Is Philipsburg, Montana Good for Airbnb Investment?

To start an Airbnb in Philipsburg, Montana, begin by researching local regulations through Granite County and the City of Philipsburg, as Montana generally allows short-term rentals but local jurisdictions may have specific requirements including business licenses, zoning compliance, and tax registration with the Montana Department of Revenue for lodging taxes. Obtain necessary permits by contacting Granite County Planning Department for zoning verification, applying for a business license through the city clerk's office, and registering for state lodging facility taxes if required. Find a suitable property by searching local real estate listings, considering proximity to attractions like the Granite Ghost Town State Park and ensuring the property meets fire safety codes and ADA accessibility requirements where applicable. Furnish the space with quality linens, kitchen essentials, Wi-Fi, heating suitable for Montana winters, and outdoor gear storage given the area's recreational activities. Create your Airbnb listing with professional photos highlighting mountain views and proximity to outdoor activities, set competitive pricing based on seasonal demand (higher during summer tourist season), and emphasize unique local features. Manage the property by establishing cleaning protocols between guests, maintaining reliable communication systems, coordinating with local cleaning services in the Philipsburg area, and ensuring year-round accessibility given Montana's harsh winter conditions, while building relationships with local businesses for guest recommendations and maintaining compliance with any evolving local short-term rental ordinances.

To identify profitable short-term rental properties in Philipsburg, Montana, focus on locations within walking distance of downtown's historic Main Street and near outdoor recreation access points like the Pintler Scenic Route and nearby fishing areas, as these attract tourists year-round. Target properties with 2-4 bedrooms, rustic or historic charm, outdoor spaces, parking, and modern amenities like WiFi and updated kitchens, as visitors expect comfort while experiencing Montana's authentic character. Analyze pricing by researching comparable Airbnb and VRBO listings in Philipsburg and nearby Anaconda, aiming for $100-200 per night depending on size and amenities, with higher rates during peak summer months and hunting seasons. Study competition by examining existing STR listings within a 10-mile radius, noting their occupancy rates, pricing strategies, and guest reviews to identify market gaps. Utilize tools like AirDNA for market analytics, STR Helper for performance tracking, Mashvisor for investment analysis, and local resources including the Granite County tourism board, Philipsburg Chamber of Commerce, and Montana Fish Wildlife & Parks for seasonal tourism patterns, while monitoring local regulations through Granite County planning offices since Montana STR laws vary by municipality.

To obtain an Airbnb/STR permit in Philipsburg, Montana, contact the Granite County Planning Department at 406-859-3771 or visit their office at 220 North Sansome Street in Philipsburg, as the town operates under county jurisdiction for zoning and permitting. Submit a completed short-term rental application along with a site plan showing the property layout, proof of property ownership or lease agreement, a floor plan indicating maximum occupancy, proof of liability insurance (typically $1 million minimum), septic system inspection if applicable, and water quality test results if using a private well. The application fee is approximately $150-250 with an additional $50-100 annual renewal fee. The process typically takes 30-45 days for review and approval. Specific Philipsburg requirements include maintaining a maximum occupancy of 2 people per bedroom plus 2 additional guests, providing adequate parking (minimum 2 spaces), ensuring compliance with fire safety codes including smoke and carbon monoxide detectors, maintaining the property in accordance with residential building codes, and designating a local contact person available 24/7 for emergencies. Properties must also comply with any applicable homeowners association rules and maintain current business licenses through the Montana Department of Revenue.

Short-term rentals (STRs) are generally legal in Philipsburg, Montana, as the small historic mining town in Granite County does not have specific municipal ordinances prohibiting them as of 2024. However, operators must comply with Montana state regulations including business licensing requirements, tax collection obligations, and basic safety standards. Philipsburg, with a population under 1,000, relies primarily on tourism given its status as a preserved 1800s mining town and proximity to attractions like the Granite Ghost Town State Park, making STRs an important part of the local economy. The town has not implemented zoning restrictions that would prohibit STRs in residential areas, though operators should verify compliance with any fire safety codes and ensure proper registration with the Montana Department of Revenue for lodging tax purposes. Given the community's small size and tourism-dependent economy, there have been no recent legal changes specifically targeting STR operations, and the regulatory environment remains relatively permissive compared to larger Montana cities like Bozeman or Missoula which have implemented more restrictive STR regulations in recent years.

The best areas for Airbnb investment in Philipsburg, Montana include the historic downtown district along Broadway Street, which attracts tourists interested in the town's mining heritage and proximity to the Pintler Scenic Route, particularly during summer months when visitors explore the nearby Anaconda-Pintler Wilderness Area. The residential neighborhoods near the Flint Creek Range offer excellent opportunities due to their scenic mountain views and access to year-round outdoor recreation including skiing at nearby Discovery Ski Area (30 minutes away) and fishing on Rock Creek, drawing both summer hikers and winter sports enthusiasts. Properties near the old mining sites and ghost towns like Granite appeal to history buffs and photographers, especially during the peak tourist season from June through September. The areas close to Highway 1 provide convenient access for business travelers and contractors working in the regional mining and forestry industries, while neighborhoods with larger properties can accommodate hunting groups during fall seasons, as Philipsburg serves as a gateway to some of Montana's prime hunting territories in the Deer Lodge National Forest.

Airbnb properties in Philipsburg, Montana are subject to Montana's statewide lodging facility use tax of 3% on gross receipts, which applies to all short-term rentals under 30 days and is collected by the accommodation provider and remitted quarterly to the Montana Department of Revenue by the 15th of the month following each quarter. Granite County, where Philipsburg is located, imposes an additional local option tax of approximately 3% on lodging accommodations, bringing the total occupancy tax rate to around 6% for Airbnb rentals. The city of Philipsburg itself does not currently impose a separate municipal lodging tax beyond the county levy. Tax collection is typically handled directly by Airbnb through their platform for participating hosts, with automatic remittance to state and local authorities, though individual hosts may need to register and remit taxes directly if not covered by Airbnb's collection service. Exemptions generally apply to stays of 30 days or longer, which are considered long-term rentals rather than transient lodging, and certain government or charitable organization bookings may qualify for exemptions with proper documentation.

The total cost to start an Airbnb in Philipsburg, Montana is approximately $485,000-$565,000. Property purchase costs around $350,000-$425,000 based on median home prices in rural Montana mountain towns. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for beds, linens, kitchen essentials, living room furniture, and décor to create an appealing rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations total $3,000-$5,000. Permits and fees including business license, lodging tax registration, and potential zoning permits cost $500-$1,500 depending on local requirements. Short-term rental insurance runs $1,200-$2,000 annually, with the first year paid upfront. Utility setup and deposits for electricity, water, sewer, internet, and cable total $800-$1,200. First six months operating costs including utilities ($180/month), cleaning supplies ($100/month), maintenance reserves ($200/month), property management software ($50/month), and marketing ($100/month) total approximately $3,800. Additional considerations include potential HOA fees, property taxes prorated for six months ($1,500-$2,500), and a cash reserve for unexpected repairs ($5,000-$10,000).

Airbnb properties in Philipsburg, Montana show moderate profitability potential with average nightly rates ranging from $85-150 depending on property size and amenities, generating approximately $15,000-35,000 in annual revenue for properties with 60-70% occupancy rates during peak summer and winter seasons. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($40-60 per turnover), property management (15-25%), utilities ($150-300 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Profit margins generally range from 15-25% after expenses, with successful properties like restored mining-era cabins and modern mountain retreats near Georgetown Lake commanding premium rates of $180-250 per night. Success factors include proximity to outdoor recreation areas like Discovery Ski Area and Anaconda-Pintler Wilderness, unique historical character reflecting the town's mining heritage, professional photography showcasing mountain views, and responsive host communication, while challenges include seasonal demand fluctuations with winter occupancy dropping 30-40% and limited year-round tourism compared to larger Montana destinations like Bozeman or Whitefish.

Airbnb investments in Philipsburg, Montana typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, driven by the town's proximity to Georgetown Lake recreational activities and seasonal tourism from fishing, hiking, and winter sports enthusiasts. Properties in this historic mining town, particularly those near the lake or with mountain views, can achieve occupancy rates of 45-65% during peak summer and winter seasons, with average daily rates of $120-180 for 2-3 bedroom properties. Initial investment costs average $200,000-350,000 for suitable properties, with investors typically reaching profitability within 18-24 months after accounting for renovation costs, furnishing, and marketing expenses. The market benefits from limited hotel inventory in the area, creating strong demand for short-term rentals, though seasonal fluctuations mean properties may experience lower occupancy during shoulder seasons in spring and fall, requiring investors to maintain adequate cash reserves for mortgage payments and maintenance during slower periods.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Philipsburg, Montana. Local real estate agents in the Philipsburg area who work with Airbnb investors include Century 21 Shea Realty, Glacier Sotheby's International Realty, and PureWest Real Estate, with agents like those at Berkshire Hathaway HomeServices Montana Properties also serving the region. National services that assist with Airbnb property acquisition include Mashvisor for market analysis, AirDNA for short-term rental data, Awning for property management and investment guidance, RedAwning for vacation rental insights, and Vacasa which provides both property management and investment advisory services. Additional local services in the broader southwestern Montana region include Big Sky Real Estate, Yellowstone Properties, and Montana Brokers who have experience with vacation rental investments, while national platforms like Roofstock, BiggerPockets, and RentSpree also provide tools and connections for short-term rental investors looking in smaller Montana markets like Philipsburg.