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 Tax Department to obtain a sales tax permit since you'll need to collect state sales tax (currently 5%) plus local taxes on rental income. Find a suitable property by working with local real estate agents familiar with Mandan's residential areas like Fort Lincoln or downtown districts, ensuring the property is zoned for short-term rentals and considering proximity to attractions like Fort Abraham Lincoln State Park. Furnish the space with quality furniture, linens, and amenities sourced from retailers in nearby Bismarck such as Menards or local furniture stores, ensuring you have reliable internet, heating for harsh North Dakota winters, and basic kitchen supplies. Create your Airbnb listing with professional photos highlighting unique features and proximity to local attractions, setting competitive rates based on Mandan's market (typically $60-120 per night depending on property size and season). Manage your property by establishing relationships with local cleaning services, maintenance contractors, and consider using property management companies in the Bismarck-Mandan area if you're not local, while maintaining compliance with ongoing tax reporting requirements and any annual permit renewals required by the city.

To identify profitable short-term rental properties in Mandan, North Dakota, focus on locations near the Missouri River waterfront, downtown historic district, and properties within 15 minutes of Bismarck for business travelers crossing the Twin Cities area. Target 2-4 bedroom single-family homes or duplexes built after 1980 with modern amenities, full kitchens, parking, and outdoor spaces that can accommodate oil industry workers, government employees, and recreational visitors to Fort Abraham Lincoln State Park. Conduct pricing analysis by researching comparable Airbnb and VRBO listings in the $80-150 nightly range, accounting for seasonal fluctuations during summer tourism and winter oil industry peaks. Research competition by analyzing occupancy rates and reviews of existing STRs within a 5-mile radius, noting gaps in luxury amenities or corporate housing options. Utilize tools like AirDNA for market data, Mashvisor for investment analysis, and local resources including the Mandan Chamber of Commerce, Morton County economic development reports, and North Dakota Tourism Division data to understand visitor patterns, while monitoring Bakken oil field activity reports since energy sector workers represent a significant portion of extended-stay demand in the region.

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 $150-200 for the initial permit plus annual renewal fees of approximately $75-100. The approval timeline generally takes 4-6 weeks from submission of complete application materials, including time for zoning review, fire department inspection, and final permit issuance. Mandan specifically requires STR properties to maintain off-street parking for guests, limit occupancy to no more than 2 guests per bedroom plus 2 additional guests, maintain quiet hours from 10 PM to 7 AM, and provide neighbors with a 24-hour contact number for complaints. Properties must also comply with all residential building codes and may be subject to periodic inspections to ensure continued compliance with city regulations.

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 follows North Dakota state regulations and typically allows STRs in residential areas, though operators must comply with standard business licensing requirements and may need to register with the city. The city requires STR operators to obtain proper permits and follow zoning ordinances, with most residential zones permitting short-term rentals as an accessory use. There are no specific prohibited areas citywide, though individual homeowners associations may have their own restrictions. Recent years have seen minimal regulatory changes, with Mandan taking a relatively permissive approach compared to larger cities, focusing primarily on ensuring compliance with fire safety codes, occupancy limits, and noise ordinances rather than implementing restrictive caps or operational limitations. Property owners should verify current licensing requirements with the city clerk's office and ensure compliance with state tax obligations for rental income.

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 cultural events while serving business travelers visiting nearby government offices and the railroad industry. The Missouri River waterfront area offers scenic appeal for tourists interested in outdoor recreation, fishing, and the Lewis & Clark Trail, with properties near Fort Abraham Lincoln State Park being particularly attractive due to the historical significance and summer tourism from Custer House tours and On-A-Slant Indian Village visits. The areas near the Dacotah Centennial Park and Heart River are ideal for families and outdoor enthusiasts visiting for recreational activities, while neighborhoods close to the Bismarck-Mandan border provide convenient access to both cities' amenities and serve business travelers working in the oil industry, healthcare, and government sectors that frequently travel between the twin cities.

In Mandan, North Dakota, Airbnb hosts are subject to both state and local lodging taxes. The North Dakota state lodging tax is 4% on gross receipts from short-term rentals under 30 days, while Morton County (where Mandan is located) typically imposes an additional 2-3% lodging tax, bringing the total to approximately 6-7%. The state also requires collection of the 5% state sales tax on lodging services. These taxes are generally collected from guests at the time of booking and must be remitted monthly to the North Dakota Tax Commissioner's office using Form SFN-10417 for lodging taxes and standard sales tax returns. Hosts must register for a sales tax permit before beginning operations and file returns by the 15th of the month following the reporting period. Exemptions typically include stays of 30 days or longer, which are considered long-term rentals rather than transient lodging, and rentals to certain government employees on official business. Local municipalities may have additional registration requirements and business license fees ranging from $25-100 annually.

The total cost to start an Airbnb in Mandan, North Dakota is approximately $185,000-$225,000. Property purchase costs around $150,000-$180,000 based on median home prices in the area. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for essential furniture, bedding, kitchen supplies, and decor. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$4,000. Permits and fees including business license, short-term rental permit, and inspection fees range from $500-$1,500. Insurance premiums for short-term rental coverage cost approximately $1,200-$2,000 annually. Utility setup and deposits for electricity, gas, water, internet, and cable total $800-$1,200. First six months operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance reserves ($200/month), platform fees on bookings ($300/month), and marketing expenses ($150/month) amount to approximately $8,100. Additional considerations include property taxes of roughly $2,000-$3,000 annually and potential HOA fees if applicable.

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. Operating expenses including utilities, cleaning fees, property management, insurance, and maintenance typically consume 40-55% of gross revenue, with successful hosts reporting net profit margins of 15-25% annually. Properties near the Missouri River or downtown Mandan command premium rates, particularly during summer months when oil industry workers and tourists drive demand, with some three-bedroom homes generating $45,000-65,000 in annual revenue against $35,000-50,000 in total expenses including mortgage costs. Success factors include strategic pricing during Bakken oil boom periods, maintaining high cleanliness standards, providing amenities for business travelers, and capitalizing on events at the Dacotah Centennial Park, though the market remains sensitive to oil industry fluctuations and seasonal tourism patterns that can impact occupancy rates by 20-30% between peak and off-peak periods.

Based on Mandan, North Dakota 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 the Missouri River or downtown area command higher nightly rates of $80-120, while standard residential properties average $60-90 per night with occupancy rates of 65-75% annually. Initial profitability usually occurs within 18-24 months for well-positioned properties, with break-even on cash investment typically achieved in 24-36 months. The market benefits from oil industry workers, tourists visiting Fort Abraham Lincoln State Park, and business travelers, though seasonal fluctuations affect winter occupancy rates which drop to 45-55% during November through February, requiring investors to factor in 3-4 months of reduced income when calculating annual returns.

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, AirDNA for market data and investment analysis, and Awning for comprehensive short-term rental investment services. BiggerPockets offers educational resources and networking for real estate investors, while Roofstock focuses on turnkey rental properties that could be converted to short-term rentals. Local property management companies like Bismarck Property Management and Dakota Property Solutions can provide insights into profitable rental markets in the area. RedAwning and Vacasa also offer market analysis and property management services that can help identify lucrative Airbnb opportunities in Mandan and surrounding areas.