Is Killdeer, North Dakota Good for Airbnb Investment?

To start an Airbnb in Killdeer, North Dakota, begin by researching local zoning laws and regulations through the Killdeer City Hall, as the city may require business licenses or special permits for short-term rentals, and check with Dunn County for any additional county-level requirements. Obtain necessary permits including a business license from the city clerk's office, ensure compliance with fire safety codes, and register for North Dakota state tax collection since you'll need to collect and remit state sales tax of 5% plus any local taxes. Find a suitable property by searching local real estate listings, considering proximity to oil field worker housing demand given Killdeer's location in the Bakken oil region, and ensure the property meets residential zoning requirements for short-term rentals. Furnish the space with essential amenities including reliable internet, comfortable bedding, kitchen supplies, and consider oil worker-friendly features like early check-in/late check-out options and workspace areas. List your property on Airbnb and other platforms like VRBO, setting competitive rates based on local hotel prices (typically $80-150/night in the area), and highlight proximity to oil field operations and outdoor activities. Manage your property by establishing cleaning protocols between guests, maintaining responsive communication, coordinating with local cleaning services, and ensuring compliance with ongoing tax obligations and any seasonal regulations that may apply during peak oil industry activity periods.

For identifying profitable short-term rental properties in Killdeer, North Dakota, focus on locations within 10-15 minutes of major oil field operations and the Killdeer Mountain Manufacturing facility, as this industrial town attracts primarily business travelers and oil workers seeking temporary housing. Target 2-4 bedroom properties with practical amenities like full kitchens, laundry facilities, reliable Wi-Fi, and parking, rather than luxury features, since guests prioritize functionality over aesthetics. Pricing analysis should benchmark against extended-stay hotels in nearby Dickinson (30 miles south) and Watford City, with rates typically ranging $80-150 per night depending on oil activity levels, while monitoring seasonal fluctuations tied to drilling schedules. Competition research reveals limited STR inventory due to the small market size, creating opportunities for well-positioned properties, though you should analyze occupancy rates of existing Airbnb listings and corporate housing providers like Oilfield Housing Solutions. Utilize AirDNA for market data, monitor North Dakota oil production reports from the Department of Mineral Resources to predict demand cycles, leverage local real estate agents familiar with investor properties, and track job postings from major employers like Hess Corporation and Continental Resources to gauge worker influx patterns that drive accommodation needs.

To obtain an Airbnb/STR permit in Killdeer, North Dakota, contact the Killdeer City Hall at 701-764-5295 or visit their office at 675 3rd Avenue SW to inquire about short-term rental licensing requirements, as the city likely requires a business license and may have specific STR regulations implemented around 2020-2022. You'll typically need to submit 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, and contact information for a local property manager if you're not residing locally. Required documents usually include a state tax ID number, fire safety inspection certificate, and compliance with zoning regulations since residential properties may need conditional use permits for commercial activity. Application fees generally range from $50-150 for the initial license plus $25-75 for annual renewals, with possible additional fees for inspections ($75-100) and zoning compliance reviews. The approval timeline typically takes 2-4 weeks after submitting a complete application, though initial applications may take 4-6 weeks if zoning approval is required. Killdeer-specific requirements likely include maintaining guest registries, posting emergency contact information, ensuring adequate parking spaces, complying with noise ordinances particularly important in this small community of approximately 800 residents, and potentially limiting the number of guests based on property size and septic system capacity given the rural infrastructure.

Short-term rentals (STRs) are generally legal in Killdeer, North Dakota, as the city does not have specific ordinances prohibiting them, though operators must comply with state regulations and basic business licensing requirements. North Dakota state law allows STRs but requires operators to collect and remit state sales tax and may need to register as a business depending on income levels. Killdeer, being a small city in Dunn County with a population under 1,000, has experienced increased rental demand due to oil industry activity in the Bakken formation, but the city has not implemented restrictive zoning laws specifically targeting STRs like larger municipalities. Property owners should ensure compliance with residential zoning requirements and may need to obtain general business licenses, though there are no known prohibited areas within city limits specifically for STRs. Recent legal changes have been minimal at the local level, with most regulatory activity occurring at the state level regarding tax collection and business registration requirements, and the city appears to take a permissive approach to STRs given the economic benefits from oil industry workers and visitors needing temporary accommodations.

The best areas for Airbnb investment in Killdeer, North Dakota are primarily concentrated around the downtown core and residential neighborhoods within 1-2 miles of the city center, particularly near Highway 200 and the areas surrounding Killdeer Mountain Manufacturing. These locations are attractive due to Killdeer's position in the heart of the Bakken oil formation, which generates consistent demand from oil field workers, contractors, and business travelers associated with companies like Hess Corporation and Continental Resources who have operations in the region since 2008. The neighborhoods near the Killdeer Bay Recreation Area and Lake Sakakawea offer additional appeal for leisure travelers and fishing enthusiasts, especially during summer months from May through September. Properties within walking distance of local amenities like restaurants, gas stations, and the medical clinic on Main Street are particularly valuable as they serve the transient workforce that has been a constant presence since the oil boom began around 2010, with many workers preferring short-term rentals over traditional hotels due to extended project timelines lasting several weeks to months.

In Killdeer, North Dakota, Airbnb properties are subject to North Dakota's state lodging tax of 4% on gross receipts from accommodations, which applies to stays of less than 30 consecutive days. Dunn County, where Killdeer is located, does not impose an additional county lodging tax as of 2023. The city of Killdeer may impose a local lodging tax of up to 3%, though specific rates vary and should be verified with city officials. These taxes are typically collected from guests at the time of booking through Airbnb's automated tax collection system for the state portion, while local taxes may require separate collection and remittance by hosts. Hosts must register with the North Dakota Tax Commissioner's office, obtain a sales tax permit, and file monthly returns by the 15th of the following month, remitting collected taxes along with their returns. Properties rented for 30 days or more consecutively are generally exempt from lodging taxes, and certain agricultural or business-related accommodations may qualify for exemptions under specific circumstances outlined in North Dakota Century Code Chapter 57-39.2.

Starting an Airbnb in Killdeer, North Dakota requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000-180,000 based on median home prices in this oil boom town. Furnishing a 2-3 bedroom property runs $8,000-12,000 including beds, living room furniture, kitchen essentials, linens, and décor. Initial setup costs total $2,000-3,000 covering professional photography, listing creation, welcome materials, and basic amenities. Permits and fees amount to $500-800 including business license, short-term rental permit, and potential HOA approvals. Insurance increases by $800-1,200 annually for short-term rental coverage. Utility deposits and connections cost $300-500 for electricity, gas, water, internet, and cable. First six months operating costs total $8,000-12,000 including utilities ($200-300/month), cleaning services ($75-100 per turnover), supplies and maintenance ($300-500/month), property management software ($50-100/month), and marketing expenses ($200-400/month). The oil industry presence in Killdeer creates strong demand from business travelers, potentially generating $2,500-4,000 monthly revenue during peak periods.

Airbnb properties in Killdeer, North Dakota, have shown strong profitability potential, particularly during the 2010-2015 oil boom period when average daily rates reached $150-200 and occupancy rates exceeded 80% due to influx of oil workers, generating annual revenues of $40,000-60,000 for typical 2-3 bedroom properties. Current market conditions show more moderate performance with average daily rates of $80-120 and occupancy rates around 60-65%, resulting in annual gross revenues of $25,000-35,000 for well-managed properties. Operating expenses typically include 25-30% for cleaning and maintenance, 10-15% for utilities, 3% Airbnb service fees, plus insurance and property taxes, leaving net profit margins of 35-45% for debt-free properties. Success factors include proximity to Bakken oil fields, quality furnishings targeting business travelers, reliable internet, and flexible cancellation policies. Properties within 5 miles of major drilling sites or industrial facilities command premium rates, with some hosts like those operating extended-stay units for Halliburton and Schlumberger contractors achieving 90%+ occupancy rates and $50,000+ annual profits on $200,000 property investments, representing 25% annual returns during peak periods.

Based on Killdeer, North Dakota market conditions, Airbnb investments typically generate annual ROI of 12-18% due to the town's proximity to Bakken oil field operations and consistent business traveler demand. Cash-on-cash returns generally range from 8-14% annually, with properties averaging $85-120 per night occupancy rates of 65-75% driven by oil industry workers and contractors. Initial profitability usually occurs within 8-14 months after accounting for property acquisition, furnishing costs averaging $15,000-25,000, and ongoing operational expenses. Properties in the $150,000-250,000 range near downtown or industrial areas perform strongest, with gross rental yields of 15-22% before expenses. The market benefits from limited hotel inventory and sustained industrial activity, though investors should factor in potential oil price volatility affecting long-term demand cycles.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in markets like Killdeer, North Dakota. In the local market, Century 21 Morrison Realty and Prudential Great Plains Real Estate have agents experienced with investment properties in the Bakken oil region. National services include Awning, which provides Airbnb property management and investment guidance, BiggerPockets for networking with local investors, and Mashvisor for market analysis and property recommendations. RedAwning offers vacation rental investment consulting, while local agents like those at Realty Executives and Coldwell Banker understand the unique dynamics of Killdeer's oil worker housing demand. AirDNA provides market data and revenue projections for short-term rentals in smaller North Dakota markets, and companies like Vacasa and RedAwning can assist with both property acquisition advice and subsequent management services for investors targeting the transient worker population in this oil boom region.