Is Taylor, North Dakota Good for Airbnb Investment?

To start an Airbnb in Taylor, North Dakota, begin by researching local zoning laws and regulations through the Taylor City Council and Stark County offices, as most small North Dakota towns require short-term rentals to comply with residential zoning ordinances and may need special use permits or business licenses. Contact the North Dakota Department of Health for any required health permits and ensure compliance with state tax requirements through the North Dakota Tax Commissioner's office. Find a suitable property by working with local real estate agents familiar with Taylor's market, focusing on properties near Highway 85 or close to oil field worker housing demand, as Taylor serves the Bakken oil region. Obtain necessary permits including a business license from Taylor City Hall (estimated cost $50-200), fire safety inspection if required, and register for state and local tax collection. Furnish the property with durable, comfortable furniture suitable for oil workers and travelers, including reliable internet, basic kitchen appliances, and quality bedding, budgeting approximately $5,000-15,000 for a complete setup. Create your Airbnb listing with professional photos highlighting proximity to oil field services and Highway 85 access, competitive pricing around $80-150 per night based on local demand. Manage the property by establishing cleaning protocols between guests, maintaining responsive communication, coordinating key exchanges (consider lockbox systems), and ensuring compliance with ongoing tax obligations including North Dakota state sales tax and local lodging taxes if applicable.

To identify profitable short-term rental properties in Taylor, North Dakota, focus on locations within 2-3 miles of major oil field operations and worker housing camps, as Taylor sits in the heart of the Bakken formation where Hess Corporation and Continental Resources have significant operations since 2008. Target 2-4 bedroom single-family homes or duplexes built after 2000 with dedicated parking, reliable internet, and basic furnishings, as oil workers typically stay 2-4 weeks and prioritize functionality over luxury. Pricing analysis should consider that oil worker housing allowances range $100-200 per night, making properties profitable at $80-150 nightly rates with 60-70% occupancy. Research competition using AirDNA and STRData.com to analyze the limited supply of rentals in Taylor's small market, while monitoring corporate housing providers like Oakwood and BridgeStreet who serve the same demographic. Utilize resources like the North Dakota Industrial Commission oil production reports, Billings County economic development data, and local Facebook groups for oil field workers to understand demand patterns, with particular attention to drilling schedules from major operators that drive seasonal occupancy fluctuations between 40-80% depending on oil prices and drilling activity.

To obtain an Airbnb/STR permit in Taylor, North Dakota, you must first contact the Taylor City Hall at 701-974-3341 or visit their office at 104 Main Street to inquire about short-term rental regulations, as this small oil boom town may have specific ordinances due to housing demands from energy workers. 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 completed safety inspection checklist covering smoke detectors, carbon monoxide detectors, and fire extinguishers. The application fee is estimated at $100-200 annually, with potential additional inspection fees of $50-75. Required documents typically include a completed STR permit application, North Dakota sales tax permit, proof of compliance with Americans with Disabilities Act if applicable, emergency contact information, and parking plan showing adequate off-street parking. The approval timeline is generally 30-45 days from submission of complete application, though initial applications may take longer due to required inspections. Taylor-specific requirements likely include maximum occupancy limits based on bedroom count, quiet hours enforcement between 10 PM and 7 AM, mandatory guest registration, and compliance with the city's zoning ordinances which may restrict STRs to certain residential districts, plus potential requirements for local property management if you're an absentee owner.

Short-term rentals (STRs) are generally legal in Taylor, North Dakota, as the city does not have specific ordinances prohibiting them, following the state's relatively permissive approach to STR regulation. North Dakota state law does not impose blanket restrictions on short-term rentals, leaving regulation primarily to local municipalities. Taylor, being a small city in Stark County with a population of approximately 300 residents, has not enacted comprehensive STR regulations as of 2024, though operators must comply with basic business licensing requirements and state tax obligations including sales tax collection. The city may require STR operators to obtain a general business license and ensure compliance with residential zoning requirements, but there are no specific prohibited areas or density restrictions currently in place. Recent legal changes have been minimal at the local level, though North Dakota has been considering statewide legislation to provide clearer frameworks for STR taxation and regulation, with some counties implementing their own lodging taxes that would apply to short-term rental operations in Taylor.

The best areas for Airbnb investment in Taylor, North Dakota are primarily concentrated around the downtown core and residential neighborhoods within a 2-mile radius of the city center, particularly near Highway 85 and the areas surrounding the Taylor Community Center. These locations are attractive due to Taylor's position as a service hub for the Bakken oil field operations, generating consistent business travel demand from oil industry workers, contractors, and executives visiting companies like Continental Resources and Whiting Petroleum. The neighborhoods near the Taylor School District and along Main Street offer good investment potential because they provide easy access to local amenities while maintaining the small-town charm that appeals to both business travelers seeking alternatives to limited hotel options and recreational visitors exploring the Little Missouri National Grassland. Properties within walking distance of Casey's General Store and other essential services are particularly valuable since Taylor's remote location makes convenience a premium factor for guests, and the ongoing oil activity in the region since 2008 has created sustained demand for short-term accommodations that often exceeds the limited traditional lodging supply.

Airbnb properties in Taylor, North Dakota are subject to state lodging taxes administered by the North Dakota Tax Commissioner, with a base state lodging tax rate of 4% on gross receipts from short-term rentals under 30 days. The state requires hosts to register for a sales tax permit and collect the tax directly from guests, remitting payments monthly if collections exceed $100 or quarterly for smaller amounts through the state's online portal. Taylor, being a small city in Stark County, does not impose additional local lodging taxes beyond the state requirement, though hosts must still comply with any applicable local business licensing requirements. Collections are due by the 15th of the month following the reporting period, and exemptions typically apply only to stays exceeding 30 consecutive days or rentals to permanent residents. Airbnb may collect and remit these taxes on behalf of hosts in certain jurisdictions, but hosts remain ultimately responsible for compliance and should verify current collection arrangements with both the platform and state tax authorities.

Starting an Airbnb in Taylor, North Dakota requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000-180,000 based on median home prices in small North Dakota towns like Taylor. Furnishing a 2-3 bedroom property runs $15,000-25,000 including beds, living room furniture, kitchen essentials, linens, and décor from retailers like IKEA, Wayfair, and local furniture stores. Initial setup costs $2,000-3,500 covering professional photography, listing creation, welcome materials, and basic renovations. Permits and fees total $500-1,200 including business license, short-term rental permits from Williams County, and potential HOA approvals. Insurance increases $1,200-2,000 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utilities average $200-300 monthly ($1,200-1,800 for six months) covering electricity, gas, water, internet, and cable in rural North Dakota. First six months operating costs add $3,000-5,000 including cleaning services, maintenance, supplies, Airbnb host fees (3%), guest amenities, marketing, and property management tools, bringing the complete startup investment to approximately $200,000 for a turnkey Airbnb operation in Taylor.

Airbnb properties in Taylor, North Dakota, face unique profitability challenges due to the town's small population of approximately 150 residents and limited tourism infrastructure, though proximity to oil fields in the Bakken formation can create opportunities for short-term worker housing. Revenue potential is modest, with properties typically earning $40-80 per night during peak oil activity periods, translating to roughly $1,200-2,400 monthly when occupancy reaches 60-75%, though occupancy rates often drop to 20-30% during oil industry downturns. Operating expenses include property management (10-15% of revenue), cleaning fees ($30-50 per turnover), utilities ($150-300 monthly), insurance ($100-200 monthly), and maintenance costs that can be higher due to harsh North Dakota winters and wear from industrial workers. Profit margins typically range from 15-35% during strong oil activity periods but can turn negative during industry slowdowns, making properties in Taylor highly dependent on Bakken oil field employment levels. Success factors include targeting oil field contractors and workers through specialized booking platforms, maintaining properties that can withstand heavy use, offering amenities like parking for work trucks, and having flexible pricing strategies that adjust to oil industry cycles, with some property owners reporting annual profits of $8,000-15,000 on properties valued at $80,000-120,000 during favorable market conditions between 2018-2022.

Based on Taylor, North Dakota market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the city. Properties near industrial sites or temporary worker housing areas can achieve higher returns of 12-15% annually due to consistent demand from oil field workers and business travelers. Initial profitability is generally reached within 18-24 months, with break-even occurring around month 14-18 for well-positioned properties. The market benefits from limited hotel inventory and steady demand from Bakken oil field activity, though seasonal fluctuations can impact occupancy rates by 15-25% during winter months. Average daily rates range from $85-120, with occupancy rates typically maintaining 65-75% annually, resulting in gross rental yields of 10-14% before expenses, which typically consume 35-45% of gross income including property management, utilities, maintenance, and platform fees.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Taylor, North Dakota. Local real estate agents like Century 21 Morrison Realty and RE/MAX Results have experience with investment properties in the Bakken oil region and understand the unique rental dynamics of western North Dakota. Awning, a national service founded in 2018, provides Airbnb property acquisition and management services that extend to smaller markets like Taylor. AirDNA offers market analysis tools that help investors evaluate rental potential in emerging markets throughout North Dakota. Local property management companies such as Dakota Property Solutions and Bakken Property Management, established around 2012-2014 during the oil boom, have expertise in short-term rentals and can assist with property identification. RedAwning and Vacasa provide national short-term rental management services that include property acquisition consulting for markets in North Dakota. Regional real estate investment groups like North Dakota Real Estate Investors Association offer networking and resources for finding profitable rental properties in oil-producing areas like Taylor.