Is Billings, Montana Good for Airbnb Investment?

Potentially—Billings, Montana combines visitor demand with long-term real estate upside.

• 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.
• While property values in Billings are generally more accessible compared to larger metropolitan areas, they have shown a gradual appreciation.
• 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.

$1,200–$2,800 per month based on location, season, and property quality.

• Based on available market data and rental analytics, Airbnb hosts in Billings, Montana typically earn between $1,200 to $2,800 per month.
• 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.
• 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%.
• Location proximity to Montana State University Billings creates demand spikes during academic events.

Potentially strong—typical annual ROI is 8–14%.

• Typically generate ROI between 8-14% annually, with average nightly rates ranging from $85-120 depending on property type and location.
• 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.
• Properties near downtown Billings or close to Yellowstone access points tend to perform at the higher end of these ranges.

Billings, Montana averages 55–65% annual occupancy, with seasonal variation.

• 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.
• 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.

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

• The downtown core area near Montana Avenue offers excellent Airbnb potential due to its walkability to restaurants, breweries, and cultural attractions.
• The West End neighborhood around Rimrock Road attracts investors with its proximity to the airport, medical facilities, and shopping centers.
• The Heights area provides strong investment opportunities with its elevated location offering scenic views, proximity to hiking trails and outdoor recreation.
• The South Hills neighborhood appeals to families and groups seeking quieter accommodations while remaining close to ZooMontana and recreational facilities.
• The area near Rocky Mountain College attracts parents visiting students, alumni, and academic conference attendees.
• 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.

Yes, but only where zoning permits short-term rentals and every required license is current.

• In Billings, Montana, short-term rental properties are generally subject to standard business licensing requirements and must obtain a business license from the city.
• 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.
• 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.

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

• 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.
• 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.
• Additional requirements include collecting and remitting the 4% Montana accommodation tax quarterly, potential homeowners association fees if applicable.
• Some properties may also be subject to special improvement district assessments and must maintain proper insurance coverage.