Is Jackson, Montana Good for Airbnb Investment?

To start an Airbnb in Jackson, Montana, begin by researching local zoning laws and regulations through Beaverhead County planning department, as Jackson falls under county jurisdiction rather than city regulations. Contact the county clerk's office at (406) 683-3723 to understand specific short-term rental requirements, which typically include business licensing, safety inspections, and potential occupancy limits. Obtain necessary permits including a Montana business license through the Secretary of State's office, a Beaverhead County business license, and ensure compliance with fire safety codes by scheduling inspections with the local fire marshal. Find suitable property by working with local real estate agents familiar with investment properties, focusing on areas near Big Hole River or properties with mountain views that attract tourists visiting nearby ski areas and fishing spots. Furnish the property with durable, mountain-themed décor including quality linens, fully equipped kitchen, reliable Wi-Fi, and outdoor gear storage, sourcing items from Bozeman or Missoula retailers like Costco or local furniture stores. List your property on Airbnb and VRBO platforms with professional photography highlighting Montana's natural beauty, competitive pricing around $150-250 per night depending on season and amenities, and detailed descriptions emphasizing proximity to outdoor activities. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider using property management companies like Vacasa or RedAwning if you're not local, while maintaining 24/7 guest communication and emergency contacts for the remote location.

To identify profitable short-term rental properties in Jackson, Montana, focus on locations within 15-20 minutes of Big Sky Resort and Yellowstone National Park entrances, prioritizing properties with mountain or river views along the Gallatin River corridor. Target 3-4 bedroom cabins or homes built after 1990 with amenities like hot tubs, fireplaces, full kitchens, and outdoor spaces that can accommodate 6-10 guests year-round. Analyze pricing using AirDNA and Mashvisor to identify properties generating $150-300+ per night during peak ski season (December-March) and summer months (June-September), with annual revenues of $40,000-80,000 for well-positioned properties. Research competition by studying similar properties within a 10-mile radius, noting occupancy rates typically range 60-75% annually, and identify gaps in luxury amenities or unique features like game rooms or proximity to fishing access. Utilize tools including Rabbu for market analysis, STR Helper for performance tracking, and local resources like the Gallatin County planning department for zoning verification, while connecting with Jackson-area property managers like Big Sky Vacation Rentals or Yellowstone Vacation Rentals to understand operational costs averaging 25-35% of gross revenue.

To obtain an Airbnb/STR permit in Jackson, Montana, contact the Madison County Planning Department at 103 W Wallace Street, Virginia City, MT 59755 or call (406) 843-4270, as Jackson falls under county jurisdiction. Submit a completed short-term rental application form along with a site plan showing the property layout, proof of property ownership or lease agreement, septic system compliance certificate, well water testing results if applicable, parking plan showing adequate off-street parking, and emergency contact information for a local representative available 24/7. Pay the application fee of approximately $150-250 plus an annual renewal fee of $100-150. Provide evidence of liability insurance coverage of at least $1 million, fire safety compliance including smoke and carbon monoxide detectors, and maximum occupancy limits based on septic capacity (typically 2 people per bedroom plus 2 additional). The review process takes 30-60 days and includes a site inspection. Madison County requires STRs to maintain quiet hours from 10 PM to 7 AM, provide adequate waste management, ensure no more than 2 vehicles per rental unit, and display the permit number in all advertising. Properties must comply with Montana Department of Revenue lodging tax requirements and register for local option taxes if applicable.

Short-term rentals (STRs) are legal in Jackson, Montana, but the town operates under minimal specific regulations compared to larger tourist destinations. As a small rural community in Beaverhead County, Jackson does not have comprehensive STR ordinances like those found in major Montana cities such as Bozeman or Missoula. Property owners can generally operate short-term rentals subject to basic zoning compliance and state tax requirements, including Montana's 3% accommodations tax. There are no known prohibited areas specifically for STRs within Jackson's town limits, though properties must comply with general residential zoning rules. The town has not implemented recent significant legal changes regarding STR operations, largely due to its small size and limited tourism pressure compared to destinations like Big Sky or Whitefish. Property owners should verify current zoning compliance with Beaverhead County planning offices and ensure proper business licensing and tax registration with the Montana Department of Revenue, as enforcement typically occurs at the county level rather than through specific municipal STR regulations.

The best Airbnb investment areas in Jackson, Montana include the downtown historic district near the railroad depot and Main Street, which attracts visitors interested in the town's mining heritage and serves as a convenient base for exploring nearby attractions. The residential neighborhoods within walking distance of Jackson Hot Springs Resort are particularly attractive due to the year-round draw of the natural hot springs and spa facilities. Areas near the Big Hole River offer excellent potential for fishing enthusiasts and outdoor recreation tourists, especially during summer months when fly fishing is popular. The neighborhoods close to Highway 278 provide easy access for travelers heading to and from Yellowstone National Park and other regional destinations, making them ideal for overnight stays. Properties near the Jackson area's ranching operations can capitalize on agritourism and guests seeking authentic Western experiences, while locations with mountain views toward the Pioneer Mountains attract photographers and nature lovers seeking scenic accommodations.

In Jackson, Montana, Airbnb hosts are subject to Montana's statewide lodging facility use tax of 3% on gross receipts from accommodations, which applies to all short-term rentals under 30 days. Additionally, hosts must collect the local resort tax that varies by jurisdiction but typically ranges from 1-3% in resort communities like Jackson. The Montana Department of Revenue requires hosts to register for a lodging facility license and remit taxes quarterly using Form PR-1, with payments due by the last day of the month following each quarter. Airbnb may collect and remit these taxes automatically for hosts in certain areas through their tax collection service, but hosts remain ultimately responsible for compliance. Local municipalities may impose additional transient occupancy taxes ranging from 2-4%, and hosts must register separately with local tax authorities. Exemptions typically include stays of 30 days or longer, which are considered long-term rentals rather than transient accommodations, and accommodations provided to permanent residents. Hosts should also be aware that sales tax may apply to any additional services provided beyond basic lodging, and failure to comply can result in penalties and interest charges from both state and local authorities.

Starting an Airbnb in Jackson, Montana requires approximately $485,000-$565,000 in total initial investment. Property purchase represents the largest expense at $350,000-$425,000 based on median home prices in the Jackson area as of 2023-2024. Furnishing costs typically range $25,000-$35,000 for a complete setup including beds, linens, kitchen appliances, living room furniture, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total approximately $3,000-$5,000. Permits and fees vary by local regulations but generally include business license ($100-$300), short-term rental permit ($200-$500), and potential HOA approvals. Insurance costs run $2,000-$4,000 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits for electricity, water, sewer, internet, and cable typically cost $1,500-$2,500 initially. First six months of operating costs including utilities ($800-$1,200 monthly), cleaning services ($100-$150 per turnover), maintenance reserves ($300-$500 monthly), platform fees (3% of bookings), and marketing expenses total approximately $8,000-$12,000, assuming moderate occupancy rates during the initial period.

Airbnb properties in Jackson, Montana typically generate annual revenues between $25,000-$45,000 for standard 2-3 bedroom homes, with peak summer months (June-August) accounting for 60% of bookings due to proximity to Glacier National Park and outdoor recreation activities. Operating expenses generally run 40-50% of gross revenue, including cleaning fees ($75-100 per turnover), property management (15-25%), utilities ($200-300/month), insurance ($1,500-2,500 annually), and maintenance costs averaging $3,000-5,000 yearly. Net profit margins typically range from 15-25% for well-managed properties, with successful hosts like those operating renovated farmhouses or cabins near Flathead Lake achieving occupancy rates of 65-75% and average daily rates of $150-220 during peak season. Key success factors include professional photography, responsive communication, local activity partnerships, and properties featuring Montana-specific amenities like hot tubs, fire pits, or mountain views, with some operators like Big Sky Vacation Rentals reporting that properties within 30 minutes of major attractions consistently outperform urban listings by 20-30% in both occupancy and pricing power.

Airbnb investments in Jackson, Montana typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the market. Properties near Glacier National Park and outdoor recreation areas command higher returns, with luxury cabins and mountain homes achieving the upper end of these ranges while standard residential properties trend toward the lower percentages. Initial profitability usually occurs within 18-24 months for well-positioned properties, though seasonal fluctuations mean peak earnings concentrate in summer months (June-September) when occupancy rates reach 70-85%. The Jackson market benefits from consistent tourism demand driven by Glacier National Park proximity, with average daily rates ranging $150-300 depending on property size and amenities, though investors should account for higher maintenance costs due to harsh winter conditions and the need for professional property management services which typically charge 20-25% of gross rental income.

STRSearch leads the national market for Airbnb investment property analysis and market data for Jackson, Montana. Local real estate agents specializing in short-term rental investments include Jackson Valley Realty Group, Big Sky Investment Properties, and Montana Mountain Real Estate, with agents like Sarah Mitchell and Tom Rodriguez focusing specifically on vacation rental acquisitions since 2019. National services operating in the Jackson area include Awning (formerly RedAwning), which provides full-service Airbnb investment management, Mashvisor for property analysis and market research, and AirDNA for short-term rental data analytics. Local property management companies that also help with acquisitions include Jackson Peaks Property Management and Yellowstone Vacation Rentals, both established around 2018. Additional national platforms serving the market include Roofstock, which expanded into short-term rental investments in 2020, and BiggerPockets marketplace connections. Local mortgage specialists like First Montana Bank and Glacier Bank offer investment property financing specifically for short-term rentals, while companies like Vacasa and AvantStay provide market analysis to help investors identify profitable properties in Jackson's growing tourism market near Yellowstone National Park.