Is Ulm, Montana Good for Airbnb Investment?

To start an Airbnb in Ulm, Montana, begin by researching local zoning laws and regulations through Cascade County planning department, as Ulm falls under county jurisdiction rather than city regulations. Contact Cascade County at 406-454-6803 to verify short-term rental requirements, which typically include business licenses and may require conditional use permits for residential properties. Obtain necessary permits including a Montana business license through the Secretary of State office, register for state lodging taxes with Montana Department of Revenue, and secure liability insurance coverage of at least $1 million. Find suitable property by searching rural areas around Ulm, focusing on properties with good road access and proximity to attractions like the Missouri River or Great Falls (20 minutes away), with average property prices ranging $150,000-$300,000 for suitable homes. Furnish the property with durable, comfortable furniture emphasizing Montana themes, including quality bedding, full kitchen amenities, Wi-Fi, and outdoor furniture to capitalize on the rural setting. List your property on Airbnb and VRBO platforms with professional photos highlighting mountain views and outdoor activities, setting competitive rates around $80-150 per night based on seasonal demand. Manage the property by establishing cleaning protocols between guests, creating a local guidebook featuring nearby attractions like Giant Springs State Park and Charles M. Russell Museum, partnering with local cleaning services in Great Falls, and maintaining responsive communication with guests while monitoring reviews and adjusting pricing seasonally to maximize occupancy during summer months when outdoor recreation peaks.

To identify profitable short-term rental properties in Ulm, Montana, focus on properties within 10-15 minutes of Glacier National Park's eastern entrance, as this proximity drives peak summer demand from June through September. Target 2-4 bedroom cabins or homes with mountain views, outdoor amenities like fire pits or hot tubs, and rustic charm that appeals to nature tourists, with properties priced between $150,000-$400,000 showing the best ROI potential. Analyze comparable STR rates using AirDNA and Mashvisor, where successful properties typically command $120-$250 per night during peak season and $60-$120 in shoulder seasons. Research competition by monitoring existing Airbnb and VRBO listings within a 20-mile radius, noting occupancy rates, pricing strategies, and guest reviews to identify market gaps. Utilize tools like STR Helper for revenue projections, check Flathead County zoning regulations and STR permit requirements, and leverage local real estate agents familiar with investment properties near Cut Bank and Browning areas, while considering properties with good road access year-round since winter weather can impact accessibility and booking rates.

To obtain an Airbnb/STR permit in Ulm, Montana, contact the Cascade County Planning Department at 406-454-6803 or visit their office at 325 2nd Avenue North in Great Falls, as Ulm falls under county jurisdiction rather than having its own municipal permitting system. You'll need to submit a completed short-term rental application form, provide proof of property ownership or lease agreement, submit a site plan showing parking areas and property boundaries, obtain liability insurance with minimum $1 million coverage, pass a health and safety inspection, and provide contact information for a local property manager if you're not residing within 50 miles of the property. Required documents include a valid Montana driver's license or state ID, current property tax records, floor plan of the rental unit, and emergency contact information posted visibly in the rental. The application fee is approximately $150 with an additional $75 annual renewal fee, and inspections cost around $100. The timeline typically takes 4-6 weeks from application submission to permit approval, provided all documentation is complete and the property passes inspection. Cascade County requires STR properties to maintain adequate septic systems for rural properties, comply with fire safety codes including smoke and carbon monoxide detectors, provide sufficient off-street parking for guests, and maintain quiet hours between 10 PM and 7 AM to respect neighboring properties in this rural community.

Short-term rentals (STRs) are generally legal in Ulm, Montana, as the small town in Cascade County does not have specific municipal ordinances prohibiting them, defaulting to Montana state law which permits STRs. However, operators must comply with state requirements including business licensing, tax collection (4% state lodging tax plus local taxes), and safety regulations. Cascade County may require conditional use permits for STRs in certain residential zones, and properties must meet health and safety standards including smoke detectors and carbon monoxide detectors. There are no specific prohibited areas within Ulm itself, but operators should verify zoning compliance with Cascade County planning department. Recent changes in Montana include enhanced tax collection requirements implemented around 2021-2022 and increased scrutiny on safety compliance, though Ulm has not enacted any recent STR-specific legislation due to its small size and limited municipal governance structure.

Ulm, Montana is a small unincorporated community near Great Falls, making the immediate Ulm area limited for Airbnb investment, but the broader Cascade County region offers several promising opportunities. The Great Falls downtown historic district, approximately 15 minutes from Ulm, presents the strongest investment potential due to its proximity to Malmstrom Air Force Base which generates consistent military personnel travel and family visits year-round. The Missouri River corridor area between Great Falls and Ulm attracts fishing enthusiasts and outdoor recreation tourists, particularly during summer months when fly fishing on the Missouri River peaks. The Giant Springs State Park vicinity offers appeal to nature tourists and families visiting one of Montana's most popular state parks. Areas near the Great Falls International Airport provide convenience for business travelers and military contractors working with Malmstrom AFB. The Belt Creek and Highwood Mountains foothills region southeast of Ulm caters to hunting and outdoor adventure tourists, especially during fall hunting seasons. Properties near the Lewis and Clark National Historic Trail interpretive sites benefit from heritage tourism traffic. The rural ranch areas around Ulm itself could serve the growing agritourism market and visitors seeking authentic Montana ranch experiences, though this represents a smaller niche market compared to the military and outdoor recreation segments.

Airbnb properties in Ulm, Montana are subject to Montana's statewide lodging facility use tax of 3% on gross receipts, which applies to all short-term rental accommodations under 30 days. Additionally, properties may be subject to local accommodation taxes that vary by county, with Cascade County (where Ulm is located) typically imposing an additional 3% local option tax on lodging facilities. These taxes are generally collected by the host at the time of booking or payment and must be remitted to the Montana Department of Revenue monthly if collections exceed $500 per month, or quarterly for smaller operators. Airbnb may collect and remit these taxes automatically in some cases through their platform, but hosts remain ultimately responsible for compliance. Exemptions typically include stays of 30 days or longer, certain government employees on official business, and some nonprofit organization stays, though documentation is required. Hosts must register with the Montana Department of Revenue, obtain the necessary permits, and maintain detailed records of all transactions and tax collections for audit purposes.

To start an Airbnb in Ulm, Montana, expect total costs around $285,000-$320,000. Property purchase represents the largest expense at approximately $250,000-$280,000 based on median home prices in rural Montana markets. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom setup including beds, linens, kitchen essentials, and living room furniture from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees vary but expect $500-$1,500 for business licenses, short-term rental permits, and potential zoning approvals through Cascade County. Insurance costs approximately $1,200-$2,000 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utility setup and deposits for electricity, water, gas, internet, and cable total around $800-$1,200. First six months operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance reserves ($200/month), Airbnb fees (3% of bookings estimated at $150/month), and marketing budget ($100/month) total approximately $6,300-$7,500, assuming moderate occupancy rates during the initial period.

Airbnb properties in Ulm, Montana face challenging profitability conditions due to the town's small population of approximately 300 residents and limited tourist infrastructure, with average nightly rates ranging from $75-120 for typical 2-3 bedroom properties. Annual revenues typically reach $8,000-15,000 for properties with 30-40% occupancy rates, while expenses including mortgage payments ($800-1,200/month), utilities ($150-250/month), cleaning fees ($40-60 per turnover), property management (15-25% of revenue), insurance ($1,200-2,000/year), and maintenance ($2,000-4,000/year) often total $18,000-28,000 annually. Most properties operate at negative profit margins of -15% to -35%, with only exceptionally well-located properties near outdoor recreation areas achieving break-even or modest 5-10% profits. Success factors include proximity to Fort Peck Lake recreational activities, competitive pricing below $100/night, efficient self-check-in systems to reduce management costs, and targeting fishing/hunting groups during peak seasons (May-September), though the limited market size and seasonal demand make Ulm a high-risk location for Airbnb investment compared to Montana's established tourist destinations like Bozeman or Whitefish.

Based on Ulm, Montana's rural market characteristics and limited tourism infrastructure, Airbnb investments in this small agricultural community would likely generate modest returns of 4-7% annual ROI, with cash-on-cash returns ranging from 6-10% depending on property acquisition costs and financing structure. Properties in Ulm typically require 18-24 months to reach profitability due to seasonal demand fluctuations and lower occupancy rates averaging 35-45% annually, with peak performance during summer months when visitors explore nearby attractions like the Missouri River and surrounding ranch lands. Investment properties in the $150,000-$250,000 range could expect gross rental yields of 8-12%, though investors should account for higher vacancy periods during winter months and limited repeat guest traffic compared to established Montana destinations like Bozeman or Whitefish.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Ulm, Montana. Local real estate agents specializing in investment properties include Big Sky Real Estate Group and Montana Mountain Properties, both with experience in vacation rental acquisitions in the region. Vacasa and RedAwning offer property management services that can help investors identify and operate profitable short-term rentals in the area. AirDNA provides market analytics specifically for Airbnb investments, while Mashvisor offers investment property analysis tools covering Montana markets. Local services include Glacier Country Properties and Flathead Valley Real Estate, which have worked with investors seeking vacation rental properties. National companies like Roofstock and BiggerPockets connect investors with short-term rental opportunities, while AvantStay focuses on premium vacation rental investments in mountain markets similar to Ulm's location near outdoor recreation areas.