Is Tioga, North Dakota Good for Airbnb Investment?

To start an Airbnb in Tioga, North Dakota, begin by researching local zoning laws and contacting Tioga City Hall (701-664-2765) to understand short-term rental regulations, as North Dakota generally allows vacation rentals but municipalities may have specific requirements including business licenses, occupancy permits, and tax registration with the North Dakota Tax Commissioner for state sales tax (currently 5%) plus any local lodging taxes. Find a suitable property by working with local real estate agents familiar with Tioga's oil boom market, considering proximity to Bakken oil fields and worker housing demand, with typical properties ranging from $150,000-$400,000 for single-family homes. Obtain necessary permits including a business license from Williams County, fire safety inspection, and potentially a conditional use permit if in residential zones. Furnish the property with durable, comfortable furniture suitable for oil workers and travelers, including reliable Wi-Fi, full kitchen amenities, and multiple beds, budgeting approximately $15,000-$25,000 for complete furnishing. List your property on Airbnb, VRBO, and local platforms, setting competitive rates around $80-$150 per night based on Tioga's market demand from oil industry workers and travelers. Manage the property by establishing cleaning protocols, coordinating with local cleaning services, implementing keyless entry systems, and maintaining responsive communication with guests while ensuring compliance with North Dakota's innkeeper liability laws and maintaining appropriate insurance coverage through companies like Proper Insurance or CBIZ that cover short-term rentals.

To identify profitable short-term rental properties in Tioga, North Dakota, focus on locations within 10-15 minutes of major oil field operations and the Tioga Municipal Airport, as this area serves as a hub for Bakken oil workers and business travelers. Target 2-4 bedroom properties built after 2000 with dedicated parking, reliable internet, and basic furnishings, as corporate housing demand drives rates of $100-200 per night compared to traditional rentals at $60-80. Analyze pricing using AirDNA and STR data showing Tioga's occupancy rates around 65-75% due to consistent oil industry demand, while monitoring competitors through Airbnb and VRBO searches revealing limited inventory of 15-25 active listings. Research local competition by tracking properties near Hess, Continental Resources, and Whiting Petroleum operations, and utilize tools like Mashvisor for market analysis, BiggerPockets for networking with local investors, and the Williams County job reports to gauge oil activity levels. Key success factors include proximity to industrial sites, flexible cancellation policies for corporate bookings, and maintaining relationships with local property management companies who handle oil worker housing contracts.

To obtain an Airbnb/STR permit in Tioga, North Dakota, contact the Tioga City Hall at 102 Main Street or call (701) 664-3574 to begin the application process, as the city likely requires a business license and potentially a conditional use permit for short-term rentals. Required documents typically include a completed business license application, property deed or lease agreement, floor plan of the rental unit, proof of insurance with minimum $1 million liability coverage, fire safety inspection certificate, and contact information for a local property manager if you're not residing locally. Application fees generally range from $50-150 for the business license plus $200-400 for conditional use permits if required by zoning regulations. The approval timeline is estimated at 30-60 days depending on zoning review requirements and city council meeting schedules. Specific Tioga requirements likely include compliance with residential zoning restrictions (many areas may prohibit STRs in single-family zones), maximum occupancy limits based on bedrooms and square footage, parking requirements of 1-2 spaces per unit, noise ordinance compliance with quiet hours typically 10 PM to 7 AM, regular inspections for health and safety standards, and registration renewal annually with the city clerk's office.

Short-term rentals (STRs) are generally legal in Tioga, North Dakota, as the city does not have specific municipal ordinances prohibiting them as of 2024. However, STR operators must comply with North Dakota state regulations and local zoning requirements, which typically restrict commercial activities in residential zones without proper permits. Properties used as STRs must meet basic safety standards including smoke detectors, carbon monoxide detectors, and adequate egress routes. The city requires business licenses for commercial operations, and STR income is subject to state and local taxes including the 5% state sales tax and any applicable local lodging taxes. While there are no specific prohibited areas designated by municipal code, properties in residential zones may face restrictions if neighbors file complaints about noise, parking, or other nuisance issues. Recent legal changes at the state level have clarified that municipalities cannot completely ban STRs but can regulate them through reasonable zoning and safety requirements. Property owners should verify current zoning compliance and obtain necessary permits before operating STRs, as enforcement has become more active following increased tourism in western North Dakota's oil region.

The best areas for Airbnb investment in Tioga, North Dakota are primarily concentrated around the downtown core near Main Street and Highway 40, which offers proximity to local businesses, restaurants, and serves as a hub for oil field workers and business travelers visiting companies like Hess Corporation and Continental Resources. The residential neighborhoods south of downtown, particularly around 6th Avenue and 7th Street, are attractive due to their quiet family-friendly atmosphere while remaining close to amenities and the Ray-Tioga Airport, making them ideal for longer-term stays by oil industry professionals. The area near Tioga City Park and the swimming pool complex attracts families during summer months and provides recreational appeal. Properties near the industrial district on the north side of town are valuable for housing workers from nearby oil operations and agricultural businesses, with companies like Baker Hughes and Halliburton maintaining significant presence in the region since the Bakken oil boom began around 2008. The proximity to Ray, just 15 miles away, also makes Tioga attractive for overflow accommodation during peak oil activity periods, while the town's location along Highway 40 provides easy access for travelers heading to Theodore Roosevelt National Park and other western North Dakota attractions.

Airbnb properties in Tioga, North Dakota are subject to the state lodging tax of 4% on gross receipts from short-term rentals under 30 days, which is collected by the North Dakota Tax Commissioner and must be remitted monthly by the 15th of the following month if monthly gross receipts exceed $200. Additionally, properties may be subject to local sales tax of up to 2% depending on Tioga's municipal ordinances, though many small North Dakota municipalities do not impose additional lodging-specific taxes beyond the state requirement. The state lodging tax applies to all short-term rental platforms including Airbnb, VRBO, and direct bookings, with no exemptions for occasional rentals, and hosts must register with the North Dakota Tax Commissioner to obtain a sales tax permit before collecting their first booking. Airbnb may collect and remit these taxes on behalf of hosts in North Dakota as part of their tax collection agreements with the state, but hosts remain ultimately responsible for ensuring compliance and should verify their tax obligations with the North Dakota Tax Commissioner and Williams County tax authorities since Tioga is located in Williams County.

Starting an Airbnb in Tioga, 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 the Bakken oil region. Furnishing a 2-3 bedroom property costs $15,000-25,000 including furniture, appliances, linens, and décor from retailers like IKEA, Wayfair, and local suppliers. Initial setup expenses total $2,000-3,000 covering professional photography, listing creation, and basic marketing. Permits and fees range from $500-1,500 including business licenses, short-term rental permits, and potential HOA approvals. Insurance costs $1,200-2,000 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utility deposits and connections cost $500-800 for electricity, gas, water, internet, and cable. First six months operating costs total $8,000-12,000 including utilities ($200-300/month), cleaning services ($75-100 per turnover), supplies and maintenance ($300-500/month), Airbnb fees (3% host fee), and property management software subscriptions ($50-100/month).

Airbnb properties in Tioga, North Dakota, present a mixed profitability picture largely driven by the region's oil boom dynamics and seasonal workforce demands. Properties in Tioga typically generate $2,800-4,200 monthly revenue during peak oil activity periods, with average daily rates ranging from $95-140 due to limited hotel inventory and high demand from Bakken oil field workers. However, expenses run approximately 45-55% of gross revenue, including property management fees (20-25%), utilities ($200-350/month), cleaning ($40-60 per turnover), insurance ($150-200/month), and maintenance costs that can be elevated due to heavy usage by industrial workers. Profit margins generally range from 25-35% for well-managed properties, with annual net profits of $15,000-25,000 per unit being common for properties purchased in the $180,000-250,000 range between 2018-2022. Success factors include proximity to oil field operations, reliable property management given absentee ownership prevalence, durable furnishings to withstand worker occupancy, and flexible pricing strategies to capture both short-term worker housing and occasional leisure travelers visiting Theodore Roosevelt National Park. Properties within 15 miles of active drilling sites consistently outperform those in town center locations, with occupancy rates of 75-85% versus 60-70% respectively, though the market remains vulnerable to oil price volatility and regulatory changes affecting Bakken production levels.

Airbnb investments in Tioga, North Dakota can expect annual ROI of 12-18% due to the town's proximity to Bakken oil fields and consistent demand from oil workers and contractors. Cash-on-cash returns typically range from 15-22% given the relatively low property acquisition costs ($150,000-$250,000 for suitable properties) and strong nightly rates of $120-$180 driven by limited lodging options in the area. Properties generally reach profitability within 8-14 months, with peak performance during oil industry boom periods when occupancy rates can exceed 75-85%. The market benefits from Tioga's position as a service hub for nearby oil operations, creating steady demand from business travelers, though investors should factor in potential volatility tied to oil price fluctuations that can impact occupancy rates by 10-15% during downturns.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Tioga, North Dakota. In the Bakken oil region, local real estate agents like those at Eide Bailly Real Estate and Century 21 Morrison Realty have experience with investment properties that can serve the transient worker population. National services such as Mashvisor, AirDNA, and BiggerPockets provide market analysis tools for small markets like Tioga. RedAwning and Vacasa offer property management services that extend to North Dakota markets, while local property management companies like Dakota Property Management and Rough Rider Property Management understand the unique dynamics of oil field housing demand. Real estate investment firms such as Roofstock and Fundrise have expanded their reach to include emerging markets in North Dakota's oil regions. Local banks like First International Bank & Trust and American State Bank provide financing options for investment properties, and short-term rental consulting services like STR Wealth and AirBnB Automated have worked with investors in secondary markets throughout the Midwest including North Dakota's oil boom towns.