Is Manhattan, Montana Good for Airbnb Investment?

To start an Airbnb in Manhattan, Montana, begin by researching local zoning laws and regulations through the Gallatin County Planning Department, as Manhattan falls under county jurisdiction and may require special use permits for short-term rentals depending on the zoning district. Contact the Montana Department of Revenue to understand state lodging tax requirements, which typically range from 3-4%, and register for a Montana business license through the Secretary of State's office. Find a suitable property by working with local real estate agents familiar with investment properties, focusing on areas near Montana State University in nearby Bozeman or properties with mountain views that appeal to tourists visiting Yellowstone National Park. Furnish the space with durable, comfortable furniture from retailers like Costco or local Montana furniture stores, ensuring you include essentials like high-speed internet, mountain-themed decor, and outdoor gear storage to attract visitors. Create your Airbnb listing with professional photos highlighting Montana's natural beauty, set competitive pricing around $80-150 per night based on local market rates, and emphasize proximity to outdoor activities like fishing, hiking, and skiing. For ongoing management, establish relationships with local cleaning services, maintenance contractors, and consider using property management software like Hostfully or hiring a local co-host if you're not residing in the area, while maintaining compliance with any noise ordinances and parking restrictions that Manhattan may enforce.

To identify profitable short-term rental properties in Manhattan, Montana, focus on locations within walking distance of downtown's historic Main Street, near the Gallatin River for fishing access, or close to Bridger Bowl and Big Sky ski areas (45-60 minutes away). Target 2-4 bedroom properties built after 1990 with mountain or river views, full kitchens, outdoor spaces, hot tubs, and reliable high-speed internet, as these features command premium rates of $150-400 per night depending on season and size. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, noting that peak seasons (December-March for skiing, June-September for fishing/hiking) can yield 60-80% higher rates than shoulder seasons. Research competition by studying the top 20 STR listings within 5 miles, identifying gaps in amenities or property types, and monitor occupancy rates which typically range 65-75% annually for well-managed properties. Utilize tools like Rabbu for market analysis, STR Helper for performance tracking, and connect with local property management companies like Big Sky Vacation Rentals or Yellowstone Vacation Rentals who understand Manhattan's seasonal tourism patterns driven by Montana State University events, outdoor recreation, and proximity to Yellowstone National Park.

To obtain an Airbnb/STR permit in Manhattan, Montana, you must first contact the Gallatin County Planning Department at 311 W Main Street, Bozeman, MT 59715, as Manhattan falls under county jurisdiction for short-term rental regulations. Submit a completed short-term rental application form along with a site plan showing the property layout, proof of property ownership or lease agreement, a floor plan indicating maximum occupancy, parking availability documentation, and septic system approval if applicable. Required documents also include a business license from the Montana Secretary of State, liability insurance certificate with minimum $1 million coverage, emergency contact information, and neighbor notification forms. The application fee is approximately $200-300 with an annual renewal fee of $150-200. The review process typically takes 30-45 days from submission of complete application materials. Manhattan-specific requirements include compliance with residential zoning restrictions, maximum occupancy limits based on bedroom count and septic capacity, adequate off-street parking (typically 2 spaces minimum), 24-hour local contact person availability, and adherence to noise ordinances and trash collection schedules. Properties must also meet all building and fire safety codes, maintain current septic permits, and display the STR permit number in all advertising materials.

Short-term rentals (STRs) are heavily restricted in Manhattan, New York, with Local Law 18 taking effect in September 2023, requiring hosts to register with the city and comply with strict regulations including a maximum 30-day rental period, host presence during stays, and limits of two guests per rental. The law effectively banned most traditional Airbnb-style operations in Manhattan, with only owner-occupied units allowed for short-term rental under 30 days, while rentals over 30 days remain legal but subject to different regulations. Prior to 2023, STRs faced increasing restrictions through various city ordinances, and the current framework has dramatically reduced the number of legal short-term rental units in Manhattan from tens of thousands to just a few hundred registered properties. Violations can result in fines up to $5,000 per listing, and platforms like Airbnb have been required to remove non-compliant listings, making Manhattan one of the most restrictive markets for short-term rentals in the United States.

Manhattan, Montana offers several promising Airbnb investment opportunities, with the downtown historic district being the most attractive due to its proximity to local restaurants, shops, and cultural attractions that draw tourists year-round. The areas near the Gallatin River provide excellent potential for vacation rentals targeting fishing enthusiasts and outdoor recreation visitors, particularly during peak fishing seasons from May through September. Neighborhoods close to Montana State University in nearby Bozeman (approximately 20 minutes away) present opportunities for extended-stay rentals catering to visiting professors, researchers, and families of students. The residential areas along Highway 205 offer good investment potential due to their accessibility while maintaining a quiet, rural atmosphere that appeals to visitors seeking authentic Montana experiences. Properties near local guest ranches and outdoor outfitters benefit from spillover demand when these establishments are fully booked, particularly during hunting seasons in fall and summer tourism peaks.

Manhattan, Montana does not currently impose specific lodging or occupancy taxes on short-term rentals like Airbnb properties as of 2024. However, Airbnb hosts in Manhattan must comply with Montana's state lodging facility use tax of 3% on gross receipts, which applies to accommodations rented for fewer than 30 consecutive days. This tax is typically collected by Airbnb directly from guests and remitted to the Montana Department of Revenue on behalf of hosts through their automated tax collection system. Gallatin County, where Manhattan is located, does not impose additional county-level occupancy taxes on short-term rentals. Hosts must register with the Montana Department of Revenue if they operate independently without platform collection, and remittance is due monthly by the 15th of the following month using Form AB-1. Properties rented for 30 days or longer are generally exempt from the lodging tax, and certain agricultural or ranch stays may qualify for exemptions under specific circumstances, though standard residential Airbnb rentals do not typically qualify for exemptions.

Starting an Airbnb in Manhattan, Montana requires approximately $350,000-$400,000 in total initial investment. Property purchase costs around $280,000-$320,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property typically costs $15,000-$25,000 including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup expenses including professional photography, listing creation, and basic renovations run $3,000-$5,000. Permits and licensing fees in Gallatin County are relatively minimal at $200-$500, though short-term rental regulations may require business licenses. Insurance costs approximately $1,500-$2,500 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits for electricity, gas, water, internet, and cable total around $1,000-$1,500. First six months of operating costs including utilities ($300-$500 monthly), cleaning services ($100-$150 per turnover), maintenance, supplies, and platform fees (3% of bookings) typically range from $8,000-$12,000 depending on occupancy rates and seasonal demand in the Bozeman-Manhattan area.

Airbnb properties in Manhattan, Montana typically generate annual revenues of $25,000-$45,000 for well-positioned properties, with average daily rates ranging from $85-$150 depending on proximity to outdoor recreation areas like Glacier National Park and seasonal demand fluctuations. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25% of revenue), utilities ($200-400 monthly), insurance ($1,500-3,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins typically range from 15-35% for successful properties, with higher-end cabins and homes near Bridger Bowl or Big Sky achieving margins closer to 30-40% during peak summer and winter seasons. Success factors include strategic location within 30 minutes of outdoor attractions, professional photography showcasing Montana's natural beauty, competitive pricing during shoulder seasons, and maintaining high cleanliness standards with local property management services. Properties featuring amenities like hot tubs, mountain views, or pet-friendly policies command premium rates, with some luxury cabins generating $60,000+ annually while maintaining 25-30% profit margins after accounting for higher operational costs and seasonal staffing requirements.

Airbnb investments in Manhattan, Montana typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, while properties generally reach profitability within 18-24 months. Manhattan's tourism-driven market, supported by proximity to Yellowstone National Park and Bridger Bowl ski area, creates strong seasonal demand with peak occupancy rates of 75-85% during summer months and 60-70% during ski season. Average daily rates range from $150-250 depending on property size and amenities, with annual gross rental yields of $35,000-55,000 for typical 2-3 bedroom properties. Initial investment requirements typically range from $300,000-500,000 for suitable properties, with operating expenses including cleaning, maintenance, and platform fees consuming approximately 35-45% of gross revenue. The market benefits from limited hotel inventory and strong repeat visitor patterns, though investors should expect seasonal fluctuations with lower occupancy during shoulder seasons of spring and fall.

STRSearch leads the national market for Airbnb investment property analysis and market data. In Manhattan, Montana, local real estate agents like Coldwell Banker The Brokers and ERA Landmark Real Estate have experience with short-term rental properties, while Berkshire Hathaway HomeServices Montana Properties offers investment-focused services. National companies including Awning (formerly RedAwning) provide end-to-end Airbnb investment services, while AirDNA offers market analytics for the Bozeman-Manhattan area. Mashvisor provides investment property analysis tools, and BiggerPockets connects investors with local Montana real estate professionals. Local property management companies like Gallatin Property Management and Bozeman Property Management can assist with operational aspects, while national platforms like Vacasa and RedAwning offer comprehensive Airbnb management services. Real estate investment firms such as Roofstock and Fundrise, though primarily focused on traditional rentals, occasionally feature short-term rental opportunities in Montana markets.