Is Williston, North Dakota Good for Airbnb Investment?

To start an Airbnb in Williston, North Dakota, begin by researching local regulations through the City of Williston Planning Department, as the city requires short term rental operators to obtain a conditional use permit and business license.

Launch checklist

• Contact Williams County for any additional county level requirements and ensure compliance with North Dakota state tax obligations including sales tax registration.
• Find a suitable property in residential or mixed use zones, considering Williston's oil boom market where properties near industrial areas or downtown command higher rates, with average nightly rates ranging from $80 to 150 depending on location and amenities.
• Purchase essential furnishings including quality mattresses, linens, basic kitchen appliances, WiFi equipment, and cleaning supplies, budgeting approximately $5,000 to 10,000 for a complete setup.
• Create your Airbnb listing with professional photos highlighting proximity to oil fields, Williston Basin International Airport, or local attractions like Fort Union Trading Post, setting competitive pricing based on local market research.
• For ongoing management, establish relationships with local cleaning services like Williston area housekeeping companies, consider property management firms such as those serving the Bakken region if you're not local, maintain 24/7 guest communication.

To identify profitable short term rental properties in Williston, North Dakota, focus on locations within 10 to 15 minutes of major oil field operations, the Williston Basin International Airport, and downtown business districts, as the market is heavily driven by oil industry workers and business travelers.

What to prioritize

• Target 2 to 4 bedroom properties with dedicated workspaces, reliable high speed internet, full kitchens, and parking, as extended stay guests prioritize functionality over luxury amenities.
• Analyze pricing by researching comparable properties on Airbnb and VRBO, noting that rates typically range from $80 to 150 per night with higher premiums during peak oil activity periods.
• Research competition by monitoring occupancy rates and pricing strategies of existing STRs within a 5 mile radius, paying attention to properties targeting oil workers versus leisure travelers.
• Utilize tools like AirDNA and Mashvisor for market analysis, partner with local real estate agents familiar with the Bakken oil field impact on housing demand, monitor North Dakota oil production reports to anticipate market fluctuations.

To obtain an Airbnb/STR permit in Williston, North Dakota, you must first contact the Williston Planning and Zoning Department at City Hall located at 22 East Broadway, as the city requires short term rental operators to obtain a conditional use permit.

Documents and approvals

• Begin by submitting an application for a conditional use permit which typically costs between $200 to 400, along with required documents including proof of property ownership or lease agreement, site plan showing parking availability, floor plan of the rental unit.
• You must also provide contact information for a local property manager if you live more than 50 miles away, demonstrate compliance with fire safety codes, and show adequate off street parking (typically one space per bedroom).
• The application process involves a public hearing before the Planning Commission, which requires a 15 day public notice period, and the entire approval process typically takes 4 to 6 weeks from submission to decision.
• Williston specifically requires STR properties to maintain occupancy limits based on bedroom count (maximum 2 guests per bedroom plus 2 additional), prohibits rentals for less than 2 consecutive nights in residential zones, mandates 24/7 local contact availability.

Short term rentals (STRs) are legal in Williston, North Dakota, but operate under specific municipal regulations established around 2018 to 2019 as the city adapted to housing demands from the oil boom.

Core operating requirements

• The city requires STR operators to obtain a business license and comply with zoning restrictions that generally allow STRs in residential areas with certain limitations on the number of guests and parking requirements.
• Properties must meet safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers, while operators must provide contact information for a local representative available 24/7 for issues.
• Williston prohibits STRs in certain residential zones where they would conflict with neighborhood character, and the city has implemented noise ordinances and occupancy limits typically capping guests at 2 per bedroom plus 2 additional guests.
• Recent changes have included stricter enforcement of existing regulations and enhanced registration requirements, with the city conducting periodic reviews of STR impacts on housing availability and neighborhood stability.

The best areas for Airbnb investment in Williston, North Dakota are downtown Williston near Main Street and the historic district, which attracts business travelers working with oil companies like Hess Corporation and Continental Resources, as well as visitors to local events and the Fort Union Trading Post.

In Williston, North Dakota, Airbnb hosts are subject to both state and local lodging taxes.

Taxes and filing responsibilities

• The North Dakota state lodging tax is 4% on gross receipts from accommodations, while Williston imposes an additional local lodging tax of 3%, bringing the total occupancy tax rate to approximately 7%.
• These taxes apply to all short term rental accommodations under 30 days.
• Airbnb typically collects and remits these taxes automatically for hosts through their platform as of 2019, though hosts should verify this arrangement.
• For properties where Airbnb doesn't collect automatically, hosts must register with the North Dakota Tax Commissioner's office and remit state taxes monthly by the 20th of the following month.
• Exemptions generally include stays over 30 consecutive days, certain government employee accommodations, and stays by permanent residents.
• Hosts should also be aware that Williams County may impose additional local taxes.
• The city requires short term rental operators to obtain proper licensing and maintain records of all transactions for tax compliance purposes.

To start an Airbnb in Williston, North Dakota, expect total costs of approximately $285,000 to $335,000.

Cost breakdown

• Property purchase represents the largest expense at $200,000 to $250,000 for a median 2 to 3 bedroom home, reflecting Williston's oil boom market dynamics.
• Furnishing costs range $15,000 to $25,000 including beds, living room furniture, kitchen appliances, linens, and décor to create an attractive rental space.
• Initial setup costs total $3,000 to $5,000 covering professional photography, listing creation, welcome materials, and basic maintenance supplies.
• Permits and fees amount to $500 to $1,500 including business license, short term rental permit, and potential HOA approvals.
• Insurance costs $2,000 to $3,000 annually for short term rental coverage beyond standard homeowner's insurance.
• Monthly utilities average $200 to $300 covering electricity, gas, water, internet, and cable services.
• First six months operating costs total $8,000 to $12,000 including utilities ($1,800), cleaning services ($2,400), Airbnb platform fees ($1,200), maintenance and supplies ($1,500), marketing ($800), and contingency funds ($1,300).
• Additional considerations include property management software subscriptions and potential property tax increases due to commercial use classification in Williams County.

Airbnb properties in Williston, North Dakota, have shown strong profitability potential, particularly during the Bakken oil boom period from 2010 to 2015 when average daily rates reached $150 to 200 and occupancy rates exceeded 85%, generating monthly revenues of $4,000 to 6,000 for typical 2 bedroom units.

Profitability indicators

• Current market conditions show more moderate but still profitable returns, with average daily rates of $80 to 120 and occupancy rates around 65 to 75%, resulting in monthly revenues of $2,500 to 4,000.
• Operating expenses typically include mortgage payments ($800 to 1,200), utilities ($150 to 250), cleaning fees ($200 to 400), insurance ($100 to 150), and maintenance ($200 to 300), totaling approximately $1,450 to 2,300 monthly.
• This creates net profit margins of 25 to 45% for well managed properties, with annual returns of $12,000 to 25,000 being common.
• Success factors include proximity to industrial sites and worker housing demand, competitive pricing strategies, reliable property management, and maintaining high cleanliness standards.
• Properties near Williston Basin International Airport and downtown areas perform best, with some investors like those featured in local real estate case studies reporting ROI of 15 to 25% annually.
• The market remains viable due to continued oil industry activity, though investors should expect seasonal fluctuations and potential volatility tied to energy sector performance.

Airbnb investments in Williston, North Dakota typically generate annual ROI of 12 to 18% due to the city's oil boom economy and limited hotel inventory serving transient workers and business travelers. Cash on cash returns generally range from 15 to 22% annually, with properties averaging $150 to 200 per night occupancy rates of 65 to 75% driven by Bakken oil field activity.

Return planning figures

• Initial profitability usually occurs within 8 to 14 months of operation, with break even on total investment typically achieved in 4 to 6 years.
• Properties near industrial areas and downtown command premium rates, with furnished 2 to 3 bedroom units performing best given the 30+ day corporate housing demand from companies like Hess Corporation, Continental Resources.

STRSearch is a national platform that helps investors identify profitable short term rental properties across markets including Williston, North Dakota.

Companies and resources

• Local real estate agents in Williston who specialize in investment properties include Century 21 Morrison Realty, Prudential Emmons Company, and Coldwell Banker First Realty.
• National services that assist Airbnb investors include AirDNA for market analysis, Mashvisor for property analytics, BiggerPockets for networking and deal sourcing, and Roofstock which expanded into short term rental investments around 2020.
• Regional companies like Great Plains Real Estate and Bakken Realty have been helping investors capitalize on Williston's oil boom rental market since approximately 2012.
• Additional services include RedAwning for property management consultation, AvantStay for market insights, and local property management companies like Williston Property Management that began offering Airbnb management services around 2018 to help investors maximize their returns in this North Dakota market.