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

Yes, short-term rentals are explicitly allowed in Medora, North Dakota, and throughout Billings County. Short-term rentals (STRs) are permitted as a conditionally permitted use in Agricultural, Residential, and Recreational zoning districts under Billings County zoning regulations. Medora, being located within Billings County, falls under these county-level regulations, as the city does not appear to have additional specific STR ordinances beyond general business licensing requirements.

The STR market in Medora demonstrates strong performance with low regulation levels, making it an attractive market for investors. According to 2025 market analysis, Medora hosts 19 active STR listings with an average daily rate of $338, occupancy rate of 44.3%, and median annual revenue of $42,494.

How to Start a Short-Term Rental Business in Medora

Step 1: Determine Zoning Compliance

Before proceeding, verify that your property is located in a zoning district that allows STRs:

• Agricultural districts
• Residential districts
• Recreational districts

Properties in Commercial districts may also be eligible for certain STR configurations (particularly for larger properties).

Step 2: Obtain Conditional Use Permit (CUP)

Since STRs are conditionally permitted uses, you must apply for a Conditional Use Permit through Billings County. This process involves:

1. Application Review: Initial review by the Zoning Director
2. Public Hearing: Presentation before the Zoning Board
3. Final Approval: Action by the Billings County Board of Commissioners

Step 3: Annual Permit and Licensing

• Apply for annual STR permit through Billings County
• Ensure compliance with state health and safety requirements
• Maintain active business registration and tax permits

Required Documents, Permits, Licenses, and Guidelines

County-Level Requirements

Conditional Use Permit Application must include:

Property and Owner Information

• Property owner name, phone, mailing address, email
• Property manager contact information (if different from owner)
• Local contact person available 24/7
• STR physical address and name (if applicable)
• Whether STR is owner's primary residence
• Completed Conditional Use Permit application

Property Details

• Number of bedrooms and maximum occupancy
• Floor plan showing bedrooms, bed types, egress doors/windows
• Fire detector and carbon monoxide detector locations
• Site plan showing property access and parking arrangements
• Location of outdoor grills and trash containers
• Septic system information and inspection details

Required Documentation

• Proof of North Dakota Lodging Facility Licensure (for occupancies >10)
• Proof of insurance for short-term rental
• Copy of Certificate of Occupancy
• North Dakota Business Registration
• Proof of North Dakota Sales Tax and Use Permit
• Copy of approved Southwestern District Health Unit Application for Sewage & Water
• Date of last inspection and garbage service information
• List of all hosting platforms where STR is advertised with links

Occupancy Limits (Per Bedroom Configuration)

• 1 bedroom: 4 occupants maximum
• 2 bedrooms: 7 occupants maximum
• 3 bedrooms: 10 occupants maximum
• 4 bedrooms: 13 occupants maximum
• 5 bedrooms: 16 occupants maximum

Properties accommodating more than 16 occupants are classified as hotels and subject to different regulations.

Permit Fees

• Tier I STR: $1,000 (1-2 bedroom properties)
• Tier II STR: $1,500 (3-5 bedroom properties)

Specific Regulations for Short-Term Rentals

Billings County STR Regulations

Occupancy and Capacity

• Maximum occupancy: 3 people per bedroom plus 1 additional person
• Hard cap at 16 occupants regardless of bedroom count
• Occupancy may be reduced based on available parking spaces
• Properties with >5 bedrooms or >16 occupants classified as hotels

Parking Requirements

• One parking space per bedroom required
• All parking must be contained on-site
• No on-street parking allowed
• Parking areas cannot obstruct emergency vehicle access

Zoning Restrictions

• STRs allowed as conditional use in Agricultural, Residential, Recreational districts
• Properties must maintain residential appearance
• Signage is prohibited
• STRs cannot exceed 40% of total housing units in major subdivisions

Safety and Health Requirements

• Compliance with all applicable state and local health, safety, building, and fire codes
• Certificate of Occupancy required
• Fire detectors and carbon monoxide detectors mandatory
• Adequate egress doors and windows required

Operational Restrictions

• Fire Safety: No fireplaces, fire pits, charcoal grills, wood-burning stoves, or fireworks allowed
• Grilling: Only compressed or liquid gas grills permitted with proper clearance
• Garbage: Must be stored in enclosed containers with regular service
• Septic Systems: Must be properly sized and inspected every 3 years by SW District Health Unit

Tax Implications

• STRs that are not primary residences classified as commercial for property tax purposes
• Owner bears responsibility to prove primary residency

State-Level Requirements (North Dakota)

Business Registration

• North Dakota Business Registration required
• Sales Tax and Use Permit required
• Properties accommodating >10 occupants require state lodging facility licensure

Health Department Compliance

• Southwest District Health Unit inspection and approval required for sewage and water systems
• Regular monitoring and pumping of septic systems required

Contact Information

Billings County Planning & Zoning

• Primary Contact: Planning and Zoning Director
• Permit Processing: Applications reviewed by Zoning Director, approved by Board of Commissioners
• Address: Billings County Courthouse
• Phone: [Contact county directly for current phone number]
• Email: [Contact county directly for current email]
• Website: www.billingscountynd.gov

City of Medora

• City Auditor: Handles business license applications
• Address: City of Medora, ND
• Phone: [Contact city directly for current phone number]
• Email: [Contact city directly for current email]
• Website: www.discovermedora.com

Southwest District Health Unit

• Sewage and Water Approval: Required for all STR septic systems
• Inspection Services: Regular septic system monitoring and inspections
• Phone: [Contact health unit directly for current contact information]
• Website: [Contact health unit directly for website]

North Dakota Department of Health & Human Services

• Lodging Facility Licensure: Required for properties with >10 occupants
• Public Health Division: Food and Lodging Establishment oversight
• Phone: [Contact state directly for current contact information]

Market Insights and Investment Considerations

Performance Metrics (2025)

• Active Listings: 19 properties
• Average Daily Rate: $338
• Occupancy Rate: 44.3%
• Median Annual Revenue: $42,494
• Revenue Growth: 11.4% year-over-year

Seasonal Patterns

• Peak Season: August, June, July (67.2% occupancy, $389 ADR)
• Shoulder Season: April, October, December (32.3% occupancy, $330 ADR)
• Low Season: Remaining months (24.8% occupancy, $318 ADR)

Property Type Distribution

• Entire Home/Apartment: 94.7% of listings
• Property Types: 52.6% Outdoor/Unique, 21.1% Houses
• Bedroom Distribution: 42.1% two-bedroom properties dominate market
• Guest Capacity: 42.1% accommodate 8+ guests

Investment Opportunities

• Low regulation environment provides operational flexibility
• Strong seasonal demand for outdoor and unique properties
• Growing market with 11.4% annual revenue growth
• Median revenue of $42,494 suggests viable returns for well-managed properties

Sources

1. Billings County Application for Short-Term Rental Checklist

   • https://www.billingscountynd.gov/DocumentCenter/View/474
   • Comprehensive STR application requirements and regulations

2. AirROI Medora Market Analysis 2025

   • https://www.airroi.com/report/world/united-states/north-dakota/medora
   • Market performance data and regulation assessment

3. City of Medora Business Regulations and Licenses

   • https://discovermedora.com/wp-content/uploads/2024/01/CHAPTER-8-Business-Regulations-and-Licenses.pdf
   • General business licensing framework

Important Note: This guide is based on available information as of 2024-2025. Always verify current requirements with local authorities before proceeding with any STR investment, as regulations and requirements may change. Contact information should be confirmed directly with each agency for current details.