The contractors who come out of a Bakken assignment with the most money saved are not always the ones who made the most money. They’re the ones who kept more of it. Housing is the biggest controllable variable — and a monthly RV site at a full-hookup park is how experienced contractors work that variable in their favor.
If you’re an independent contractor, a traveling tradesperson, or a 1099 worker on a Bakken assignment, you’re paying your own housing. That’s the deal. The company isn’t covering it, there’s no per diem sitting in your account automatically, and every dollar you spend on housing is a dollar you paid taxes on before it left your pocket. The math on housing choices has real consequences — not just for your savings rate during the assignment, but for how the whole assignment turns out financially.
This post covers the housing economics specifically, the per diem and contractor housing picture for independent contractors, the tax side that many contractors are leaving money on, and why monthly RV sites in Watford City consistently win the housing comparison for contractors with their own rig.
The Housing Cost Gap: What the Numbers Actually Look Like
Let’s run the comparison directly rather than dancing around it.
A one-bedroom apartment in Watford City during active Bakken production runs $1,200 to $1,800 per month at baseline, before utilities. With electric, gas, water/sewer, and internet, add $200 to $400 per month. Total: $1,400 to $2,200 per month for a modest apartment. Move-in costs: first month, last month, and security deposit — potentially $4,000 to $6,000 out of pocket before your first night in the unit.
A full-hookup monthly RV site at an established Watford City park: $400 to $700 per month, utilities typically included. Move-in cost: first month’s payment. No security deposit. No last-month requirement. You pay once, you’re in, and you leave when your assignment ends without any lease breakage calculation.
On a 6-month assignment, the housing cost gap between the apartment and the RV site runs from $6,000 to $9,000. On a 12-month assignment, that gap is $12,000 to $18,000. For a contractor who owns a rig and is already making the comparison honestly, this is not a close decision.
“The people who come out of a Bakken assignment ahead of where they expected aren’t the ones who found better rates on the job. They’re the ones who found better rates on their housing.”
Per Diem and the Contractor Housing Picture
The per diem housing situation for contractors in North Dakota is worth understanding specifically, because it affects the calculation differently depending on your employment structure.
W-2 Employees with Per Diem
If you’re a W-2 employee receiving a company per diem for housing and meals, the IRS allows per diem rates for the Watford City area that are intended to cover the cost of away-from-home lodging and meals. For 2024, the GSA per diem rate for McKenzie County, ND (where Watford City is located) sets the benchmark that many company per diem policies follow. The key opportunity here: if your per diem exceeds your actual housing cost — and a monthly RV site at $550 per month leaves significant room below a standard per diem rate — the difference is effectively additional untaxed income. You keep the gap between what you’re paid for housing and what you actually spend on it.
1099 Independent Contractors
As a 1099 contractor, you don’t receive a per diem — you receive gross contract payments and handle your own taxes and housing. The good news is that a genuinely legitimate tax deduction for housing costs exists for contractors who meet the IRS criteria for a tax home and away-from-home expense deduction. The deductibility of travel and housing costs for contractors working away from their tax home is a real IRS provision under Section 162 of the Internal Revenue Code — not a gray area strategy, but an established provision for the situation many contractors are actually in. The conditions that need to be met: you must have a regular place of business or tax home that you’re temporarily working away from, the assignment must be temporary (generally under one year in a single location without expecting it to extend indefinitely), and the expenses must be ordinary and necessary for the business.
If your assignment qualifies, the cost of your monthly RV site — as your away-from-home housing while on a temporary work assignment — may be deductible as a business expense. This is not blanket advice that applies in every situation; the specific facts of your tax home, your assignment structure, and how long you’ve been in the location all matter. This is the conversation to have with a tax professional who understands contractor travel expense rules — not to skip because it seems complicated, but because the potential deduction is significant enough to justify the conversation.
The RV as Both Asset and Housing: The Rig Depreciation Angle
For contractors who use their RV primarily as housing for work assignments, there’s an additional tax consideration that fewer contractors know about: the potential to depreciate the RV as a business asset. If the rig is used primarily (over 50% of the time) for business purposes — specifically as housing during temporary work assignments rather than for personal recreation — it may qualify for depreciation as a business asset under IRS rules, potentially including accelerated depreciation under Section 179 or bonus depreciation provisions.
This is more aggressive territory than the away-from-home housing deduction and requires careful documentation of business use versus personal use. The documentation standard is real — you need records of when the rig was used for work assignments versus personal use, and the business use percentage is calculated from those records. But for a contractor whose rig sits at a Watford City RV park for 8 months out of the year on a work assignment and is used personally for the other 4, the business use percentage is substantial and the depreciation potential is real.
Again, the conversation to have is with a tax professional who understands contractor vehicle and asset depreciation rules — specifically someone who has worked with traveling contractors and understands the documentation requirements. The potential tax benefit is worth the professional fee to have the conversation properly.
The Monthly Site Discount: Negotiating Beyond the Rack Rate
The posted monthly rate at an RV park is the starting point, not necessarily the final rate for a long-term contractor. Parks that serve the Bakken workforce population have ongoing relationships with contractors who come back season after season, and some parks extend loyalty discounts, multi-month rate reductions, or preferred site assignments to returning long-term guests that aren’t published anywhere.
The right approach is direct: when booking a multi-month stay, ask specifically whether there’s a rate reduction for committing to multiple months in advance. A contractor booking 4 months upfront versus month-to-month gives the park more revenue certainty and creates negotiating room that a single-month booking doesn’t. Some contractors negotiate one or two months free after a certain commitment length; others get preferred site assignments that have value independent of the rate. It doesn’t hurt to ask, and asking directly and professionally is the right way to approach it.
Contractor housing savings summary — Watford City Bakken assignment: Monthly cost advantage (RV site vs. apartment): $850–1,500/month. 6-month assignment savings: $5,100–9,000. 12-month assignment savings: $10,200–18,000. Move-in cost advantage: first month only vs. 2–3x monthly rent. No lease breakage risk if assignment ends early. Per diem opportunity (W-2): keep the gap between per diem paid and actual housing cost. 1099 tax deduction: away-from-home housing expense may be deductible under Section 162 — verify with a tax professional. RV depreciation potential: rig used primarily for work assignments may qualify as a depreciable business asset — verify with a tax professional.
For contractors looking at extended stay RV options in North Dakota, the monthly RV sites in Watford City, ND page has current rate and availability information. The oilfield and contractor housing page addresses the workforce-specific picture. Contractors working in the Glendive, Montana corridor to the west can check the RV park near Glendive, MT page for that area. And for everything about the park and planning your stay, Watford City RV Park is the starting point.
Frequently Asked Questions
Can a 1099 contractor deduct their RV site cost in the Bakken as a business expense?
Potentially yes, under IRS Section 162 which allows deductions for ordinary and necessary business expenses, including away-from-home travel and housing costs for contractors working temporarily away from their tax home. The conditions that must be met: you have a regular place of business or tax home that you’re temporarily working away from, the Bakken assignment is genuinely temporary (generally under one year without expectation of indefinite extension), and you maintain your primary tax home elsewhere (meaning you have a real financial connection to a home location — paying rent or mortgage, maintaining ties, returning regularly). If these conditions apply, the cost of your monthly RV site as away-from-home housing may be deductible. This is the conversation to have with a CPA who understands contractor travel expense rules — the specifics matter, and the potential deduction is significant enough to justify the professional consultation.
How does a per diem arrangement work for Bakken contractors?
Per diem arrangements vary by employer. For W-2 employees, many Bakken companies pay a per diem allowance for housing and meals on top of base wages — this is paid at or near the GSA per diem rate for McKenzie County, ND, which sets the IRS-recognized rate for the area. Per diem paid at or below the GSA rate is not considered taxable income. If your actual housing cost (RV site at $400-700/month) is below the per diem paid for housing, the gap is effectively additional untaxed income that you keep. For 1099 contractors, there is no employer per diem — instead, the IRS business expense deduction under Section 162 serves the equivalent function for qualifying contractors. Specific per diem and deduction questions should be directed to a tax professional who works with traveling contractors.
How much cheaper is an RV site than an apartment in Watford City?
The monthly cost difference between a full-hookup RV site ($400-700/month, utilities typically included) and a modest one-bedroom apartment ($1,200-1,800/month base plus $200-400 in utilities) in Watford City runs $850 to $1,500 per month depending on specific pricing and what’s included. Over a 6-month assignment the cumulative savings range from $5,100 to $9,000. Over 12 months, the savings are $10,200 to $18,000. These figures assume the contractor owns a rig and is comparing the site cost to the apartment cost rather than factoring in rig acquisition cost — contractors who don’t own a rig face a different calculation that includes either purchasing/renting a rig or paying the apartment rate.
Can I deduct my RV as a business expense if I use it for work assignments?
Potentially, if the RV is used primarily (more than 50% of its total use) for business purposes — specifically as housing during temporary work assignments rather than for personal recreation. Under IRS rules, property used more than 50% for business qualifies for depreciation as a business asset, potentially including Section 179 expensing or bonus depreciation. The documentation requirement is real: you need to track and record business use versus personal use for each year you claim business use depreciation. A contractor whose rig is at a Bakken work location for 8+ months and used personally only during off-rotation months has a defensible business-use percentage, but the documentation needs to support that percentage. Work with a CPA who understands contractor asset depreciation — the potential tax benefit is real and worth the professional guidance.
What is the GSA per diem rate for Watford City, ND?
The GSA (General Services Administration) per diem rates are set annually for each county or metropolitan area and cover both lodging and meals and incidental expenses (M&IE). McKenzie County, ND (where Watford City is located) has a per diem rate that reflects the higher cost of living in the active Bakken production area. The current year’s rate is available at gsa.gov/travel/plan-book/per-diem-rates — rates are updated each October for the federal fiscal year. These rates matter for W-2 employees whose employer per diem policy is tied to GSA rates, and for independent contractors establishing the appropriate benchmark for documenting away-from-home expenses. Your employer’s HR or payroll department, or your CPA, can advise on how the applicable rate affects your specific situation.
Can I negotiate a better rate for a long-term RV site in Watford City?
Yes, in many cases. The posted monthly rate at most parks is the starting point for a multi-month commitment, not necessarily the final rate. Parks that serve the Bakken contractor population value long-term, returning guests who provide revenue certainty over multiple months. When booking a stay of 3 months or more, it’s worth asking directly whether a multi-month rate reduction is available, whether there’s a preferred site assignment for long-term guests, or whether a commitment paid in advance earns a discount. Some parks offer one month free after a certain commitment length; others offer site upgrades or rate reductions for returning contractors. The right approach is professional and direct — ask at booking rather than after you’ve already committed at the posted rate.