Is Mandan, North Dakota Good for Airbnb Investment?

To start an Airbnb in Mandan, North Dakota, begin by researching local zoning laws and regulations through the Mandan Planning Department, as the city may require short-term rental permits or business licenses, and check with Morton County for any additional requirements. Contact the North Dakota Department of Commerce and Mandan City Hall to obtain necessary permits, which typically include a business license ($50-100) and potentially a short-term rental permit if required by city ordinance. Find a suitable property by searching local real estate listings through companies like Coldwell Banker or RE/MAX in the Mandan area, focusing on properties near attractions like Fort Abraham Lincoln State Park or downtown Mandan. Furnish the property with essential amenities including quality bedding, kitchen supplies, Wi-Fi, and local guidebooks, purchasing items from retailers like Menards or Walmart in nearby Bismarck. Create your listing on Airbnb and VRBO platforms with professional photos highlighting the property's proximity to the Missouri River and local attractions, setting competitive rates based on similar properties in the Bismarck-Mandan area (typically $75-150 per night). Manage the property by establishing cleaning protocols, coordinating with local cleaning services, responding promptly to guest inquiries, and ensuring compliance with North Dakota tax requirements by registering for state sales tax collection and remitting the required 5% state sales tax plus any local lodging taxes that Mandan may impose.

To identify profitable short-term rental properties in Mandan, North Dakota, focus on locations within walking distance of downtown's historic Main Street district, near the Missouri River waterfront, or close to major employers like Cargill and Basin Electric Power Cooperative. Target 2-4 bedroom single-family homes or duplexes built after 1980 with modern amenities, full kitchens, parking, and outdoor spaces that appeal to business travelers and families visiting nearby attractions. Analyze pricing by researching comparable Airbnb and VRBO listings in Mandan and neighboring Bismarck, aiming for properties under $200,000 that can command $80-120 nightly rates with 60-70% occupancy. Study competition using AirDNA, Mashvisor, and local MLS data to identify gaps in the market, particularly focusing on properties that serve oil industry workers, government employees, and tourists visiting Fort Abraham Lincoln State Park. Utilize resources like the Mandan Chamber of Commerce for local insights, Bismarck-Mandan Association of Realtors for market data, and connect with local property management companies like Dakota Property Management to understand operational costs and regulations, while monitoring seasonal demand patterns tied to summer tourism and winter business travel.

To obtain an Airbnb/STR permit in Mandan, North Dakota, you must first contact the Mandan City Planning Department at City Hall located at 205 2nd Avenue NW to determine current zoning compliance and licensing requirements. Submit a completed business license application along with a zoning compliance certificate, 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 an absentee owner. Required documents also include a completed fire safety inspection form and proof of smoke and carbon monoxide detectors in all required areas. The application fee is typically around $150-250 for the initial permit plus annual renewal fees of approximately $100-150. You must also register for a North Dakota sales tax permit through the State Tax Department since short-term rentals are subject to state and local lodging taxes. The approval timeline is generally 4-6 weeks after submitting a complete application, provided all inspections pass and there are no zoning conflicts. Mandan specifically requires STR properties to maintain off-street parking, limit occupancy to 2 people per bedroom plus 2 additional guests, display the permit number in all advertisements, and maintain a guest registry available for city inspection, with properties subject to annual inspections and compliance with residential noise ordinances.

Short-term rentals (STRs) are generally legal in Mandan, North Dakota, as the city has not implemented comprehensive restrictions or bans on vacation rental properties as of 2024. Mandan operates under relatively permissive zoning regulations that typically allow STRs in residential areas, though property owners must comply with standard business licensing requirements and may need to obtain a business license from the city. The city requires STR operators to follow basic safety and occupancy standards, collect applicable lodging taxes, and maintain properties in accordance with local housing codes. Unlike some larger North Dakota cities such as Fargo or Bismarck which have implemented more detailed STR ordinances, Mandan has maintained a more hands-off approach to regulation. There are no specific prohibited zones for STRs within city limits, though properties must comply with existing zoning restrictions and homeowners association rules where applicable. Recent legal changes have been minimal, with the city primarily focusing on ensuring tax compliance rather than implementing restrictive zoning amendments, making Mandan relatively STR-friendly compared to other municipalities in the region.

The best areas for Airbnb investment in Mandan, North Dakota include the Historic Downtown District near Main Street, which attracts visitors to local restaurants, shops, and the annual Mandan Progress Organization events, plus business travelers visiting nearby government offices and the Morton County Courthouse. The Fort Abraham Lincoln area is highly attractive due to its proximity to Fort Abraham Lincoln State Park, which draws tourists year-round for camping, hiking, and historical tours of Custer's last home, with peak seasons during summer months and hunting seasons. The Missouri River corridor neighborhoods offer scenic waterfront appeal for recreational visitors engaging in fishing, boating, and water sports, particularly during the warmer months from May through September. Properties near the Dacotah Centennial Park area benefit from sports tournaments, youth baseball leagues, and family gatherings throughout the summer season. The residential areas along Memorial Highway (Highway 1806) provide convenient access for oil industry workers and business travelers commuting between Mandan and Bismarck, offering steady demand from corporate housing needs and extended-stay business guests working in the energy sector.

In Mandan, North Dakota, Airbnb hosts are subject to both state and local lodging taxes. The state of North Dakota imposes a 4% state sales tax on short-term rental accommodations, which applies to stays of less than 30 consecutive days. Additionally, Mandan levies a local lodging tax of approximately 2-3% on short-term rentals. These taxes are typically collected from guests at the time of booking through Airbnb's automated tax collection system, which has agreements with North Dakota to remit state taxes directly to the Department of Revenue. For local Mandan taxes, hosts may need to register with the city and remit taxes quarterly or monthly depending on volume, though Airbnb may also collect and remit these on behalf of hosts in some cases. Exemptions generally apply to stays of 30 days or longer, which are considered long-term rentals rather than transient lodging. Hosts should register for a North Dakota sales tax permit and may need a separate business license from the City of Mandan, with remittance typically due by the 15th of the month following the tax period.

To start an Airbnb in Mandan, North Dakota, expect total costs around $180,000-$220,000. Property purchase represents the largest expense at approximately $150,000-$180,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $8,000-$15,000 for a complete 2-3 bedroom property including furniture, bedding, kitchenware, and decor. Initial setup costs including professional photography, listing creation, and basic marketing materials run $500-$1,500. Permits and fees vary but expect $200-$800 for business licenses, short-term rental permits, and any required inspections from Mandan city authorities. Insurance costs increase 10-20% above standard homeowner's policies, adding roughly $1,200-$2,000 annually or $600-$1,000 for six months. Utility setup and deposits for electricity, gas, water, internet, and cable typically cost $300-$600 initially, with monthly operating costs around $200-$400. First six months of operating expenses including utilities, cleaning supplies, maintenance, platform fees to Airbnb, and marketing total approximately $3,000-$6,000. Additional considerations include property taxes, HOA fees if applicable, and a recommended emergency fund of $2,000-$5,000 for unexpected repairs or vacancy periods.

Airbnb properties in Mandan, North Dakota typically generate modest returns with average daily rates ranging from $75-120 depending on property size and amenities, resulting in monthly revenues of $1,800-3,600 for properties with 60-80% occupancy rates during peak summer months and 40-50% during winter. Operating expenses including cleaning fees ($40-60 per turnover), utilities ($150-250 monthly), property management (15-25% of revenue), insurance ($100-200 monthly), and maintenance typically consume 45-60% of gross revenue, leaving profit margins of 15-25% for well-managed properties. Success factors in this market include proximity to Fort Abraham Lincoln State Park, the Heart River, and downtown Bismarck-Mandan attractions, with properties featuring modern amenities, reliable heating systems, and strong local partnerships for cleaning and maintenance performing best. A typical 3-bedroom home purchased for $180,000-220,000 and generating $30,000 annually in gross revenue might yield $8,000-12,000 in net profit after expenses, representing a 4-6% cash-on-cash return, though properties targeting business travelers and oil industry workers in nearby areas have achieved higher occupancy rates and premium pricing of $130-180 per night.

Airbnb investments in Mandan, North Dakota typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by oil industry workers and travelers visiting the Bakken region. Properties near downtown Mandan or within 15 minutes of Bismarck tend to achieve occupancy rates of 60-75% annually, with average daily rates between $85-120 depending on property size and amenities. Initial profitability usually occurs within 18-24 months for investors who purchase properties under $200,000 and maintain operating expenses below 40% of gross rental income. The market benefits from consistent demand due to Mandan's proximity to Bismarck-Mandan's combined metropolitan area of approximately 130,000 residents, plus transient workers in energy and agriculture sectors, though seasonal fluctuations occur with lower occupancy during winter months potentially reducing annual returns to the 6-8% range for less optimally located properties.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Mandan, North Dakota. In the Mandan area, local real estate agents like those at Coldwell Banker The Real Estate Group and RE/MAX Professionals have experience with investment properties and can assist with Airbnb acquisitions. Century 21 Morrison Realty and Keller Williams Realty also serve the Mandan market with agents knowledgeable about rental property investments. National services include Mashvisor, which provides Airbnb analytics and property search tools, BiggerPockets for investor networking and deal finding, and Awning for short-term rental investment analysis. Local property management companies like Dakota Property Management can provide insights into rental markets, while national platforms such as Roofstock (though primarily focused on traditional rentals) and Arrived Homes offer investment opportunities. Real estate investment groups in the Bismarck-Mandan area, including local REIA chapters, provide networking opportunities with other investors who may have Airbnb experience in the region.