Overview: Are Short-Term Rentals Allowed in Bismarck, ND?

YES – Short-term rentals are explicitly allowed in Bismarck, North Dakota. The City of Bismarck's official FAQ states: "Yes, any housing unit may be rented on a short-term basis, just as they may be on a longer-term basis." The city is currently monitoring this business sector and may institute specific regulations if the need arises in the future.

How to Start a Short-Term Rental Business in Bismarck

Step 1: Verify Zoning Compliance

Before proceeding with any STR operation, investors must confirm their property's zoning allows for short-term rental use:

1. Check the zoning map using Bismarck's online interactive map tool
2. Review zoning provisions in the city's zoning ordinance
3. Contact the Planning Division if your property has special conditions (conditional districts or planned unit developments)
4. Consider the Extraterritorial Area (ETA) – properties within this boundary fall under city jurisdiction

Step 2: Understand Your Legal Framework

• State Definition: North Dakota defines short-term rentals as reservations for fewer than 30 consecutive days
• Tax Implications: All STR operations are subject to both state and local tax obligations
• Compliance Requirements: You must register with tax authorities and collect/remit applicable taxes

Step 3: Develop a Business Plan

• Research market demand and competition in Bismarck
• Determine optimal pricing strategies
• Plan for property management (self-managed vs. professional)
• Budget for initial setup costs and ongoing operational expenses

Required Documents, Permits, Licenses, and Guidelines

State-Level Requirements (North Dakota)

Tax Registration and Compliance:

• Sales Tax Permit from the North Dakota Office of State Tax Commissioner
• Registration for lodging taxes (mandatory for rentals under 30 days)
• Federal EIN for business tax purposes
• State income tax registration for annual reporting

Documentation Required:

• Business registration forms
• Sales tax permit application
• Quarterly and annual tax filing capabilities
• Record-keeping systems for all transactions

Local Requirements (Bismarck)

Current City Stance:

• No specific STR permits or licenses currently required by the city
• No city-specific registration mandated at this time
• Monitoring phase – city is studying the industry

General Development Requirements That May Apply:

• Building permits for renovations or structural changes
• Site plan review for significant alterations
• Zoning verification letter (recommended for financing)
• Home occupation permits if applicable to your setup

Recommended Best Practices

Professional Documentation:

• Zoning verification letter from the Planning Division
• Property insurance suitable for STR operations
• Professional photography and listing creation
• Guest screening and booking procedures
• Safety and emergency protocols

Specific Regulations: City, County, and State

Bismarck City Regulations

Current Status (2024-2025):

• Permissive approach – no specific restrictions on STR operations
• Neighbor consideration requirement – must be respectful of neighbors
• No occupancy limits specified for STR properties
• No distance requirements between STR properties
• No owner-occupancy requirements

Future Regulatory Possibility:

• The Community Development Department is actively studying short-term rental operations
• Potential future regulations may be introduced based on monitoring findings
• Investors should stay informed about potential regulatory changes

Burleigh County (Outside City Limits)

Jurisdictional Notes:

• Properties outside city limits but within the Extraterritorial Area (ETA) fall under Bismarck's jurisdiction
• Properties outside the ETA require contact with Burleigh County Building/Planning/Zoning
• County regulations may differ from city requirements

North Dakota State Regulations

Tax Framework:

• Lodging taxes apply to all STR stays under 30 days
• Sales tax obligations for rental properties
• Income tax reporting for STR revenue
• Registration requirements with state tax authorities

Legal Definition:

• Short-term rental: Any accommodation for fewer than 30 consecutive days
• Hosts responsible for tax collection, filing, and remittance
• Platforms may assist with state tax collection but not local taxes

Compliance Obligations:

• Quarterly tax filing requirements
• Annual income tax reporting
• Record-keeping for all transactions
• Potential penalties for non-compliance

Contact Information for Local Authority

Bismarck Planning Division

• Phone: 701-355-1840
• Email: planning@bismarcknd.gov
• Address: 221 N 5th Street, 2nd Floor, City-County Office Building, Bismarck, ND 58501
• Website: bismarcknd.gov/2371/Zoning-and-Guidelines

Bismarck Building Inspections Division

• Phone: 701-355-1465
• Email: buildinginspections@bismarcknd.gov
• Address: 221 N 5th Street, Bismarck, ND 58501

Burleigh County (For Properties Outside ETA)

• Phone: 701-221-3727
• Email: burleighcobuilding@nd.gov

North Dakota Office of State Tax Commissioner

• Website: nd.gov/tax
• Phone: Contact through state website for current numbers
• Purpose: Sales tax permits and lodging tax registration

Important Source Links

Bismarck Government Resources

• Main STR FAQ: www.bismarcknd.gov/FAQ.aspx?QID=476
• Zoning Map: bismarcknd.gov/2371/Zoning-and-Guidelines
• Zoning Ordinance: www.bismarcknd.gov/DocumentCenter/View/1962/Title-14---Zoning?bidId=
• Land Development Process: bismarcknd.gov/2379/Land-Development-Process
• Fee Schedule: www.bismarcknd.gov/DocumentCenter/View/48637
• Extraterritorial Area Map: bismarck.maps.arcgis.com/apps/instant/filtergallery/index.html?appid=47b2edfbedc340e1a87572f44edb252d
• Zoning Verification: www.bismarcknd.gov/2362/Zoning-Verification

State of North Dakota Resources

• North Dakota State Tax Commissioner: nd.gov/tax
• Comprehensive Plan: www.bismarcknd.gov/2363/Comprehensive-Plan

Regulatory Information

• Steadily STR Guide: www.steadily.com/blog/airbnb-short-term-rental-laws-and-regulations-in-north-dakota
• Attorney General Tenant Rights: attorneygeneral.nd.gov/consumer-resources/tenant-rights/

Investment Recommendations for Bismarck STR Market

Advantages

• Current permissive regulatory environment with minimal restrictions
• No immediate licensing or permit requirements
• Growing tourism market in North Dakota's capital city
• Lower competition compared to larger metropolitan areas

Risk Considerations

• Regulatory uncertainty – city may introduce future restrictions
• No specific legal framework currently in place
• State tax compliance requirements must be strictly followed
• Market development in early stages with limited data

Strategic Considerations

• Establish good neighbor relationships to prevent future complaints
• Monitor city council meetings for potential regulatory developments
• Maintain detailed financial records for tax compliance
• Consider professional property management for optimal guest experience
• Invest in quality property improvements to maximize competitive advantage

The Bismarck market presents a unique opportunity for early STR investors to establish operations in a currently permissive environment, though careful attention to evolving regulations and professional compliance management will be essential for long-term success.