Is Regan, North Dakota Good for Airbnb Investment?

To start an Airbnb in Regan, North Dakota, begin by researching local zoning laws and regulations through Burleigh County (since Regan is unincorporated) and contacting the county clerk's office to understand any short-term rental restrictions, which are typically minimal in rural North Dakota areas. Obtain necessary business licenses from the North Dakota Secretary of State's office and register for state tax collection, as North Dakota requires a 5% state sales tax and 1.75% state lodging tax on short-term rentals. Find a suitable property by searching local real estate listings or considering converting existing farm buildings or homes, keeping in mind that properties should be easily accessible year-round given North Dakota's harsh winters. Furnish the space with durable, comfortable furniture suitable for the rural setting, including heavy bedding for cold weather, a reliable heating system, and basic amenities like Wi-Fi (which may require satellite internet in rural areas), kitchen essentials, and cleaning supplies. List your property on Airbnb and other platforms like VRBO, emphasizing unique rural experiences, proximity to outdoor activities, and the authentic North Dakota farm or small-town experience. Manage the property by establishing relationships with local cleaning services in nearby Bismarck or Mandan (about 45 minutes away), creating detailed check-in instructions for the remote location, maintaining emergency contact information for guests, and ensuring reliable communication methods since cell service may be limited in the area.

To identify profitable short-term rental properties in Regan, North Dakota, focus on properties within 10-15 miles of major oil field operations and worker housing camps, as this small town in Burleigh County benefits from Bakken oil activity proximity. Target 2-4 bedroom single-family homes or manufactured homes built after 2000 with reliable heating systems, full kitchens, laundry facilities, and high-speed internet capability, as oil workers and contractors prioritize functional amenities over luxury features. Analyze pricing by researching comparable rentals on Airbnb and VRBO within a 25-mile radius including Bismarck properties, aiming for nightly rates between $80-150 depending on size and amenities, with potential for premium pricing during peak drilling seasons. Conduct competition research by monitoring existing STR listings in Regan and surrounding communities like Wing and Steele, noting occupancy patterns and guest reviews to identify service gaps. Utilize tools such as AirDNA for market analysis, STR Helper for revenue projections, Mashvisor for investment analysis, and local resources including the Burleigh County planning department for zoning regulations, North Dakota Tourism Division for seasonal trend data, and networking with local real estate agents familiar with oil industry housing demands to identify properties before they hit the general market.

To obtain an Airbnb/STR permit in Regan, North Dakota, contact the Burleigh County Planning and Zoning Department at (701) 222-6651 or visit their office at 514 East Thayer Avenue in Bismarck, as Regan falls under county jurisdiction for zoning matters. You'll need to submit a completed short-term rental application form, provide proof of property ownership or lease agreement, submit a site plan showing parking areas and property boundaries, obtain a certificate of occupancy if required, and provide proof of liability insurance with minimum $1 million coverage. Required documents include a valid driver's license, property tax statements, floor plans indicating maximum occupancy, emergency contact information, and a waste management plan. The application fee is approximately $150-200 with an additional $75 annual renewal fee. The approval timeline typically takes 30-45 days after submitting a complete application. Specific Regan requirements include maintaining adequate off-street parking for guests, ensuring septic systems can handle increased usage, complying with rural fire safety standards, and registering with the North Dakota Tax Commissioner for lodging tax collection. Properties must pass a safety inspection covering smoke detectors, carbon monoxide detectors, fire extinguishers, and emergency egress routes before permit approval.

Short-term rentals (STRs) are generally legal in Regan, North Dakota, as the small rural community in Burleigh County does not have specific municipal ordinances prohibiting them, and North Dakota state law does not ban STRs outright. However, operators must comply with state tax requirements including collecting and remitting state sales tax and local lodging taxes where applicable. Since Regan is an unincorporated area with minimal local governance structure, there are no specific zoning restrictions or permit requirements at the municipal level, though operators should verify compliance with Burleigh County zoning regulations and any applicable health department requirements for rental properties. The regulatory environment remains relatively permissive compared to larger North Dakota cities like Fargo or Bismarck, which have implemented more comprehensive STR regulations in recent years, and there have been no significant recent legal changes specifically affecting STR operations in this small rural community as of 2023-2024.

The best areas for Airbnb investment in Regan, North Dakota are primarily centered around the town's proximity to the Bakken oil fields and agricultural activities. The downtown area near Main Street offers the most potential due to its accessibility and proximity to local businesses that attract oil workers and agricultural professionals on extended stays. The residential neighborhoods on the north side of town, particularly near Highway 21, are attractive for their quiet setting while remaining close to industrial access routes used by energy sector workers. The area near the Regan Community Center and school district appeals to families visiting for school events, youth sports tournaments, and community gatherings. Properties within a 2-mile radius of major grain elevators and agricultural facilities like those operated by companies such as CHS Inc. attract seasonal workers during harvest periods from August through October. The eastern residential district benefits from its proximity to ranching operations and hunting areas, drawing visitors during North Dakota's hunting seasons, particularly for deer and waterfowl from September through November, making these properties viable for both short-term hunting lodges and longer-term agricultural worker housing.

In Regan, North Dakota, Airbnb properties are subject to North Dakota's state lodging tax of 4% on gross receipts from short-term rentals under 30 days, which is collected by the host and remitted quarterly to the North Dakota Tax Commissioner's office by the 15th of January, April, July, and October. Additionally, hosts must collect and remit the state sales tax of 5% on lodging services, with the same quarterly filing schedule and payment deadlines. Regan, being a small rural community in Burleigh County, does not appear to impose additional local lodging or occupancy taxes beyond the state requirements as of 2023. Hosts must register for a North Dakota sales tax permit before beginning operations and file Form SFN-10417 for lodging tax returns, with payments made electronically through the state's online portal. Exemptions include rentals to permanent residents staying 30 days or more, rentals to government employees on official business, and certain nonprofit organization bookings, though documentation must be maintained to support exempt transactions.

To start an Airbnb in Regan, North Dakota, the total estimated costs would be 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 would cost $15,000-$25,000 including furniture, appliances, linens, and décor from retailers like IKEA, Wayfair, and local suppliers. Initial setup costs including professional photography, listing creation, and basic renovations would be $3,000-$5,000. Permits and fees including business license, short-term rental permits, and tax registrations would cost $500-$1,500. Insurance including landlord and short-term rental coverage would be $2,000-$3,000 annually. Utilities setup and deposits for electricity, water, internet, and cable would cost $1,000-$2,000. First six months operating costs including utilities ($600/month), cleaning supplies ($200/month), maintenance ($300/month), platform fees ($400/month), and marketing ($200/month) would total approximately $9,000. Additional costs for property management software subscriptions and emergency repairs could add another $2,000-$3,000 to the initial investment.

Airbnb properties in Regan, North Dakota face significant profitability challenges due to the town's small population of approximately 50 residents and limited tourism infrastructure. Properties in this rural area typically generate $200-400 monthly revenue with occupancy rates around 15-25%, primarily from oil workers and occasional hunters during fall seasons. Operating expenses including utilities ($150-200/month), cleaning ($50-75 per turnover), insurance ($100-150/month), and maintenance ($75-100/month) often exceed revenue, resulting in negative profit margins of -10% to -30% for most properties. Success factors are extremely limited but may include targeting extended-stay oil industry workers, offering competitive monthly rates ($800-1200), and maintaining basic but clean accommodations. Properties within 30 miles of larger towns like Watford City or Williston perform marginally better due to spillover demand from the Bakken oil fields, but even these struggle with 40-60% occupancy rates and thin profit margins of 5-15%. The lack of attractions, restaurants, and amenities in Regan makes it unsuitable for leisure travelers, and the declining oil activity since 2015-2018 has further reduced demand from industrial workers, making Airbnb investment in this location financially unviable for most property owners.

Airbnb investments in Regan, North Dakota typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by oil industry workers and seasonal agricultural visitors seeking short-term accommodations in this rural market. Properties in Regan, located in Burleigh County, generally achieve profitability within 18-24 months due to limited local lodging options and steady demand from Bakken oil field contractors and farming consultants, with average daily rates of $85-120 and occupancy rates around 65-75% annually. The market benefits from proximity to Bismarck (45 miles) and consistent business traveler demand, though investors should expect seasonal fluctuations with stronger performance during spring planting and fall harvest periods, making the timeframe to break-even approximately 20-30 months for typical single-family home conversions requiring $15,000-25,000 in initial setup costs.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties across markets including Regan, North Dakota. AirDNA provides comprehensive market data and analytics for Airbnb investments in smaller North Dakota markets, while Mashvisor offers property analysis tools that cover rural areas like Regan. Local real estate agents such as those with Century 21 Morrison Realty and Coldwell Banker in nearby Bismarck often work with investors seeking vacation rental properties in western North Dakota communities. RedAwning specializes in vacation rental property acquisition and management services that extend to rural North Dakota markets. BiggerPockets connects investors with local professionals familiar with North Dakota's short-term rental regulations and opportunities. Local property management companies like Prairie Property Management and Dakota Property Solutions can assist with identifying suitable investment properties in the Regan area while providing ongoing management services for Airbnb operations.