Is Terry, Montana Good for Airbnb Investment?

To start an Airbnb in Terry, Montana, begin by researching local zoning laws and regulations through Prairie County's planning department, as Terry may require business licenses or special permits for short-term rentals. Contact the Montana Department of Revenue to understand tax obligations including the 3% state lodging tax and any local accommodation taxes. Find a suitable property by searching real estate listings in Terry's residential areas, considering proximity to attractions like the Yellowstone River or local ranches, with properties typically ranging from $80,000-$200,000 for modest homes. Obtain necessary permits including a business license from Prairie County, fire safety inspections if required, and ensure compliance with Montana's innkeeper laws. Furnish the property with essential amenities like comfortable bedding, kitchen supplies, Wi-Fi, heating for harsh Montana winters, and Western-themed decor to appeal to tourists visiting the area. Create your Airbnb listing with high-quality photos showcasing Montana's rural charm, competitive pricing around $75-$125 per night based on Terry's market, and highlight nearby attractions like fishing, hunting, and historical sites. Manage the property by establishing cleaning protocols between guests, maintaining communication through Airbnb's platform, coordinating key exchanges or lockbox systems, and building relationships with local cleaning services and maintenance contractors in the Terry area to ensure smooth operations year-round.

To identify profitable short-term rental properties in Terry, Montana, focus on properties within 2-3 miles of Yellowstone River access points and near Highway 16 for easy traveler access, as Terry serves as a gateway to eastern Montana's outdoor recreation areas. Target 2-4 bedroom single-family homes or cabins with outdoor amenities like fire pits, decks, and parking for boats/RVs, as visitors often come for fishing, hunting, and river activities. Analyze pricing by researching comparable STRs within a 50-mile radius including Glendive and Miles City, aiming for properties under $200,000 that can command $80-150 per night during peak seasons (May-September), with occupancy rates around 40-60% annually. Competition research should focus on the limited existing STR inventory on Airbnb and VRBO within Prairie County, identifying gaps in amenities or property types that aren't currently offered. Utilize AirDNA for market analysis, Mashvisor for investment calculations, and local resources like Prairie County economic development data, while connecting with Terry's Chamber of Commerce and local real estate agents familiar with properties suitable for conversion, keeping in mind Montana's relatively permissive STR regulations but checking for any county-specific requirements.

To obtain an Airbnb/STR permit in Terry, Montana, you must first contact the Prairie County Planning Department or County Clerk's office at the Prairie County Courthouse located at 217 Park Avenue West, Terry, MT 59349, as Terry falls under Prairie County jurisdiction which typically requires short-term rental registration. You'll need to submit a completed short-term rental application form, provide proof of property ownership or lease agreement, submit a site plan or floor plan of the property, obtain a certificate of occupancy if required, provide proof of liability insurance (typically $1 million minimum), and include contact information for a local property manager if you're not residing locally. The application fee is estimated at $100-200 initially with potential annual renewal fees of $50-100, though you should verify current rates with the county office. Required documents also include a septic system inspection certificate if not connected to municipal sewer, well water testing results if applicable, and compliance with fire safety codes including smoke and carbon monoxide detectors. The approval timeline typically ranges from 30-60 days depending on completeness of application and any required inspections. Prairie County may also require compliance with specific zoning regulations, parking requirements (usually 1-2 spaces per unit), occupancy limits based on septic capacity, and adherence to noise ordinances, so contact Prairie County at (406) 635-5575 to confirm current requirements and obtain the most up-to-date application materials.

Short-term rentals (STRs) are generally legal in Terry, Montana, as the small town of approximately 600 residents in Prairie County does not have specific municipal ordinances prohibiting or heavily regulating vacation rentals. Montana state law allows STRs unless local jurisdictions impose restrictions, and Terry has not enacted comprehensive STR regulations as of 2023. Property owners can typically operate STRs in residential areas without special permits, though they must comply with basic zoning requirements and state tax obligations including collecting the 3% state lodging tax. Unlike larger Montana cities such as Bozeman or Missoula which have implemented registration requirements, occupancy limits, and parking restrictions, Terry's rural character and limited tourism infrastructure mean STR operations face minimal regulatory barriers. Recent legal changes have been minimal at the local level, with most STR-related legislation occurring at the state level where Montana has generally maintained a business-friendly approach to vacation rentals while allowing local communities to establish their own rules if desired.

Terry, Montana offers limited but focused Airbnb investment opportunities primarily centered around the downtown historic district near the Prairie County Museum and courthouse area, which attracts visitors interested in frontier history and genealogy research. The agricultural corridor along Highway 253 presents potential for agritourism accommodations, particularly during harvest seasons when agricultural consultants and seasonal workers visit local farms and ranches. The area near Terry Badlands offers opportunities for outdoor recreation enthusiasts exploring the Yellowstone River corridor for fishing, hunting, and geological tourism, especially during summer months from May through September. Properties within walking distance of the Terry Community Center can capitalize on regional events, high school sports tournaments, and family gatherings that draw visitors from across eastern Montana. The residential area near Terry Public Schools may attract traveling educators, substitute teachers, and families relocating for agricultural or energy sector employment, though demand remains seasonal and modest given the town's population of approximately 600 residents.

In Terry, Montana, Airbnb properties are subject to Montana's statewide lodging facility use tax of 3% on gross receipts, which applies to all accommodations rented for less than 30 consecutive days. Prairie County, where Terry is located, does not impose additional local lodging taxes as of 2023. The state tax is collected by the Montana Department of Revenue, and hosts must register for a lodging facility license and file monthly returns by the 15th of the following month, remitting taxes electronically through the state's TAP system. Airbnb may collect and remit these taxes on behalf of hosts in certain jurisdictions, but hosts should verify this arrangement and remain ultimately responsible for compliance. Exemptions include stays of 30 days or longer, accommodations provided to permanent residents, and certain government employee lodging, though these exemptions rarely apply to typical Airbnb operations in small towns like Terry where short-term vacation rentals are the primary use case.

The total cost to start an Airbnb in Terry, Montana is approximately $185,000-$220,000. Property purchase represents the largest expense at $120,000-$150,000 based on median home prices in rural Montana towns like Terry. Furnishing costs range from $15,000-$25,000 to create an attractive rental space including furniture, appliances, linens, and décor. Initial setup costs of $3,000-$5,000 cover professional photography, listing creation, basic renovations, and cleaning supplies. Permits and fees total $500-$1,500 including business licenses, short-term rental permits from Prairie County, and potential HOA approvals. Insurance costs $2,000-$3,000 annually for short-term rental coverage beyond standard homeowner's insurance. Utilities average $200-$300 monthly totaling $1,200-$1,800 for six months covering electricity, water, sewer, internet, and cable. First six months operating costs add $8,000-$12,000 including property management software subscriptions, cleaning services between guests, maintenance reserves, marketing expenses, and guest amenities restocking. Additional considerations include potential property taxes of $1,200-$2,400 annually and a recommended cash reserve of $10,000-$15,000 for unexpected repairs or vacancy periods in this small Montana community of approximately 600 residents.

Airbnb properties in Terry, Montana, a small town of approximately 600 residents located along the Yellowstone River, typically generate modest returns due to limited tourism demand and lower nightly rates compared to major Montana destinations. Properties in Terry average $45-65 per night with occupancy rates around 35-45% annually, resulting in gross revenues of $5,000-$12,000 per year for typical 2-3 bedroom homes. Operating expenses including utilities, cleaning, maintenance, insurance, and platform fees typically consume 40-50% of gross revenue, leaving net profit margins of 15-25% or roughly $1,500-$4,000 annually. Success factors include proximity to outdoor recreation areas like the nearby Makoshika State Park (30 miles away), targeting hunters and fishermen during peak seasons, and maintaining competitive pricing while offering unique rural experiences. Properties that perform best are well-maintained homes with modern amenities, strong Wi-Fi, and hosts who emphasize the authentic small-town Montana experience, though the limited population base and distance from major attractions like Yellowstone National Park (200+ miles) constrains overall profitability compared to properties in Bozeman, Missoula, or gateway communities near national parks.

Based on Terry, Montana market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% depending on property type and location within the area. Properties near Yellowstone National Park access points or scenic areas command higher returns, with luxury cabins achieving up to 20% annual ROI while standard residential properties average 10-15%. Initial profitability usually occurs within 18-24 months, with full investment recovery expected in 6-8 years. Seasonal variations significantly impact returns, with summer months (June-September) generating 60-70% of annual revenue due to tourism demand. Average daily rates range from $150-300 depending on property size and amenities, with occupancy rates averaging 45-65% annually. Properties requiring significant renovation may extend profitability timelines to 30-36 months but can achieve higher long-term returns of 15-22% once established in the market.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Terry, Montana, using data analytics to evaluate potential returns. Local real estate agents in the Terry area who specialize in investment properties include Century 21 Big Sky Real Estate and Yellowstone Valley Properties, both serving the eastern Montana region since the early 2000s. National services like AirDNA (founded 2015) and Mashvisor (established 2014) provide market analysis and property evaluation tools specifically for Airbnb investments in smaller Montana markets. BiggerPockets, the real estate investment community launched in 2004, connects investors with local agents and contractors familiar with Terry's vacation rental regulations. Awning (2017) offers end-to-end Airbnb investment services including property identification and management setup, while Roofstock (2015) occasionally lists turnkey short-term rental properties in Montana markets. Local property management companies like Montana Vacation Rentals and Prairie Property Management can assist with identifying suitable investment properties and handling operations once purchased, having served the region since approximately 2010 and 2008 respectively.