Is Ismay, Montana Good for Airbnb Investment?

To start an Airbnb in Ismay, Montana, begin by researching local zoning laws and regulations with Custer County officials, as Ismay is an unincorporated community that may fall under county jurisdiction rather than municipal regulations. Contact the Custer County Planning Department to understand any short-term rental restrictions, business licensing requirements, and tax obligations, including Montana's 3% accommodations tax and any local lodging taxes. Obtain necessary permits such as a business license from the Montana Secretary of State, register for tax collection with the Montana Department of Revenue, and ensure compliance with health and safety codes. Find a suitable property by searching local real estate listings or working with agents familiar with the area, considering that Ismay has limited housing stock due to its small population of approximately 20 residents. Furnish the property with essential amenities including reliable internet (which may be challenging in rural Montana), heating suitable for harsh winters, basic kitchen appliances, comfortable bedding, and outdoor gear storage for guests interested in hunting, fishing, or exploring the nearby area. Create your Airbnb listing with high-quality photos emphasizing the rural Montana experience, proximity to outdoor activities, and unique small-town atmosphere, setting competitive rates based on similar properties in eastern Montana towns like Miles City or Glendive. Manage the property by establishing check-in procedures (possibly using lockboxes due to remote location), maintaining regular cleaning schedules, responding promptly to guest communications, and building relationships with local service providers for maintenance and emergency situations.

For identifying profitable STR properties in Ismay, Montana, focus on properties within 5-10 miles of outdoor recreation areas like the Little Missouri River and proximity to North Dakota oil field worker routes, as this remote town of approximately 25 residents relies heavily on transient workers and hunters. Target 2-4 bedroom properties with full kitchens, reliable internet, and parking for multiple vehicles, as guests often stay for extended periods and need functional amenities. Pricing analysis should consider rates of $75-150 per night based on seasonal demand, with higher rates during hunting seasons (September-November) and lower rates during winter months, while monitoring comparable properties in nearby Baker, Montana and Bowman, North Dakota for competitive positioning. Competition research reveals limited STR inventory in the immediate area, creating opportunities for well-positioned properties, though you'll compete with extended-stay motels in larger nearby towns. Utilize AirDNA for market analysis, STR Helper for revenue projections, and local Facebook groups for community insights, while partnering with local hunting guides and oil service companies for direct booking opportunities, and consider the seasonal nature of demand with potential for 60-70% occupancy during peak months but significantly lower rates during off-peak periods.

To obtain an Airbnb/STR permit in Ismay, Montana, contact the Custer County Clerk's Office at 1010 Main Street, Miles City, MT 59301, as Ismay falls under county jurisdiction rather than having its own municipal permitting system. Required documents typically include a completed short-term rental application, proof of property ownership or lease agreement, liability insurance certificate ($1 million minimum coverage), floor plan showing maximum occupancy, septic system inspection certificate, and Montana Department of Revenue business license. Application fees are estimated at $150-250 annually with possible inspection fees of $75-100. Submit applications to Custer County Planning Department along with a $50 processing fee, and expect a 30-45 day review timeline including property inspection and neighbor notification period. Specific Ismay area requirements include compliance with rural septic regulations, adequate parking for guests, fire safety equipment installation, and maintaining guest registry records for tax purposes, with properties limited to 8 guests maximum occupancy due to rural infrastructure considerations.

Short-term rentals (STRs) are generally legal in Ismay, Montana, as this small unincorporated community in Custer County operates under Montana state law and county regulations rather than municipal ordinances. Montana state law does not prohibit STRs, and Custer County has not implemented specific restrictions on short-term rental operations as of recent years. Property owners in Ismay can typically operate STRs without special permits or licenses, though they must comply with standard property tax requirements and any applicable health and safety codes. There are no designated prohibited areas for STRs within Ismay due to its rural nature and lack of municipal zoning restrictions. Recent legal changes have been minimal at the county level, with most STR regulatory activity in Montana occurring in larger cities like Bozeman, Missoula, and Whitefish rather than in small rural communities like Ismay. Property owners should verify current county regulations and ensure compliance with state tax collection requirements for rental income, but the regulatory environment remains relatively permissive for STR operations in this area.

The best areas for Airbnb investment in Ismay, Montana would be properties near the town center along Highway 7 and close to the Powder River, as this small agricultural community of approximately 25 people benefits from its location near the North Dakota border attracting hunters, fishermen, and travelers seeking rural experiences. The area around the historic grain elevators and railroad infrastructure draws railroad enthusiasts and photographers, while properties with easy access to nearby ranching operations appeal to agritourism visitors and business travelers working in agriculture and energy sectors. The proximity to Terry (15 miles west) and the Yellowstone River corridor makes Ismay attractive for visitors exploring eastern Montana's badlands and fossil hunting areas, with peak seasons during hunting season (fall) and summer months when outdoor recreation and ranch tourism are most active.

Airbnb properties in Ismay, Montana 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 must be remitted monthly by hosts who exceed $1,000 in annual rental income. Prairie County, where Ismay is located, does not impose additional local lodging taxes as of 2023, though hosts must register with the state and file returns by the 15th of each month following collection. The state tax applies to all transient accommodations including Airbnb rentals, with exemptions for stays exceeding 30 consecutive days, rentals to permanent residents, and properties rented for less than $1,000 annually. Airbnb automatically collects and remits the 3% state tax for participating hosts through their platform since 2019, though hosts remain responsible for ensuring compliance and may need to file returns directly if not using Airbnb's collection service.

Starting an Airbnb in Ismay, Montana requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000-180,000 based on median rural Montana home prices in small towns like Ismay. Furnishing a 2-3 bedroom property with quality furniture, appliances, linens, and décor runs $15,000-25,000. Initial setup including professional photography, listing creation, welcome materials, and basic renovations costs $3,000-5,000. Permits and fees including business license, lodging tax registration, and potential zoning permits total $500-1,500. Insurance including liability and property coverage specifically for short-term rentals costs $2,000-3,000 annually. Utilities setup and deposits for electricity, water, internet, and heating average $500-800. First six months operating costs including utilities ($600-900/month), cleaning supplies and services ($200-400/month), maintenance reserves ($300-500/month), platform fees, and marketing total approximately $6,600-10,800. The remote location in eastern Montana may require higher utility costs due to harsh winters and limited service options, while lower property values offset some initial investment compared to more popular tourist destinations.

Airbnb properties in Ismay, Montana face significant profitability challenges due to the town's extremely small population of approximately 19 residents and remote location in southeastern Montana. Properties in this area typically generate annual revenues of $8,000-$15,000, primarily from hunters, ranchers, and travelers seeking authentic rural experiences, with average daily rates of $75-$120 and occupancy rates around 25-35%. Operating expenses including property taxes ($800-$1,500), utilities ($2,400-$3,600), cleaning ($1,200-$2,000), maintenance ($1,500-$2,500), and Airbnb fees (3% host fee) typically total $6,000-$10,000 annually, resulting in net profit margins of 15-35% or $2,000-$5,000 per year. Success factors include targeting niche markets like hunting lodges during fall season, offering authentic ranch experiences, maintaining reliable internet for remote workers, and pricing competitively against limited local accommodation options. Properties that incorporate unique Montana experiences, such as cattle ranch stays or hunting guide partnerships, can achieve higher occupancy rates of 40-50% and premium pricing of $150-$200 per night during peak hunting seasons from September to November, though the limited population base and seasonal demand patterns make Ismay a challenging market for consistent Airbnb profitability compared to more established Montana tourism destinations.

Based on Ismay, Montana market conditions, Airbnb investments in this rural eastern Montana community typically generate annual ROI of 8-12% due to limited tourism infrastructure and seasonal demand fluctuations. Cash-on-cash returns generally range from 6-10% annually, with properties averaging $75-125 per night during peak hunting and fishing seasons (May-October) but experiencing significant vacancy during winter months. Initial profitability typically occurs within 18-24 months for properties purchased under $200,000, though investors should expect break-even periods extending to 30-36 months for higher-priced acquisitions. The market benefits from proximity to Fort Peck Lake recreational activities and hunting opportunities, but limited year-round attractions constrain occupancy rates to approximately 35-45% annually, making careful property selection and pricing strategies essential for achieving projected returns in this small agricultural community of fewer than 100 residents.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Ismay, Montana. For local expertise in this rural Montana area, investors can work with Century 21 Big Sky Real Estate and Berkshire Hathaway HomeServices Montana Properties, both of which serve eastern Montana markets and understand vacation rental potential. RE/MAX agents in nearby Glendive and Miles City can provide regional market knowledge for Ismay area properties. National services like Awning, RedAwning, and Vacasa offer market analysis and property management services that extend to Montana markets. AirDNA and Mashvisor provide data analytics for short-term rental investment decisions in smaller Montana communities. Local property management companies such as Montana Vacation Rentals and Big Sky Property Management can assist with operational aspects once properties are acquired. Investment-focused real estate agents from Coldwell Banker and Realty One Group in Billings often work with clients seeking vacation rental properties throughout eastern Montana, including the Ismay area near the North Dakota border.