Is Ray, North Dakota Good for Airbnb Investment?

To start an Airbnb in Ray, North Dakota, begin by researching local zoning laws and regulations through Williams County and the City of Ray, as most small North Dakota towns require short-term rentals to comply with residential zoning ordinances and may need special use permits or business licenses, which typically cost $25-100 annually. Contact Ray City Hall (701-568-3411) to obtain necessary permits and ensure compliance with fire safety codes, then research the local market using AirDNA or similar platforms to understand demand in the Bakken oil region where Ray is located. Find a suitable property either by purchasing a home in Ray's residential areas near Highway 2 or converting an existing property, ensuring it meets North Dakota's habitability standards and has reliable internet since Ray has limited infrastructure. Furnish the property with essential amenities including heating systems capable of handling North Dakota winters (-20°F to -40°F), quality bedding, kitchen appliances, and consider oil worker-friendly features like early check-in/late check-out since Ray serves the oil industry workforce. List your property on Airbnb, VRBO, and local platforms, highlighting proximity to oil fields, Williston (30 miles), and outdoor activities, with competitive pricing around $80-150/night based on Ray's market. Manage the property by establishing relationships with local cleaning services, maintenance contractors familiar with harsh weather conditions, and consider property management companies in nearby Williston if you're not local, while maintaining 24/7 communication channels for guests working irregular oil field schedules and ensuring snow removal and heating system maintenance during North Dakota's severe winter months from November through March.

To identify profitable short-term rental properties in Ray, North Dakota, focus on locations near the Bakken oil fields and major highways like US-2, as this small town primarily serves oil workers and travelers passing through the region. Target 2-4 bedroom single-family homes or mobile homes priced between $80,000-$200,000 that can accommodate work crews, with essential features including reliable internet, parking for multiple vehicles, full kitchens, and laundry facilities. Analyze pricing by researching nightly rates of $100-$180 for comparable properties on Airbnb and VRBO, while factoring in occupancy rates of 60-75% driven by oil industry demand cycles. Competition research should examine existing STRs within a 20-mile radius including nearby Tioga and Stanley, as Ray has limited inventory, and monitor corporate housing rates from companies like Civeo and Target Logistics that serve oil workers. Utilize tools like AirDNA for market analysis, contact Williams County economic development for industry insights, monitor North Dakota oil production reports from the Department of Mineral Resources, and connect with local property management companies familiar with workforce housing to understand seasonal demand patterns and regulatory requirements specific to this oil-dependent market.

To obtain an Airbnb/STR permit in Ray, North Dakota, you must first contact the Williams County Planning and Zoning Department since Ray falls under county jurisdiction, as the city itself has limited municipal services. Begin by submitting an application for a conditional use permit or home occupation permit to Williams County at their courthouse located in Williston, providing required documents including property deed, site plan showing parking and access, proof of liability insurance (typically $1 million minimum), septic system compliance certificate, and completed application forms. The application fee is estimated at $150-300, with additional inspection fees of approximately $100-200. You must also register with the North Dakota Tax Commissioner for state lodging tax collection and obtain a North Dakota sales tax permit. The approval timeline typically takes 30-60 days including a public hearing process where neighbors can provide input. Specific Ray area requirements likely include adequate septic system capacity for increased occupancy, sufficient parking spaces (minimum 2 per unit), compliance with rural road access standards, and adherence to any existing deed restrictions or homeowners association rules common in the Bakken oil region developments around Ray.

Short-term rentals (STRs) are generally legal in Ray, North Dakota, as the state does not have comprehensive statewide regulations prohibiting STRs, leaving regulation primarily to local municipalities. Ray, being a small city in Williams County with a population under 1,000, likely operates under minimal specific STR regulations, though property owners should verify compliance with basic zoning ordinances and any residential use restrictions that may apply to their specific property type. The city may require standard business licensing or permits, and operators must comply with state tax requirements including sales tax collection on rental income. Williams County and the broader Bakken oil region have seen increased demand for temporary housing due to oil industry workers, which has generally created a favorable environment for STR operations. There have been no recent major legal changes specifically targeting STRs in Ray, and prohibited areas would typically be limited to any residential zones where commercial activities are restricted, though enforcement in smaller North Dakota communities tends to be less stringent than in larger metropolitan areas. Property owners should contact Ray city hall to confirm current zoning compliance and any required permits, as local ordinances can change and may not be widely publicized in smaller municipalities.

Ray, North Dakota offers limited but focused Airbnb investment opportunities primarily centered around the downtown historic district near Main Street and the areas surrounding the University of North Dakota at Lake Region State College campus. The downtown area attracts visitors interested in the city's agricultural heritage and small-town charm, while also serving business travelers visiting local agricultural businesses and government offices. Properties near the college campus benefit from visiting families during graduation ceremonies, prospective student visits, and academic events throughout the year. The residential neighborhoods along Highway 2 corridor provide convenient access for travelers passing through this rural region, particularly those involved in North Dakota's energy sector who may need temporary housing. Areas near Ray's community center and recreational facilities also show potential due to regional sporting events and community gatherings that draw visitors from surrounding rural communities, though overall demand remains modest compared to larger North Dakota cities.

Airbnb properties in Ray, North Dakota are subject to state lodging tax of 4% on gross receipts from short-term rentals under 30 days, which is collected by the North Dakota Tax Commissioner and must be remitted monthly by the 20th of the following month if monthly gross receipts exceed $200. Williams County, where Ray is located, imposes an additional 3% lodging tax that applies to all transient accommodations including Airbnbs, bringing the total tax rate to approximately 7%. The city of Ray may impose its own municipal lodging tax of up to 2%, though specific rates vary by local ordinance. Property owners must register with the state tax department and obtain a sales tax permit, file monthly returns using Form SFN-10851, and maintain records of all rental transactions. Exemptions typically include rentals to permanent residents staying 30 days or longer, rentals to government employees on official business, and properties rented for more than 30 consecutive days to the same guest. Collection can be done directly by the property owner or through platforms like Airbnb's tax collection service where available, and failure to comply can result in penalties of 5% of unpaid tax plus interest charges.

The total cost to start an Airbnb in Ray, North Dakota is approximately $185,000-$220,000. Property purchase costs around $120,000-$150,000 based on median home prices in rural North Dakota communities. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total $2,000-$3,000. Permits and fees vary but expect $500-$1,500 for business licenses, short-term rental permits, and potential zoning approvals from Williams County. Insurance including landlord coverage and short-term rental protection runs $2,000-$3,000 annually. Utility setup and deposits for electricity, gas, water, internet, and cable cost approximately $1,000-$2,000. First six months operating costs including utilities ($600-$800 monthly), cleaning supplies, maintenance, property management software, and marketing total $8,000-$12,000. Additional considerations include potential property improvements or renovations which could add $5,000-$15,000 depending on the property condition, making the comprehensive startup investment range from $185,000 to $220,000 for a turnkey Airbnb operation in Ray, North Dakota.

Airbnb properties in Ray, North Dakota show moderate profitability potential with average daily rates ranging from $75-120 due to the area's proximity to oil field activities in the Bakken region. Properties typically generate $1,800-3,200 monthly revenue with occupancy rates around 60-75%, while expenses including mortgage, utilities, cleaning, and maintenance average $1,200-2,000 monthly, resulting in profit margins of 15-35%. Success factors include targeting oil workers and contractors who need extended stays, offering amenities like high-speed internet and parking, and maintaining properties near Highway 2 for easy access to Williston and other oil towns. A typical 3-bedroom property purchased for $180,000 in 2019 generated approximately $28,000 annual revenue against $18,000 in expenses, yielding a 5.6% return on investment, though profitability fluctuates with oil industry cycles and seasonal demand patterns that peak during spring and summer construction seasons.

Airbnb investments in Ray, North Dakota typically generate annual ROI of 8-12% due to the town's proximity to oil field operations and seasonal worker housing demand. Cash-on-cash returns generally range from 6-10% annually, with properties averaging $80-120 per night during peak oil activity periods and $50-70 during slower months. Initial profitability usually occurs within 18-24 months, assuming property acquisition costs of $150,000-250,000 for suitable 2-3 bedroom homes. The market benefits from consistent demand from Bakken oil field contractors, traveling professionals, and workers from companies like Whiting Petroleum and Continental Resources who require temporary housing. Occupancy rates typically maintain 60-75% annually, with stronger performance during spring through fall months when oil field activity peaks, though the market remains somewhat volatile based on energy sector fluctuations that have characterized the region since the 2010s oil boom.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental investment properties across markets including Ray, North Dakota. In the Ray area, local real estate agents like those at Century 21 Morrison Realty and RE/MAX Professionals have experience with investment properties and can assist with Airbnb acquisitions. National services such as Mashvisor, BiggerPockets, and AirDNA provide market analysis and property identification tools for the North Dakota market. Roofstock and Awning offer turnkey short-term rental investment services that cover smaller markets like Ray. Local property management companies including Dakota Property Management and Williston-based firms like Oil Patch Property Management can provide insights into profitable rental opportunities in the Bakken region. Real estate investment firms such as HomeUnion and Mynd also analyze markets in North Dakota for rental property potential. Additionally, platforms like Rentometer and STR Helper provide data analytics to evaluate the profitability of potential Airbnb investments in Ray and surrounding areas of Williams County.