Montana Rental Regulations by City: Bozeman, Missoula, Billings, Great Falls & More
Montana rental laws vary dramatically by city. This guide breaks down the specific rules for Bozeman, Missoula, Billings, Great Falls, Whitefish, Helena, and Kalispell — permits, STR restrictions, ADU rules, and local ordinances.
Why City Matters as Much as State Law
Montana's state law sets the baseline — security deposit rules, eviction timelines, notice requirements. But cities and counties layer additional regulations on top that can dramatically change what you can and can't do with your rental property.
A short-term rental strategy that's fully legal in Billings might be completely prohibited in Bozeman. An ADU you can build by right in Missoula might require a conditional use permit in a neighboring county.
This guide covers the major Montana cities. Bookmark it — this is the kind of information that changes annually.
Bozeman
Population: ~56,000 | Median rent: $2,100–$2,200/mo | Vacancy rate: ~12% (up dramatically from 2% in 2019)
Short-Term Rental Rules
Bozeman has Montana's most complex STR regulations, updated February 2026 with a new Unified Development Code (UDC):
| STR Type | Description | Where Allowed |
|---|---|---|
| Type 1 | Room in owner-occupied home | RA district and above |
| Type 2 | Unit on owner-occupied property (70% residency required) | RA district and above |
| Type 3 | Owner-absent rental | No longer permitted (existing grandfathered) |
Key requirements:
- Annual STR permit required (expires each year)
- Montana Sales and Use Tax Permit required
- Public Accommodations License required
- Primary residence certification for Type 1 and 2
- Floor plans and exterior sketches required for application
What this means: If you're buying in Bozeman for Airbnb and you won't live there, you cannot get a new Type 3 permit. Over 100 existing Type 3 permits were grandfathered when the ban passed in October 2023, but no new ones are being issued.
Source: City of Bozeman — Short Term Rentals
ADU Rules
Bozeman allows ADUs on single-family lots under the statewide mandate (MCA 76-2-345). Maximum 1,000 sq ft or 75% of primary dwelling. Occupancy capped at 2 people.
Long-Term Rental
No special permit needed for long-term rentals (30+ day leases). Standard state landlord-tenant law applies. Bozeman's high vacancy rate (12%+) means competitive pricing matters — the market has shifted in tenants' favor after thousands of new units were built since 2021.
Missoula
Population: ~75,000 | Median rent: $1,700–$1,900/mo | Vacancy rate: ~5%
Short-Term Rental Rules
Missoula uses a "Tourist Home" registration system:
| Requirement | Detail |
|---|---|
| Registration | Annual, through CPDI department |
| Platform compliance | Hosting platforms must display registration number |
| Zones allowed | All zoning districts |
| Units per parcel | 1 in most residential zones, 2 in multi-family zones |
| Owner occupancy | Required for most categories |
Applies if: You're offering an entire home/condo/apartment/ADU as a vacation rental for stays under 30 days with a separate entrance.
Does NOT apply if: You're renting a room in your own home while you're present.
As of early 2025, Missoula had 335 registered STRs. The city has dramatically increased enforcement — platforms will block bookings without a valid registration number.
Source: City of Missoula — Short Term Rental Registration
ADU Rules
Missoula allows ADUs under the state mandate. The city has been relatively progressive on ADU policy, viewing them as partial solutions to the housing shortage.
Long-Term Rental
Standard state law applies. University of Montana drives consistent rental demand. Tight vacancy rates (5%) give landlords pricing power, but the student population means seasonal turnover in summer.
Billings
Population: ~120,000 | Median rent: $1,400–$1,600/mo | Vacancy rate: ~5-6%
Short-Term Rental Rules
Billings has minimal STR restrictions compared to Bozeman and Missoula. The city does not currently require special STR permits or registration for vacation rentals.
Still required:
- Montana Public Accommodations License (state-level)
- Montana Sales and Use Tax Permit
- Compliance with zoning (residential zones have some use restrictions)
- Local lodging tax collection
Billings is Montana's largest city but has taken a hands-off approach to STR regulation. This makes it one of the easier markets for Airbnb operators — though lower tourism demand means occupancy rates are lower than resort markets.
ADU Rules
Billings allows ADUs under the statewide mandate. The city's relatively affordable land and larger lot sizes make ADU construction particularly feasible here.
Long-Term Rental
No special permits. Billings offers the best balance of affordability and rental demand for long-term investors. The diversified economy (energy, healthcare, retail) provides stable tenant pools.
Great Falls
Population: ~60,000 | Median rent: $1,200–$1,400/mo | Vacancy rate: ~4-5%
Short-Term Rental Rules
Great Falls has limited STR-specific regulations. The city's lower tourism profile means less regulatory pressure on short-term rentals.
Key consideration: Great Falls prohibits rental of accessory living spaces in certain zones. If you're building an ADU specifically to rent, verify with city planning before construction.
Required:
- State Public Accommodations License
- Sales and Use Tax Permit
- Zoning compliance
ADU Rules
While the state mandate requires allowing ADUs, Great Falls has historically had more restrictions on accessory dwelling rentals than other Montana cities. Check current ordinances with Great Falls Planning Division before building.
Long-Term Rental
Great Falls is Montana's most underrated rental market for cash flow. Malmstrom Air Force Base provides a reliable tenant pool of military families. Low entry prices ($275K–$350K median) and stable rents make it ideal for buy-and-hold investors.
Source: SterlingCRE Advisors — Montana ADU Analysis
Whitefish
Population: ~8,500 | Median rent: $2,000+/mo | Vacancy rate: Low (resort market)
Short-Term Rental Rules
Whitefish has implemented STR registration requirements and caps on total permits in residential areas. As a resort town near Glacier National Park and Whitefish Mountain Resort, it faces heavy STR pressure.
| Requirement | Detail |
|---|---|
| Registration | Required for all STRs |
| Permit cap | Limited number in residential zones |
| Zoning | Varies by district |
| Resort tax | Applies to all short-term accommodations |
Key risk: Whitefish covenant restrictions. Many residential neighborhoods have HOA or deed covenants prohibiting commercial activity. The Montana Supreme Court ruled in September 2025 that these covenants apply to short-term rentals — if your neighborhood restricts commercial use, your Airbnb may be illegal regardless of city permits.
Long-Term Rental
High rents but limited tenant pool. Seasonal workers (ski season, summer tourism) create demand but also high turnover. Year-round long-term tenants are harder to find in resort communities.
Helena
Population: ~34,000 | Median rent: $1,400–$1,600/mo | Vacancy rate: ~5%
Short-Term Rental Rules
Helena has moderate STR regulations. State government employment creates stable year-round rental demand that reduces the incentive for STR conversion.
ADU Rules
Helena allows ADUs under the state mandate. The city has been receptive to additional housing density given its geographic constraints (surrounded by hills and national forest).
Long-Term Rental
Government employment (state capital) provides extremely stable tenancy. Lower appreciation potential than Bozeman/Missoula, but very low turnover risk. Good market for hands-off investors who want steady, predictable cash flow.
Kalispell
Population: ~28,000 | Median rent: $1,600–$1,800/mo | Vacancy rate: ~4-5%
Short-Term Rental Rules
Kalispell and the broader Flathead County area have varying regulations depending on whether your property is inside city limits or in the county.
City of Kalispell: Moderate STR regulation with zoning-specific requirements.
Flathead County: Some areas require conditional use permits for short-term rentals. Check with county planning for your specific parcel.
Long-Term Rental
Gateway to Glacier National Park drives seasonal population fluctuations. Long-term demand is strong and growing as the Flathead Valley attracts remote workers and retirees. Property values have appreciated significantly since 2020.
Statewide Rules That Apply Everywhere
Regardless of which city your property is in, Montana state law governs:
- Security deposit collection and return (no cap, 10/30 day return)
- Eviction procedures and timelines
- Required lease disclosures (5 mandatory items)
- Habitability standards and repair timelines (14 days)
- Rent increase notice requirements (30 days for month-to-month)
- Fair housing protections
- Anti-retaliation provisions
See our Montana Landlord-Tenant Law guides for detailed coverage of each topic.
Related Reading
- Airbnb vs Long-Term Rental in Montana 2026 — The full financial comparison
- Montana Property Tax: 2026 Rates — How STR vs LTR affects your tax rate
- Best Montana Cities for Rental Investment — Investment analysis by market
- Montana Lease Agreement: Required Disclosures — What every Montana lease must include
Resources
This website provides general information only and does not constitute legal advice. No attorney-client relationship is created. Montana laws change frequently. Consult a licensed Montana attorney for advice specific to your situation.