Is Minot, North Dakota Good for Airbnb Investment?

To start an Airbnb in Minot, North Dakota, begin by researching local regulations as Minot requires short-term rental operators to obtain a business license from the City Clerk's office and comply with zoning ordinances that may restrict rentals in certain residential areas. Contact Minot's Planning and Zoning Department at 701-857-4750 to verify your property's zoning allows short-term rentals and obtain necessary permits, which typically cost $50-100 annually. Find a suitable property in neighborhoods like downtown Minot near the Scandinavian Heritage Park or close to Minot State University, considering proximity to attractions like the North Dakota State Fair grounds and oil industry facilities that drive demand. Purchase essential furnishings including quality bedding, basic kitchen appliances, Wi-Fi equipment, and heating systems capable of handling North Dakota's harsh winters with temperatures reaching -20°F. Create your Airbnb listing with professional photos highlighting winter amenities, proximity to local attractions like Roosevelt Park Zoo, and competitive pricing around $75-120 per night based on Minot's market rates. Manage your property by establishing relationships with local cleaning services, maintaining 24/7 guest communication, stocking winter emergency supplies, and ensuring reliable heating and snow removal services during Minot's extended winter season from November through March.

For identifying profitable short-term rental properties in Minot, North Dakota, focus on locations near Minot Air Force Base, downtown business district, and major employers like Basin Electric Power Cooperative and Trinity Health, as these drive consistent demand from military personnel, business travelers, and medical visitors. Target 2-4 bedroom single-family homes or duplexes built after 1980 with modern amenities, reliable heating systems for harsh winters, and parking availability, as these features command premium rates in Minot's market. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds long-term rental income by 40-60%, typically finding opportunities in the $150,000-$300,000 purchase range that can generate $100-180 per night. Research competition through Airbnb and VRBO searches within 3-mile radius of target areas, noting that Minot's limited STR inventory creates opportunities for well-positioned properties, while monitoring occupancy rates of existing listings and identifying gaps in amenity offerings. Utilize local resources including Minot Association of Realtors MLS data, Ward County property records, and connect with property management companies like Dakota Property Management who understand local regulations, while leveraging STR-specific tools like Rabbu and PriceLabs for ongoing revenue optimization in this oil-boom influenced market where demand fluctuates with energy sector activity.

To obtain an Airbnb/STR permit in Minot, North Dakota, you must first contact the Minot Planning Department at City Hall located at 515 2nd Avenue SW to determine if short-term rentals are permitted in your specific zoning district, as the city requires conditional use permits for STRs in most residential areas. Submit an application for a conditional use permit along with a site plan showing the property layout, parking arrangements, and neighboring properties, plus a $200 application fee and $50 public hearing fee. Required documents include proof of property ownership, a detailed operational plan describing guest capacity (typically limited to 8 people), parking provisions (minimum 2 spaces), noise mitigation measures, and contact information for a local property manager if you're an absentee owner. The application undergoes a 30-day review period including neighbor notification, followed by a Planning Commission public hearing, with final approval taking 45-60 days total. Once approved, you must obtain a business license from the City Clerk's office for $25 annually, register with the North Dakota Tax Commissioner for state lodging tax collection, and comply with Minot's specific requirements including maximum occupancy limits, 24/7 local contact availability, adequate parking, and adherence to noise ordinances with quiet hours from 10 PM to 7 AM.

Short-term rentals (STRs) are legal in Minot, North Dakota, but operate under city regulations that require property owners to obtain a business license and comply with zoning restrictions. The city allows STRs in most residential zones but prohibits them in certain areas near schools and requires properties to meet safety standards including smoke detectors, carbon monoxide detectors, and proper egress routes. Operators must register with the city, pay applicable taxes, and maintain liability insurance, while also adhering to occupancy limits typically based on the number of bedrooms plus two additional guests. Recent changes around 2022-2023 have strengthened enforcement mechanisms and clarified parking requirements, with the city requiring at least one off-street parking space per rental unit. Properties must also comply with noise ordinances and cannot exceed 30-day rental periods to maintain STR classification rather than being considered long-term housing, and violations can result in fines ranging from $100 to $500 with potential license revocation for repeat offenders.

The best areas for Airbnb investment in Minot, North Dakota are the downtown district near Main Street and Central Avenue, which attracts business travelers visiting the city's commercial core and government offices, and the neighborhoods surrounding Minot State University on the south side of town, particularly near 11th Avenue SW, which generates consistent demand from visiting families, prospective students, and university-related events. The areas near Trinity Health hospital system and First District Health Unit also present strong opportunities due to medical tourism and healthcare workers needing temporary housing. Properties within a 10-15 minute drive of the North Dakota State Fair grounds benefit from the annual fair in July, one of the state's largest events drawing over 300,000 visitors. The Roosevelt Park and Oak Park neighborhoods offer attractive residential settings that appeal to longer-term corporate housing needs, particularly for oil industry professionals and military personnel associated with Minot Air Force Base, though base housing typically reduces direct military demand. Areas near the Scandinavian Heritage Park and North Dakota State Fairgrounds provide seasonal opportunities, while properties along Highway 83 and near the airport capture business travelers and those visiting for the region's agricultural and energy sectors.

In Minot, 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 lodging accommodations, which applies to short-term rentals including Airbnbs. Additionally, Minot levies a local lodging tax of 3% on gross receipts from transient accommodations. These taxes are typically collected from guests at the time of booking through Airbnb's automatic tax collection system, which began operating in North Dakota around 2018. Hosts must register with the North Dakota Tax Commissioner's office and obtain a sales tax permit, then remit taxes monthly if collections exceed $200 or quarterly if below that threshold, with returns due by the 15th of the month following the reporting period. The city of Minot also requires separate registration and remittance of local lodging taxes through their finance department. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient lodging, and accommodations provided to permanent residents. Some nonprofit organizations and government employees on official business may also qualify for exemptions with proper documentation.

To start an Airbnb in Minot, 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. Furnishing costs typically range $8,000-$15,000 for a complete 2-3 bedroom setup including furniture, bedding, kitchenware, and electronics. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$4,000. Permits and fees vary but budget $500-$1,500 for business licenses, short-term rental permits, and city registration requirements. Insurance premiums for short-term rental coverage run $1,200-$2,400 annually, with the first year paid upfront. Utility deposits and connections cost approximately $500-$800 for electricity, gas, water, internet, and cable services. First six months of operating costs including utilities ($600-$900 monthly), cleaning supplies, maintenance, property management software, and marketing total roughly $5,000-$8,000. Additional considerations include potential HOA fees, property taxes, and a contingency fund for unexpected repairs or vacancy periods.

Airbnb properties in Minot, North Dakota show moderate profitability potential with average daily rates ranging from $75-120 depending on property type and location, generating monthly revenues of $1,800-3,200 for well-managed properties with 60-70% occupancy rates. Operating expenses typically include 25-30% for cleaning and maintenance, 3% Airbnb service fees, 15-20% for utilities and supplies, and 10-15% for property management if outsourced, resulting in net profit margins of 25-40% for debt-free properties. Success factors in this oil boom market include proximity to industrial sites and temporary worker housing needs, with properties near Minot Air Force Base and oil field operations commanding premium rates of $100-150 per night. A typical 3-bedroom home purchased for $180,000-220,000 can generate $2,400 monthly revenue with $1,400 in expenses including mortgage, yielding $1,000 monthly profit, though market volatility tied to oil prices creates risk. Properties targeting corporate travelers and military personnel tend to outperform those focused on leisure tourism, with furnished apartments and homes near downtown Minot or industrial corridors showing the strongest performance metrics and occupancy rates above 75%.

Airbnb investments in Minot, North Dakota typically generate annual ROI of 8-12% due to the city's oil industry workforce and limited hotel inventory, with cash-on-cash returns ranging from 6-10% depending on property acquisition costs and financing structure. Properties in Minot generally reach profitability within 18-24 months, driven by consistent demand from Bakken oil field workers and business travelers who pay average nightly rates of $85-120 for quality accommodations. The market benefits from occupancy rates of 65-75% annually, with peak demand during oil industry busy seasons and hunting seasons, though investors should factor in higher property management costs and seasonal fluctuations that can impact monthly cash flows by 20-30% during slower winter months.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Minot, North Dakota. Local real estate agents in Minot who work with Airbnb investors include Century 21 Morrison Realty, Coldwell Banker First Realty, and RE/MAX Professionals, with agents like those at Souris Valley Realty having experience in investment properties since around 2018. National services that assist with Airbnb property acquisition include Awning (formerly RedAwning), which has been helping investors since 2016, AirDNA for market analysis and property identification, Mashvisor for investment property analytics, and BiggerPockets for networking and deal sourcing. Property management companies like Vacasa and RedAwning also help investors identify and manage profitable short-term rental properties in smaller markets like Minot. Local property management firms such as Dakota Property Management and Northern Plains Property Management have expanded into short-term rental services around 2019-2020. Investment-focused real estate companies like Roofstock and Arrived Homes occasionally feature properties in North Dakota markets, while platforms like Fundrise and YieldStreet offer indirect real estate investment opportunities in secondary markets including the Bakken oil region where Minot is located.