Is Dunn Center, North Dakota Good for Airbnb Investment?

To start an Airbnb in Dunn Center, North Dakota, begin by researching local regulations through Dunn County and the city clerk's office, as this small rural community may have minimal short-term rental restrictions but could require basic business licensing or zoning compliance. Contact Dunn County at (701) 573-4448 to verify any permit requirements, which likely include a basic business license costing around $25-50 annually. Find property by searching local real estate listings through Century 21 or independent agents, focusing on homes near Highway 200 or properties with rural appeal, with typical purchase prices ranging $80,000-150,000 for suitable properties. Furnish the space with essential amenities including reliable internet (likely through SRT Communications or similar rural providers), comfortable bedding, kitchen basics, and outdoor furniture to appeal to hunters, oil workers, and travelers passing through this agricultural region. List your property on Airbnb with competitive pricing around $60-90 per night, highlighting proximity to hunting areas, Theodore Roosevelt National Park (45 minutes away), and oil field access. Manage bookings by maintaining quick response times, coordinating with local cleaning services in nearby Killdeer or Halliday, and partnering with Dunn Center's few local businesses like the Corner Cafe for guest recommendations, while ensuring you have reliable property management support given the town's population of approximately 150 residents.

To identify profitable short-term rental properties in Dunn Center, North Dakota, focus on properties within 10-15 minutes of oil field operations and major highways like US-200, as this area serves the Bakken oil industry workforce and travelers. Target 2-4 bedroom properties with dedicated parking, reliable internet, and basic furnishings that can accommodate work crews staying 1-4 weeks, with properties built after 1980 preferred for better insulation and utilities. Pricing analysis should benchmark against extended-stay hotels in Killdeer and Beulah (typically $80-120/night), aiming for 15-25% below hotel rates while maintaining 60-75% occupancy through oil worker demand. Research competition using Airbnb and VRBO searches within a 25-mile radius, noting that limited supply creates opportunities, and monitor corporate housing providers like Oakwood and BridgeStreet that serve oil companies. Utilize AirDNA for market data, contact Dunn County Economic Development Corporation for occupancy trends, monitor North Dakota oil production reports from the Department of Mineral Resources, and connect with local property management companies like Western Dakota Property Management who understand the unique demands of housing oil field workers and can provide insights on seasonal fluctuations tied to drilling activity.

To obtain an Airbnb/STR permit in Dunn Center, North Dakota, contact the Dunn Center City Hall at 701-548-8110 or visit their office at 100 Main Street during business hours (typically Monday-Friday 9 AM-4 PM). Submit a completed business license application along with a short-term rental registration form, property deed or lease agreement, proof of liability insurance ($1 million minimum coverage), floor plan showing maximum occupancy, septic system inspection certificate, and water quality test results. Required documents also include a completed fire safety inspection form, emergency contact information, and parking plan showing adequate off-street parking for guests. The application fee is approximately $150 for the initial permit plus $75 annual renewal fee, with additional inspection fees of $50-100. The approval timeline typically takes 30-45 days from submission of complete application. Dunn Center requires STR properties to maintain septic systems in compliance with county health department standards, provide adequate parking (minimum 2 spaces per rental unit), display the permit number in all advertising, maintain a local contact person available 24/7 within 30 minutes of the property, and limit occupancy to 2 people per bedroom plus 2 additional guests with maximum of 8 total occupants.

Short-term rentals (STRs) are generally legal in Dunn Center, North Dakota, as the small city of approximately 150 residents does not appear to have specific municipal ordinances prohibiting or heavily regulating STR operations as of 2024. North Dakota state law does not prohibit short-term rentals, leaving regulation primarily to local municipalities. Given Dunn Center's rural location in Dunn County and its small size, the city likely operates under minimal zoning restrictions, though property owners should verify compliance with basic residential zoning requirements and ensure proper business licensing if required. The city has not implemented recent legal changes specifically targeting STRs like larger North Dakota cities such as Fargo or Bismarck have considered. Property owners should still comply with state tax requirements, including collecting and remitting state sales tax and lodging taxes, and may need to register with the North Dakota Tax Commissioner. While no specific prohibited areas or major restrictions appear to exist in Dunn Center, operators should confirm current status with city hall and ensure compliance with fire safety codes and any applicable homeowners association rules.

The best areas for Airbnb investment in Dunn Center, North Dakota are primarily concentrated around the town center near Highway 200 and the residential areas closest to local amenities and the Killdeer Mountains region. The downtown district along Main Street offers proximity to local businesses, restaurants, and services that attract oil field workers and business travelers who frequently visit for energy sector meetings and operations. The neighborhoods near the Dunn Center School and community facilities are attractive for families visiting for school events, sports tournaments, and local gatherings. Areas with easy access to Highway 200 provide strategic positioning for travelers heading to Theodore Roosevelt National Park (approximately 45 minutes away) and those working in the Bakken oil fields who need temporary housing. The residential zones near the Dunn Center Golf Course and recreational facilities appeal to visitors attending local events, hunting parties during fall seasons, and agricultural business travelers who come for farming and ranching consultations, making these locations ideal for short-term rental investments due to consistent demand from energy workers, outdoor enthusiasts, and business travelers.

Airbnb properties in Dunn Center, North Dakota are subject to the state's 7% lodging tax, which applies to all short-term rental accommodations under 30 days. The tax is collected from guests at the time of booking and must be remitted monthly to the North Dakota Tax Commissioner's office by the 15th of the following month using Form SFN 10417. Dunn County does not impose an additional county lodging tax, and the city of Dunn Center, being a small rural community, does not have a municipal occupancy tax ordinance as of 2023. Property owners must register for a North Dakota sales tax permit before collecting taxes and maintain detailed records of all transactions. Exemptions include stays of 30 days or longer, which are considered long-term rentals rather than transient lodging, and accommodations provided to certain government employees on official business when proper documentation is provided.

Starting an Airbnb in Dunn Center, North Dakota requires 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 markets. Furnishing a 2-3 bedroom property costs $15,000-25,000 including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup expenses total $3,000-5,000 covering professional photography, listing creation, welcome materials, and basic marketing. Permits and fees range from $500-1,500 including business licenses, short-term rental permits, and any required inspections from Dunn County and local authorities. Insurance costs $2,000-3,000 annually for comprehensive coverage including liability and property protection specific to short-term rentals. Utilities setup and deposits require $1,000-2,000 covering electricity, water, sewer, internet, and cable services. First six months operating costs total $8,000-12,000 including utilities ($200-300/month), cleaning services ($100-150 per turnover), maintenance reserves ($300-500/month), platform fees (3% of bookings), and marketing expenses, assuming 40-60% occupancy rates typical for rural North Dakota markets.

Airbnb properties in Dunn Center, North Dakota face challenging profitability conditions due to the town's small population of approximately 150 residents and limited tourism infrastructure, with average daily rates estimated at $45-65 compared to state averages of $85-120. Properties typically generate annual revenues of $8,000-15,000 with occupancy rates around 25-35%, while expenses including mortgage payments, utilities, cleaning, and maintenance often consume 70-85% of gross revenue, resulting in net profit margins of 15-30% or $1,200-4,500 annually. Success factors include targeting oil field workers and hunters during peak seasons, maintaining lower acquisition costs under $80,000, and offering basic amenities rather than luxury features. The proximity to Theodore Roosevelt National Park (45 minutes away) provides some seasonal demand, but the remote location and limited repeat visitor market make properties more suitable as supplemental income rather than primary investment vehicles, with break-even periods typically extending 8-12 years compared to 4-6 years in more established North Dakota markets like Fargo or Bismarck.

Airbnb investments in Dunn Center, North Dakota typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by oil industry workers and travelers seeking temporary housing in this rural Dunn County community. Properties in Dunn Center, with average home values around $180,000-$220,000, can expect gross rental yields of 12-18% annually, though occupancy rates fluctuate seasonally between 45-65% due to the area's dependence on energy sector activity and limited tourism infrastructure. Initial profitability typically occurs within 18-24 months for investors who purchase properties under $200,000 and maintain occupancy above 50%, with net annual returns of $8,000-$15,000 after expenses including property management, utilities, and maintenance costs that are higher due to North Dakota's harsh winters and remote location.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors across markets including Dunn Center, North Dakota. In the local market, Century 21 Morrison Realty and RE/MAX of Dickinson serve the western North Dakota region and have experience with investment properties, while Coldwell Banker The Real Estate Shop operates throughout the state with agents familiar with rental property investments. National services include Mashvisor, which provides Airbnb analytics and property search tools, AirDNA for market data and investment analysis, and Awning for turnkey Airbnb property management and investment opportunities. RedAwning offers vacation rental property listings and investment guidance, while BiggerPockets connects investors with local real estate professionals experienced in short-term rentals. Local property management companies like Dakota Property Management and Bakken Property Services can assist with ongoing operations, and mortgage brokers such as Bell Bank and First International Bank & Trust have experience financing investment properties in North Dakota's oil region markets.