Is Glendive, Montana Good for Airbnb Investment?

To start an Airbnb in Glendive, Montana, begin by researching local regulations through the Dawson County Planning Department and Glendive City Hall, as Montana generally allows short-term rentals but local ordinances may require business licenses or zoning compliance. Obtain necessary permits including a Montana business license through the Secretary of State's office, a local business license from Glendive City Hall (estimated $50-100), and ensure your property meets fire safety codes and health department requirements. Find a suitable property in residential areas near downtown Glendive or close to the Yellowstone River, considering properties with 2-3 bedrooms that can accommodate families visiting for fishing, hunting, or business at nearby agricultural facilities. Furnish the space with durable, comfortable furniture from retailers like Walmart in nearby Billings or online suppliers, focusing on western/rustic themes that appeal to Montana visitors, including quality bedding, kitchen essentials, and outdoor gear storage. List your property on Airbnb and VRBO with professional photos highlighting Montana's outdoor recreation opportunities and proximity to Makoshika State Park, setting competitive rates around $80-120 per night based on local hotel prices. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider using property management software like Hostfully or hiring a local property manager, while maintaining responsive communication with guests and providing local recommendations for dining at places like the Yellowstone River Inn and outdoor activities in the area.

To identify profitable short-term rental properties in Glendive, Montana, focus on locations near the Yellowstone River for recreational access, proximity to downtown's historic district and restaurants, and areas accessible to oil field workers and business travelers visiting ConocoPhillips and other energy companies. Target 2-4 bedroom single-family homes or larger apartments built after 1980 with modern amenities, full kitchens, reliable Wi-Fi, parking, and outdoor spaces that can accommodate families and work crews. Analyze pricing by researching comparable Airbnb and VRBO listings in the $80-150 per night range, considering Glendive's seasonal tourism patterns around fishing season (May-September) and hunting season (fall), while factoring in steady demand from oil industry workers year-round. Research competition by examining existing STR listings within a 10-mile radius, noting occupancy rates, guest reviews, and amenities offered, as the market is relatively small with limited hotel options including the Historic Charley Montana Hotel and chain properties. Utilize tools like AirDNA for market analysis, STR Helper for revenue projections, Mashvisor for investment analysis, and local resources including the Glendive Chamber of Commerce for tourism data, Dawson County property records for acquisition costs, and networking with local real estate agents familiar with the energy sector's housing needs to identify properties that can serve both tourist and corporate markets effectively.

To obtain an Airbnb/STR permit in Glendive, Montana, contact the Glendive City Hall at 104 North Merrill Avenue or call (406) 377-4913 to inquire about short-term rental licensing requirements, as Montana municipalities individually regulate STRs. You'll likely need to submit a business license application, provide proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, contact information for a local property manager if you're not local, and pay an estimated application fee of $50-150 plus annual renewal fees of $25-100. The approval process typically takes 2-4 weeks after submitting complete documentation. Glendive may require compliance with residential zoning restrictions, maximum occupancy limits based on bedrooms and square footage, adequate parking spaces for guests, smoke and carbon monoxide detectors in all sleeping areas, fire extinguisher accessibility, and maintaining a guest registry. You must also register with the Montana Department of Revenue for lodging facility tax collection and remit the state's 7% accommodations tax plus any local taxes quarterly.

Short-term rentals (STRs) are generally legal in Glendive, Montana, as the city does not have specific municipal ordinances prohibiting them as of 2023. However, STR operators must comply with standard business licensing requirements, zoning regulations that may restrict commercial activities in residential areas, and state tax obligations including Montana's 3% accommodations tax. The city follows Dawson County zoning guidelines, which typically allow home-based businesses in residential zones with certain limitations on signage, parking, and neighborhood impact. Property owners should verify their specific zoning district allows transient accommodations and may need to obtain a business license from the city. Montana state law requires STR operators to register with the Department of Revenue for tax collection purposes, and properties must meet basic safety standards including smoke detectors and emergency egress requirements. While there haven't been major recent legal changes specific to Glendive, the growing popularity of platforms like Airbnb has prompted some Montana municipalities to consider more comprehensive STR regulations, though Glendive has maintained a relatively permissive approach compared to larger cities like Bozeman or Missoula which have implemented stricter licensing and operational requirements.

The best areas for Airbnb investment in Glendive, Montana are downtown Glendive near the historic district and Makoshika State Park vicinity, the residential neighborhoods around Dawson Community College, and properties near the Yellowstone River waterfront. Downtown Glendive attracts visitors exploring the area's paleontological sites and attending events at the Frontier Gateway Museum, while the proximity to Makoshika State Park draws tourists interested in dinosaur fossils and badlands hiking. The college area provides steady demand from visiting families, prospective students, and academic travelers throughout the school year. Yellowstone River properties appeal to fishing enthusiasts, hunters, and outdoor recreation visitors, particularly during summer months when the area sees increased tourism from people traveling along Highway 94 and those exploring eastern Montana's agricultural heritage and outdoor activities.

In Glendive, Montana, Airbnb hosts are subject to Montana's statewide lodging facility use tax of 3% on gross receipts from short-term rentals under 30 days, which is collected by the Montana Department of Revenue and remitted quarterly by the 20th of January, April, July, and October. Additionally, hosts must collect and remit the local bed tax imposed by Dawson County at a rate of 3% on gross lodging receipts, which is also remitted quarterly to the county treasurer's office. The state sales tax does not apply to lodging in Montana, but hosts may need to register for a Montana business license and obtain a lodging facility license if operating more than occasionally. Airbnb may collect and remit these taxes automatically for hosts in some cases through their tax collection service, but hosts remain ultimately responsible for compliance and should verify with local authorities. Exemptions typically apply to stays of 30 days or longer, which are considered long-term rentals rather than transient lodging, and some exemptions may exist for certain government or charitable organization bookings.

To start an Airbnb in Glendive, Montana, expect total costs around $180,000-$220,000. Property purchase represents the largest expense at approximately $150,000-$180,000 based on median home prices in eastern Montana markets. Furnishing costs typically range $8,000-$12,000 for a complete 2-3 bedroom setup including furniture, bedding, kitchenware, and electronics. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$3,000. Permits and fees in Montana rural areas generally cost $300-$800 covering business licenses and short-term rental permits. Insurance premiums for short-term rental coverage run $1,200-$1,800 annually. Utility deposits and connections total approximately $500-$800. First six months operating costs including utilities ($600-$900), cleaning supplies ($300), maintenance reserves ($1,000), marketing ($500), and platform fees on estimated bookings ($1,500-$2,500) add roughly $4,000-$6,000. Professional property management services, if utilized, would add 15-25% of gross rental income to ongoing costs.

Airbnb properties in Glendive, Montana typically generate modest returns due to the town's small population of approximately 5,000 and limited tourism infrastructure, with average nightly rates ranging from $65-95 for entire homes and occupancy rates around 35-45% annually. Revenue for a typical 2-3 bedroom property averages $8,000-12,000 per year, while expenses including mortgage payments, utilities, cleaning, maintenance, insurance, and Airbnb fees typically consume 70-85% of gross revenue, resulting in net profit margins of 15-30% or roughly $1,200-3,600 annually. Success factors in this market include proximity to the Yellowstone River for fishing enthusiasts, competitive pricing below $80/night, and targeting oil field workers and hunters during peak seasons, though properties near downtown or with unique amenities like hot tubs perform marginally better. The market faces challenges from limited demand drivers beyond occasional business travelers and seasonal hunters, making Glendive a lower-tier investment opportunity compared to Montana's more established tourist destinations like Bozeman or Whitefish, where similar properties might achieve 60-70% occupancy rates and significantly higher nightly rates.

Airbnb investments in Glendive, Montana typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by oil field worker demand and seasonal hunting/fishing tourism. Properties near the Yellowstone River or downtown area command premium rates of $80-120 per night during peak seasons (May-September), while off-season rates drop to $50-70 nightly. Initial investment recovery usually occurs within 7-10 years, with monthly gross revenues averaging $1,200-2,000 for well-positioned 2-3 bedroom properties. The Bakken oil activity in nearby areas sustains consistent mid-week bookings, while recreational tourism from Makoshika State Park and Missouri River access drives weekend demand. Operating expenses typically consume 35-45% of gross revenue including utilities, cleaning, maintenance, and platform fees, resulting in net annual returns that outperform traditional rental properties by 2-4 percentage points in this eastern Montana market.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Glendive, Montana. Local real estate agents like those at Century 21 Big Sky Real Estate and Prudential Montana Real Estate have experience with investment properties in the Glendive market and understand the local rental dynamics. National services include Mashvisor, which provides Airbnb analytics and investment property search tools, and BiggerPockets, which offers investment property listings and market analysis. AirDNA provides short-term rental market data and performance metrics for the Glendive area to help investors make informed decisions. Local property management companies such as Eastern Montana Property Management can assist with ongoing Airbnb operations after purchase. RedAwning and Vacasa offer both property search assistance and management services for short-term rentals in smaller Montana markets like Glendive. Real estate investment platforms like Roofstock and Fundrise may occasionally feature properties in the Glendive area, while local agents at Stockman Bank Real Estate and independent brokers familiar with the Yellowstone River region can provide insights into properties suitable for vacation rental conversion.