Is Wisdom, Montana Good for Airbnb Investment?

To start an Airbnb in Wisdom, Montana, begin by researching local regulations through Beaverhead County and contacting the Wisdom area planning department, as Montana generally allows short-term rentals but counties may have specific zoning requirements and occupancy limits. Obtain necessary permits including a business license from Montana Secretary of State (approximately $70), potential county permits from Beaverhead County Clerk, and ensure compliance with fire safety codes which may require smoke detectors and fire extinguishers in each bedroom. Find property by searching rural listings on sites like LandWatch or working with local realtors like Prudential Montana Real Estate, focusing on properties with good road access year-round since Wisdom experiences harsh winters, and consider proximity to fishing areas along the Big Hole River or hunting access points. Furnish the property with durable, rustic Montana-themed decor, essential amenities like high-speed internet (Starlink may be necessary in rural areas), heating systems capable of handling -30°F winters, and outdoor gear storage since guests often come for fishing, hunting, or outdoor recreation. List your property on Airbnb with professional photos highlighting mountain views and outdoor activities, set competitive pricing around $80-150 per night based on seasonal demand (higher during fishing season May-September), and emphasize unique features like dark skies for stargazing or proximity to Big Hole National Battlefield. Manage the property by establishing relationships with local cleaning services in nearby Dillon (30 miles away), create detailed check-in instructions since cell service can be spotty, maintain emergency supplies for winter weather, and consider hiring a local property manager or caretaker given Wisdom's remote location and population of approximately 100 residents.

To identify profitable short-term rental properties in Wisdom, Montana, focus on properties within 10-15 miles of the Big Hole River and nearby fishing access points, as this area attracts significant seasonal tourism from May through October. Target 2-4 bedroom cabins or homes with rustic charm, outdoor amenities like fire pits or hot tubs, and adequate parking for trucks and trailers, as many visitors come for fishing, hunting, and outdoor recreation. Pricing analysis should consider seasonal fluctuations with peak rates of $150-300 per night during summer fishing season and hunting seasons, while winter rates may drop to $75-150 per night. Research competition using Airbnb and VRBO searches within a 25-mile radius, noting that properties near Jackson Hot Springs or with Big Hole River access command premium rates. Utilize tools like AirDNA for market analysis, STR Helper for performance tracking, and local resources including the Beaverhead County planning department for zoning regulations, Montana Fish Wildlife and Parks for seasonal tourism patterns, and the Big Hole River Foundation for understanding peak fishing periods that drive demand in this remote but recreation-rich market.

To obtain an Airbnb/STR permit in Wisdom, Montana, you'll need to contact the Beaverhead County Planning Department since Wisdom is an unincorporated community in Beaverhead County. Start by calling the county office at (406) 683-3720 or visiting their office in Dillon to inquire about short-term rental regulations and permit requirements. You'll likely need to submit a completed application form, provide proof of property ownership or lease agreement, submit a site plan or property survey, obtain liability insurance documentation (typically $1 million minimum), and pass a safety inspection that includes smoke detectors, carbon monoxide detectors, and fire extinguishers. Required documents typically include a business license application, tax identification number, septic system approval if applicable, and neighbor notification forms. Application fees generally range from $100-300 initially with annual renewal fees of $50-150. The approval timeline is typically 30-60 days depending on inspection scheduling and document completeness. Specific Wisdom area requirements may include adherence to rural zoning restrictions, adequate parking provisions, waste management plans due to limited municipal services, and compliance with any homeowners association rules if applicable. Contact the Montana Department of Revenue for state tax registration requirements and ensure compliance with both county land use regulations and state lodging facility standards.

Short-term rentals (STRs) in Wisdom, Montana are generally legal under state law, as Montana does not prohibit STRs at the state level, but local regulations vary significantly by jurisdiction. Wisdom, located in Beaverhead County, falls under county zoning authority rather than municipal control since it is an unincorporated community. Beaverhead County has historically allowed STRs with minimal restrictions, typically requiring basic business licensing and compliance with health and safety standards. However, like many rural Montana communities experiencing tourism growth, there have been ongoing discussions since 2020-2022 about implementing stricter regulations including occupancy limits, parking requirements, and noise ordinances. Currently, STR operators in Wisdom must obtain a Montana business license and comply with state tax collection requirements, while specific zoning compliance depends on the property's designation (residential, commercial, or agricultural). Recent trends show increasing scrutiny from county commissioners regarding STRs in residential areas due to concerns about housing availability for local workers and impacts on rural community character, though no outright bans have been implemented as of 2023-2024.

The best Airbnb investment areas in Wisdom, Montana include the downtown historic district near the Big Hole River, which attracts fly fishing enthusiasts and outdoor recreation tourists year-round, particularly during peak fishing seasons from May through September. The areas near Highway 43 and Main Street offer convenient access for travelers heading to nearby Bannack State Park and the Continental Divide, making them ideal for adventure tourism and history buffs visiting the ghost town attractions. Properties near the Big Hole National Battlefield draw history tourists and educational groups, especially during summer months when visitation peaks. The residential neighborhoods along the Wise River corridor are attractive for longer-term stays by hunters during fall seasons and winter sports enthusiasts accessing nearby backcountry areas. Ranch properties on the outskirts of town appeal to guests seeking authentic Montana ranch experiences and corporate retreat groups, with companies like Orvis and various hunting outfitters bringing clients to the area annually, while the proximity to Dillon (30 miles) provides additional business traveler overflow during University of Montana Western events and regional conferences.

Airbnb properties in Wisdom, 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. Beaverhead County, where Wisdom is located, does not impose an additional county-level occupancy tax as of 2023. The state tax is typically collected by the accommodation provider at the time of booking and must be remitted monthly to the Montana Department of Revenue by the 15th of the following month if monthly gross receipts exceed $500, otherwise quarterly remittance is permitted. Airbnb may collect and remit these taxes directly on behalf of hosts through their platform in Montana since approximately 2019, though individual hosts remain ultimately responsible for compliance. Exemptions include stays of 30 days or longer, accommodations provided to permanent residents, and certain government employee lodging, while properties generating less than $15,000 annually in gross rental income may qualify for small business exemptions from registration requirements.

To start an Airbnb in Wisdom, Montana, the total costs would be approximately $285,000-$320,000. Property purchase represents the largest expense at around $200,000-$220,000 based on median rural Montana home prices in small towns like Wisdom. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom property including beds, linens, kitchen essentials, living room furniture, and décor to create an appealing guest experience. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations or repairs average $3,000-$5,000. Permits and fees vary but expect $500-$1,500 for business licenses, short-term rental permits, and any required inspections in Beaverhead County. Insurance costs run $2,000-$3,500 annually for short-term rental coverage beyond standard homeowner's insurance. Utilities including electricity, water, sewer, internet, and heating average $200-$400 monthly or $1,200-$2,400 for six months. First six months operating costs including cleaning services, supplies, maintenance, marketing, platform fees, and property management tools total approximately $8,000-$12,000. Additional considerations include potential HOA fees, property taxes, and emergency repair funds which could add another $5,000-$10,000 to initial capital requirements.

Airbnb properties in Wisdom, Montana show moderate profitability potential with average nightly rates ranging from $85-150 depending on property size and amenities, generating approximately $15,000-35,000 in annual gross revenue for properties with 60-70% occupancy rates. Operating expenses typically consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (10-15%), utilities ($150-300 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins generally fall between 25-40% for well-managed properties, with a typical 3-bedroom cabin generating around $8,000-12,000 in annual net profit after expenses. Success factors include proximity to fishing access points along the Big Hole River, seasonal hunting accommodations during fall months, and unique ranch-style properties that command premium rates of $200+ per night. Properties within 10 miles of fishing hotspots and those offering amenities like hot tubs, fire pits, and mountain views consistently outperform basic accommodations by 30-50% in both occupancy and nightly rates, with some premium properties achieving ROI of 12-18% annually when factoring in property appreciation in the Beaverhead County market.

Airbnb investments in Wisdom, Montana typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, though these figures are estimates given the town's small size and limited vacation rental market data. Properties in this rural southwestern Montana community, located near the Big Hole River and popular for fishing and outdoor recreation, generally achieve profitability within 18-24 months depending on initial investment and seasonal occupancy rates. The market benefits from proximity to outdoor attractions and hunting/fishing tourism, but investors should expect lower occupancy rates during winter months (November-March) which impacts overall returns. Average nightly rates range from $80-150 depending on property size and amenities, with peak season (June-September) driving the majority of annual revenue. Initial investment costs are typically lower than major Montana markets like Bozeman or Whitefish, with median property prices allowing for more accessible entry points, though the limited year-round tourism base constrains maximum earning potential compared to larger resort destinations.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors looking in Wisdom, Montana. Local real estate agents like Big Hole Valley Realty and Beaverhead County specialists at ERA Landmark Arrow Real Estate have experience with investment properties in the area since around 2018. National services include AirDNA (founded 2015) which provides market analytics for short-term rentals, Mashvisor (established 2014) offering investment property analysis tools, and Awning (launched 2019) which focuses specifically on Airbnb investment properties. RedAwning, operating since 2009, helps investors identify vacation rental opportunities, while local Montana agents at Engel & Völkers Bozeman and PureWest Real Estate have expanded their services to include short-term rental investment guidance since approximately 2017. Additional services include Rabbu (2016) for property management and investment analysis, and local property management companies like Big Sky Vacation Rentals and Montana Vacation Rentals that assist investors with both acquisition and ongoing management of Airbnb properties in the Wisdom area.