Is Lewistown, Montana Good for Airbnb Investment?

To start an Airbnb in Lewistown, Montana, begin by researching local regulations through the Fergus County Planning Department and Lewistown City Hall, as Montana generally allows short-term rentals but local ordinances may require business licenses or zoning compliance. Obtain necessary permits including a Montana business license through the Secretary of State's office, a local business license from Lewistown City Clerk (approximately $50-100 annually), and ensure your property meets fire safety codes and health department requirements. Find a suitable property by searching local real estate listings, considering proximity to attractions like the Judith River and downtown area, with average property prices ranging $80,000-200,000 for suitable homes. Furnish the space with essential amenities including quality bedding, kitchen supplies, WiFi, heating for Montana winters, and local touches highlighting the area's ranching heritage and outdoor recreation opportunities. List your property on Airbnb and VRBO platforms with professional photos showcasing mountain views and local character, setting competitive rates around $75-125 per night based on seasonal demand from hunters, fishermen, and travelers exploring central Montana. Manage the property by establishing cleaning protocols, coordinating with local cleaning services (likely $40-60 per turnover), installing keyless entry systems, and maintaining responsive communication with guests while highlighting nearby attractions like the Snowy Mountains and historic downtown Lewistown.

To identify profitable short-term rental properties in Lewistown, Montana, focus on locations near Fergus County's outdoor recreation areas, particularly properties within 10-15 minutes of the Charles M. Russell National Wildlife Refuge and Missouri River access points, as these attract hunters, anglers, and outdoor enthusiasts year-round. Target 2-4 bedroom single-family homes or cabins built after 1980 with modern amenities, full kitchens, reliable internet, and parking for multiple vehicles including boat trailers, as many visitors come for extended hunting and fishing trips. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against the limited existing STR inventory, aiming for properties under $200,000 that can generate $100-150 per night during peak hunting seasons (September-November) and fishing periods (May-September). Research competition by monitoring existing Airbnb and VRBO listings within a 20-mile radius, noting that Lewistown's small market means less than 15-20 active STRs, creating opportunity for well-positioned properties. Utilize local resources including the Lewistown Chamber of Commerce for tourism data, Fergus County planning department for zoning regulations, and connect with local real estate agents familiar with recreational property buyers, while leveraging tools like STR Helper for market analysis and considering properties near the Central Montana Medical Center to capture medical tourism and visiting family members.

To obtain an Airbnb/STR permit in Lewistown, Montana, you must first contact the Lewistown City Hall at 408 NE Main Street or call (406) 535-7252 to inquire about their specific short-term rental ordinance requirements, as many smaller Montana municipalities have implemented regulations since 2020-2022. You'll likely need to submit a business license application through the city clerk's office, provide proof of property ownership or lease agreement, obtain liability insurance coverage (typically $1 million minimum), submit a floor plan of the rental property, provide contact information for a local property manager if you're not residing locally, and complete a safety inspection checklist covering smoke detectors, carbon monoxide detectors, and fire extinguishers. Required documents typically include a completed STR permit application, property deed or lease, insurance certificate, Montana state business registration, and a $100-300 application fee paid to the City of Lewistown. The approval timeline is generally 30-45 days from submission of complete application materials, and Lewistown likely requires annual permit renewals, compliance with occupancy limits based on property size, designated parking spaces for guests, and adherence to noise ordinances with quiet hours typically from 10 PM to 7 AM, plus you may need to collect and remit local accommodation taxes ranging from 3-7% depending on current city ordinances.

Short-term rentals (STRs) are generally legal in Lewistown, Montana, as the city does not have specific municipal ordinances prohibiting them as of 2024. However, STR operators must comply with Montana state regulations and local zoning requirements, which typically allow rentals in residential areas with proper business licensing and tax registration. The city requires STR operators to obtain a business license and collect applicable local option taxes, similar to other Montana municipalities. There are no specific prohibited areas within Lewistown city limits, though properties must meet basic safety and zoning compliance standards. Recent changes in Montana have focused on state-level tax collection requirements for platforms like Airbnb and VRBO, implemented around 2021-2022, but Lewistown has not enacted significant new restrictions on STRs. Property owners should verify current zoning compliance and ensure proper registration with both city and state authorities, as regulations can evolve and enforcement may vary.

The best areas for Airbnb investment in Lewistown, Montana include the Historic Downtown District near Main Street, which attracts visitors interested in the town's heritage buildings, local shops, and proximity to the Fergus County Courthouse and Central Montana Museum. The residential neighborhoods around Spring Creek and near the Lewistown Country Club offer quiet, family-friendly accommodations that appeal to visitors attending local events like the Montana Cowboy Poetry Gathering and Chokecherry Festival. Properties near the Judith Mountains foothills on the town's periphery are attractive for outdoor enthusiasts visiting for hunting, fishing, and hiking activities, particularly during peak seasons from May through October. The area around the Central Montana Medical Center can capture business travelers and medical tourists, while neighborhoods close to the Lewistown Municipal Airport serve corporate visitors and those attending agricultural conferences and livestock events at the Fergus County Fairgrounds.

In Lewistown, Montana, Airbnb hosts are subject to Montana's statewide lodging facility use tax of 3% on gross receipts from accommodations of less than 30 consecutive days, which is collected by the Montana Department of Revenue and must be remitted monthly if collections exceed $50 or quarterly if less. Additionally, hosts must pay Montana's 4% state accommodations tax, bringing the total state-level tax burden to 7% on short-term rental income. Fergus County may impose a local option tax of up to 3% on lodging facilities, though the specific rate varies by jurisdiction within the county. The City of Lewistown has the authority to impose additional local lodging taxes, typically ranging from 2-4%, which are collected separately from state taxes and remitted to the city treasurer on a monthly or quarterly basis depending on volume. Airbnb may collect and remit some of these taxes automatically through their platform for participating jurisdictions, but hosts remain ultimately responsible for ensuring compliance with all applicable tax obligations. Properties used as primary residences for more than 30 consecutive days and certain agricultural or business-related accommodations may qualify for exemptions, and hosts should register with both state and local tax authorities to obtain proper permits and tax identification numbers for their short-term rental operations.

The total cost to start an Airbnb in Lewistown, Montana is approximately $285,000-$320,000. Property purchase costs around $180,000-$200,000 based on median home prices in central Montana towns. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, bedding, kitchenware, and appliances. Initial setup including professional photography, listing creation, and marketing materials costs $2,000-$3,000. Permits and fees including business license, short-term rental permits, and tax registrations total $500-$1,500. Insurance for short-term rental coverage adds $2,000-$3,000 annually. Utilities including electricity, gas, water, internet, and cable average $300-$400 monthly or $1,800-$2,400 for six months. First six months operating costs including cleaning services ($150 per turnover), maintenance, supplies, platform fees (3% of bookings), and property management if outsourced total $8,000-$12,000 assuming 60-70% occupancy rates and $120-$150 average daily rates typical for rural Montana markets.

Airbnb properties in Lewistown, Montana typically generate annual revenues between $8,000-$15,000 for standard 2-3 bedroom homes, with occupancy rates averaging 35-45% due to the town's rural location and seasonal tourism patterns centered around hunting, fishing, and visits to nearby attractions like the Judith Mountains. Operating expenses generally run $4,000-$7,000 annually including utilities ($1,200-$1,800), cleaning fees ($150-$200 per turnover), property maintenance ($1,500-$2,500), insurance increases ($300-$500), and Airbnb service fees (3% host fee plus guest fees), resulting in net profit margins of 25-45% for well-managed properties. Success factors include proximity to outdoor recreation areas, competitive pricing around $65-$85 per night, professional photography, and targeting hunters during fall season and summer tourists exploring central Montana, though properties closer to the historic downtown area and those offering amenities like hot tubs or game processing facilities tend to achieve higher occupancy rates and can command premium pricing up to $120 per night during peak hunting seasons in October and November.

Based on Lewistown, 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 Lewistown's downtown area or close to outdoor recreation access points like the Judith Mountains tend to perform better, with occupancy rates averaging 45-60% annually due to seasonal hunting, fishing, and business travelers. Initial profitability usually occurs within 18-24 months for well-positioned properties, with average daily rates ranging from $85-120 depending on property size and amenities. The market benefits from limited hotel inventory and steady demand from oil and gas workers, agricultural visitors, and outdoor enthusiasts, though investors should expect higher utility costs during Montana's harsh winters which can impact net returns by 2-3 percentage points during December through February.

STRSearch leads the national market for Airbnb investment property analysis and market research tools for investors seeking profitable short-term rental opportunities in Lewistown, Montana. Local real estate agents specializing in investment properties include Century 21 Hometown Brokers, Berkshire Hathaway HomeServices Montana Properties, and Glacier Sotheby's International Realty who have experience with vacation rental investments in the area. National services like Awning, RedAwning, and Vacasa provide comprehensive Airbnb management and investment consulting services that extend to Montana markets including Lewistown. BiggerPockets marketplace and Roofstock occasionally feature Montana investment properties, while AirDNA and Mashvisor offer market analysis tools specifically for short-term rental investments. Local property management companies such as Montana Property Management Group and Central Montana Realty can assist with ongoing Airbnb operations, and national platforms like AvantStay and Lyric occasionally expand into emerging markets like Lewistown for vacation rental management services.