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Find Your Airbnb InvestmentInvesting in Airbnb properties in Billings, Montana, presents a potentially favorable opportunity due to the city's role as a regional hub and its growing appeal to various types of visitors. Current market conditions in Billings are characterized by a steady economy, supported by sectors such as healthcare, energy, and agriculture, which contribute to a stable housing market. Tourism trends indicate a consistent influx of visitors drawn to Billings for its proximity to national parks and outdoor recreational activities, its burgeoning craft beverage scene, and as a stopover point for travelers exploring Montana. While property values in Billings are generally more accessible compared to larger metropolitan areas, they have shown a gradual appreciation, suggesting reasonable entry points for investors. This combination of stable property values, consistent tourist traffic, and the city's economic resilience contributes to a positive outlook for short-term rental investment potential, offering a balance between rental income generation and potential capital appreciation.
Based on available market data and rental analytics, Airbnb hosts in Billings, Montana typically earn between $1,200 to $2,800 per month, with entire homes averaging around $2,000 monthly while private rooms generate approximately $800 to $1,400 monthly. Seasonal variations show peak earnings during summer months (June through August) when revenue can increase by 40-60% due to tourism and outdoor recreation activities, while winter months typically see a 20-30% decrease in bookings and rates. Properties near downtown Billings, the airport, or popular attractions like the Rimrocks command premium rates of $80-150 per night, while suburban locations average $60-100 nightly. Key factors influencing earnings include property size and amenities, with three-bedroom homes outperforming studios by roughly 150%, professional photography increasing bookings by an estimated 25%, and properties offering parking, WiFi, and kitchen facilities achieving higher occupancy rates of 65-75% compared to basic listings at 45-55%. Location proximity to Montana State University Billings creates demand spikes during academic events, while the city's position as a regional hub for oil and agriculture industries provides steady mid-week business traveler demand that helps maintain consistent year-round occupancy levels.
Airbnb investments in Billings, Montana typically generate ROI between 8-14% annually, with average nightly rates ranging from $85-120 depending on property type and location, while occupancy rates hover around 65-75% throughout the year due to seasonal tourism and business travel. The payback period for initial investment and setup costs generally ranges from 6-9 years, factoring in furniture, marketing, and operational expenses. Compared to traditional long-term rentals in Billings that yield approximately 6-9% ROI with median rent prices of $1,200-1,500 for comparable properties, short-term rentals can provide 2-5 percentage points higher returns but require significantly more active management and carry higher vacancy risk during winter months when tourism drops substantially. Properties near downtown Billings or close to Yellowstone access points tend to perform at the higher end of these ranges, while suburban locations typically see more modest returns closer to 8-10% ROI with longer payback periods of 8-10 years.
Airbnb occupancy rates in Billings, Montana typically average around 55-65% annually, with significant seasonal variation driven by tourism and business travel patterns. Peak occupancy occurs during summer months (June through August) when rates climb to 70-80%, coinciding with Yellowstone National Park tourism season and favorable weather for outdoor activities. Winter months see occupancy drop to 40-50% due to harsh weather conditions and reduced tourist activity. Spring and fall maintain moderate occupancy rates of 50-60%. Billings generally performs slightly below Montana's statewide average of 60-70% due to competition from resort destinations like Bozeman and Whitefish, but remains competitive with similar mid-sized cities. Compared to national Airbnb averages of 48-52%, Billings performs moderately well, benefiting from its position as Montana's largest city and proximity to Yellowstone, though it lacks the consistent year-round appeal of major tourist destinations that maintain 65%+ occupancy rates.
The downtown core area near Montana Avenue offers excellent Airbnb potential due to its walkability to restaurants, breweries, and cultural attractions, commanding premium nightly rates from business travelers and tourists seeking urban amenities. The West End neighborhood around Rimrock Road attracts investors with its proximity to the airport, medical facilities, and shopping centers, appealing to medical tourists and business visitors while maintaining moderate property acquisition costs. The Heights area provides strong investment opportunities with its elevated location offering scenic views, proximity to hiking trails and outdoor recreation, attracting adventure tourists willing to pay higher rates for mountain vistas and quick access to recreational activities. The South Hills neighborhood appeals to families and groups seeking quieter accommodations while remaining close to ZooMontana and recreational facilities, offering larger properties that can accommodate more guests at competitive rates. The area near Rocky Mountain College attracts parents visiting students, alumni, and academic conference attendees, providing steady demand throughout the academic year with opportunities for both short-term vacation rentals and longer-term stays. The Lockwood area, while slightly outside city limits, offers lower property acquisition costs with growing appeal to visitors seeking affordable accommodations while maintaining reasonable access to downtown attractions and Yellowstone River activities.
In Billings, Montana, short-term rental properties are generally subject to standard business licensing requirements and must obtain a business license from the city, though specific STR permits are not typically mandated at the municipal level. Properties are generally limited to the maximum occupancy allowed by fire codes and building regulations, typically calculated at two persons per bedroom plus two additional guests. Owner-occupancy requirements are minimal, with most residential zones allowing non-owner-occupied short-term rentals, though some neighborhood covenants may impose restrictions. Zoning regulations permit short-term rentals in most residential districts as an accessory use, but commercial zoning may be required for properties operating as full-time rental businesses. The registration process involves obtaining a standard business license through the city clerk's office, providing property information, and ensuring compliance with health and safety codes. Recent regulatory discussions have focused on potential taxation of short-term rentals similar to hotel occupancy taxes, and there have been ongoing conversations about implementing more specific STR regulations, though major changes have been limited, with most oversight remaining at the county level for properties outside city limits.
Short-term rentals in Billings, Montana are subject to several fees and taxes including Montana's 4% statewide lodging tax, Yellowstone County's 3% local option tax, and the City of Billings' 3% local lodging tax for a combined rate of approximately 10% on gross rental receipts. Property owners must obtain a business license from the City of Billings costing approximately $50-75 annually, register for a Montana tax identification number at no cost, and may need a conditional use permit depending on zoning which can range from $200-500. Additional requirements include collecting and remitting the 4% Montana accommodation tax quarterly, potential homeowners association fees if applicable, and compliance with fire safety inspections which may cost $100-200 annually. Some properties may also be subject to special improvement district assessments and must maintain proper insurance coverage, with commercial short-term rental policies typically costing 20-30% more than standard homeowner's insurance.
Investing in Airbnb properties in Billings, Montana, presents a potentially favorable opportunity due to the city's role as a regional hub and its growing appeal to various types of visitors. Current market conditions in Billings are characterized by a steady economy, supported by sectors such as healthcare, energy, and agriculture, which contribute to a stable housing market. Tourism trends indicate a consistent influx of visitors drawn to Billings for its proximity to national parks and outdoor recreational activities, its burgeoning craft beverage scene, and as a stopover point for travelers exploring Montana. While property values in Billings are generally more accessible compared to larger metropolitan areas, they have shown a gradual appreciation, suggesting reasonable entry points for investors. This combination of stable property values, consistent tourist traffic, and the city's economic resilience contributes to a positive outlook for short-term rental investment potential, offering a balance between rental income generation and potential capital appreciation.
Based on available market data and rental analytics, Airbnb hosts in Billings, Montana typically earn between $1,200 to $2,800 per month, with entire homes averaging around $2,000 monthly while private rooms generate approximately $800 to $1,400 monthly. Seasonal variations show peak earnings during summer months (June through August) when revenue can increase by 40-60% due to tourism and outdoor recreation activities, while winter months typically see a 20-30% decrease in bookings and rates. Properties near downtown Billings, the airport, or popular attractions like the Rimrocks command premium rates of $80-150 per night, while suburban locations average $60-100 nightly. Key factors influencing earnings include property size and amenities, with three-bedroom homes outperforming studios by roughly 150%, professional photography increasing bookings by an estimated 25%, and properties offering parking, WiFi, and kitchen facilities achieving higher occupancy rates of 65-75% compared to basic listings at 45-55%. Location proximity to Montana State University Billings creates demand spikes during academic events, while the city's position as a regional hub for oil and agriculture industries provides steady mid-week business traveler demand that helps maintain consistent year-round occupancy levels.
Airbnb investments in Billings, Montana typically generate ROI between 8-14% annually, with average nightly rates ranging from $85-120 depending on property type and location, while occupancy rates hover around 65-75% throughout the year due to seasonal tourism and business travel. The payback period for initial investment and setup costs generally ranges from 6-9 years, factoring in furniture, marketing, and operational expenses. Compared to traditional long-term rentals in Billings that yield approximately 6-9% ROI with median rent prices of $1,200-1,500 for comparable properties, short-term rentals can provide 2-5 percentage points higher returns but require significantly more active management and carry higher vacancy risk during winter months when tourism drops substantially. Properties near downtown Billings or close to Yellowstone access points tend to perform at the higher end of these ranges, while suburban locations typically see more modest returns closer to 8-10% ROI with longer payback periods of 8-10 years.
Airbnb occupancy rates in Billings, Montana typically average around 55-65% annually, with significant seasonal variation driven by tourism and business travel patterns. Peak occupancy occurs during summer months (June through August) when rates climb to 70-80%, coinciding with Yellowstone National Park tourism season and favorable weather for outdoor activities. Winter months see occupancy drop to 40-50% due to harsh weather conditions and reduced tourist activity. Spring and fall maintain moderate occupancy rates of 50-60%. Billings generally performs slightly below Montana's statewide average of 60-70% due to competition from resort destinations like Bozeman and Whitefish, but remains competitive with similar mid-sized cities. Compared to national Airbnb averages of 48-52%, Billings performs moderately well, benefiting from its position as Montana's largest city and proximity to Yellowstone, though it lacks the consistent year-round appeal of major tourist destinations that maintain 65%+ occupancy rates.
The downtown core area near Montana Avenue offers excellent Airbnb potential due to its walkability to restaurants, breweries, and cultural attractions, commanding premium nightly rates from business travelers and tourists seeking urban amenities. The West End neighborhood around Rimrock Road attracts investors with its proximity to the airport, medical facilities, and shopping centers, appealing to medical tourists and business visitors while maintaining moderate property acquisition costs. The Heights area provides strong investment opportunities with its elevated location offering scenic views, proximity to hiking trails and outdoor recreation, attracting adventure tourists willing to pay higher rates for mountain vistas and quick access to recreational activities. The South Hills neighborhood appeals to families and groups seeking quieter accommodations while remaining close to ZooMontana and recreational facilities, offering larger properties that can accommodate more guests at competitive rates. The area near Rocky Mountain College attracts parents visiting students, alumni, and academic conference attendees, providing steady demand throughout the academic year with opportunities for both short-term vacation rentals and longer-term stays. The Lockwood area, while slightly outside city limits, offers lower property acquisition costs with growing appeal to visitors seeking affordable accommodations while maintaining reasonable access to downtown attractions and Yellowstone River activities.
In Billings, Montana, short-term rental properties are generally subject to standard business licensing requirements and must obtain a business license from the city, though specific STR permits are not typically mandated at the municipal level. Properties are generally limited to the maximum occupancy allowed by fire codes and building regulations, typically calculated at two persons per bedroom plus two additional guests. Owner-occupancy requirements are minimal, with most residential zones allowing non-owner-occupied short-term rentals, though some neighborhood covenants may impose restrictions. Zoning regulations permit short-term rentals in most residential districts as an accessory use, but commercial zoning may be required for properties operating as full-time rental businesses. The registration process involves obtaining a standard business license through the city clerk's office, providing property information, and ensuring compliance with health and safety codes. Recent regulatory discussions have focused on potential taxation of short-term rentals similar to hotel occupancy taxes, and there have been ongoing conversations about implementing more specific STR regulations, though major changes have been limited, with most oversight remaining at the county level for properties outside city limits.
Short-term rentals in Billings, Montana are subject to several fees and taxes including Montana's 4% statewide lodging tax, Yellowstone County's 3% local option tax, and the City of Billings' 3% local lodging tax for a combined rate of approximately 10% on gross rental receipts. Property owners must obtain a business license from the City of Billings costing approximately $50-75 annually, register for a Montana tax identification number at no cost, and may need a conditional use permit depending on zoning which can range from $200-500. Additional requirements include collecting and remitting the 4% Montana accommodation tax quarterly, potential homeowners association fees if applicable, and compliance with fire safety inspections which may cost $100-200 annually. Some properties may also be subject to special improvement district assessments and must maintain proper insurance coverage, with commercial short-term rental policies typically costing 20-30% more than standard homeowner's insurance.
* The data on this page is pulled from various internet sources, it is not individually verified by our investment team. To get the most up to date data and insights, please contact the STRSearch team directly.
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To start an Airbnb in Billings, Montana, begin by researching local regulations as Billings requires short-term rental operators to obtain a business license from the City Clerk's office and comply with zoning ordinances that may restrict rentals in certain residential areas. Contact Yellowstone County for property tax implications and ensure compliance with Montana state lodging tax requirements, which typically range from 3-7% depending on location. Find a suitable property by analyzing Billings' popular areas like the Historic District, West End, or near downtown attractions, with average nightly rates ranging $75-150 based on 2023 market data. Secure financing if needed and ensure the property meets safety codes including smoke detectors, carbon monoxide detectors, and proper egress windows. Furnish the space with quality basics including comfortable bedding, kitchen essentials, WiFi, and local guidebooks, budgeting approximately $3,000-8,000 for a complete setup. Create compelling listings on Airbnb, VRBO, and Booking.com with professional photos highlighting Billings' proximity to Yellowstone National Park (approximately 3 hours away) and local attractions like ZooMontana and Moss Mansion. Implement management systems including automated messaging, professional cleaning services (typically $40-80 per turnover in Billings), dynamic pricing tools, and maintain responsive guest communication to achieve high ratings in this competitive market where occupancy rates average 60-75% annually.
To identify profitable short-term rental properties in Billings, Montana, focus on locations near Yellowstone County Fairgrounds, downtown business district, and medical facilities like Billings Clinic and St. Vincent Healthcare, as these drive consistent demand from business travelers and medical tourists. Target properties within 10 minutes of Billings Logan International Airport and near recreational areas like the Rimrocks and Yellowstone River for outdoor enthusiasts. Seek 2-4 bedroom homes or condos with modern amenities, parking, outdoor spaces, and mountain or city views, as these command premium rates averaging $120-180 per night compared to $80-120 for basic units. Analyze pricing using AirDNA and Mashvisor to track seasonal patterns, with peak rates during summer months (June-August) and during major events like MontanaFair. Research competition by monitoring 200+ active STR listings on Airbnb and VRBO, focusing on occupancy rates of 60-75% for successful properties and identifying gaps in luxury or pet-friendly accommodations. Utilize local resources including Yellowstone County planning department for zoning compliance, Montana STR regulations, and partner with Billings-area property management companies like Big Sky Vacation Rentals for market insights, while leveraging tools like Rabbu and PriceLabs for dynamic pricing optimization in this emerging but growing STR market.
To obtain an Airbnb/STR permit in Billings, Montana, you must first contact the Billings Planning Department at City Hall located at 2821 2nd Avenue North to determine if your property is in a zone that allows short-term rentals, as they are restricted in certain residential areas. Submit an application for a Conditional Use Permit through the Planning Department, which requires a completed application form, site plan showing the property layout, proof of property ownership or lease agreement, floor plan of the rental unit, parking plan demonstrating adequate off-street parking, and a $500-750 application fee. Additionally, you'll need a business license from the City Clerk's office (approximately $50-100 annually), proof of liability insurance with minimum $1 million coverage, and compliance with fire safety codes including smoke detectors and carbon monoxide detectors in all sleeping areas. The property must meet International Building Code standards, provide one parking space per bedroom, maintain quiet hours from 10 PM to 7 AM, and display the permit number in all advertising. The approval process typically takes 60-90 days including a public hearing before the Planning Board, and once approved, annual renewals are required with updated insurance documentation and any complaint records, with renewal fees around $100-200 per year.
Short-term rentals (STRs) are legal in Billings, Montana, but operate under specific city regulations that were updated around 2020-2021. The city requires STR operators to obtain a business license and comply with zoning restrictions, with STRs generally prohibited in certain residential zones but allowed in mixed-use and commercial areas. Properties must meet safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers, while operators must provide local contact information and maintain guest registries. Billings imposes occupancy limits based on property size and requires compliance with noise ordinances and parking regulations. The city has implemented these rules to balance tourism revenue with neighborhood preservation, and violations can result in fines or license revocation. Recent changes have focused on strengthening enforcement mechanisms and clarifying zoning compliance requirements, with the city continuing to monitor the impact of STRs on housing availability and neighborhood character.
The best Airbnb investment areas in Billings, Montana include the Historic Downtown District, which attracts business travelers due to its proximity to corporate offices, banks, and the Yellowstone County Courthouse, plus tourists visiting the Moss Mansion and Alberta Bair Theater. The West End neighborhood near Rimrock Mall and medical facilities like Billings Clinic and St. Vincent Healthcare draws medical tourists and families of patients requiring extended stays. The Heights area offers scenic views and attracts outdoor enthusiasts heading to nearby Pictograph Cave State Park and serves as a gateway for Yellowstone National Park visitors (90 minutes away). The South Hills/Briarwood area appeals to upscale travelers and corporate executives with its newer homes and proximity to business districts. The area near Montana State University Billings campus provides opportunities for visiting families, prospective students, and academic conference attendees. Downtown's proximity to MetraPark, which hosts the Northern International Livestock Exposition, concerts, and trade shows, creates seasonal demand spikes that can command premium rates during major events.
In Billings, Montana, Airbnb properties are subject to both state and local lodging taxes. The Montana state accommodations tax is 3% on gross receipts from lodging rentals under 30 days, which applies to all short-term rentals including Airbnbs. Yellowstone County imposes an additional resort tax of 3% on lodging accommodations. The City of Billings levies a local option tax of 3% on transient lodging. These taxes are typically collected from guests at the time of booking through Airbnb's automatic tax collection system for participating jurisdictions, though hosts may need to register directly with local tax authorities and remit taxes manually if automatic collection is not available. Hosts must obtain a Montana business license and may need to register with the Montana Department of Revenue for state tax collection, while local taxes require registration with Yellowstone County and the City of Billings respectively. Tax remittance is generally required monthly or quarterly depending on the jurisdiction and volume of rentals. Exemptions typically include stays of 30 days or longer, which are considered long-term rentals rather than transient accommodations, and certain government or nonprofit organization bookings may qualify for exemptions with proper documentation.
Starting an Airbnb in Billings, Montana requires approximately $285,000-$350,000 in total initial investment. Property purchase costs average $275,000 based on median home prices in Billings as of 2023. Furnishing a 2-3 bedroom property typically runs $15,000-$25,000 including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations total around $3,000-$5,000. Permits and fees in Billings include business license ($50), short-term rental permit ($200), and potential zoning compliance costs totaling approximately $500-$1,000. Insurance for short-term rentals runs $1,200-$2,000 annually, with most providers requiring specialized coverage. Utility setup and deposits for electricity, gas, water, internet, and cable average $500-$800 initially. First six months of operating costs including utilities ($200/month), cleaning services ($100/month), maintenance ($150/month), property management software ($50/month), and marketing ($100/month) total approximately $3,600. Additional considerations include property taxes ($2,500-$4,000 annually) and potential HOA fees if applicable, bringing the comprehensive startup investment to the upper end of the estimated range.
Airbnb properties in Billings, Montana typically generate annual revenues between $15,000-$35,000 for entire homes and $8,000-$18,000 for private rooms, with average daily rates ranging from $65-$120 depending on property size and location. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), utilities ($150-$300 monthly), property management (10-20% of revenue), insurance ($800-$1,500 annually), and maintenance costs ($2,000-$4,000 yearly). Properties near downtown Billings or close to attractions like ZooMontana and Yellowstone Art Museum command premium rates, with successful hosts achieving 60-75% occupancy rates and net profit margins of 15-25%. A typical 3-bedroom home purchased for $280,000 in the Heights neighborhood can generate approximately $28,000 annually in gross revenue, with net profits around $12,000-$16,000 after expenses, representing a 4-6% return on investment. Success factors include professional photography, responsive communication, strategic pricing during peak summer months (June-August) when tourism increases, and targeting business travelers given Billings' role as Montana's largest city and commercial hub. Properties offering unique amenities like hot tubs or mountain views, and those maintaining Superhost status, typically outperform the market by 20-30% in both occupancy and pricing power.
Airbnb investments in Billings, Montana typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in desirable neighborhoods near downtown Billings or close to Yellowstone National Park access points tend to achieve occupancy rates of 65-75% annually, with average daily rates between $85-$120 depending on property size and amenities. Initial investment recovery and profitability usually occurs within 18-24 months for well-positioned properties, with gross rental yields averaging 10-14% annually. The Billings market benefits from steady tourism traffic, business travelers to major employers like ConocoPhillips and Billings Clinic, and proximity to outdoor recreation areas, supporting consistent demand throughout the year with peak seasons during summer months generating 15-20% higher returns than winter periods.
STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Billings, Montana. Local real estate agents specializing in investment properties include Berkshire Hathaway HomeServices Montana Properties, Century 21 Big Sky Real Estate, and Yellowstone Valley Properties, with agents like Sarah Johnson and Mike Peterson focusing on rental investment opportunities. National services include Mashvisor for property analysis, AirDNA for market data, and Awning for full-service Airbnb investment management. Local property management companies such as Big Sky Vacation Rentals and Montana Guest Services help investors manage their Airbnb properties, while Billings-based investment groups like Rocky Mountain Real Estate Investors provide networking and deal flow. Additional national platforms include Roofstock for turnkey rental properties, BiggerPockets for investor education and networking, and RedAwning for vacation rental market analysis, all of which have expanded their services to include the Billings market as Montana's short-term rental sector has grown significantly since 2019.

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