Is Roundup, Montana Good for Airbnb Investment?

To start an Airbnb in Roundup, Montana, begin by researching local zoning laws and regulations through the Musselshell County Planning Department and Roundup City Hall, as Montana generally allows short-term rentals but local municipalities may have specific requirements. Contact the Montana Department of Revenue to understand tax obligations including the 3% state lodging tax and any local taxes that may apply to short-term rentals. Obtain necessary permits by applying for a business license through the City of Roundup and checking if a conditional use permit is required for your property type. Find a suitable property by searching for homes or cabins near popular attractions like the Musselshell River or downtown Roundup, considering properties with 2-3 bedrooms that can accommodate families visiting for hunting, fishing, or exploring the area. Furnish the property with durable, comfortable furniture including quality mattresses, linens, kitchen essentials, Wi-Fi, and outdoor amenities like fire pits or grills that appeal to visitors seeking a Montana experience. List your property on Airbnb and VRBO with professional photos highlighting the rural Montana setting, proximity to outdoor activities, and any unique features like mountain views or river access. Manage the property by establishing cleaning protocols between guests, creating a guidebook with local recommendations for restaurants like the Busy Bee Cafe and outdoor activities, setting competitive pricing around $80-150 per night based on seasonal demand, and either self-managing or hiring a local property management company to handle guest communications, cleaning, and maintenance issues.

To identify profitable short-term rental properties in Roundup, Montana, focus on properties within 2-3 miles of the Musselshell River for fishing access and near Highway 12 for easy traveler access, as this small agricultural town of approximately 1,800 residents attracts hunters, anglers, and road trip travelers. Target 2-4 bedroom single-family homes or ranch-style properties built after 1980 with full kitchens, laundry facilities, parking for trucks/trailers, and outdoor spaces, as these appeal to hunting groups and families exploring eastern Montana. Pricing analysis should consider seasonal fluctuations with peak rates of $120-180/night during hunting season (September-November) and fishing season (May-September), dropping to $80-120/night in winter months. Competition research reveals limited STR inventory with fewer than 10 active listings on Airbnb and VRBO combined, creating opportunity for well-positioned properties. Utilize AirDNA for market data, STR Helper for revenue projections, and local resources like the Roundup Chamber of Commerce and Musselshell County records for property information, while monitoring nearby Billings market trends (90 miles south) as a comparison benchmark for eastern Montana tourism patterns.

To obtain an Airbnb/STR permit in Roundup, Montana, contact the Musselshell County Planning Department at 406-323-1104 or visit their office at 506 Main Street, as Roundup operates under county jurisdiction for short-term rental regulations. Submit a completed short-term rental application form along with a site plan showing the property layout, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, septic system inspection certificate if applicable, and fire safety compliance documentation. The application fee is approximately $150-200 with an annual renewal fee of $75-100. Specific Roundup requirements include maintaining a maximum occupancy of 2 guests per bedroom plus 2 additional guests, providing adequate parking spaces (minimum 2 spaces), ensuring 24/7 local contact availability within 30 miles, installing smoke and carbon monoxide detectors in all sleeping areas, and maintaining the property according to residential zoning standards. The approval process typically takes 30-45 days after submitting a complete application, and you must display the permit number in all online listings and at the property entrance.

Short-term rentals (STRs) are generally legal in Roundup, Montana, as the city does not have specific municipal ordinances prohibiting them as of 2023. However, operators must comply with Montana state regulations and local zoning requirements, which typically allow STRs in residential areas with proper business licensing through Musselshell County. The city follows standard Montana guidelines requiring STR operators to obtain appropriate business licenses, collect and remit local option taxes where applicable, and maintain properties according to health and safety standards. There are no specific prohibited areas within Roundup city limits, though properties must comply with existing residential zoning restrictions and homeowners association rules if applicable. Recent changes at the state level in 2021-2022 have streamlined some licensing requirements and clarified tax collection procedures, but Roundup has not implemented additional local restrictions beyond basic business licensing and zoning compliance, making it relatively permissive compared to larger Montana cities like Bozeman or Missoula which have enacted more stringent STR regulations.

The best areas for Airbnb investment in Roundup, Montana are the Historic Downtown District along Main Street, which attracts visitors interested in the town's railroad heritage and proximity to the Musselshell River for fishing and recreation. The Residential District near the Roundup Memorial Hospital offers potential for medical tourism and visiting family members of patients. Properties close to the Bull Mountains area south of town appeal to hunters and outdoor enthusiasts, particularly during hunting seasons from September through November. The area near Highway 87 corridor provides convenient access for business travelers and those passing through to Billings or other regional destinations. The neighborhoods around Roundup High School and community facilities attract families visiting for school events, sports tournaments, and graduations. Properties with river access along the Musselshell River are particularly valuable for fishing enthusiasts and summer recreation visitors. The western residential areas near the fairgrounds benefit from the annual Musselshell County Fair and other community events that draw regional visitors seeking accommodation alternatives to limited hotel options in this small town of approximately 1,800 residents.

Airbnb properties in Roundup, Montana are subject to Montana's statewide lodging facility use tax of 3% on gross receipts, which applies to all transient accommodations including short-term rentals. Musselshell County, where Roundup is located, does not impose an additional county lodging tax, and the city of Roundup does not have a municipal occupancy tax as of 2023. The 3% state tax is collected by the Montana Department of Revenue and must be remitted monthly by the 20th of the following month if monthly gross receipts exceed $500, or quarterly if receipts are less than $500. Airbnb typically collects and remits this tax automatically for hosts through their platform since 2019, though individual hosts remain ultimately responsible for compliance. Exemptions include stays of 30 consecutive days or longer, which are considered long-term rentals rather than transient accommodations, and accommodations provided to permanent residents. Hosts must register with the Montana Department of Revenue to obtain a lodging facility license before operating, and maintain records of all transactions for at least three years.

Starting an Airbnb in Roundup, Montana requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000 based on the median home price in rural Montana markets like Roundup. Furnishing a 2-3 bedroom property typically costs $15,000-20,000 including beds, linens, kitchen essentials, living room furniture, and basic appliances. Initial setup expenses including professional photography, listing creation, and basic renovations total approximately $3,000-5,000. Permits and fees in Montana generally range from $500-1,500 depending on local regulations and business licensing requirements. Insurance costs for short-term rental coverage average $1,200-2,000 annually, with the first year paid upfront. Utility deposits and initial connections for electricity, water, gas, internet, and cable typically cost $800-1,200. First six months of operating costs including utilities ($300/month), cleaning supplies ($100/month), maintenance reserves ($200/month), property management software ($50/month), and marketing expenses ($100/month) total approximately $4,500. Additional working capital of $2,000-3,000 should be reserved for unexpected repairs, guest amenities, and initial vacancy periods while building reviews and bookings.

Airbnb properties in Roundup, Montana show moderate profitability potential with average nightly rates ranging from $75-120 for typical 2-3 bedroom properties, generating approximately $18,000-35,000 in annual revenue based on 40-60% occupancy rates common in rural Montana markets. Operating expenses typically consume 35-50% of gross revenue, including cleaning fees ($40-60 per turnover), property management (15-25%), utilities ($150-250 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins generally fall between 15-25% after expenses, with successful properties like converted ranch houses or historic homes near the Musselshell River achieving higher margins through premium pricing and extended stays from hunters, fishermen, and oil field workers. Key success factors include targeting seasonal hunting and fishing clientele during peak months (May-October), maintaining strong guest reviews above 4.7 stars, and leveraging Roundup's proximity to outdoor recreation areas and the annual Roundup Cattle Drive events, though the limited population of approximately 1,800 residents creates challenges for consistent year-round bookings compared to larger Montana tourism destinations like Bozeman or Whitefish.

Airbnb investments in Roundup, Montana typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, though these figures are conservative due to the town's small population of approximately 1,800 residents and limited tourist infrastructure. Properties in Roundup, located in Musselshell County, generally achieve profitability within 18-24 months, with average nightly rates of $75-$120 depending on property size and amenities. The market benefits from proximity to outdoor recreation areas and hunting opportunities, with seasonal occupancy rates averaging 45-60% annually, peaking during summer months and hunting seasons from September through November. Investment properties typically require initial capital of $80,000-$150,000 for suitable rental homes, with gross rental yields of 10-14% before expenses, making the market viable for investors seeking steady returns in Montana's rural hospitality sector.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Roundup, Montana and surrounding areas. Local real estate agents serving the Roundup market include Century 21 Big Sky Real Estate, Yellowstone Valley Properties, and Rimrock Realty, who have experience with investment properties in the region. National services like Mashvisor, BiggerPockets, and AirDNA provide market analysis and property identification tools for the Montana market. RedAwning and Vacasa offer property management services that can help investors maximize returns on Airbnb properties in Roundup. Local property management companies such as Montana Property Solutions and Big Sky Property Management also serve investors in the area. Additional national platforms like Roofstock, HomeUnion, and Awning focus on turnkey rental property investments that can be converted to short-term rentals. Real estate investment firms like Montana Real Estate Investors Group and local brokerages such as Stockman Bank Real Estate and First Interstate Bank Real Estate provide financing and acquisition services for investors looking to purchase profitable Airbnb properties in the Roundup area.