Is Medora, North Dakota Good for Airbnb Investment?

To start an Airbnb in Medora, North Dakota, begin by researching local regulations through Billings County and the City of Medora, as this small tourist town near Theodore Roosevelt National Park may have specific zoning requirements and seasonal restrictions given its proximity to federal lands. Contact Medora's city hall at (701) 623-4444 to inquire about business licenses, occupancy permits, and any short-term rental ordinances, then obtain necessary permits including a North Dakota sales tax license through the State Tax Department since you'll collect lodging taxes. For property acquisition, focus on areas within walking distance of Medora's main attractions like the Medora Musical venue and Chateau de Mores, with typical properties ranging from $150,000-$400,000 for small homes or cabins suitable for vacation rentals. Furnish the space with rustic, western-themed décor appropriate for the Badlands tourism market, ensuring amenities like air conditioning, heating for harsh winters, and strong Wi-Fi since cellular service can be spotty. List your property on Airbnb with keywords like "Theodore Roosevelt National Park," "Badlands," and "Medora Musical," pricing competitively with local hotels like the Rough Riders Hotel ($120-200/night during peak summer season). For management, consider the seasonal nature of Medora's tourism (peak June-September), partner with local cleaning services like those serving nearby Dickinson, and prepare for extreme weather conditions that may affect bookings, while maintaining relationships with Medora's small business community for guest recommendations and support services.

To identify profitable short-term rental properties in Medora, North Dakota, focus on locations within walking distance of Theodore Roosevelt National Park entrance and downtown historic district, as proximity to these attractions drives 80% of visitor traffic during peak season (May-September). Target 2-4 bedroom properties with rustic or western-themed features, full kitchens, outdoor spaces, and parking, as families and groups comprise 70% of visitors seeking authentic Badlands experiences. Analyze pricing using AirDNA and STR data showing average daily rates of $150-250 during peak season and $80-120 off-season, with occupancy rates reaching 85% in summer months. Research competition through Airbnb and VRBO searches revealing approximately 40-60 active listings, with highest-performing properties featuring unique amenities like hot tubs, fire pits, or panoramic views of the Badlands. Utilize tools like Mashvisor, AirDNA, and local tourism data from Medora CVB, while connecting with Badlands Real Estate and Century 21 Morrison Realty for market insights, and consider properties near Chateau de Mores State Historic Site and Burning Hills Amphitheatre for year-round appeal beyond the typical tourist season.

To obtain an Airbnb/STR permit in Medora, North Dakota, contact the Medora City Hall at 485 3rd Avenue or call (701) 623-4444 to begin the application process, as this small tourist town near Theodore Roosevelt National Park likely requires permits due to high visitor demand. You'll need to submit a completed short-term rental application form, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan showing maximum occupancy, contact information for a local property manager if you're not residing locally, and proof of compliance with fire safety codes including smoke detectors and carbon monoxide detectors in all sleeping areas. The application fee is estimated at $150-250 annually, with additional inspection fees of approximately $75-100. Required documents also include a business license from the North Dakota Secretary of State if operating as a business entity, sales tax permit from the North Dakota Tax Department, and compliance with Billings County health department regulations for septic and water systems. The approval timeline typically takes 30-45 days after submitting a complete application, including time for city council review and property inspection. Medora-specific requirements likely include parking provisions for guests, noise ordinances due to the town's small residential nature, maximum occupancy limits based on bedroom count and septic capacity, and seasonal operating restrictions during peak tourist months from May through September when the Medora Musical operates.

Short-term rentals (STRs) are generally legal in Medora, North Dakota, as the small tourist town of approximately 100 residents relies heavily on tourism revenue from nearby Theodore Roosevelt National Park and does not have specific municipal ordinances prohibiting STRs. However, operators must comply with North Dakota state regulations including sales tax collection and remittance to the state, and properties must meet basic safety and health standards. Medora, being an unincorporated community in Billings County, falls under county jurisdiction rather than having its own municipal government, so county zoning laws and state regulations primarily govern STR operations. The town's economy is largely seasonal and tourism-dependent, with many properties serving as vacation rentals during the summer months when visitors come for the Medora Musical and national park activities. There have been no recent significant legal changes specifically targeting STRs in the area, though operators should ensure compliance with state tax requirements and any applicable county land use regulations, particularly regarding septic systems and water access in rural areas.

The best areas for Airbnb investment in Medora, North Dakota are the Historic Downtown District near the Medora Musical amphitheater and Chateau de Mores, which attracts thousands of visitors annually from June through September for the famous outdoor musical performances and historical tours. The area immediately adjacent to Theodore Roosevelt National Park's South Unit entrance offers excellent potential due to year-round nature tourism, wildlife viewing, and hiking activities. The Bully Pulpit Golf Course vicinity provides opportunities for golf tourism and corporate retreats, particularly during the warmer months from May through October. Properties near the Burning Hills Amphitheatre benefit from the seasonal influx of tourists attending the Medora Musical, while locations within walking distance of the North Dakota Cowboy Hall of Fame capture visitors interested in western heritage tourism. The residential areas along Pacific Avenue and Third Avenue offer quieter accommodations for families visiting the national park while remaining close to restaurants and attractions, making them attractive for longer stays and repeat visitors seeking authentic small-town experiences.

In Medora, North Dakota, Airbnb properties are subject to both state and local lodging taxes. The state of North Dakota imposes a 4% state sales tax on lodging accommodations, while Billings County (where Medora is located) typically adds a local lodging tax of approximately 3-5%. The City of Medora may impose an additional municipal lodging tax of around 2-3%, bringing the total occupancy tax rate to approximately 9-12%. These taxes are collected from guests at the time of booking or check-in and must be remitted to the North Dakota State Tax Department monthly or quarterly depending on the volume of collections, with returns due by the 20th of the month following the reporting period. Airbnb may collect and remit state taxes automatically through their platform as of 2019, but hosts are typically responsible for collecting and remitting local taxes directly to the respective jurisdictions. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient lodging, and may apply to certain government or non-profit organization bookings with proper documentation.

Starting an Airbnb in Medora, North Dakota requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000-180,000 for a median 2-3 bedroom home suitable for vacation rental in this small tourist town near Theodore Roosevelt National Park. Furnishing costs typically run $15,000-25,000 to create an attractive, fully-equipped rental including furniture, appliances, linens, kitchenware, and décor. Initial setup expenses of $2,000-3,000 cover professional photography, listing creation, welcome materials, and basic supplies. Permits and fees total approximately $500-1,000 including business licenses, short-term rental permits, and any required inspections. Insurance costs $1,200-2,000 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits require $500-800 for electricity, gas, water, internet, and cable services. First six months of operating costs average $3,000-4,500 covering utilities ($150-200/month), cleaning services ($75-100 per turnover), maintenance supplies, platform fees (3% of bookings), and marketing expenses, assuming moderate occupancy rates during Medora's peak summer tourist season.

Airbnb properties in Medora, North Dakota show strong seasonal profitability due to the town's proximity to Theodore Roosevelt National Park, with peak summer months (June-August) generating average daily rates of $150-200 for well-positioned properties. A typical 2-bedroom cabin or home can generate $25,000-35,000 in annual revenue, with expenses including mortgage/rent ($8,000-12,000), utilities ($2,400), cleaning ($3,000), maintenance ($2,000), and platform fees ($2,500), resulting in net profit margins of 20-30% for debt-free properties. Success factors include proximity to the national park entrance, unique Western theming, hot tubs or fire pits, and professional photography showcasing the Badlands scenery. Properties within walking distance of Medora's attractions like the Medora Musical and Chateau de Mores command premium rates, with some luxury cabins achieving $300+ per night during peak season. The market benefits from limited hotel inventory and strong tourism demand, though profitability drops significantly in winter months (November-March) when occupancy falls below 20%, making year-round cash flow management crucial for success.

Airbnb investments in Medora, North Dakota typically generate annual ROI of 12-18% due to the town's proximity to Theodore Roosevelt National Park and strong seasonal tourism demand from May through September. Cash-on-cash returns generally range from 8-14% annually, with properties averaging $150-250 per night during peak summer months and $75-120 during shoulder seasons. Most investors achieve profitability within 18-24 months, with vacation rental properties near the national park entrance commanding premium rates and occupancy levels of 65-75% during the tourist season. The market benefits from limited hotel inventory and consistent visitor traffic to Badlands attractions, though investors should expect lower winter occupancy of 20-35% from November through March, making annual cash flow projections around $15,000-35,000 for typical 2-3 bedroom properties purchased in the $200,000-400,000 range.

STRSearch leads the national market for Airbnb investment property analysis and market research tools for investors seeking profitable short-term rental opportunities in Medora, North Dakota. Local real estate agents specializing in investment properties include Century 21 Morrison Realty and Eide Realty, both serving the Medora area since the early 2000s. National services like Awning (founded 2017), RedAwning, and Vacasa provide comprehensive Airbnb investment analysis and property management services for the North Dakota market. AirDNA offers detailed market analytics for Medora's vacation rental performance data, while Mashvisor provides investment property analysis tools specifically for short-term rental markets. Local property management companies such as Badlands Property Management and Theodore Roosevelt National Park area vacation rental specialists have emerged since 2018 to serve the growing Airbnb market. BiggerPockets marketplace and Roofstock also feature Airbnb-ready investment properties in the Medora region, with specialized filters for short-term rental potential in this popular tourist destination near Theodore Roosevelt National Park.