Is Gladstone, North Dakota Good for Airbnb Investment?

To start an Airbnb in Gladstone, North Dakota, begin by researching local zoning laws and regulations through the Stark County Planning and Zoning Department and Gladstone City Hall, as most small North Dakota towns require short-term rentals to comply with residential zoning restrictions and may need special use permits or business licenses. Contact the North Dakota Department of Health for any required health permits and ensure compliance with state tax requirements through the North Dakota Office of State Tax Commissioner for collecting and remitting lodging taxes (typically 5-7% state tax plus potential local taxes). Find a suitable property by working with local real estate agents familiar with Gladstone's housing market, focusing on properties in residential areas that allow short-term rentals, with average home prices ranging $80,000-$150,000 in the region. Furnish the property with essential amenities including comfortable bedding, basic kitchen supplies, Wi-Fi, heating suitable for North Dakota winters, and consider adding local touches reflecting the area's agricultural heritage. List your property on Airbnb, VRBO, and Booking.com with competitive pricing around $60-$100 per night based on regional market rates, highlighting proximity to outdoor activities and the peaceful rural setting. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider using property management software to handle bookings, communicate with guests, and maintain the property year-round, paying special attention to winter heating costs and snow removal in this northern climate.

To identify profitable short-term rental properties in Gladstone, North Dakota, focus on properties within 2-3 miles of the Gladstone Industrial Park and oil field service areas, as this small community of approximately 250 people serves primarily as a workforce housing hub for the Bakken oil region. Target 2-4 bedroom single-family homes or manufactured homes built after 2000 with reliable heating systems, updated kitchens, and strong internet connectivity, as oil workers and contractors prioritize comfort and functionality during extended stays. Pricing analysis should consider that oil worker housing allowances typically range $100-200 per night, making properties profitable at $80-150 nightly rates with 60-70% occupancy, while acquisition costs remain relatively low at $150,000-300,000 for suitable properties. Competition research reveals limited STR inventory due to the town's size, creating opportunities for well-positioned properties, though you'll compete with extended-stay motels in nearby Dickinson (15 miles south) and workforce housing camps. Utilize AirDNA for market analysis, monitor job postings from Halliburton, Baker Hughes, and Schlumberger for demand indicators, track oil prices and rig counts through North Dakota Industrial Commission data, and connect with local property managers familiar with workforce housing requirements, while considering that market volatility tied to oil industry cycles requires careful financial planning and flexible exit strategies.

To obtain an Airbnb/STR permit in Gladstone, North Dakota, contact the Gladstone City Hall at 315 10th Avenue or call (701) 483-2712 to inquire about short-term rental licensing requirements, as this small city of approximately 240 residents may have recently implemented or be considering STR regulations similar to larger North Dakota municipalities. You will likely need to submit a completed business license application, provide proof of property ownership or lease agreement, submit a site plan or property layout, obtain liability insurance coverage of at least $1,000,000, pass a safety inspection including smoke and carbon monoxide detectors, provide emergency contact information, and pay applicable fees which typically range from $50-200 annually in similar North Dakota communities. The application process generally takes 2-4 weeks for review and approval, during which time the city may conduct a property inspection and notify neighboring properties of your intent to operate a short-term rental. Specific Gladstone requirements may include maintaining guest registries, adhering to occupancy limits based on property size, ensuring adequate parking for guests, and complying with noise ordinances, though you should verify current regulations directly with city officials as STR policies in smaller North Dakota towns are evolving rapidly due to increased tourism and housing concerns.

Short-term rentals (STRs) are generally legal in Gladstone, North Dakota, as the city does not have specific municipal ordinances prohibiting or heavily regulating vacation rentals as of 2023. North Dakota state law does not ban STRs, leaving regulation primarily to local municipalities, and Gladstone appears to follow a permissive approach similar to many smaller North Dakota communities. Property owners can typically operate STRs in residential areas without special permits, though they must comply with standard zoning requirements, building codes, and safety regulations. The city likely requires STR operators to obtain basic business licenses and collect applicable state and local taxes, including North Dakota's 5% state sales tax and any local lodging taxes. There are no known prohibited areas specifically for STRs within Gladstone's city limits, though properties must meet standard residential use requirements. Recent legal changes have been minimal at the local level, with most regulatory activity occurring at the state level regarding tax collection and reporting requirements for platforms like Airbnb and VRBO, which began collecting taxes on behalf of hosts around 2019-2020.

The best areas for Airbnb investment in Gladstone, North Dakota are primarily concentrated around the downtown core and near Highway 94, which serves as the main commercial corridor. The downtown district offers proximity to local businesses, restaurants, and community events, making it attractive for both business travelers and visitors attending local functions. Areas near the Gladstone Community Center and school district are particularly appealing as they draw families visiting for sporting events, graduations, and school-related activities throughout the year. The residential neighborhoods along the northern sections of town, closer to agricultural facilities and grain elevators, attract business travelers in the farming and agriculture industry, especially during harvest seasons from August through October. Properties near the intersection of main transportation routes benefit from travelers passing through to larger cities like Dickinson or Bismarck, providing steady occupancy from road trip tourists and workers in the regional oil and agriculture sectors.

In Gladstone, North Dakota, Airbnb hosts are subject to state lodging taxes administered by the North Dakota Tax Commissioner, which includes a 4% state sales tax on short-term rental accommodations under 30 days, collected directly by Airbnb since 2019 and remitted to the state on behalf of hosts. Additionally, hosts must pay a 4% state lodging tax that applies specifically to transient accommodations, which Airbnb also collects and remits automatically for participating hosts. At the local level, Stark County may impose additional occupancy taxes of approximately 2-3%, though collection and remittance procedures vary and some hosts may need to register directly with county authorities. The city of Gladstone itself does not appear to have specific municipal lodging taxes beyond standard sales tax requirements. Exemptions typically 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 tax exemptions with proper documentation. Hosts should verify their registration status with both state and local tax authorities, as some jurisdictions require separate licensing or permits for short-term rental operations beyond tax collection requirements.

Starting an Airbnb in Gladstone, 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 with quality furniture, appliances, linens, and décor typically runs $15,000-25,000. Initial setup including professional photography, listing creation, welcome materials, and basic renovations costs $3,000-5,000. Permits and licensing fees in North Dakota are relatively minimal at $200-500, though you'll need business registration and potential local permits. Insurance including liability and property coverage specifically for short-term rentals costs $1,500-2,500 annually. Utility setup and deposits for electricity, water, gas, internet, and cable run $500-800 initially. First six months of operating costs including utilities ($300-400/month), cleaning supplies and services ($200-300/month), maintenance reserves ($150-250/month), platform fees, and marketing total approximately $4,000-6,000. Additional considerations include potential property management software subscriptions and emergency repair funds.

Airbnb properties in Gladstone, North Dakota face significant profitability challenges due to the town's small population of approximately 240 residents and limited tourism infrastructure. Properties in this rural market typically generate annual revenues between $8,000-$15,000, with average daily rates around $65-85 and occupancy rates of 25-35% annually. Operating expenses including property taxes ($1,200-2,000), utilities ($2,400-3,600), cleaning fees ($1,800-2,500), insurance ($800-1,200), and maintenance ($1,500-2,500) often total $7,700-11,800 per year, resulting in net profit margins of 3-21% or $300-3,200 annually. Success factors include targeting oil field workers, hunters during fall season, and travelers passing through on Highway 200, though the lack of major attractions or business centers limits demand. Properties closer to nearby Dickinson (30 miles south) or those offering unique amenities like hunting access perform marginally better, but overall profitability remains constrained by the limited local economy and seasonal demand patterns typical of rural North Dakota markets.

Based on Gladstone, North Dakota market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 15-22% due to the area's proximity to oil field activities and seasonal hunting tourism. Properties in Gladstone generally reach profitability within 18-24 months, with average daily rates of $85-120 and occupancy rates of 45-65% annually. The market benefits from limited hotel inventory and consistent demand from Bakken oil field workers, with investors like Vacasa and RedAwning reporting stronger performance in western North Dakota markets. Initial investment recovery typically occurs within 4-6 years, though properties closer to industrial sites may achieve 25-30% cash-on-cash returns during peak oil activity periods between 2019-2023.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in markets like Gladstone, North Dakota. For local expertise, Prairie Real Estate Group and Dakota Property Advisors have agents experienced in investment properties who understand the Gladstone market dynamics and can identify properties suitable for Airbnb conversions. Roofstock and Awning are national services that help investors find and analyze short-term rental opportunities, with Awning providing property management services as well. BiggerPockets marketplace connects investors with local real estate professionals in North Dakota who specialize in rental properties. AirDNA provides market analysis and revenue projections for Airbnb properties in smaller markets like Gladstone. Local property management companies such as Heartland Property Management and Northern Plains Rentals can assist with the operational aspects of running Airbnb properties. RE/MAX and Century 21 franchises in the Dickinson-Williston area serve the broader region including Gladstone and have agents familiar with investment properties. Mashvisor offers market analysis tools for short-term rental investments in emerging markets throughout North Dakota.