Is South Heart, North Dakota Good for Airbnb Investment?

To start an Airbnb in South Heart, North Dakota, begin by researching local zoning laws and regulations through the Billings County Planning and Zoning Department, as South Heart typically falls under county jurisdiction rather than having its own municipal regulations. Contact the county courthouse at (701) 623-4492 to verify short-term rental requirements, which may include business licenses, safety inspections, and tax registration with the North Dakota Tax Commissioner for state sales tax collection. Find a suitable property by working with local real estate agents familiar with the area's oil boom market, focusing on properties near Highway 16 or close to the Bakken oil fields to attract traveling workers, with typical investment properties ranging from $150,000-$300,000. Obtain necessary permits including a business license from Billings County, ensure compliance with fire safety codes, and register for North Dakota sales tax and local lodging taxes if applicable. Furnish the property with durable, comfortable furniture suitable for business travelers, including reliable Wi-Fi, basic kitchen amenities, and quality bedding, budgeting approximately $15,000-$25,000 for a complete setup. List your property on Airbnb and VRBO platforms with professional photos highlighting proximity to oil field work sites and outdoor recreation opportunities in the Badlands region. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider using property management software like Hostfully or Guesty, while maintaining competitive pricing around $80-$150 per night depending on accommodation size and local demand from oil industry workers and tourists visiting Theodore Roosevelt National Park.

To identify profitable STR properties in South Heart, North Dakota, focus on locations within 2-3 miles of the town center and major highways like Highway 22, as this small community of approximately 400 residents serves as a gateway to the Badlands and oil field activities. Target 2-4 bedroom single-family homes or ranch-style properties built after 1980 with modern amenities, full kitchens, reliable internet, and parking for multiple vehicles, as many guests are oil workers or outdoor enthusiasts needing extended stays. Analyze pricing by researching comparable rentals in nearby Dickinson (20 miles east) where nightly rates range $80-150, then price 10-20% lower to account for South Heart's smaller market while factoring in potential monthly bookings from oil field contractors at $1,800-2,500 per month. Competition research should include monitoring the few existing Airbnb and VRBO listings within a 15-mile radius, particularly in Belfield and Taylor, while identifying gaps in amenities or booking availability during peak oil activity seasons (spring through fall). Utilize tools like AirDNA for market analysis, STR Helper for performance tracking, and local resources including the Stark County Economic Development office, South Heart City Hall for zoning regulations, and networking with local real estate agents familiar with oil field housing demands to identify properties under $150,000 that can generate 15-25% annual returns through a mix of short-term tourist stays and extended oil worker accommodations.

To obtain an Airbnb/STR permit in South Heart, North Dakota, contact the South Heart City Hall at 701-677-6221 or visit their office at 105 2nd Avenue West to inquire about short-term rental licensing requirements, as this small city may not have established formal STR regulations yet. If permits are required, you'll likely need to submit a business license application, provide proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, and contact information for a local property manager if you're an absentee owner. Required documents typically include a completed application form, North Dakota sales tax permit, fire safety inspection certificate, and zoning compliance verification. Application fees generally range from $50-200 annually, with potential additional inspection fees of $75-150. The approval timeline is usually 2-4 weeks after submitting complete documentation, though initial inspections may extend this period. South Heart likely requires compliance with residential zoning restrictions, maximum occupancy limits based on square footage, adequate parking spaces, proper waste management arrangements, and maintaining a complaint response system with 24-hour contact availability for guests and neighbors.

Short-term rentals (STRs) are generally legal in South Heart, North Dakota, as the small city of approximately 300 residents does not have specific municipal ordinances prohibiting or heavily regulating vacation rentals. North Dakota state law does not ban STRs, leaving regulation primarily to local municipalities, and South Heart has not enacted restrictive zoning laws or licensing requirements that would prohibit property owners from operating short-term rentals. However, operators must still comply with basic business licensing requirements, collect and remit state sales tax (currently 5%) and local lodging taxes if applicable, and ensure their properties meet basic safety and health standards. The city follows standard residential zoning practices, and there are no designated prohibited areas for STRs within the municipal boundaries. Recent legal changes have been minimal at the local level, though North Dakota has clarified tax collection responsibilities for STR platforms like Airbnb and VRBO since 2019. Property owners should verify current business license requirements with the city clerk and ensure compliance with fire safety codes, but overall the regulatory environment remains permissive for short-term rental operations in South Heart.

The best areas for Airbnb investment in South Heart, North Dakota are primarily concentrated around the downtown core near Main Street and the residential neighborhoods within a 2-mile radius of the Bakken oil fields access points. The downtown area attracts oil industry workers and contractors who need temporary housing during drilling operations and maintenance projects, particularly near the intersection of Highway 16 and local access roads. The residential areas south of the railroad tracks offer proximity to both industrial sites and basic amenities, making them attractive to business travelers working for companies like Hess Corporation, Continental Resources, and Whiting Petroleum who have operations in the region since 2008-2015. Properties near the South Heart Community Center and school district also appeal to families relocating temporarily for oil industry jobs. The northern residential district benefits from easy highway access for workers commuting to nearby Dickinson or Belfield facilities, while offering lower property acquisition costs compared to larger Bakken boom towns, making the investment ROI potentially higher for short-term rentals serving the consistent demand from rotating oil field crews and energy sector consultants.

In South Heart, North Dakota, Airbnb hosts are subject to state and local lodging taxes that typically range from 7% to 12% total. The state of North Dakota imposes a 5% state sales tax on lodging accommodations, while Billings County (where South Heart is located) may impose an additional local lodging tax of approximately 2-4%. These taxes are generally collected from guests at the time of booking through Airbnb's automatic tax collection system, which began operating in North Dakota around 2018-2019. Hosts must register with the North Dakota Tax Commissioner's office and obtain a sales tax permit, then remit collected taxes monthly or quarterly depending on their volume, typically by the 15th of the following month. The state requires detailed reporting of gross receipts and tax collected through their online portal. Exemptions may apply for stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient lodging, and for certain government or nonprofit organization bookings. Hosts should also verify if South Heart has implemented any additional municipal lodging taxes, as some North Dakota cities have enacted local ordinances requiring separate registration and remittance procedures beyond state requirements.

The total cost to start an Airbnb in South Heart, North Dakota would be approximately $185,000-$220,000. Property purchase costs around $150,000-$180,000 based on median home prices in rural North Dakota communities. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for beds, linens, kitchen essentials, living room furniture, and décor. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$3,500. Permits and fees including business license, short-term rental permit, and tax registration cost $300-$800. Insurance premiums for short-term rental coverage run $1,200-$2,000 annually. Utility deposits and connections for electricity, gas, water, internet, and cable cost $800-$1,200. First six months operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance ($200/month), platform fees ($300/month), and marketing ($150/month) total approximately $8,100. Additional considerations include property taxes ($2,000-$3,000 annually) and potential HOA fees, though many rural properties have minimal restrictions.

Airbnb properties in South Heart, North Dakota face challenging profitability conditions due to the town's small population of approximately 300 residents and limited tourist infrastructure, with average daily rates typically ranging from $60-90 compared to larger North Dakota markets like Fargo ($120-150). Properties in South Heart generally achieve occupancy rates of 25-35% annually, generating gross revenues of $5,400-11,700 per year, while expenses including mortgage payments, utilities, cleaning, maintenance, and platform fees typically consume 70-85% of gross income, leaving net profit margins of 15-30% or roughly $800-3,500 annually. Success factors include targeting oil field workers during Bakken boom periods, hunters during fall seasons, and travelers seeking budget accommodations between larger cities, though the market remains highly seasonal and dependent on regional economic activity. Properties that perform better tend to be well-maintained single-family homes or cabins with full kitchens and parking, priced competitively at $65-80 per night, but overall profitability remains marginal compared to traditional rental markets due to limited demand drivers and high operational costs relative to revenue potential in this rural western North Dakota location.

Based on South Heart, North Dakota market conditions, Airbnb investments typically generate annual ROI of 12-18% due to the area's proximity to oil field operations and limited lodging options. Cash-on-cash returns range from 8-14% annually, with properties averaging $85-120 per night during peak oil activity periods and $45-65 during slower months. Initial profitability usually occurs within 18-24 months, considering property acquisition costs of $150,000-250,000 for suitable 2-3 bedroom homes. The market benefits from consistent demand from oil workers, contractors, and business travelers, with occupancy rates of 65-75% annually. Properties near Highway 22 and within 15 miles of active drilling sites command premium rates, while renovation costs of $15,000-30,000 for Airbnb-ready condition should be factored into initial investment calculations for optimal returns.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors, including markets like South Heart, North Dakota. For local expertise, Badlands Realty and Century 21 Morrison Realty in nearby Dickinson serve the South Heart area and have experience with investment properties in the Bakken oil region. RE/MAX and Coldwell Banker also have agents familiar with the western North Dakota market who can assist with Airbnb investment properties. National services include BiggerPockets for networking and deal analysis, Mashvisor for rental property analytics, and AirDNA for short-term rental market data. Local property management companies like Dakota Property Solutions and Williston-based firms such as Bakken Property Management can help investors manage their Airbnb properties remotely. Real estate investors should also consider working with local banks like First International Bank & Trust and American Bank Center, which have experience financing investment properties in North Dakota's energy corridor communities like South Heart.