Is Garrison, Montana Good for Airbnb Investment?

To start an Airbnb in Garrison, Montana, begin by researching Powell County's zoning regulations and contacting the county clerk's office at (406) 846-3680 to understand local short-term rental requirements, as Montana generally allows vacation rentals but counties may have specific rules. 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 liability insurance coverage of at least $1 million through companies like Proper Insurance or CBIZ. Find suitable property by working with local real estate agents familiar with Garrison's market, focusing on properties near Deer Lodge River or with mountain views, with average home prices ranging $200,000-$400,000 in the area. Furnish the property with rustic Montana-themed decor, essential amenities like high-speed internet (through providers like Blackfoot Communications), quality bedding, kitchen supplies, and outdoor gear storage for fishing and hiking equipment. Create your Airbnb listing with professional photos highlighting the property's proximity to fishing spots, hiking trails, and historic attractions like Grant-Kohrs Ranch, pricing competitively at $80-150 per night based on local market rates. Manage the property by establishing relationships with local cleaning services in nearby Deer Lodge, creating a guidebook featuring local restaurants like Broken Arrow Steakhouse, and maintaining responsive communication with guests while ensuring compliance with Montana's 4% state lodging tax collection and remittance requirements.

To identify profitable short-term rental properties in Garrison, Montana, focus on properties within 2-3 miles of Garrison's recreational attractions like nearby fishing access points along the Clark Fork River and proximity to the Garnet Range for hiking access, as this small community of approximately 100 residents relies heavily on outdoor tourism. Target 2-4 bedroom cabins or homes built after 1980 with rustic charm, full kitchens, outdoor spaces, and modern amenities like WiFi and heating systems suitable for year-round occupancy, as properties typically rent for $120-200 per night during peak summer and fall seasons. Analyze comparable properties in nearby Missoula (45 minutes away) and Philipsburg (20 minutes away) using AirDNA and Mashvisor to benchmark pricing, as Garrison's limited inventory of 3-5 active STRs creates opportunity but requires competitive positioning against established markets. Research competition by monitoring existing listings on Airbnb and VRBO within a 15-mile radius, noting that properties near Garnet Ghost Town and Rock Creek typically achieve 60-75% occupancy rates during May through October. Utilize tools like AirDNA for market analysis, STR Helper for performance tracking, and connect with Powell County planning department for zoning compliance, while leveraging local real estate agents familiar with recreational properties and monitoring MLS listings for cabins under $300,000 that can generate 15-25% annual returns through strategic positioning as base camps for ghost town exploration, fishing, and hunting activities.

To obtain an Airbnb/STR permit in Garrison, Montana, you must first contact the Powell County Planning Department since Garrison falls under county jurisdiction rather than having its own municipal permitting system. Begin by submitting an application for a conditional use permit or home occupation permit to Powell County at 409 Missouri Avenue, Deer Lodge, MT 59722, along with a completed application form, site plan showing the property layout, proof of property ownership or lease agreement, and a $150-300 application fee. Required documents typically include a floor plan of the rental unit, parking plan showing adequate guest parking, septic system compliance certificate if not on municipal sewer, and proof of liability insurance coverage of at least $1 million. The county requires STR properties to maintain adequate parking (typically 2 spaces per unit), comply with occupancy limits based on bedroom count and septic capacity, and meet all fire safety codes including smoke and carbon monoxide detectors. Submit your complete application package to the Powell County Planning Office, and expect a 30-60 day review process that may include a public hearing if neighbors object or if the property is in a sensitive area. Once approved, you'll receive your permit valid for one year with annual renewal required, and you must also register with the Montana Department of Revenue for lodging tax collection and remit the required 7% state lodging tax plus any applicable local taxes quarterly.

Short-term rentals (STRs) in Garrison, Montana are generally legal but operate under limited local regulation due to the community's small size and rural nature. Garrison, located in Powell County, does not appear to have specific municipal STR ordinances as of 2024, meaning operations likely fall under county and state regulations. Powell County has minimal restrictions on STRs in unincorporated areas, typically requiring basic business licensing and compliance with health and safety standards. Properties must meet standard building codes and septic system requirements common in rural Montana communities. There are no known prohibited areas specifically for STRs in Garrison, though properties near critical wildlife habitats or within flood zones may face additional scrutiny. Recent changes in Montana state law have generally favored property rights and STR operations, with legislation in 2021-2023 limiting local governments' ability to overly restrict short-term rentals. However, operators should verify current Powell County business license requirements and ensure compliance with Montana Department of Revenue tax obligations, as enforcement and regulations can evolve at the local level even in small communities like Garrison.

The best areas for Airbnb investment in Garrison, Montana are primarily along the Clark Fork River corridor and near the historic downtown district, as these locations attract fly fishing enthusiasts and outdoor recreation tourists year-round, particularly during peak fishing seasons from May through September. The residential areas within walking distance of the Garrison Community Center and local amenities offer strong potential due to their proximity to seasonal events and the town's position as a gateway to the Garnet Range for hiking and hunting activities. Properties near Highway 12 provide excellent access for travelers heading to nearby attractions like Philipsburg and the Flint Creek Valley, making them attractive to tourists exploring the region's mining history and scenic drives. The neighborhoods closest to the Clark Fork offer premium positioning for anglers and water sports enthusiasts, while areas near the railroad heritage sites appeal to history buffs and photographers, with occupancy rates typically strongest during summer months when outdoor activities peak and during hunting seasons in fall.

Airbnb properties in Garrison, Montana are subject to Montana's statewide lodging facility use tax of 3% on gross receipts from accommodations, which applies to all short-term rentals 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, hosts must collect the state's 4% general sales tax on lodging services, bringing the total state tax burden to 7%. Gallatin County, where Garrison is located, imposes an additional 3% resort tax on lodging accommodations, which must be collected from guests and remitted monthly to the county treasurer's office. The city of Garrison may impose local occupancy taxes up to 3%, though specific rates vary by municipal ordinance and are typically collected and remitted monthly or quarterly depending on local requirements. Airbnb automatically collects and remits the state lodging tax in Montana as of 2019, but hosts remain responsible for county and local taxes unless specifically contracted otherwise. Exemptions generally apply to stays of 30 days or longer, government employees on official business, and certain nonprofit organizations, though documentation requirements vary by jurisdiction and hosts should verify exemption eligibility before waiving taxes.

The total cost to start an Airbnb in Garrison, Montana would be approximately $385,000-$425,000. Property purchase represents the largest expense at $300,000-$350,000 based on median home prices in rural Montana markets. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom property including beds, linens, kitchen essentials, living room furniture, and décor. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees vary but expect $500-$1,500 for business licenses, short-term rental permits, and potential HOA approvals. Insurance premiums for short-term rental coverage run $2,000-$3,000 annually. Utilities including electricity, water, sewer, internet, and cable average $200-$300 monthly or $1,200-$1,800 for six months. First six months operating costs including cleaning services ($150 per turnover), maintenance, supplies, platform fees (3% of bookings), and marketing total approximately $8,000-$12,000 assuming 60% occupancy rates. Additional considerations include property management software subscriptions ($50-$100 monthly), welcome amenities, and emergency repair funds which add another $2,000-$3,000 to initial costs.

Airbnb properties in Garrison, Montana, typically generate annual revenues between $15,000-$35,000 depending on property size and amenities, with peak summer months (June-August) accounting for 60-70% of bookings due to proximity to outdoor recreation areas like Canyon Ferry Lake and Helena National Forest. Operating expenses generally range from $8,000-$18,000 annually, including property management fees (10-15% of revenue), cleaning costs ($75-125 per turnover), utilities ($150-250 monthly), insurance ($1,200-2,000 yearly), and maintenance ($2,000-4,000 annually). Profit margins typically fall between 25-45%, with successful properties averaging 65-75% occupancy rates during peak season and 20-35% in off-season months. Key success factors include proximity to Canyon Ferry Lake recreational activities, quality furnishings and amenities like hot tubs or fire pits, professional photography, and responsive guest communication. Properties within 5 miles of the lake or with water views command premium rates of $120-180 per night versus $80-120 for standard cabins, while those offering boat slips or fishing access can achieve occupancy rates 15-20% higher than average. The market benefits from Helena's proximity (30 minutes) providing a steady stream of weekend visitors, though seasonality remains the primary challenge with winter months often requiring rate reductions of 30-40% to maintain bookings.

Airbnb investments in Garrison, Montana typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, depending on property type and seasonal demand patterns. Properties near Flathead Lake and outdoor recreation areas command higher nightly rates of $150-250 during peak summer months (June-September) but experience significant seasonal fluctuations with winter occupancy dropping to 20-30%. Initial profitability usually occurs within 18-24 months for well-positioned properties, with vacation rentals averaging 45-60% annual occupancy rates. The small market size of Garrison limits inventory but also reduces competition, while proximity to recreational activities like fishing, hiking, and winter sports drives consistent demand from tourists visiting Glacier National Park region. Property acquisition costs typically range $200,000-400,000 for suitable rental properties, with annual operating expenses including property management (15-25%), utilities, maintenance, and local lodging taxes averaging 35-45% of gross rental income.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Garrison, Montana. Local real estate agents specializing in investment properties include Glacier Sotheby's International Realty, PureWest Real Estate, and ERA Landmark Real Estate, with agents like those at Whitefish-based firms having experience in the Flathead Lake region where Garrison is located. National services include Awning (formerly RedAwning) for property management and investment analysis, AirDNA for market data and revenue projections, Mashvisor for investment property analysis, and Roofstock which occasionally features short-term rental properties. Local property management companies such as Flathead Vacation Rentals and Glacier Park Vacation Rentals can provide insights into profitable markets, while investment-focused firms like BiggerPockets' marketplace and Fundrise occasionally feature Montana opportunities. Regional mortgage brokers specializing in investment properties include First Interstate Bank and Stockman Bank, both with Montana locations, and national lenders like Lima One Capital and Visio Lending that finance short-term rental investments in the area.