusiasts, hunters, and travelers exploring nearby Glacier National Park or the Blackfoot River corridor tend to perform best.
  • Key factors affecting earnings include property size and condition, outdoor amenities like fire pits or fishing access, reliable internet for remote workers.
  • Location within Drummond matters significantly, as properties closer to the Blackfoot River or with mountain views command premium rates.
ROI Analysis

Airbnb Return on Investment in Drummond

Potentially strong—typical annual ROI is 8–12%.

  • Typically generate ROI between 8-12% annually, with payback periods averaging 10-14 years due to the town's small population of approximately 1,200 residents and limited tourist infrastructure.
  • Properties in Drummond average $180,000-$250,000 purchase price and can command $85-$120 per night during peak seasons.
  • Long-term rentals in the area typically yield 6-8% ROI with more consistent cash flow, making them potentially more attractive than short-term rentals for risk-averse investors.
Occupancy Rate

Average Airbnb Occupancy Rate in Drummond

Drummond, Montana averages 45–55% annual occupancy, with seasonal variation.

  • Airbnb occupancy rates in Drummond, Montana typically average around 45-55% annually, with significant seasonal variation driven by the area's outdoor recreation opportunities and proximity to the Flint Creek Range.
  • Peak occupancy occurs during summer months (June through August) when rates climb to 65-75%, coinciding with hiking, fishing, and camping season.
  • Spring and fall shoulder seasons maintain moderate occupancy rates of 40-50% as visitors come for hunting season and mild weather outdoor activities.
  • Compared to Montana's statewide Airbnb average of approximately 50-60%, Drummond performs slightly below due to its small size and limited amenities.
Best Neighborhoods

Best Neighborhoods for Airbnb in Drummond

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

  • The downtown Drummond area near Highway 10 offers excellent Airbnb potential due to its central location and proximity to local businesses, restaurants, and services.
  • The residential neighborhoods along the Flint Creek corridor provide attractive investment opportunities with scenic mountain views and access to fishing and outdoor recreation.
  • The areas near the Drummond School and community center offer stable rental demand from visiting families and workers.
  • Neighborhoods on the eastern edge of town toward the Garnet Range provide excellent access to ghost town tours and mining history attractions.
  • The western residential areas near ranching operations attract agritourism visitors and those interested in authentic Montana ranch experiences.
  • Properties along the old railroad corridor benefit from historical charm and easy highway access, appealing to road trip travelers and railroad history buffs willing to pay higher nightly rates.
  • The southern neighborhoods near Flint Creek offer waterfront and near-water properties that generate strong seasonal demand from anglers and outdoor enthusiasts.
Regulations

Short-term Rental Regulations in Drummond

Yes, but only where zoning permits short-term rentals and every required license is current.

  • Property owners typically need to obtain a business license from Granite County and comply with state lodging tax requirements.
  • Occupancy limits generally follow International Building Code standards based on square footage and bedroom count, typically allowing 2 persons per bedroom plus 2 additional occupants.
  • Owner-occupancy requirements are minimal at the county level, though properties must meet basic health and safety standards including proper septic systems and water sources.
  • Zoning restrictions allow short-term rentals in most residential and commercial zones within Granite County, but agricultural zoning may have limitations.
  • The registration process involves submitting applications to the county clerk's office with property details, insurance documentation, and emergency contact information.
  • Recent changes as of 2022-2023 include increased emphasis on septic system compliance and coordination with state tax collection requirements.
Fees and Taxes

Short-term Rental Fees and Taxes in Drummond

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

  • Short-term rentals in Drummond, Montana are subject to Montana's statewide lodging facility use tax of 3% on gross receipts.
  • Granite County, where Drummond is located, does not impose additional county-level lodging taxes as of 2023.
  • The town of Drummond does not currently have specific short-term rental registration requirements or permit fees.
  • Property owners must also pay standard property taxes on their rental properties, and if operating as a business.
  • Income from short-term rentals is subject to federal and Montana state income taxes, with Montana's top rate at 6.75%.
  • No specific tourism taxes or additional municipal fees are currently imposed in Drummond, making it one of the more straightforward jurisdictions in Montana for short-term rental compliance.
Common questions

Drummond, Montana Airbnb investment FAQs

How to start an Airbnb in Drummond, Montana?

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 in preference to municipal oversight.

Launch checklist

  • Contact Granite County at 406 to 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 to 150 per night based on property size and amenities, and emphasize proximity to activities like fishing the Clark Fork River, hiking.
  • 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.
What's the best way to identify good STR properties in Drummond, Montana?

To identify profitable short term rental properties in Drummond, Montana, focus on properties within 2 to 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.

What to prioritize

  • Target 2 to 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 to 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 &.
How to get an Airbnb permit in Drummond, Montana?

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 in preference to having its own municipal permitting system.

Documents and approvals

  • 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.
  • The application fee is typically around $350 to 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 to 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.
  • 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.
Is it legal to operate a short-term rental in Drummond, Montana?

Short term rentals (STRs) in Drummond, Montana are generally legal but subject to state and local regulations.

Core operating requirements

  • 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 to 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.
What are the best places to invest in Airbnb in Drummond, Montana?

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. 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.

Areas to research

  • 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.
Airbnb and lodging taxes in Drummond, Montana

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.

Taxes and filing responsibilities

  • 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 in preference to transient lodging, and accommodations provided to certain government employees or during specific emergency situations as defined by state statute.
Total cost to purchase, furnish and operate an Airbnb in Drummond, Montana

Starting an Airbnb in Drummond, Montana requires approximately $180,000 to 220,000 in total initial investment.

Cost breakdown

  • Property purchase costs around $150,000 to 180,000 based on median home prices in rural Montana markets.
  • Furnishing a 2 to 3 bedroom property costs $8,000 to 12,000 including beds, linens, kitchen essentials, living room furniture, and basic appliances.
  • Initial setup expenses total $2,000 to 3,000 covering professional photography, listing creation, welcome materials, and basic renovations or repairs.
  • Permits and fees range from $500 to 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 to 2,000 annually, with the first year paid upfront.
  • Utility setup and deposits require $500 to 800 for electricity, water, sewer, internet, and cable services.
  • First six months operating costs total $6,000 to 9,000 including utilities ($200 to 300/month), cleaning services ($75 to 100 per turnover), supplies and maintenance ($150 to 250/month), platform fees (3% of bookings), and marketing expenses.
Are Airbnb properties in Drummond, Montana profitable?

Airbnb properties in Drummond, Montana show moderate profitability potential with average nightly rates ranging from $75 to 120 for typical 2 to 3 bedroom properties. Operating expenses typically consume 35 to 45% of gross revenue, including property management fees (10 to 15%), cleaning costs ($40 to 60 per turnover), utilities ($150 to 250 monthly), insurance premiums ($1,200 to 2,000 annually), and maintenance averaging $2,000 to 4,000 yearly.

Profitability indicators

  • Net profit margins generally range from 15 to 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.
What is the expected return on investment for an Airbnb in Drummond, Montana?

Airbnb investments in Drummond, Montana typically generate annual ROI of 8 to 12% with cash on cash returns ranging from 6 to 10%, though these figures are conservative due to the town's small population of approximately 300 residents and limited tourist infrastructure.

Return planning figures

  • Properties in this rural Phillips County location generally achieve profitability within 18 to 24 months, with average nightly rates of $75 to 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 to 50% annually, with stronger performance during summer months and hunting seasons.
  • Initial investment recovery typically occurs within 3 to 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.
What company can help me find and buy a profitable Airbnb in Drummond, Montana?

STRSearch is a leading national platform that specializes in identifying profitable short term rental investment properties across markets including Drummond, Montana.

Companies and resources

  • 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.

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Success Rate
100% profitable track record
Data Accuracy
Proprietary filters, precise forecasts
Service Scope
End-to-end STR investment support
Risk Mitigation
Only cash-flow-positive matches
Expert Network
Vetted realtors, lenders, designers included
Other Services
Success Rate
Inconsistent ROI, no guarantees
Data Accuracy
Generic metrics, inaccurate estimates
Service Scope
Partial services only
Risk Mitigation
No profitability screening
Expert Network
Limited or no partner access
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