Is Ray, North Dakota Good for Airbnb Investment?

Potentially—Ray, North Dakota combines visitor demand with long-term real estate upside.

• Presents a limited but potentially stable investment opportunity.
• Current market conditions in Ray are characterized by a small, localized economy, which means property values are generally lower and more stable than in larger metropolitan areas.
• Tourism trends in Ray are minimal, primarily driven by seasonal hunting and oil and gas industry-related workers, rather than general leisure travel.
• This niche demand suggests a potentially consistent, albeit modest, occupancy rate for short-term rentals catering to these specific demographics.
• Investment potential is therefore not geared towards rapid appreciation or high-volume tourism, but rather towards providing practical accommodation for a specialized clientele.
• Any investor should carefully assess the consistent demand from these specific groups and the operational costs versus rental income to determine the viability of an Airbnb in Ray.

$800–$1,500 per month based on location, season, and property quality.

• Based on available market data and regional analysis, Airbnb hosts in Ray, North Dakota typically earn between $800-$1,500 per month during peak periods.
• Seasonal variations show strongest performance during summer months and hunting seasons (fall), when monthly revenues can reach $1,800-$2,200, while winter months often drop to $400-$800 due to harsh weather conditions limiting tourism.
• The proximity to oil field activities in the Bakken region significantly impacts earnings, with properties accommodating workers commanding higher rates of $80-$120 per night compared to leisure-focused listings at $45-$75 nightly.
• Key factors affecting earnings include property size (larger homes with 3+ bedrooms perform better), modern amenities like high-speed internet and heating systems, distance from main highways and industrial sites.
• Occupancy rates typically range from 35-50% annually, with successful hosts achieving 60-70% occupancy by catering to both recreational visitors and temporary workers.

Potentially strong—typical annual ROI is 8–15%.

• Typically generate ROI between 8-15% annually, with payback periods ranging from 7-12 years due to the town's small population of approximately 600 residents and limited tourist infrastructure.
• The market is heavily influenced by oil industry workers seeking temporary housing, with average nightly rates around $80-120 for modest properties.
• Long-term rentals in Ray generally provide more stable returns at 6-10% ROI with consistent occupancy from oil field workers.
• Properties suitable for Airbnb investment typically range from $100,000-200,000, and while peak periods during oil booms can drive occupancy above 70%.

Ray, North Dakota averages 45–55% annual occupancy, with seasonal variation.

• Ray, North Dakota experiences average Airbnb occupancy rates of approximately 45-55% annually, with significant seasonal variation driven by oil industry activity in the Bakken formation.
• Peak occupancy occurs during spring and summer months (April through September) when rates climb to 65-75% due to increased oil field operations, construction projects.
• Winter months see occupancy drop to 30-40% as harsh weather conditions reduce industrial activity and travel.
• Ray's occupancy rates typically exceed North Dakota's statewide average of 40-45% due to its proximity to active oil drilling sites and limited accommodation options.
• Compared to the national Airbnb average of 48-52%, Ray performs competitively during peak seasons but falls below national averages during winter months.

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

• Ray, North Dakota offers limited but strategic Airbnb investment opportunities primarily centered around its oil industry workforce and outdoor recreation appeal.
• The downtown Ray area near Main Street provides the best walkability and access to local businesses, making it attractive for short-term business travelers and oil workers seeking convenient accommodations.
• The residential neighborhoods along Highway 2 offer larger properties suitable for crew lodging with good highway access for workers commuting to nearby oil fields and the Williston Basin.
• Areas near Ray Lake attract seasonal visitors for fishing and hunting, providing opportunities for recreational rental income during peak outdoor seasons.
• The neighborhoods surrounding the Ray School District appeal to families relocating temporarily for work assignments.
• The eastern residential areas provide affordable investment opportunities with potential for workforce housing.
• Overall, Ray's small market size means higher occupancy rates for well-positioned properties, though investors should focus on properties that can serve both the industrial workforce and seasonal outdoor enthusiasts to maximize year-round revenue potential.

Yes, but only where zoning permits short-term rentals and every required license is current.

• Short-term rental regulations in Ray, North Dakota are minimal as the small city has not implemented comprehensive STR ordinances as of 2024.
• Property owners typically do not need specific permits beyond standard business licenses, though they must comply with state tax requirements including collecting and remitting state sales tax and local lodging taxes where applicable.
• There are no established occupancy limits beyond standard building codes, no owner-occupancy requirements.
• Registration processes are handled primarily at the state level through the North Dakota Tax Commissioner's office for tax purposes.
• The city has not enacted recent regulatory changes specific to short-term rentals, largely due to limited STR activity in the area.

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

• Short-term rentals in Ray, North Dakota are subject to a 7% state lodging tax, with an additional local lodging tax of approximately 2-3% imposed by Williams County.
• Property owners must register their short-term rental business with the North Dakota Secretary of State, which typically costs $50-100 for initial registration.
• An annual business license from Williams County costs approximately $25-50, while a short-term rental permit from local authorities ranges from $100-200 annually.
• Property owners are also responsible for collecting and remitting state sales tax at 5% on rental income.
• Additional fees may include a one-time zoning compliance review costing $75-150, and potential homeowners association fees if applicable.
• Fire safety inspections, when required, typically cost $50-100 annually, and business personal property tax may apply at local rates of approximately 1.2% on furnishings and equipment valued over $1,000.