Is Ennis, Montana Good for Airbnb Investment?

To start an Airbnb in Ennis, Montana, begin by researching Madison County zoning regulations and contacting the Ennis Town Hall to understand local short-term rental requirements, as Montana allows municipalities to regulate STRs and some areas require business licenses or special permits. Obtain necessary permits including a Montana business license through the Secretary of State's office, register for state lodging taxes with the Montana Department of Revenue, and secure appropriate insurance coverage that includes short-term rental protection. Find a suitable property by working with local real estate agents familiar with Ennis's market, focusing on areas near fishing access points along the Madison River or properties with mountain views, as the town attracts outdoor enthusiasts year-round with average property prices ranging from $300,000-$800,000. Furnish the property with durable, comfortable furniture emphasizing the rustic Montana aesthetic, include essential amenities like high-speed internet, fully equipped kitchen, quality linens, and outdoor gear storage, while highlighting features that appeal to anglers and hunters. Create your Airbnb listing with professional photos showcasing the property's proximity to blue-ribbon trout fishing, Yellowstone National Park (45 minutes away), and local attractions like the Madison River, emphasizing seasonal activities from fly fishing in summer to cross-country skiing in winter. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider hiring a property management company familiar with Ennis's tourism patterns, while maintaining competitive pricing that reflects the area's peak seasons during summer months and hunting season in fall.

To identify profitable short-term rental properties in Ennis, Montana, focus on locations within walking distance of the Madison River for fishing access, properties with mountain or river views, and areas near downtown Main Street for restaurant and shop proximity. Target 2-4 bedroom cabins or homes built after 1980 with rustic charm, full kitchens, outdoor spaces like decks or fire pits, hot tubs, and reliable internet for remote workers. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, aiming for $150-300 per night depending on size and amenities, with peak seasons during summer fishing months (June-September) and hunting season (October-November). Research competition by studying existing STRs within 5 miles, noting their occupancy rates, guest reviews, and pricing strategies through platforms like AirDNA, VRBO, and Airbnb market analysis. Utilize tools such as Mashvisor for ROI calculations, STR Helper for market analysis, and local resources including Madison County planning department for zoning regulations, Ennis Chamber of Commerce for tourism data, and local property management companies like Big Sky Vacation Rentals for market insights and operational support.

To obtain an Airbnb/STR permit in Ennis, Montana, you must first contact the Madison County Planning Department since Ennis operates under county jurisdiction for short-term rental regulations. Submit an application to Madison County at 103 W Wallace Street, Virginia City, MT 59755, including required documents such as a completed STR application form, property deed or lease agreement, floor plan showing maximum occupancy, septic system compliance certificate, well water testing results if applicable, liability insurance certificate for minimum $1 million coverage, emergency contact information, and parking plan. The application fee is approximately $200-300 with an annual renewal fee of $150-200. The review process typically takes 4-6 weeks and includes a site inspection by county officials. Specific Ennis requirements include maximum occupancy limits based on septic capacity, mandatory smoke and carbon monoxide detectors in all sleeping areas, adequate parking for guests without impacting neighbors, compliance with rural fire safety standards, and adherence to noise ordinances particularly during evening hours. Properties must also meet Montana state health department standards for water quality and waste management, and owners must provide 24/7 local contact information for emergency situations.

Short-term rentals (STRs) are generally legal in Ennis, Montana, as the small town in Madison County does not have specific municipal ordinances prohibiting vacation rentals as of 2024. However, operators must comply with Montana state regulations including business licensing requirements and tax obligations, particularly the 3% state accommodations tax that applies to rentals under 30 days. Madison County may require basic business licenses and health department permits for commercial lodging operations, and properties must meet standard safety and zoning requirements for residential areas. While Ennis has not implemented the restrictive STR regulations seen in larger Montana cities like Bozeman or Whitefish, property owners should verify current zoning compliance and ensure they meet any insurance requirements, as rural Montana communities have been increasingly discussing STR regulations due to housing availability concerns affecting local workforce housing, though no significant recent changes have been enacted specifically in Ennis.

The best areas for Airbnb investment in Ennis, Montana are the downtown historic district along Main Street, which attracts visitors year-round due to its proximity to restaurants, shops, and the Madison River for world-class fly fishing; the residential neighborhoods within walking distance of the Madison River access points, particularly areas near Varney Bridge and McAllister, as these locations draw serious anglers willing to pay premium rates during peak fishing seasons from May through October; and properties along Highway 287 corridor leading toward Virginia City, which benefit from tourists visiting the historic mining town and ghost town attractions during summer months. The Ennis Lake area, approximately 8 miles northeast of town, offers excellent potential due to its appeal to both fishing enthusiasts and families seeking lakefront recreation, while properties near the Ennis National Fish Hatchery attract educational tourists and fishing groups. These areas are particularly attractive because Ennis serves as a gateway to the Madison River, consistently ranked among America's top trout fishing destinations, and the town hosts events like the annual Ennis Rodeo and serves as a base for Yellowstone National Park visitors, creating strong seasonal demand from May through September with occupancy rates often exceeding 80% during peak months.

Airbnb properties in Ennis, 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. Madison County, where Ennis is located, imposes an additional 3% resort tax on lodging facilities, bringing the total occupancy tax rate to approximately 6%. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began operating in Montana around 2018. Property owners must register with the Montana Department of Revenue and file quarterly returns (Form PR-1) even when Airbnb collects taxes, as they remain ultimately responsible for compliance. The city of Ennis may require a local business license for short-term rental operations, though specific municipal lodging taxes are uncommon in smaller Montana communities. Exemptions generally apply to stays of 30 days or longer, which are considered long-term rentals rather than transient lodging, and certain government or charitable organization bookings may qualify for exemptions with proper documentation.

Starting an Airbnb in Ennis, Montana requires approximately $485,000-$565,000 in total initial investment. Property purchase represents the largest expense at $350,000-$425,000 based on median home prices in this rural Montana market as of 2023-2024. Furnishing costs typically range $25,000-$35,000 for a complete 2-3 bedroom mountain home setup including furniture, appliances, linens, and décor appropriate for vacation rental guests. Initial setup expenses including professional photography, listing creation, welcome materials, and basic marketing total approximately $3,000-$5,000. Permits and fees vary but generally include business license ($100-$300), short-term rental permit ($200-$500), and potential HOA or county registration fees ($500-$1,500). Insurance costs run $2,500-$4,000 annually for short-term rental coverage, requiring roughly $1,250-$2,000 upfront for six months. Utility setup and deposits for electricity, water, sewer, internet, and cable/streaming services cost approximately $1,500-$2,500 initially. First six months operating costs including utilities ($3,600-$4,800), cleaning supplies and services ($2,400-$3,600), maintenance reserves ($2,000-$3,000), platform fees, and miscellaneous expenses total approximately $12,000-$18,000, bringing the complete startup investment to nearly half a million dollars for a well-positioned Ennis Airbnb property.

Airbnb properties in Ennis, Montana demonstrate strong seasonal profitability with average daily rates ranging from $150-300 during peak summer months (June-September) when fishing enthusiasts flock to the Madison River, generating annual revenues of $35,000-65,000 for well-positioned properties. Operating expenses typically include 25-30% for cleaning and maintenance, 3% Airbnb service fees, 8-12% property management if outsourced, plus utilities averaging $200-400 monthly, resulting in net profit margins of 40-55% for owner-operated properties. Success factors include proximity to blue-ribbon trout fishing access points, modern amenities like hot tubs and fire pits, and properties that can accommodate 4-8 guests, with cabins near Ennis Lake and downtown locations performing best. A typical 3-bedroom cabin purchased for $450,000 in 2022 generated $52,000 in gross revenue with $23,000 in expenses, yielding a 6.4% cash-on-cash return, while properties offering unique experiences like ranch stays or luxury amenities can achieve 70%+ occupancy rates during peak season compared to the area average of 45-50%.

Airbnb investments in Ennis, Montana typically generate annual ROI of 12-18% due to the town's proximity to Madison River fishing opportunities and Yellowstone National Park tourism, with properties averaging $200-350 per night during peak summer and fall seasons from June through October. Cash-on-cash returns generally range from 8-14% annually, with higher-end cabins and riverfront properties achieving the upper range, while standard 2-3 bedroom homes near town center perform at 8-10%. Most investors reach profitability within 18-24 months, factoring in seasonal occupancy rates of 65-75% during peak months and 25-35% during winter months, with annual gross revenues typically ranging $35,000-65,000 for well-positioned properties. The market benefits from consistent demand from fly fishing enthusiasts, hunters, and tourists accessing Yellowstone's west entrance, though investors should account for higher maintenance costs due to Montana's harsh winters and the need for property management services given the remote location.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental investment properties and provides comprehensive market analysis for Airbnb investors looking in Ennis, Montana. Local real estate agents serving the Ennis area include Berkshire Hathaway HomeServices Montana Properties, ERA Landmark Real Estate, and PureWest Real Estate, with agents like those at Big Sky Country Real Estate having specific experience in vacation rental properties around the Madison Valley. National services that can assist include Mashvisor for property analysis and market research, AirDNA for short-term rental data and performance metrics, and Awning for end-to-end Airbnb investment services including property identification and management. RedAwning and Vacasa also provide investment property sourcing services, while companies like AirBnB Automated and HostGPO offer specialized consulting for short-term rental investments. Local property management companies such as Madison Valley Property Management and Montana Vacation Rentals can provide insights into profitable properties, and national platforms like Roofstock and Fundrise have expanded into short-term rental investment opportunities that may include properties in the Ennis market.