Putting it another way: Do you believe in voluntary association, and that a club, organisation or society should have the right to reject those applying to join it?Yes, if we're really talking about a voluntary association. But is the state voluntary? Let's get back to first principles.
There are two types of libertarian. Some libertarians think that the state is necessary to deal with the problem of those who initiate force or fraud. That state would have military forces to deter overseas aggressors, a police service to deter and catch internal aggressors and a court system to determine guilt or innocence and to decide on compensation and penalties. Some of these "limited state" libertarians believe that such a system could be funded voluntarily and others are prepared to accept taxation as a necessary evil. No libertarian believes that the state should undertake any other functions.
Other libertarians go further. These "anarcho-capitalists" (or market anarchists) say that the state is unnecessary and that all of its functions can be carried out in the marketplace. Proponents of this view include Murray Rothbard and Hans-Hermann Hoppe.
Under anarcho-capitalism, all property is privately owned and access to every piece of property would be under the sole control of the owner. That would apply to roads, railways, hotels, offices, businesses as well as houses. In other words, no one would be able to enter or move within such a territory without the approval of all relevant owners. But even in a "limited state" the government wouldn’t own the roads either and the same principles of property control would apply.
What principles would owners adopt when deciding whom to let enter their property? Well, owners who would prosper in the long run would be those who'd limit entry to people expected to be productive members of society. And obviously there would be no government welfare if the state didn't exist at all or even if it were a properly limited state.
But given that we don't have a limited state, what then? I believe that the answer is clear. The government should act as if it were a rational owner concerned with the long-term capital value of the territory.