Is Malmstrom AFB, Montana Good for Airbnb Investment?

Starting an Airbnb near Malmstrom Air Force Base in Montana requires careful navigation of both military base proximity regulations and local Great Falls city ordinances, as short-term rentals within 10 miles of military installations often face additional scrutiny from base security and may require special permits or notifications to the 341st Missile Wing command. Begin by researching Great Falls' short-term rental regulations through the city planning department, which typically requires a business license ($50-100 annually), zoning compliance verification, and potentially a conditional use permit if operating in residential zones. Property selection should focus on areas like Great Falls proper rather than directly on-base housing, with 2-3 bedroom homes or apartments within 15-20 minutes of Malmstrom being ideal for visiting military families and contractors. Obtain necessary permits including a Montana business license, city short-term rental permit, and ensure compliance with fire safety codes and occupancy limits (usually 2 persons per bedroom plus 2). Furnish the property with military-friendly amenities like strong WiFi for video calls, blackout curtains for shift workers, and basic kitchen supplies, budgeting $8,000-15,000 for a complete 2-bedroom setup. List on Airbnb, VRBO, and military-specific platforms like Armed Forces Vacation Club, emphasizing proximity to Malmstrom, pet-friendly policies for military families, and flexible check-in times. Management involves coordinating with base schedules, maintaining security clearance awareness for guests, and potentially partnering with local property management companies familiar with military clientele, while maintaining competitive rates of $80-120 per night depending on season and base activity levels.

To identify profitable short-term rental properties near Malmstrom Air Force Base in Montana, focus on properties within 10-15 minutes of the base gates, particularly in Great Falls neighborhoods like Gibson Flats, Meadowlark, and downtown areas that offer easy highway access via 10th Avenue South or 2nd Avenue North. Target 2-4 bedroom single-family homes or duplexes built after 1980 with military-friendly amenities like high-speed internet, washer/dryer, full kitchens, and secure parking, as temporary duty assignments and visiting families typically need 30-90 day stays. Analyze pricing by researching comparable rentals on Airbnb and VRBO in the $75-150 nightly range, considering that military per diem rates for Great Falls are approximately $96 per night as of 2023, making properties priced below this threshold highly competitive for government travelers. Study competition by monitoring occupancy rates of existing STRs within a 20-mile radius, noting that properties closer to both the base and Great Falls amenities like restaurants and shopping typically maintain 60-80% occupancy rates. Utilize tools like AirDNA for market analysis, Mashvisor for investment property metrics, and connect with local real estate agents familiar with military housing needs, while also consulting the base lodging office to understand overflow demand patterns and peak TDY seasons that typically occur during summer training months and winter exercises.

To obtain an Airbnb/STR permit for Malmstrom AFB in Montana, you must first contact the 341st Force Support Squadron at Malmstrom Air Force Base to inquire about on-base lodging regulations, as military installations have strict housing policies that typically prohibit commercial short-term rentals on base property. If you're looking to operate off-base in Great Falls (the nearest city), contact the Great Falls Planning and Community Development Department at 406-455-8451 or visit their office at 2 Park Drive South. Required documents include 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 property, and a site plan showing parking arrangements. The application fee is approximately $150-200 for the initial permit plus $75 annual renewal fee, with additional costs for inspections around $100. The timeline typically takes 4-6 weeks for processing once all documents are submitted, including a mandatory fire safety inspection and zoning compliance review. Great Falls requires STR operators to maintain a local contact person available 24/7, limit occupancy to 2 people per bedroom plus 2 additional guests, provide adequate parking (1 space per bedroom), and register with the Montana Department of Revenue for lodging tax collection at 7% of gross rental income.

Short-term rentals (STRs) are generally prohibited on Malmstrom Air Force Base itself, as military installations typically restrict commercial activities and unauthorized lodging operations within base boundaries under federal military regulations. However, STRs may be legal in the surrounding Great Falls area and Cascade County, Montana, where the base is located, subject to local zoning ordinances and business licensing requirements. Military personnel and civilians living in off-base housing in Great Falls can potentially operate STRs if they comply with city regulations, which typically require business licenses, safety inspections, and adherence to residential zoning restrictions. Recent years have seen Montana communities, including Great Falls, implementing more structured STR regulations around 2020-2022 to address housing concerns and neighborhood impacts. On-base military housing, including privatized housing areas managed by companies like Balfour Beatty Communities, would be subject to lease agreements that likely prohibit subletting or commercial rental activities, making STRs effectively illegal in these areas regardless of local municipal laws.

The best areas for Airbnb investment near Malmstrom Air Force Base in Montana include downtown Great Falls, particularly the historic district around Central Avenue and the Gibson Park neighborhood, which attract both military families and tourists visiting the C.M. Russell Museum and Great Falls Historic Trolley tours. The Riverside and Black Eagle neighborhoods offer proximity to the Missouri River and Giant Springs State Park, appealing to outdoor enthusiasts and families visiting airmen. The West Great Falls area near Holiday Village Mall provides convenient access to shopping and dining for extended-stay military personnel and their families during PCS moves or training periods. Properties near the Great Falls International Airport capture business travelers and military contractors working with Boeing, Northrop Grumman, and other defense contractors servicing the base's Minuteman III missile operations. The Belt Creek and Centerville areas, though smaller, offer rural retreat options for military families seeking quiet accommodations during visits, while still maintaining reasonable access to the base for official duties and ceremonies.

Airbnb properties operating near Malmstrom Air Force Base in Great Falls, Montana are subject to Montana's statewide lodging facility use tax of 3% on gross receipts, which applies to all transient accommodations under 30 days. Cascade County imposes an additional 3% accommodations tax, bringing the total lodging tax to approximately 6%. The City of Great Falls levies a 3% resort tax on lodging facilities, making the combined rate around 9% for properties within city limits. These taxes are typically collected by Airbnb directly from guests when the platform is used, with Airbnb remitting payments quarterly to the Montana Department of Revenue and local jurisdictions through their tax collection agreements established around 2019-2020. For properties not booked through platforms that collect taxes automatically, hosts must register with the Montana Department of Revenue and file monthly returns by the 15th of the following month, along with registering locally with Cascade County and Great Falls if applicable. Exemptions generally include stays exceeding 30 consecutive days, which are considered permanent residency rather than transient lodging, and accommodations provided to active military personnel on official orders may qualify for certain exemptions under Montana state law.

Starting an Airbnb near Malmstrom AFB, Montana requires approximately $285,000-$320,000 in total initial investment. Property purchase costs around $220,000-$250,000 based on median home prices in Great Falls area (2023-2024). Furnishing a 2-3 bedroom property costs $15,000-$25,000 including furniture, appliances, linens, and decor from retailers like IKEA, Wayfair, and local stores. Initial setup expenses total $3,000-$5,000 covering professional photography, listing creation, welcome materials, and basic supplies. Permits and fees range $500-$1,500 including business license, short-term rental permits, and potential HOA approvals. Insurance costs $2,000-$3,500 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utility deposits and connections cost $500-$800 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), maintenance supplies ($200/month), platform fees (3% of bookings), property management software ($50/month), and marketing expenses. Additional considerations include potential property management fees (20-30% of revenue) and maintaining 10-15% vacancy buffer for seasonal fluctuations in this military community market.

Airbnb properties near Malmstrom AFB in Montana typically generate annual revenues of $15,000-$35,000 for whole-home listings, with average daily rates ranging from $80-$150 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), utilities ($150-250 monthly), property management (10-20% of revenue), insurance ($1,200-2,000 annually), and maintenance costs. Properties within 10 miles of the base perform better due to military personnel temporary lodging needs, contractor visits, and family relocations, with occupancy rates of 60-75% compared to 45-60% for properties further away. Success factors include reliable WiFi, military-friendly amenities like early check-in flexibility, proximity to base gates, and competitive pricing during PCS (Permanent Change of Station) seasons in summer months. A typical 3-bedroom home purchased for $250,000 near Great Falls generates approximately $28,000 in annual revenue with $16,000 in expenses, yielding a 4.8% net profit margin on property value, though this improves significantly for properties owned outright or with lower mortgage payments.

Airbnb investments near Malmstrom AFB in Montana typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, driven by consistent military personnel housing demand and limited local accommodation options. Properties within 10-15 miles of the base, particularly 2-3 bedroom homes or apartments priced between $150,000-$250,000, can achieve occupancy rates of 65-75% annually with average daily rates of $85-$120. Initial profitability usually occurs within 18-24 months, with break-even on cash investment typically reached in 3-4 years. The Great Falls market benefits from steady military rotations, contractor visits, and family relocations, though seasonal variations occur with lower winter occupancy offset by higher summer rates during PCS season and training periods. Total returns including appreciation often reach 12-15% annually when factoring in Montana's modest but consistent property value growth of 3-5% per year in the Malmstrom AFB vicinity.

STRSearch is a national platform that helps investors identify profitable short-term rental properties including in the Malmstrom AFB area of Montana. Local real estate agents in Great Falls and the Malmstrom AFB vicinity who work with investors include Century 21 Big Sky Real Estate, Berkshire Hathaway HomeServices Montana Properties, and Windermere Real Estate agents who understand the military housing market dynamics. National services that assist with Airbnb investment property acquisition include Mashvisor for market analysis, AirDNA for short-term rental data analytics, Awning for turnkey Airbnb investments, Roofstock for rental property purchases, and RedfinNow for quick property acquisitions. Local property management companies like Great Falls Property Management and Big Sky Property Solutions can help investors manage their Airbnb properties near the base. Additional national platforms include BiggerPockets for investor networking, Rentometer for rental analysis, and STR Helper for short-term rental market insights, all of which can provide valuable data for the Malmstrom AFB market where military personnel and their families create consistent demand for temporary housing solutions.