Is Hysham, Montana Good for Airbnb Investment?

To start an Airbnb in Hysham, Montana, begin by researching local regulations through Treasure County and the City of Hysham, as Montana generally allows short-term rentals but local ordinances may apply, particularly regarding zoning restrictions in residential areas and potential occupancy limits. 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 check if Treasure County requires a conditional use permit or business license for short-term rentals. Find a suitable property by focusing on homes near Hysham's outdoor recreation areas like the Yellowstone River or properties with rural charm that appeal to visitors exploring eastern Montana, with average home prices in the area ranging from $150,000-$300,000. Furnish the property with durable, comfortable furniture emphasizing Montana's rustic aesthetic, including quality bedding, full kitchen amenities, Wi-Fi, and outdoor furniture to capitalize on the area's natural setting. List your property on Airbnb with professional photos highlighting the rural Montana experience, competitive pricing around $75-125 per night based on the regional market, and descriptions emphasizing proximity to fishing, hunting, and small-town charm. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges or lockbox systems, maintaining the property regularly, and ensuring compliance with Montana's 4% statewide lodging tax while keeping detailed records for tax purposes and potential local tax obligations in Treasure County.

To identify profitable short-term rental properties in Hysham, Montana, focus on properties within walking distance of the Yellowstone River for fishing access, as this small agricultural town of approximately 300 residents attracts outdoor enthusiasts and hunters during peak seasons from May through October. Target 2-3 bedroom single-family homes or cabins with modern amenities, reliable internet, and outdoor spaces like decks or fire pits, priced between $80,000-$150,000 given the rural market. Analyze comparable STR rates in nearby Forsyth and Miles City (typically $75-$125/night) since Hysham has limited direct competition, and research seasonal demand patterns tied to hunting seasons, fishing tournaments, and agricultural events. Utilize AirDNA for regional market data, Mashvisor for investment analysis, and local resources like the Treasure County economic development office and Hysham community Facebook groups to understand visitor patterns. Consider properties near Highway 12 for accessibility while maintaining the rural charm that attracts guests seeking authentic Montana experiences, and factor in the town's proximity to Makoshika State Park (45 minutes) as an additional draw for nature-focused travelers.

To obtain an Airbnb/STR permit in Hysham, Montana, you will need to contact the Treasure County Planning Department or the Town of Hysham clerk's office directly, as this small rural community may not have established formal short-term rental regulations yet. Start by calling Treasure County at (406) 342-5547 or visiting their courthouse at 307 2nd Avenue East in Hysham to inquire about current zoning requirements and whether STR permits are required. You will likely need to provide a completed business license application, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, septic system inspection if applicable, and fire safety compliance documentation. Estimated fees may range from $50-200 for initial permits plus annual renewal fees of $25-100. The approval timeline is typically 2-4 weeks for rural Montana counties. Specific Hysham requirements may include compliance with residential zoning restrictions, adequate parking provisions, waste management plans, and potentially a limit on the number of guests or rental days per year, though you should verify current regulations as this small town of approximately 300 residents may be developing or updating STR policies.

Short-term rentals (STRs) are generally legal in Hysham, Montana, as the small rural town in Treasure County does not appear to have specific municipal ordinances prohibiting or heavily regulating vacation rentals as of 2024. Montana state law allows STRs unless local jurisdictions impose restrictions, and Hysham, with a population under 500, has not enacted comprehensive STR regulations like larger Montana cities such as Bozeman or Missoula have done in recent years. Property owners in Hysham can typically operate STRs subject to basic zoning compliance, state tax requirements including the 3% state lodging tax, and standard property maintenance standards. However, operators should verify current zoning designations with Treasure County, as some residential zones may have restrictions on commercial activities, and should ensure compliance with state licensing requirements for lodging facilities depending on the scale of operation. The regulatory landscape for STRs in Montana has been evolving since 2020, with various municipalities implementing new rules, but smaller communities like Hysham have generally remained more permissive while larger tourist destinations have imposed stricter controls on density and operational requirements.

The best areas for Airbnb investment in Hysham, Montana are primarily concentrated around the downtown historic district near Main Street and the residential areas closest to the Yellowstone River, as these locations offer proximity to the town's limited amenities and scenic river access that attracts hunters, fishermen, and travelers passing through on Highway 12. The area near the Hysham School and community center provides good access for visiting families and sports teams, while properties within walking distance of the few local restaurants and the post office offer convenience for guests. The neighborhoods south of town toward the river bottom lands are particularly attractive due to their rural setting that appeals to hunting parties during fall seasons and those seeking agricultural tourism experiences, as Hysham serves as a gateway to eastern Montana's vast ranch lands and hunting areas. Properties near the grain elevators and railroad infrastructure can attract business travelers related to agriculture and transportation industries, though this market is limited given the town's small size of approximately 300 residents.

In Hysham, Montana, Airbnb hosts 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 Montana Department of Revenue with quarterly remittance required by the 15th of the month following each quarter. Treasure County, where Hysham is located, does not impose additional county-level occupancy taxes as of 2023, and the small town of Hysham itself does not have municipal lodging taxes due to its size and limited tourism infrastructure. The state tax is typically collected directly by Airbnb through their platform and remitted to the Montana Department of Revenue on behalf of hosts, though individual hosts remain responsible for ensuring compliance and may need to register separately if they have multiple properties or exceed certain revenue thresholds. Exemptions include stays of 30 days or longer, which are considered long-term rentals rather than transient lodging, and certain government or non-profit organization bookings may qualify for exemptions with proper documentation.

The total cost to start an Airbnb in Hysham, Montana would be approximately $185,000-$220,000. Property purchase costs around $150,000-$180,000 based on median home prices in rural Montana towns. Furnishing a 2-3 bedroom property with quality furniture, appliances, linens, and décor runs $8,000-$12,000. Initial setup including professional photography, listing creation, and basic renovations costs $2,000-$4,000. Permits and fees including business license, short-term rental permit, and zoning compliance total $500-$1,500. Insurance for short-term rental coverage adds $1,200-$2,000 annually. Utility deposits and connections for electricity, water, gas, internet, and cable cost $800-$1,200. First six months operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance ($200/month), property management software ($50/month), and marketing ($100/month) total approximately $6,300. Additional costs may include property taxes, HOA fees if applicable, and emergency repair funds of $2,000-$5,000.

Airbnb properties in Hysham, Montana face significant profitability challenges due to the town's small population of approximately 300 residents and limited tourist infrastructure, with average daily rates typically ranging from $60-80 compared to Montana's statewide average of $120-150. Properties in this rural area generate estimated annual revenues of $8,000-15,000, while expenses including mortgage payments, utilities, cleaning, maintenance, and Airbnb fees often total $12,000-18,000 annually, resulting in negative profit margins of -20% to -40% for most operators. Success factors are extremely limited but may include targeting hunters during fall seasons, oil field workers seeking temporary housing, or travelers passing through on Highway 2, though occupancy rates rarely exceed 25-30% annually. The lack of major attractions, restaurants, or recreational activities within Hysham itself forces most profitable operators to market their properties as budget accommodations for guests visiting nearby areas like Fort Peck Lake (45 miles away) or those seeking authentic rural Montana experiences, with the most successful properties being those owned outright without mortgage payments and operated as supplemental income rather than primary revenue sources.

Airbnb investments in Hysham, Montana typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, though these figures are modest due to the town's small population of approximately 300 residents and limited tourist infrastructure. Properties in this rural Treasure County location, with average home values around $150,000-$200,000, can expect occupancy rates of 35-50% annually, primarily from hunters, anglers targeting the Yellowstone River, and travelers passing through on Highway 12. Initial profitability typically occurs within 18-24 months for well-positioned properties, with gross rental yields of $8,000-$15,000 annually on properly marketed cabins or homes. The market benefits from proximity to outdoor recreation and hunting seasons from September through November, but faces challenges from limited year-round demand and competition from larger markets like Billings (90 miles away) and Miles City (45 miles away). Investors should expect seasonal revenue fluctuations with peak earnings during fall hunting season and summer fishing months, while winter months may see occupancy drop to 15-25%.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Hysham, Montana. For local expertise in the Hysham area, Century 21 Big Sky Real Estate and Berkshire Hathaway HomeServices Montana Properties have agents familiar with investment properties in eastern Montana. RE/MAX agents in nearby Billings and Miles City also serve the Hysham market and can assist with Airbnb property searches. National services like Mashvisor, AirDNA, and Rabbu provide market analysis and property recommendations for small Montana markets. BiggerPockets connects investors with local professionals, while Awning offers end-to-end Airbnb investment services including property identification in rural markets. Local property management companies such as Montana Vacation Rentals and Yellowstone Property Management can provide insights into profitable rental properties. Real estate investment firms like Roofstock and Fundrise occasionally feature Montana properties, though coverage in smaller markets like Hysham may be limited. Regional brokerages including Stockman Bank Real Estate and First Interstate Bank's real estate division have experience with investment properties in rural Montana communities and can connect investors with suitable Airbnb opportunities in the Hysham area.