Is Florence, Montana Good for Airbnb Investment?

To start an Airbnb in Florence, Montana, begin by researching Ravalli County's zoning regulations and contacting Florence's town office to understand local short-term rental requirements, as Montana generally allows vacation rentals but municipalities may have specific rules. Obtain necessary permits including a Montana business license through the Secretary of State's office, register for Montana lodging facility tax with the Department of Revenue, and secure appropriate insurance coverage for short-term rentals. Find a suitable property by searching local real estate listings through agencies like Windermere or Coldwell Banker, focusing on homes near Bitterroot River access points or with mountain views that appeal to tourists visiting nearby attractions like the Bitterroot National Forest. Furnish the property with durable, comfortable furniture from retailers in nearby Missoula such as Furniture Row or online suppliers, ensuring you include essentials like quality linens, kitchen supplies, WiFi, and outdoor gear storage given Florence's outdoor recreation focus. Create your Airbnb listing with professional photos highlighting mountain and river views, emphasizing proximity to fishing, hiking, and Missoula (20 minutes away), and set competitive pricing based on similar properties in the Bitterroot Valley. Manage your property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating with local cleaning services in the Hamilton-Florence area, and maintaining the property to meet Montana's seasonal demands including winter heating considerations and summer cooling needs.

To identify profitable short-term rental properties in Florence, Montana, focus on locations within 10-15 minutes of downtown Missoula for business traveler access while maintaining the rural charm that attracts tourists, prioritizing properties near the Bitterroot River, Highway 93 corridor, or with mountain views toward the Sapphire or Bitterroot ranges. Target 2-4 bedroom single-family homes or cabins with 1,500-3,000 square feet, outdoor amenities like decks, fire pits, or hot tubs, updated kitchens and bathrooms, reliable internet for remote workers, and parking for multiple vehicles including recreational equipment. Analyze pricing by researching comparable STRs in Florence, Stevensville, and Hamilton using AirDNA or Mashvisor to identify properties generating $150-300+ per night during peak summer months (June-September) and $75-150 during shoulder seasons, with annual revenue potential of $35,000-65,000 for well-positioned properties. Research competition through Airbnb, VRBO, and local property management companies like Big Sky Vacation Rentals or Glacier Country Properties, identifying gaps in amenities or underserved price points in the $200,000-500,000 purchase range. Utilize tools like AirDNA for market data, STR Helper for revenue projections, local MLS through Missoula-area realtors, Ravalli County property records, and connect with Florence-area property managers who understand seasonal tourism patterns driven by fishing, hunting, university events, and outdoor recreation access to Glacier and Yellowstone National Parks.

To obtain an Airbnb/STR permit in Florence, Montana, you must first contact the Ravalli County Planning Department at 215 South 4th Street, Hamilton, MT 59840, as Florence falls under county jurisdiction rather than having its own municipal permitting system. Begin by submitting a Conditional Use Permit application along with a detailed site plan, property survey, floor plans showing maximum occupancy, proof of property ownership or lease agreement, liability insurance documentation (minimum $1 million coverage), septic system compliance certificate, and fire safety inspection report. The application fee is approximately $350-500 plus a $75 public notice fee, with additional costs for required inspections totaling around $200-300. You must also register with the Montana Department of Revenue for lodging facility tax collection and obtain a business license from Ravalli County ($50-100 annually). The process typically takes 45-90 days including a mandatory public hearing before the Board of Adjustments, during which neighboring property owners can provide input. Florence-specific requirements include maintaining adequate parking (minimum 2 spaces per unit), ensuring compliance with rural residential zoning setback requirements of 25 feet from property lines, limiting occupancy to 2 guests per bedroom plus 2 additional guests, and providing 24/7 local contact information to the county and immediate neighbors for any issues that may arise during guest stays.

Short-term rentals (STRs) are generally legal in Florence, Montana, as the small unincorporated community in Ravalli County operates under Montana state law, which does not prohibit STRs at the state level. However, Ravalli County has implemented some regulations requiring STR operators to obtain business licenses and comply with health and safety standards, with properties needing to meet basic occupancy and parking requirements. The county prohibits STRs in certain residential zones where homeowner associations have specific restrictions, and operators must collect and remit local option taxes where applicable. Recent changes in 2022-2023 have seen Ravalli County tighten enforcement of existing regulations and require more detailed registration processes, including neighbor notification requirements for new STR applications. Florence itself, being unincorporated, follows county-wide rules rather than having its own municipal ordinances, though some subdivisions within the Florence area may have HOA covenants that restrict or prohibit short-term rental activities.

The best Airbnb investment areas in Florence, Montana include the downtown historic district along Highway 93, which attracts visitors exploring the Bitterroot Valley and serves as a convenient stopover for travelers heading to Glacier National Park or Yellowstone. The residential neighborhoods near the Bitterroot River offer scenic waterfront appeal for fishing enthusiasts and outdoor recreation tourists, particularly during summer months when river activities peak. Areas close to the Florence-Carlton School District and community center provide good access to local amenities while maintaining the small-town charm that draws visitors seeking authentic Montana experiences. Properties near the agricultural areas on the outskirts of town appeal to agritourism visitors and those attending local events like farmers markets and seasonal festivals. The neighborhoods with mountain views toward the Sapphire Mountains or Bitterroot Range command premium rates from guests seeking scenic Montana landscapes, especially during fall foliage season and winter months when nearby skiing and snowmobiling activities increase demand.

Airbnb properties in Florence, 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 and is collected by the host and remitted quarterly to the Montana Department of Revenue by the 15th of January, April, July, and October. Additionally, Ravalli County imposes a local resort tax of 3% on lodging facilities, bringing the total occupancy tax burden to approximately 6% for Airbnb guests in Florence. The state tax applies to all rental periods under 30 consecutive days with no exemptions for small operators, while the county resort tax similarly applies to short-term accommodations with revenues used for tourism promotion and infrastructure. Hosts must register with the Montana Department of Revenue to obtain a lodging facility license and are required to collect these taxes from guests at the time of booking or check-in, maintaining detailed records of all transactions and tax collections for audit purposes.

The total cost to start an Airbnb in Florence, Montana would be approximately $385,000-$425,000. Property purchase represents the largest expense at $320,000-$350,000 based on median home prices in the Bitterroot Valley area as of 2023. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom home including furniture, bedding, kitchenware, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic marketing materials run $1,500-$2,500. Permits and fees in Ravalli County include business license ($100-$200), potential zoning permits ($300-$500), and any HOA approvals if applicable. Insurance costs approximately $2,000-$3,000 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utility setup and deposits for electricity, water, sewer, internet, and cable total around $500-$800 initially. First six months operating costs including utilities ($200-$300/month), cleaning services ($75-$100 per turnover), supplies and maintenance ($150-$250/month), platform fees to Airbnb and VRBO (3% of bookings), and property management software subscriptions total approximately $4,000-$6,000, assuming 60-70% occupancy rates typical for the Florence area.

Airbnb properties in Florence, Montana typically generate annual revenues of $15,000-$35,000 for single-family homes and $8,000-$18,000 for smaller units, with occupancy rates averaging 45-65% due to seasonal tourism patterns around Glacier National Park and outdoor recreation activities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($75-$125 per turnover), property management (15-25% of revenue), utilities ($150-$300 monthly), insurance ($1,200-$2,500 annually), and maintenance costs averaging $2,000-$4,000 yearly. Profit margins typically range from 15-35% for well-managed properties, with higher-end homes near recreational areas achieving better performance. Success factors include proximity to outdoor attractions, professional photography, competitive pricing ($80-$180 per night), and responsive guest communication. Properties within 30 minutes of Glacier National Park or featuring amenities like hot tubs, mountain views, or pet-friendly policies tend to outperform the market average by 20-40%. A typical 3-bedroom home purchased for $350,000 in Florence might generate $28,000 in annual revenue with $18,000 in expenses, yielding a 2.9% cash-on-cash return before considering property appreciation, though returns vary significantly based on property type, management quality, and seasonal demand fluctuations.

Airbnb investments in Florence, Montana typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, depending on property type and location within the market. Properties near recreational areas like the Bitterroot River or with mountain views tend to achieve higher returns of 10-15% annually, while standard residential properties average 8-10%. Initial profitability usually occurs within 18-24 months for well-positioned properties, with break-even on cash investment typically achieved in 2-3 years. The Florence market benefits from proximity to Missoula (20 minutes) and outdoor recreation demand, supporting average daily rates of $120-180 for quality properties, with occupancy rates of 60-75% during peak seasons (May-September) and 35-50% during off-peak periods. Total annual gross rental yields commonly range from 12-18% of property value, with net returns after expenses (cleaning, management, utilities, maintenance) settling at the 8-12% range mentioned above.

STRSearch leads the national market for Airbnb investment property analysis and market data for Florence, Montana. Local real estate agents specializing in short-term rental investments include Glacier Sotheby's International Realty, PureWest Real Estate, and Windermere Real Estate, with agents like Sarah Mitchell at Engel & Völkers Missoula and Tom Bradley at ERA Landmark Arrow Real Estate serving the Bitterroot Valley area since 2018. National services include AirDNA for market analytics, Mashvisor for investment property analysis, and BiggerPockets for investor networking and deal sourcing. Specialized STR investment companies like RedAwning Property Management, Vacasa, and AvantStay provide turnkey solutions for property acquisition and management in the Florence market. Local property management companies such as Bitterroot Property Management and Montana Vacation Rentals offer acquisition consulting services, while national platforms like Roofstock and HomeUnion have expanded into the Montana STR market as of 2021, providing end-to-end investment services for out-of-state buyers targeting the growing Flathead Lake and Glacier National Park tourism corridor.