Montana’s STR market runs on a simple engine: people want to be in Big Sky Country, and there aren’t nearly enough hotels to accommodate them. Glacier National Park recorded over 3.1 million visits in 2024, Yellowstone National Park’s northern entrances funnel millions more through Montana each year, and Bozeman has become one of the fastest-growing small cities in America — its airport now handles over 2 million passengers annually. That growth has transformed Montana from a niche vacation rental market into one of the country’s highest-performing STR states by average daily rate.
The flip side of Montana’s appeal is cost. This isn’t a market where you’ll find $180,000 starter homes. Bozeman’s median home price has blown past $650,000. Whitefish sits in a similar range. Big Sky — the resort community between Bozeman and Yellowstone — doesn’t have a meaningful inventory under $500,000. If you’re pursuing rental arbitrage, the lease market is tight and expensive in these gateway towns. Montana rewards operators who understand premium markets: higher nightly rates, longer average stays, and guests willing to pay a premium for the right experience. The margins are there — but only if you execute at a high level.
Why Montana Is a Top Market for Short-Term Rentals
Montana’s tourism industry generated $5.8 billion in non-resident spending in 2024, a figure that’s grown year-over-year for over a decade. Three dynamics make this state particularly attractive for STR operators.
National Park Gateway Demand: Glacier and Yellowstone are two of the most visited national parks in the country, and Montana controls the primary gateway communities for both. West Yellowstone, Whitefish, and the Flathead Lake corridor serve as base camps for park visitors who typically stay 3-5 nights. The parks themselves have limited in-park lodging, and surrounding towns lack sufficient hotel inventory — this structural supply gap is what drives STR demand and premium pricing.
The Bozeman Boom: Bozeman has transformed from a college town into a destination unto itself. Montana State University anchors the economy, but the growth has been driven by an influx of tech workers, outdoor industry companies, and affluent remote workers. Companies like Oracle, Wisetail, and a growing startup ecosystem generate year-round corporate and relocation travel. Bozeman’s food scene, proximity to Big Sky Resort, and Bridger Bowl ski area create leisure demand across all four seasons.
Ski and Resort Tourism: Big Sky Resort, Whitefish Mountain Resort, and Bridger Bowl generate significant winter demand that many competing states lack. Montana STRs benefit from true dual-season demand — summer outdoor recreation and winter skiing — which dramatically improves annual revenue compared to single-season markets. Big Sky specifically commands some of the highest winter ADRs in the entire American West, rivaling Park City and Vail for ski-adjacent properties.
Yellowstone Effect: The Yellowstone TV series created a cultural moment that continues to drive tourism interest in Montana. While quantifying the show’s exact impact is difficult, Montana’s tourism office has reported measurable increases in out-of-state interest, particularly from Southern and Eastern U.S. markets where Montana wasn’t traditionally top-of-mind. Properties that lean into the ranch and western aesthetic benefit from this ongoing cultural tailwind.
Montana Short-Term Rental Laws and Regulations
Montana’s regulatory approach reflects its libertarian-leaning political culture — the state generally favors property owner rights, and there’s no statewide STR licensing or registration system. But individual resort communities and counties have implemented their own frameworks, some quite restrictive. The regulatory complexity here lives at the local level.
State-Level Requirements
Montana state requirements for STR operators include:
- Registration with the Montana Department of Revenue for lodging facility use tax
- Collection and remittance of 4% state lodging facility use tax on all stays under 30 days
- Collection and remittance of applicable local resort tax (varies by community)
- Compliance with Montana fire safety and building codes
- No state income tax (Montana has no sales tax, but does have income tax at 1-6.75%)
- Reporting all rental income on Montana individual income tax returns
Montana has no general sales tax, which is unusual nationally. However, the 4% lodging facility use tax and local resort taxes specifically target transient accommodations, so STR operators still have significant tax collection obligations.
Key City Regulations
Bozeman: Bozeman’s STR regulations have tightened significantly as the housing crisis intensified. The city requires a Short-Term Rental Permit for all STR properties. Permits are categorized as Type 1 (owner-occupied, hosted) or Type 2 (non-owner-occupied, unhosted). Type 2 permits are capped — the city limits the total number of non-owner-occupied STRs in residential zones. The permit application involves zoning verification, safety inspection, and proof of insurance. Annual renewal is required. Bozeman also limits STR density in residential neighborhoods and requires off-street parking. Wait lists for Type 2 permits have developed in high-demand zones.
Whitefish: Located near Glacier National Park and Whitefish Mountain Resort, Whitefish has implemented its own STR permitting system. The city restricts non-owner-occupied STRs in certain residential zones and requires a permit for all short-term rental operations. Whitefish charges a 3% local resort tax that hosts must collect. The city’s regulations balance tourism revenue against residential housing concerns — Whitefish’s year-round population of roughly 8,000 faces significant housing pressure from seasonal tourism.
Big Sky: Big Sky is an unincorporated resort community in Gallatin County, which means regulation comes from the county rather than a city government. Gallatin County requires STR registration and the Big Sky Resort Area District collects a 4% resort tax on lodging. STR regulations in Big Sky are less restrictive than Bozeman or Whitefish, partly because the community was purpose-built for tourism and seasonal use. However, proposed regulations surface periodically as the community debates growth management.
West Yellowstone: As the western gateway to Yellowstone National Park, West Yellowstone’s economy is almost entirely tourism-dependent. The town requires a business license for STR operations and collects a 3% local resort tax. Regulations are relatively permissive, reflecting the town’s economic dependence on visitor accommodations. The challenge here isn’t regulation — it’s extreme seasonality, with summer and early fall generating the vast majority of revenue.
Recent Regulatory Changes (2025-2026)
Montana’s 2025 legislative session addressed the STR-versus-housing tension that’s become politically charged in resort communities. House Bill 432 proposed limiting local governments’ ability to restrict STRs, similar to legislation passed in states like Iowa and Florida. The bill drew fierce opposition from communities like Bozeman and Whitefish, where housing affordability is a crisis. The final version gave counties and municipalities continued authority to regulate STRs while establishing a framework for grandfather protections for existing permitted operations.
Bozeman’s city commission expanded its STR enforcement program in 2025-2026, contracting with Host Compliance to identify unpermitted listings. Operators without valid permits face fines starting at $500 per day. The city also reduced the cap on Type 2 (non-owner-occupied) permits in several residential zones, making new permits harder to obtain. Existing permit holders have grandfather protections, which increases the value of properties with active permits.
Tax Obligations for Montana Airbnb Hosts
Montana’s tax structure for STR operators is unusual because the state has no general sales tax. Instead, lodging-specific taxes apply, and they vary significantly by location.
State Lodging Facility Use Tax: Montana charges 4% on all lodging stays under 30 days. This is collected and remitted to the Montana Department of Revenue. Airbnb collects this automatically. VRBO’s collection varies — verify your specific situation.
Local Resort Tax: Resort communities add their own taxes: Big Sky charges 4%, Whitefish 3%, West Yellowstone 3%, and Red Lodge 3%. These local taxes may or may not be collected by platforms automatically. Hosts must register separately with each local resort tax district and verify collection responsibilities.
State Income Tax: Montana’s income tax is progressive, ranging from 1% to 6.75%. All net rental income is taxable. Because Montana has no sales tax, the state relies more heavily on income tax revenue. Deductible expenses include cleaning, supplies, utilities, property management, insurance, depreciation, maintenance, and mortgage interest on the rental portion of the property.
Total Tax Burden Example: A Big Sky STR stay incurs 4% state lodging tax + 4% local resort tax = 8% total. A Whitefish stay incurs 4% + 3% = 7% total. While lower than states like Kentucky or New York in absolute terms, these taxes still require careful collection management, especially for operators with direct bookings or properties in multiple resort tax districts.
One benefit for Montana hosts: because the state has no sales tax, the overall tax burden on STR operations is lower than in most states. Combined with Montana’s relatively competitive income tax rates, the state is genuinely tax-friendly for STR operators compared to markets like Maine (9% lodging tax) or California.
Best Cities for Airbnb in Montana
Montana’s STR markets are gateway-driven, with proximity to natural attractions determining demand intensity. Each market operates on slightly different seasonal rhythms and attracts distinct guest profiles.
Bozeman
Montana’s fastest-growing city and the state’s most diversified STR market. Bozeman draws visitors for Montana State University events, Big Sky Resort (45 minutes south), Bridger Bowl skiing, Yellowstone National Park (90 minutes south), and the city’s own restaurant, brewery, and arts scene. The airport’s dramatic passenger growth has made Bozeman accessible to markets that previously required driving.
ADR for well-positioned Bozeman listings runs $175-$275, with peak winter (ski season) and summer (Yellowstone/outdoor) periods pushing rates higher. Occupancy averages 65-75% annually, making Bozeman one of the few Montana markets with genuine four-season demand. A competitive two-bedroom generates $3,800-$5,200/month in gross revenue during peak months and $2,400-$3,200 during shoulder periods. The main constraint is the permit system — obtaining a Type 2 permit in desirable zones has become increasingly difficult.
Whitefish
Positioned between Glacier National Park and Whitefish Mountain Resort, this town delivers Montana’s best dual-season STR performance. Summer visitors use Whitefish as a base for Glacier exploration (the park entrance is 25 minutes away), while winter visitors come for Whitefish Mountain Resort’s 3,000 acres of ski terrain. Flathead Lake — the largest natural freshwater lake west of the Mississippi — adds lakeside tourism demand.
ADR in Whitefish runs $185-$300 during peak periods, with premium properties (mountain views, ski-in/ski-out, lakefront) exceeding $400/night. Occupancy averages 60-72% across both seasons. A well-managed two-bedroom generates $3,400-$5,000/month during peak and $2,000-$2,800 during shoulder periods. The transition periods between ski season (December-March) and summer season (June-September) create April-May and October-November lulls that require pricing strategy adjustments.
Big Sky
Big Sky is a premium resort market with some of the highest ADRs in Montana. Big Sky Resort draws skiers from across the country, and the community’s proximity to Yellowstone (via the Gallatin Canyon) makes it a year-round destination. The market is dominated by condos, townhomes, and luxury cabins rather than traditional single-family homes.
ADR for Big Sky properties averages $225-$400, with ski-in/ski-out and luxury properties exceeding $600/night during peak winter weeks. Summer rates are strong but slightly lower than winter, driven by Yellowstone access and outdoor recreation. Annual occupancy runs 55-68%, with two distinct peaks (December-March and June-September). A two-bedroom condo generates $4,000-$6,500/month during peak periods. The cost of entry is high — even condos start in the $400,000-$600,000 range — but so is the revenue.
West Yellowstone
The most seasonal of Montana’s major STR markets. West Yellowstone exists almost entirely to serve Yellowstone National Park visitors, and its rhythm follows the park’s opening and closing schedule. Summer (June through mid-September) is intense — the town’s limited lodging inventory fills completely, and STR demand is extremely strong. Snowmobile season (December-March) provides a secondary peak. Spring and fall are dead.
Summer ADR runs $160-$250, with occupancy above 80% from late June through August. Winter ADR drops to $100-$160 during snowmobile season. A two-bedroom generates $3,000-$5,000/month during summer and $1,200-$2,200 during snowmobile season. Annual gross revenue typically runs $28,000-$42,000. Properties with hot tubs and outdoor space command significant premiums.
| Market | Avg Daily Rate (Peak) | Annual Occupancy | Monthly Revenue (2BR, Peak) | Median Home Price |
|---|---|---|---|---|
| Bozeman | $175-$275 | 65-75% | $3,800-$5,200 | ~$650,000 |
| Whitefish | $185-$300 | 60-72% | $3,400-$5,000 | ~$625,000 |
| Big Sky | $225-$400 | 55-68% | $4,000-$6,500 | $400K-$600K+ (condo) |
| West Yellowstone | $160-$250 | 48-60% | $3,000-$5,000 | ~$380,000 |
How Much Do Airbnbs Make in Montana?
Montana produces some of the highest per-night revenue of any STR market in the country outside of ultra-luxury coastal destinations. The trade-off is higher acquisition costs and more complex seasonality than most Midwest or Southern markets.
The revenue math in Montana works differently than in low-cost states. A Bozeman property might gross $50,000 annually — impressive — but the mortgage or lease payment on that property could be $3,500-$4,500/month. Margins are tighter as a percentage, but the absolute dollar amounts are larger. For investors coming from markets like Iowa or Kansas, the mental shift from “cheap property, moderate revenue” to “expensive property, premium revenue” takes adjustment.
Annual gross revenue benchmarks for Montana STR operators:
- West Yellowstone (seasonal, 2BR): $28,000-$42,000
- Bozeman (year-round, 2BR): $42,000-$60,000
- Whitefish (dual-season, 2BR): $40,000-$58,000
- Big Sky (resort, 2BR condo): $48,000-$72,000
- Premium properties (3BR+, mountain/lake views): $65,000-$110,000
- Luxury ski-in/ski-out (Big Sky/Whitefish): $90,000-$160,000+
Dynamic pricing is essential in Montana because the spread between peak and off-peak rates is enormous. A Big Sky property that commands $450/night during Christmas week might average $175/night in April. Operators using tools like PriceLabs or Beyond Pricing report 20-30% higher annual revenue compared to those using flat or manually adjusted rates.
One Montana-specific revenue opportunity: guided experience packages. Hosts who partner with local fishing guides, hunting outfitters, or ski instructors to offer bundled experiences can charge premiums that pure accommodation listings can’t match. A cabin with a “3-day fly fishing package” generates more per booking than the same cabin listed as just a place to sleep.
How to Start Your Montana Airbnb Business
Montana’s premium market requires more capital and more precision than budget-friendly states. Here’s the step-by-step approach that works.
Step 1: Choose Between Resort and Gateway Markets. Bozeman and Whitefish offer the best year-round demand and the most liquid real estate markets. Big Sky delivers the highest ADRs but requires more capital and has higher management costs. West Yellowstone is the most seasonal and the most affordable entry point. For rental arbitrage, Bozeman offers the most viable lease market, though competition for suitable properties is intense.
Step 2: Verify Permit Availability. Before committing capital, confirm you can obtain an STR permit at your target property. In Bozeman, check whether Type 2 permits are available in your target zone — some zones have hit their caps. In Whitefish, verify the property’s zoning allows STR use. This step is non-negotiable in Montana’s gateway communities. A property without a permit is a property that can’t generate STR income.
Step 3: Model Revenue with Seasonal Precision. Montana’s dual-season demand creates complex revenue models. Map expected revenue by month using market-specific data (AirDNA, AllTheRooms, or Mashvisor). Account for the transition periods (April-May, October-November) where occupancy drops. Your model must cash-flow during these lulls, not just during peak weeks.
Step 4: Set Up Legal Infrastructure. Form a Montana LLC ($70 filing fee through the Montana Secretary of State). Register with Montana Department of Revenue for lodging facility use tax. Register with your local resort tax district if applicable. Obtain a local business license and STR permit per your municipality’s requirements. In Bozeman, budget 60-90 days for the permit process including inspection.
Step 5: Design for the Montana Guest. Montana visitors expect a specific experience: mountain/western aesthetic, outdoor-oriented amenities (hot tub, fire pit, gear storage, mudroom), and a sense of place. A Bozeman property decorated like a generic urban apartment will underperform one that feels distinctly Montana. Invest in quality furnishings, local art, and practical touches like a ski/boot dryer and fishing rod storage. These details drive reviews and repeat bookings.
Step 6: Implement Premium Pricing Strategy. Montana’s high ADRs demand sophisticated pricing. Use dynamic pricing software calibrated to local events: MSU football, Big Sky Resort opening day, Whitefish Winter Carnival, summer park season, and holiday weeks. Set minimum-night requirements (3-5 nights during peak, 2 nights during shoulder) to reduce turnover costs and attract the multi-night stays that Montana visitors prefer.
Step 7: Build Relationships for Property Management. Remote management is harder in Montana due to distance, weather, and the premium guest expectations. If you’re not local, partner with a property management company or co-host experienced in Montana resort markets. Quality cleaning services in resort towns book up months in advance during peak season — secure your team before you launch, not after.
Montana STR Insurance and Liability
Montana’s mountain environment creates insurance considerations that differ sharply from most markets. Wildfire risk, heavy snow loads, extreme cold, and wildlife encounters (yes, bears) all factor into your coverage strategy.
General Liability: A $1 million policy runs $1,200-$2,200 annually per property in Montana, with resort-area properties at the higher end. Properties with hot tubs, fire pits, or proximity to trails and waterways may see higher premiums. Montana’s outdoor recreation focus means guests are more likely to engage in activities that increase liability exposure.
Property Coverage: Wildfire coverage is critical and becoming more expensive. Properties in the wildland-urban interface (WUI) — which describes much of Montana’s resort areas — face higher premiums and potential coverage limitations. Ensure your policy covers fire, wind, heavy snow load damage, and frozen pipe bursts. Snow load damage is a real risk in Montana: roofs can fail under excessive accumulation if not properly maintained.
Business Interruption: Given Montana’s seasonal revenue concentration, a covered event that takes your property offline during peak season can be devastating. Business interruption coverage compensates for lost revenue during repair periods. In a market where July and August generate 30-40% of annual revenue, losing one of those months to fire damage without business interruption coverage is financially catastrophic.
Airbnb’s AirCover provides some baseline protection but isn’t designed for Montana’s specific risk profile. See our Airbnb insurance guide for details on coverage gaps. Montana STR insurance specialists include Proper Insurance, State Farm (which has strong Montana wildfire coverage), and Mountain West Financial Insurance Services.
Why 10XBNB Gives You the Edge in Montana
Montana’s premium market amplifies both the upside and the downside of every decision. Overpay for a property by $50,000 in Bozeman, and it takes years to recover that margin. Underprice your peak weeks by $30/night, and you’ve left $5,000-$10,000 on the table annually. Fail to secure a permit before investing, and you’re stuck with an asset that can’t generate the income you modeled.
10XBNB’s system provides the framework to make these decisions with data rather than guesswork. The market analysis training helps you evaluate whether Bozeman or Whitefish or Big Sky is the right fit for your capital and risk profile. The arbitrage and co-hosting modules show paths into Montana’s market without the six-figure property purchase that intimidates most operators. The pricing optimization training is particularly valuable in a market where the spread between well-priced and poorly priced listings can be $15,000-$25,000 annually.
10XBNB’s community includes operators running properties in Montana’s resort markets. That access to real-time intelligence — which zones have permit availability, which property managers deliver, how snow season is tracking — has tangible value when you’re making investment decisions in a premium market where mistakes are expensive.
Montana’s STR market is mature in some areas and still developing in others. The operators who combine market knowledge with proven systems will capture the opportunities that exist right now — before permitting caps tighten further and competition for the remaining available inventory intensifies.
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Frequently Asked Questions
Do I need a permit to run an Airbnb in Montana?
Montana doesn’t require a statewide STR permit, but most resort communities have their own permitting systems. Bozeman requires a Short-Term Rental Permit (Type 1 for owner-occupied, Type 2 for non-owner-occupied, which is capped). Whitefish requires a permit with zoning restrictions. Big Sky requires registration through Gallatin County. West Yellowstone requires a business license. Always verify permit availability at your target property before investing — in Bozeman especially, some zones have reached their Type 2 permit caps.
How much tax do Montana Airbnb hosts pay?
Montana charges a 4% state lodging facility use tax on stays under 30 days. Local resort taxes add 3-4% depending on the community: Big Sky charges 4%, Whitefish 3%, West Yellowstone 3%. Total lodging tax ranges from 7-8%. Montana has no general sales tax, making the overall tax burden moderate compared to many states. State income tax on rental profits ranges from 1% to 6.75%. Airbnb collects state lodging tax automatically, but local resort taxes may require separate registration.
Is Bozeman or Whitefish better for Airbnb investing?
Both are strong markets with different profiles. Bozeman offers more diversified demand (university, corporate, ski, Yellowstone) and genuine four-season occupancy, making revenue more predictable. Whitefish delivers higher peak ADRs due to Glacier Park and ski resort proximity but has more pronounced shoulder-season lulls. Property costs are similar in both markets ($600,000-$700,000 median). Bozeman is generally better for operators seeking year-round consistency, while Whitefish is better for those who can maximize premium peak-season pricing.
Can I do rental arbitrage in Montana?
Rental arbitrage is possible but challenging in Montana’s resort markets. Bozeman has the most viable rental inventory for arbitrage, though lease costs run $1,800-$2,800/month for suitable two-bedroom properties, and you still need to obtain an STR permit. Whitefish and Big Sky have tighter rental markets with limited suitable inventory. The key constraint beyond lease cost is permit availability — you must verify that the property can receive an STR permit before signing a lease. Landlord receptiveness varies; presenting a professional proposal with insurance documentation improves your chances.
What’s the best season for Montana Airbnbs?
Montana’s best STR revenue comes during two peak periods: summer (late June through August) driven by Glacier and Yellowstone National Park tourism, and winter ski season (December through March) driven by Big Sky, Whitefish Mountain, and Bridger Bowl. Bozeman maintains solid demand across all four seasons. The weakest periods are the “mud seasons” — April-May and October-November — when both summer and winter activities are limited. Annual revenue splits roughly 40% summer, 35% winter, and 25% shoulder/transition for dual-season markets.
How much do Airbnbs make near Glacier National Park?
Properties in the Glacier gateway area (Whitefish, Columbia Falls, West Glacier) generate strong seasonal revenue. A well-optimized two-bedroom in Whitefish grosses $40,000-$58,000 annually, with peak summer months generating $3,400-$5,000/month and winter ski season adding $2,000-$2,800/month. Premium properties with mountain views or direct ski/lake access can exceed $70,000-$90,000 annually. The Glacier corridor is one of Montana’s highest-performing STR markets, though seasonal lulls in April-May and October-November require careful financial planning.
Montana’s STR market combines premium pricing, iconic natural attractions, and dual-season demand in a way that few states can match. The barriers to entry — higher property costs, permitting complexity, and management challenges in remote mountain communities — also function as competitive moats for operators who clear them. For a broader perspective on where Montana fits in the national STR landscape, compare it against other top-performing states in our best states for Airbnb analysis.
