Watford City, North Dakota Short Term Rental Regulations Guide for Airbnb hosts

Executive Overview

Short-term rentals ARE permitted in Watford City, North Dakota. However, as of the latest available information (January 2025), Watford City does not have specific local ordinances governing short-term rentals beyond standard zoning requirements. All short-term rental properties must comply with existing zoning laws, building codes, and North Dakota state regulations.

What do Airbnb hosts actually earn in Watford City?

Watford City hosts earn a median $18,127/year with $143 ADR and 46% occupancy.

Top performers pull in $39,669+ per year.

See the full Watford City market breakdown

Starting a Short-Term Rental Business in Watford City

Market Context

Watford City presents a unique short-term rental market primarily driven by:

Oil Industry Demand: The city sits in the heart of the Bakken oil region, creating consistent demand from transient oil workers and business travelers
Tourism: Proximity to Theodore Roosevelt National Park and Maah Daah Hey Trail attracts outdoor enthusiasts
Cyclical Nature: Market demand fluctuates with oil industry cycles and seasonal tourism patterns

Step-by-Step Launch Process

Property Acquisition & Zoning Verification
- Verify your property is zoned for short-term rental use
- Confirm compliance with building codes and safety standards
- Review zoning district requirements (see regulations section below)
Permit Applications
- Obtain all necessary building and development permits
- Submit site development plans if required (see permitting section)
State Tax Registration
- Register with North Dakota Office of State Tax Commissioner
- Set up systems for collecting and remitting the 7% state lodging tax
Property Preparation
- Install required safety equipment (smoke detectors, carbon monoxide detectors, fire extinguishers)
- Ensure compliance with housing and building codes
- Prepare property with appropriate amenities for target market

Required Documents, Permits, and Licenses

Local Requirements

Building Permits: Required for any structural modifications or new construction
Development Permits: Required before initiating development activities
Site Development Plans: Required for multifamily dwellings, commercial uses, and conditional uses
Certificate of Final Inspection: Required after construction completion

State Requirements

North Dakota State Lodging Tax Registration: Mandatory 7% tax collection and remittance
Business Registration: Standard business licensing through North Dakota Secretary of State

Federal Requirements

EIN (Employer Identification Number): Required for tax reporting purposes
1099 Reporting: Income reporting requirements for platforms like Airbnb

Specific Regulations by Jurisdiction

Watford City Municipal Regulations

Definition of Short-Term Rental: "A Dwelling Unit, or portion thereof, which provides overnight lodging to the traveling public for compensation for a period of less than 30 consecutive days. Any lodging Use with more than five bedrooms or that accommodates more than 16 occupants shall be considered a Hotel and shall be required to comply with all regulations for Hotels."

Key Zoning Considerations:

Short-term rentals must comply with underlying zoning district requirements
Properties with 5+ bedrooms or 16+ occupants are classified as Hotels
Site Development Plans required for multifamily STRs and commercial zoning districts

Permitting Requirements:

General permitting requirements apply to all development activities
Site Development Plans required for properties in R-3, R-4, C-1, CB, I-1, I-2 districts
Conditional Use Permits may be required for specific zoning scenarios

McKenzie County Regulations

No county-specific short-term rental regulations were identified in the provided materials. County regulations would primarily apply to properties in the extraterritorial area (ETA) extending up to 2 miles from city limits.

North Dakota State Regulations

Lodging Tax: 7% state lodging tax must be collected from guests and remitted to the North Dakota Office of State Tax Commissioner

Building and Safety Standards:

Properties must meet North Dakota building codes
Smoke detector and carbon monoxide detector requirements
Fire safety equipment standards
Housing code compliance for rental properties

Business Licensing:

Standard business registration requirements
Tax reporting obligations for rental income

Best Practices for STR Operations

Property Features That Succeed in Watford City

High-speed Wi-Fi: Essential for business travelers and remote workers
Ample Parking: Crucial for oil workers with large vehicles
Flexible Check-in/Check-out: Accommodates irregular work schedules
Fully Equipped Kitchens: Allows guests to prepare meals
Laundry Facilities: Important for longer stays by oil industry workers
Outdoor Spaces: Patios, fire pits for guest relaxation and socializing

Seasonal Considerations

Summer Peak (May-August): High tourism demand from outdoor recreation
Winter Lows (November-March): Reduced tourism but steady oil industry demand
Pricing Strategy: Implement dynamic pricing that accounts for oil industry cycles and seasonal variations

Operational Challenges

Weather Maintenance: Robust maintenance plans required for harsh winter conditions
Supply Chain Management: Ensure reliable cleaning and maintenance services
Staffing: Build relationships with local service providers

Contact Information for Local Authorities

City of Watford City

Mailing Address: City of Watford City P.O. Box 494 Watford City, ND 58854

Physical Address: 213 2nd St. NE Watford City, ND 58854

Phone: (701) 444-2533 Fax: (701) 444-3004 Website: cityofwatfordcity.com

Key Contacts:

City Planner: Jake Walters - jwalters@nd.gov - (701) 444-8402
Planning Administrative Assistant: Kaitlyn Swearson - kaswearson@nd.gov - (701) 444-8406
Building Inspector: Steve Williams - Contact through City Hall
City Attorney: Wyatt Voll - Contact through City Hall

McKenzie County

Phone: (701) 444-3331 Website: mckenziecounty.nd.gov

North Dakota State Tax Commissioner

Phone: (701) 328-1242 Website: www.nd.gov/tax Email: taxrep@nd.gov

Source Documents and References

Watford City Planning and Zoning Commission Meeting Minutes (February 24, 2025) - Watford City Official Documents
Watford City Land Development Ordinance - Article 2: Rules and Definitions - Defines short-term rental requirements and zoning compliance standards
Summer Vacation Rental Market Analysis - Provides market context and regulatory overview: GoSummer.com - Watford City STR Guide

Regulatory Monitoring Recommendations

Ongoing Compliance: Watford City is actively updating its zoning ordinance, with significant changes anticipated in 2025. The Planning Commission is reviewing amendments to Articles 1-34, including specific short-term rental provisions. Investors should monitor:

Monthly Planning & Zoning Commission meetings (typically last Monday of each month)
City Council meetings for ordinance adoption
Updates to the Watford City Land Development Ordinance

Contact Strategy: Regular communication with City Planner Jake Walters (jwalters@nd.gov) is recommended for staying current on regulatory developments and ensuring ongoing compliance.

This guide is current as of January 2025. Short-term rental regulations are evolving rapidly, and investors should verify current requirements with local authorities before making investment decisions.

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Ask the AI Advisor about Watford City

Watford City is the county seat of McKenzie County in western North Dakota, with a current population of approximately 6,000 residents. The community grew dramatically during the Bakken oil boom, expanding from a small town of about 1,700 to a regional hub serving the surrounding oil fields, and it retains the practical, working character of a western energy town. Today it functions as the primary gateway to the North Unit of Theodore Roosevelt National Park and as a base for visitors exploring the surrounding badlands. It sits roughly 50 miles east of Williston and approximately 300 miles northwest of Bismarck, the state capital.

Theodore Roosevelt National Park's North Unit is the most prominent draw in the area, located about 15 miles south of Watford City via a scenic byway. The North Unit offers a quieter, less-visited counterpoint to the more famous South Unit near Medora, with the same spectacular badlands topography, the winding Little Missouri River, and healthy populations of bison, mule deer, prairie dogs, and wild horses. Visitors can drive the scenic loop road, hike into the painted canyons, and stop at overlooks for sweeping views of the rugged terrain. Theodore Roosevelt National Park is managed by the National Park Service and remains the cornerstone attraction of the region.

Surrounding the national park and the town itself is the Little Missouri National Grassland, a vast expanse of federally managed prairie administered by the U.S. Forest Service. The grassland offers dispersed camping, hunting, horseback riding, and countless backcountry roads for exploring the rugged breaks of the Little Missouri River. It is one of the largest national grasslands in the country and a defining feature of the regional landscape, giving visitors plenty of room to roam beyond the boundaries of the park itself.

Running through the badlands just north of the North Unit is the Maah Daah Hey Trail, a roughly 140-mile point-to-point route that has become one of the premier mountain biking and hiking trails in the northern Plains. Trailheads can be reached within a short drive of Watford City, and outfitters in town provide shuttles, rentals, and gear for visitors planning multi-day trips into the backcountry.

Watford City makes a compelling base for short-term rental visitors because it offers a practical small-town setting with the services, dining, and supplies travelers need, while keeping the dramatic scenery of the North Dakota badlands within a short drive. Its position between the oil-producing Williston Basin and the national park gives it a steady year-round demand base, and travelers who want to experience the wild side of Theodore Roosevelt without the crowds of the South Unit often find that staying in Watford City provides the best of both worlds.