Is Rosebud, Montana Good for Airbnb Investment?

To start an Airbnb in Rosebud, Montana, begin by researching local zoning laws and regulations through Rosebud County's planning department, as rural Montana counties typically have fewer restrictions than urban areas but may require business licenses or special use permits for short-term rentals. Contact the Rosebud County Clerk's office to obtain any necessary business licenses and check if you need a lodging tax permit, as Montana requires collection of the 3% state lodging facility use tax plus any local taxes. Find a suitable property by working with local real estate agents familiar with Rosebud's market, focusing on properties near attractions like the Little Bighorn Battlefield or along Highway 212, with prices likely ranging from $80,000-$200,000 for suitable homes. Furnish the property with durable, comfortable furniture from retailers like Billings-area stores or online suppliers, ensuring you have reliable internet, heating systems suitable for Montana winters, and amenities that appeal to travelers exploring the area's Native American history and outdoor activities. List your property on Airbnb with professional photos highlighting the rural Montana experience, pricing competitively at an estimated $75-$150 per night depending on size and amenities. Manage the property by establishing relationships with local cleaning services in nearby Forsyth or Lame Deer, creating a guidebook with information about local attractions like the Crow Reservation and Custer Battlefield, and maintaining responsive communication with guests while ensuring compliance with Montana's innkeeper liability laws and maintaining appropriate insurance coverage.

To identify profitable short-term rental properties in Rosebud, Montana, focus on properties within 10-15 minutes of Rosebud Battlefield National Monument and along Highway 212, as these locations attract history enthusiasts and travelers passing through. Target 2-4 bedroom homes or cabins built after 1980 with modern amenities, reliable internet, and outdoor spaces that showcase Montana's rural charm, as guests seek authentic Western experiences. Analyze pricing by researching comparable Airbnb listings within 25 miles, noting that properties typically rent for $80-150 per night depending on size and amenities, with higher rates during summer months (June-September) when tourism peaks. Competition research should include monitoring listings in nearby Hardin (20 miles) and Billings (60 miles) using tools like AirDNA, Mashvisor, and STR analytics platforms to understand occupancy rates, which likely average 40-60% annually in this rural market. Utilize local resources such as the Rosebud County economic development office, Montana tourism data, and connect with local real estate agents familiar with investment properties, while considering proximity to Little Bighorn Battlefield, fishing access points along the Yellowstone River, and hunting areas that drive seasonal demand from outdoor recreation visitors.

To obtain an Airbnb/STR permit in Rosebud, Montana, you must first contact the Rosebud County Planning Department at 406-346-7318 or visit their office at 1200 Main Street in Forsyth, as Rosebud is an unincorporated community under county jurisdiction. Required documents typically include a completed short-term rental application form, proof of property ownership or lease agreement, liability insurance certificate showing minimum $1 million coverage, septic system inspection certificate, well water testing results if applicable, fire safety inspection report, and a site plan showing parking areas and emergency access routes. The application fee is estimated at $150-250 with an annual renewal fee of $75-125, and you may need additional inspections costing $50-100 each. The approval timeline ranges from 30-60 days depending on inspection scheduling and document completeness. Specific Rosebud County requirements likely include maintaining adequate septic capacity for occupancy limits, ensuring proper rural road access for emergency vehicles, compliance with rural zoning setback requirements, guest registration logs, maximum occupancy limits based on septic system capacity, and adherence to county noise ordinances. You must also register with the Montana Department of Revenue for lodging facility tax collection and may need to comply with state health department regulations for rental properties, with some properties requiring additional permits if they exceed certain occupancy thresholds or operate as commercial facilities.

Short-term rentals (STRs) in Rosebud, Montana are generally legal but operate under limited local regulation as of 2024. Rosebud County does not have comprehensive STR ordinances, meaning properties can typically be used for short-term rental purposes under existing zoning laws, though operators must comply with basic business licensing requirements and state tax obligations including Montana's 3% accommodations tax. The town of Forsyth, the county seat, has minimal specific STR restrictions but requires compliance with residential zoning standards and fire safety codes. Rural properties throughout Rosebud County face fewer restrictions due to agricultural zoning classifications. Recent legislative discussions at the state level in 2023-2024 have focused on standardizing STR regulations across Montana counties, but no significant local changes have been implemented in Rosebud specifically. Property owners should verify current zoning compliance and obtain necessary business licenses, as enforcement has become more systematic since 2022 when the county began tracking rental properties more closely for tax purposes.

The best areas for Airbnb investment in Rosebud, Montana include the downtown historic district near Main Street, which attracts visitors interested in the town's railroad heritage and serves as a convenient base for exploring the area. The residential neighborhoods adjacent to the Yellowstone River offer scenic waterfront appeal for tourists seeking outdoor recreation like fishing, boating, and wildlife viewing. Properties near the Northern Cheyenne Indian Reservation boundary can capitalize on cultural tourism and visitors attending tribal events or conducting business with the reservation. The areas close to Highway 39 and Highway 447 intersections provide easy access for business travelers and those passing through to larger destinations like Billings or Miles City. Neighborhoods within walking distance of local amenities like restaurants, gas stations, and the post office are particularly attractive for short-term rentals as they offer convenience for guests unfamiliar with the area, while properties on the outskirts with larger lots appeal to hunters during deer and antelope seasons and visitors seeking a quiet rural Montana experience.

Airbnb properties in Rosebud, Montana are subject to Montana's statewide lodging facility use tax of 3% on gross receipts from accommodations, which applies to all short-term rentals under 30 days and is collected by the host and remitted quarterly to the Montana Department of Revenue by the 15th of January, April, July, and October. Additionally, Treasure County (where Rosebud is located) may impose a local resort tax of up to 3% on lodging accommodations, though the specific rate and collection procedures vary by local jurisdiction and would need to be verified with county officials. Airbnb typically collects and remits the state lodging tax automatically for hosts in Montana as of 2019, but hosts remain responsible for ensuring compliance with any local occupancy taxes and must register with the Montana Department of Revenue to obtain a lodging facility license. Exemptions generally apply to stays of 30 days or longer, accommodations provided to permanent residents, and certain government or charitable organization bookings, though hosts should verify current exemption criteria as tax laws can change.

Starting an Airbnb in Rosebud, Montana requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000-180,000 based on median home prices in rural Montana communities. Furnishing a 2-3 bedroom property costs $8,000-12,000 including beds, linens, kitchen essentials, living room furniture, and décor from retailers like IKEA, Wayfair, and local stores. Initial setup expenses total $2,000-3,000 covering professional photography, listing creation, welcome materials, and basic renovations. Permits and fees range $500-1,500 including business license, short-term rental permit from Rosebud County, and potential zoning approvals. Insurance costs $1,200-2,000 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utility deposits and connections total $800-1,200 for electricity, water, sewer, internet, and cable setup. First six months operating costs approximate $6,000-8,000 including utilities ($200-300/month), cleaning supplies and services ($150-250/month), maintenance reserves ($100-200/month), Airbnb host fees (3% of bookings), marketing expenses, and property management software subscriptions through platforms like Hostfully or Guesty.

Airbnb properties in Rosebud, Montana face significant profitability challenges due to the town's small population of approximately 1,800 residents and limited tourist infrastructure, with average nightly rates typically ranging from $60-90 compared to Montana's statewide average of $120-150. Properties in this rural Phillips County location generally experience occupancy rates of 25-35% annually, generating estimated gross revenues of $5,500-$11,000 per year for a typical 2-bedroom property, while expenses including property taxes ($800-1,200), utilities ($1,800-2,400), cleaning fees ($1,500-2,000), insurance ($600-900), and maintenance ($1,000-1,500) total approximately $5,700-8,000 annually. This results in net profit margins of -3% to 15%, making most properties marginally profitable at best. Success factors for the few profitable properties include targeting hunters during fall seasons when rates can reach $120-140 per night, marketing to oil field workers seeking temporary housing, and maintaining extremely low acquisition costs under $80,000. Properties within 30 miles of Fort Peck Lake or those offering unique ranch experiences perform better, with some achieving 40-45% occupancy rates, but the overall market remains challenging due to Rosebud's remote location along Highway 2 and limited year-round attractions beyond outdoor recreation.

Airbnb investments in Rosebud, Montana typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, based on the area's proximity to the Little Bighorn Battlefield National Monument and seasonal tourism patterns. Properties in this small southeastern Montana community, with average acquisition costs of $150,000-$250,000, can expect gross rental yields of $18,000-$35,000 annually, with occupancy rates averaging 45-60% due to historical tourism and hunting seasons. Most investors achieve profitability within 18-24 months, factoring in initial renovation costs of $15,000-$25,000 for rural properties and ongoing expenses including property management fees of 20-25%, utilities, and maintenance costs that are typically higher in remote locations, while peak earning months occur from May through October when battlefield tourism and outdoor recreation activities drive demand.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Rosebud, Montana. Local real estate agents specializing in investment properties include Century 21 Big Sky Real Estate and Yellowstone Country Properties, both serving the southeastern Montana region since the early 2000s. RE/MAX agents in nearby Billings also cover the Rosebud area for investment opportunities. National services include Mashvisor (founded 2014) for property analysis, AirDNA for market data and revenue projections, and Awning for full-service Airbnb investment management. BiggerPockets connects investors with local professionals, while Roofstock focuses on turnkey rental properties. Local property management companies like Montana Property Solutions and Big Sky Property Management can handle day-to-day operations. Additional national platforms include Vacasa for property management, RedAwning for rental optimization, and Hostfully for guest management, all serving the growing short-term rental market in rural Montana communities like Rosebud.