Is Great Falls, Montana Good for Airbnb Investment?

To start an Airbnb in Great Falls, Montana, begin by researching local regulations through the Great Falls Planning and Community Development Department, as the city requires short-term rental operators to obtain a business license and comply with zoning ordinances that typically allow STRs in residential areas with certain restrictions. Contact Cascade County for any additional county-level requirements and ensure compliance with Montana state tax obligations including the 3% state lodging tax. Find a suitable property in desirable neighborhoods like the Historic District, Gibson Flats, or areas near the Missouri River, considering proximity to attractions like Giant Springs State Park and the Lewis and Clark National Historic Trail Interpretive Center. Purchase or lease a property that meets safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers as mandated by local fire codes. Furnish the space with quality furniture, linens, kitchen essentials, and amenities that appeal to tourists visiting for outdoor recreation, with estimated startup costs ranging from $5,000-$15,000 for furnishing depending on property size. Create compelling listings on Airbnb, VRBO, and Booking.com with professional photography highlighting Great Falls' outdoor recreation opportunities and proximity to Glacier National Park (2 hours away). Implement a management system using tools like Hospitable or Guesty for automated messaging, cleaning coordination with local services like Cascade Cleaning Company, and pricing optimization, while maintaining responsive communication with guests and ensuring consistent 5-star reviews to maximize bookings in Great Falls' seasonal tourism market that peaks during summer months.

To identify profitable short-term rental properties in Great Falls, Montana, focus on locations within 2-3 miles of Malmstrom Air Force Base for consistent military visitor demand, near the Missouri River for recreational appeal, and in historic downtown areas close to attractions like the C.M. Russell Museum and Giant Springs State Park. Target 2-4 bedroom single-family homes or duplexes built after 1980 with modern amenities, full kitchens, parking, and outdoor spaces that can accommodate families and extended-stay guests. Analyze pricing using AirDNA and Mashvisor to benchmark against the local market average of $80-120 per night, while researching occupancy rates through STR Helper and reviewing competitor listings within a 5-mile radius to identify gaps in amenities or pricing. Study seasonal demand patterns around Malmstrom AFB training cycles, hunting seasons, and summer tourism to the nearby Little Belt Mountains, and utilize Great Falls-specific Facebook groups, the Great Falls Tribune real estate listings, and local property management companies like Big Sky Property Management for market insights. Consider properties near medical facilities like Benefis Health System for medical tourism demand, and ensure compliance with Great Falls zoning regulations and Montana's emerging STR legislation while targeting neighborhoods like Black Eagle, Gibson Flats, or areas near Giant Springs for optimal guest appeal and profitability potential.

To obtain an Airbnb/STR permit in Great Falls, Montana, you must first contact the Great Falls Planning and Community Development Department at City Hall located at 2 Park Drive South to determine if short-term rentals are permitted in your specific zoning district, as the city implemented STR regulations around 2019-2020. Submit a completed short-term rental application along with required documents including proof of property ownership or lease agreement, floor plan of the rental unit, proof of liability insurance (minimum $1 million coverage), emergency contact information for a local representative available 24/7, and parking plan showing adequate off-street parking. Pay the application fee of approximately $150-250 plus an annual renewal fee of around $100-150, and schedule required inspections for fire safety, building code compliance, and zoning verification. The approval process typically takes 4-6 weeks from submission of complete application materials. Great Falls specific requirements include maintaining a guest registry, posting the permit number in the rental listing, limiting occupancy to 2 people per bedroom plus 2 additional guests, ensuring quiet hours from 10 PM to 7 AM, providing adequate trash receptacles, and maintaining the property in compliance with residential property maintenance codes. Once approved, you must renew the permit annually and report any violations or complaints to the city within 48 hours.

Short-term rentals (STRs) are legal in Great Falls, Montana, but operate under city regulations that require property owners to obtain a business license and comply with zoning restrictions. The city allows STRs in most residential zones but prohibits them in certain high-density areas and requires operators to maintain properties according to health and safety standards. Great Falls implemented its STR ordinance around 2019-2020, requiring registration with the city, payment of applicable taxes, and adherence to occupancy limits and noise ordinances. Properties must meet fire safety requirements and parking provisions, and the city reserves the right to revoke licenses for violations of city codes or neighbor complaints. Recent enforcement has focused on ensuring compliance with tax collection requirements and addressing neighborhood concerns about parking and noise, with the city conducting periodic reviews of STR operations to balance tourism benefits with residential community interests.

The best Airbnb investment areas in Great Falls, Montana include the Historic Downtown District near the Missouri River, which attracts tourists visiting the C.M. Russell Museum and attending events at the Mansfield Theater, plus business travelers working with companies like Benefis Health System and Malmstrom Air Force Base personnel. The Black Eagle area offers affordable properties with easy access to Giant Springs State Park and the River's Edge Trail, popular with outdoor enthusiasts and families visiting the Lewis and Clark National Historic Trail Interpretive Center. The Broadwater Bay neighborhood provides upscale accommodations for visitors to Rainbow Dam and those attending events at the Montana ExpoPark, while properties near the University of Great Falls (now University of Providence) capture student family visits and academic conference attendees. The South Hills residential area appeals to extended-stay business travelers and families visiting Malmstrom AFB, offering quiet neighborhoods with mountain views, and the West Bank area near Gibson Park attracts tourists during the annual Lewis and Clark Festival and provides convenient access to shopping at Holiday Village Mall.

In Great Falls, Montana, Airbnb hosts are subject to both state and local lodging taxes. The Montana state accommodations tax is 3% on gross receipts from lodging rentals, which applies to all short-term rentals including Airbnbs. Additionally, Great Falls imposes a local lodging facility use tax of 3%, bringing the total tax rate to approximately 6%. These taxes are typically collected from guests at the time of booking through Airbnb's automatic tax collection system, which remits payments directly to the Montana Department of Revenue and the City of Great Falls on a monthly basis. Hosts who collect taxes independently must register with both the state and city, file monthly returns, and remit payments by the 20th of the following month. Properties rented for 30 days or longer are generally exempt from these taxes, as are rentals to permanent residents. The state tax applies to rentals under $3 per night are exempt, though this rarely affects typical Airbnb rates. Hosts should maintain detailed records of all bookings and tax collections, and failure to comply can result in penalties and interest charges from both jurisdictions.

The total cost to start an Airbnb in Great Falls, Montana is approximately $285,000-$315,000. Property purchase costs around $220,000 based on the median home price in Great Falls as of 2023. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, bedding, kitchen essentials, and décor from retailers like IKEA, Wayfair, and local furniture stores. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees including business license, lodging tax registration, and potential zoning permits cost $500-$1,500. Short-term rental insurance runs $1,200-$2,000 annually. Utility deposits and connections for electricity, gas, water, internet, and cable cost $800-$1,200. First six months operating costs including utilities ($900/month), cleaning services ($100 per turnover), property management software like Airbnb Plus or VRBO ($50/month), maintenance reserves ($200/month), and marketing total approximately $8,000-$12,000. Additional considerations include potential HOA fees, property taxes, and emergency repair funds that could add $5,000-$10,000 to initial capital requirements.

Airbnb properties in Great Falls, Montana typically generate annual revenues between $15,000-$35,000 for entire homes and $8,000-$18,000 for private rooms, with average daily rates ranging from $65-$120 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), utilities ($150-$300 monthly), property management (10-20% of revenue), insurance ($800-$1,500 annually), and maintenance costs ($2,000-$4,000 yearly). Net profit margins typically range from 15-35% for well-managed properties, with higher margins achieved by hosts who self-manage and maintain high occupancy rates of 60-75%. Success factors in Great Falls include proximity to Malmstrom Air Force Base which drives consistent military visitor demand, competitive pricing during peak summer months when outdoor recreation attracts tourists to nearby attractions like Giant Springs State Park, and properties offering amenities like parking, WiFi, and kitchen access. A typical 3-bedroom home purchased for $180,000 and generating $28,000 in annual revenue with $18,000 in expenses would yield approximately $10,000 net profit annually, representing a 5.6% return on investment before considering property appreciation, though properties closer to downtown or the Missouri River command premium rates and achieve occupancy rates exceeding 70%.

Based on Great Falls, Montana market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the city. Properties near Malmstrom Air Force Base and downtown areas tend to perform better, with average daily rates of $85-120 and occupancy rates of 55-70% annually. Initial profitability usually occurs within 18-24 months after accounting for startup costs, furnishing, and marketing expenses. The market benefits from military personnel temporary lodging, outdoor recreation visitors to nearby attractions like Giant Springs State Park, and business travelers, with seasonal peaks during summer months boosting returns by 15-25%. Total investment recovery typically occurs within 7-10 years, though properties under $200,000 with strategic renovations focusing on military-friendly amenities and outdoor gear storage can achieve faster payback periods of 5-7 years.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Great Falls, Montana. Local real estate agents like those at Berkshire Hathaway HomeServices Montana Properties and Century 21 Big Sky Real Estate have experience with investment properties in the Great Falls market and understand the local rental dynamics. Roofstock, a national online marketplace founded in 2015, offers turnkey rental properties including those suitable for Airbnb conversions in Montana markets. Mashvisor provides data analytics and property search tools specifically for short-term rental investors evaluating Great Falls properties. Local property management companies such as Great Falls Property Management and Treasure State Property Management can assist with identifying investment opportunities and managing Airbnb operations. BiggerPockets, the national real estate investing platform, connects investors with local Great Falls agents and wholesalers who specialize in rental properties. AirDNA offers market analysis and revenue projections for Great Falls Airbnb investments, while Awning provides end-to-end services from property identification to management for short-term rental investors in Montana markets.