Billings, Montana Short-Term Rental Market Analysis
The short-term rental (STR) market in Billings, Montana, is characterized by a total of 570 active listings, an average daily rate (ADR) of $141.85, and an occupancy rate of 66.66%. A standout metric is the city's rental demand score of 86.08, indicating solid interest from travelers looking for temporary accommodations.
Billings, Montana Short-Term Rental Market Overview
Visitor Profile
Billings, Montana, attracts approximately 1.5 million visitors annually, making it a significant hub for tourism in the region. The visitor demographics reveal a diverse mix, with a majority aged between 25 and 54 years, and a notable percentage of families and outdoor enthusiasts. The primary reasons for visiting include outdoor recreation, cultural experiences, and business travel, contributing to an estimated economic impact of over $200 million. This influx of visitors not only supports local businesses but also enhances the overall vibrancy of the community. For more insights, the local tourism bureau provides valuable information on visitor trends and attractions (https://www.visitbillings.com).
In terms of visitor statistics, the average length of stay in Billings is around 2.5 nights, with peak seasons occurring during summer and early fall, when outdoor activities are at their prime. The city is particularly popular among travelers seeking adventure, with attractions such as the Yellowstone Art Museum and nearby national parks. According to the tourism bureau (https://www.visitbillings.com/about-us), the majority of visitors come from neighboring states, particularly North Dakota, South Dakota, and Wyoming, drawn by the area’s natural beauty and recreational opportunities. Business travelers also play a significant role, contributing to the demand for accommodations and services. The hospitality sector benefits from these trends, with occupancy rates peaking during the summer months. Overall, Billings tourism statistics indicate a thriving market that continues to grow, offering a wealth of opportunities for STR operators and local businesses alike. For more information on activities and attractions, visit (https://amateurtraveler.com/what-to-do-around-billings-montana/).
Top Attractions
Billings, Montana, is a vibrant city that offers a rich tapestry of attractions for visitors seeking adventure, culture, and history. Nestled in the heart of Big Sky Country, Billings is home to stunning landscapes and a variety of activities that cater to all interests. Notable attractions include the Yellowstone Art Museum, which showcases contemporary art, and the historic Pictograph Cave State Park, where ancient rock art tells the story of the region’s early inhabitants. Whether you’re exploring the great outdoors or immersing yourself in local culture, Billings has something for everyone, making it a must-visit destination in Montana.
One of the top attractions in Billings is the Yellowstone Art Museum, which features an impressive collection of contemporary art and rotating exhibitions. The museum is dedicated to promoting the arts and offers educational programs for visitors of all ages. For more information, visit their official website. Another highlight is the Pictograph Cave State Park, where you can hike through scenic trails and view ancient rock paintings that date back thousands of years. This site provides a unique glimpse into the lives of the area’s early inhabitants. Families will enjoy the Billings Zoo, which houses a diverse range of animals and offers interactive experiences for children. The official visitor guide at Visit Billings (https://www.visitbillings.com/) provides detailed information on these attractions and more. For those seeking outdoor adventures, the nearby Rimrocks offer stunning views and hiking opportunities, making them a perfect spot for nature lovers. Explore what to do around Billings Montana at Amateur Traveler (https://amateurtraveler.com/what-to-do-around-billings-montana/) for even more ideas. With its blend of culture, history, and outdoor activities, Billings is a treasure trove of experiences waiting to be discovered.
Regulations
Billings short-term rental regulations are essential for property owners looking to navigate the legal landscape of operating vacation rentals in this vibrant Montana city. Owners must secure a business license and comply with specific zoning requirements to legally operate short-term rentals. Additionally, there are tax obligations that include a local bed tax, which property owners must collect and remit. Understanding these regulations is crucial to avoid penalties and ensure a smooth rental experience. For those interested in maximizing their rental potential while adhering to local laws, it is vital to stay informed about the latest updates in Billings’ short-term rental policies.
To operate a short-term rental in Billings, property owners must first obtain a business license from the city. This process includes submitting an application and paying the associated fees. Property owners are also required to collect a bed tax, which is currently set at 3% of the rental income, and remit it to the city on a quarterly basis. Zoning restrictions are in place to ensure that short-term rentals are located in appropriate areas, and owners should verify that their property complies with these zoning laws. Safety requirements, such as smoke detectors and fire extinguishers, must be met to ensure guest safety. Failure to comply with these regulations can result in fines and potential revocation of the rental license. For more detailed information on the legal framework governing short-term rentals, visit the City of Billings’ official legal information page at https://www.billingsmt.gov/195/Legal-Information and the municipal code at https://www.billingsmt.gov/152/City-Code.
Vacation Rental Market Overview for Billings
Billings attracts visitors with its beaches and waterfront activities and family-friendly attractions. The short-term rental market here serves diverse traveler demographics, from business professionals to family vacationers.
This destination’s rental market offers unique opportunities for property investors, with comprehensive data revealing seasonal patterns and demand drivers.
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Billings, Montana Market Performance Trends
Short-Term Rental Market Performance Analysis for Billings
The short-term rental market in Billings demonstrates dynamic pricing patterns and occupancy trends that savvy property investors and managers monitor closely. This comprehensive 12-month analysis reveals seasonal variations and revenue optimization opportunities.
Market Trend Summary
Current market indicators show: strong seasonal variation with peak summer demand
Market data updated daily. Professional-grade analytics trusted by thousands of property managers and real estate investors.
Billings, Montana Rental Market Insights
10-Year Market Growth
Booking Activity
- 1-3 Months:60.7% Booked
- 4-6 Months:56.9% Booked
- 7-9 Months:38% Booked
- 10-12 Months:11.1% Booked
Cancellation Policies
- Flexible:41.1%
- Moderate:46%
- Strict:12.6%
- Super Strict:12.6%
- N/A:0.3%
Minimum Stay
- 1 Day:208
- 2 Days:140
- 3 Days:42
- 4-6 Days:20
- 7-29 Days:25
- 30+ Days:21
Short-Term Rental Regulations and Booking Patterns in Billings
Billings vacation rental operators navigate specific local regulations and booking patterns that shape market dynamics. Understanding minimum stay requirements, cancellation policies, and booking windows is essential for successful property management.
Market analysis reveals flexible booking policies attracting last-minute travelers. These insights help property managers optimize their listing strategies and maximize occupancy.
Local regulations and platform policies influence rental operations. StaySTRA provides comprehensive policy tracking and compliance insights.
Billings, Montana Housing Market Data
Home Value Trends
Market Overview
- Typical Home Value:$397,088
- Median Sale Price:$375,666
- Median List Price:$426,666
Current Inventory
- Homes For Sale:688
- New Listings:232
Detailed Market Analysis
Real Estate Market Analysis for Billings, Montana
The residential real estate market in Billings, Montana presents unique opportunities for investors and homebuyers alike. Current market dynamics show balanced market conditions with accessible entry points with inventory levels and pricing trends that reflect broader economic conditions and local demand factors.
Key Market Factors
Important considerations for this market include: proximity to major employment centers, quality school districts, and developing infrastructure These factors contribute to the overall market performance and future growth potential.
Real estate investments in Billings, Montana benefit from growing rental market potential and investment opportunities. Prospective buyers and investors should consider both current market conditions and long-term growth indicators when evaluating opportunities in this market.
Billings, Montana Rental Market Composition
Entire Place by Beds
Common Rental Amenities
Amenity data is not available for this location.
Vacation Rental Property Types in Billings
The vacation rental market in Billings features a diverse mix of property types, from cozy studios to spacious family homes. Understanding the property composition helps investors identify market gaps and opportunities.
Market characteristics include a balanced mix of entire homes and private rooms. This distribution reflects local demand patterns and traveler preferences.
Premium amenities and guest ratings play a crucial role in rental performance, with data showing clear correlations between specific features and booking rates.
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Market Overview
As of April 2025, Billings hosts 570 short-term rentals, demonstrating a stable presence in Montana's STR landscape. The city's average occupancy rate of 66.66% aligns closely with the national average of approximately 65%, while the ADR of $141.85 slightly undercuts the state average of about $150. This discrepancy highlights both the potential for growth and the competitive landscape facing local hosts.
Billings' population of approximately 117,116 residents is complemented by about 2.6 million annual visitors, primarily driven by outdoor and cultural tourism. Attractions such as ZooMontana and the nearby Beartooth Mountains draw significant interest, making Billings a strategic hub for travelers seeking adventure and culture.
Unique characteristics of this market include a relatively high proportion of one- and two-bedroom listings, which cater to both solo travelers and small families. However, the market faces challenges, such as fluctuating occupancy rates during the colder months and the increasing competition from traditional hotels and motels.
Key Performance Indicators
The average daily rate (ADR) of $141.85 serves as a useful benchmark for prospective investors. In the past year, the occupancy rate has averaged around 66.66%, reflecting a consistent demand for short-term rentals.
- Revenue per Property: The average monthly revenue per property stands at $2,096, providing a realistic expectation of earnings for investors.
- Rental Demand Score: At 86.08, this score indicates that Billings is a favorable market for STR investments when compared to similar areas within Montana.
Understanding these metrics can help investors gauge potential returns and market positioning effectively.
10-Year Growth Analysis
Billings has experienced varying performance trends over the past decade, with a noticeable increase in STR listings from 79 in early 2017 to the current 570. This represents a compound annual growth rate (CAGR) of approximately 28.75%.
However, the market has faced some downturns, particularly during the pandemic years, leading to a significant drop in occupancy rates and revenues. Key growth inflection points included:
- 2019-2020: A surge in tourism leading up to the COVID-19 pandemic.
- 2021: A gradual recovery as restrictions lifted and travel resumed.
While Billings' STR market has shown resilience, potential investors should be aware of the cyclical nature of the tourism industry.
Investment Potential & ROI
Realistic ROI calculations for STR investments in Billings indicate that investors can expect a return of approximately 8-10% annually, based on local property values and average monthly revenues.
- Performance by Property Type: Entire homes yield higher returns compared to private rooms, with two-bedroom listings typically generating the most revenue.
- Cash Flow Projections: Considering the average home value in Billings is around $402,024, investors can anticipate manageable cash flow if operating costs and occupancy rates remain stable.
Comparing these figures to traditional rental yields of 5-7% reinforces the attractiveness of STR investments in this market.
Seasonal Market Patterns
Monthly performance variations reveal distinct seasonal trends in Billings. Peak tourist seasons typically align with summer months, while winter sees a decline in bookings.
- Peak Season: June to August, with average occupancy rates reaching up to 84%.
- Shoulder Periods: Spring and fall show moderate occupancy, around 60%.
- Winter Months: Occupancy rates can dip to as low as 40%.
Investors should consider adjusting their pricing strategies and marketing efforts to align with these seasonal trends, maximizing revenue during peak periods while minimizing losses during slower months.
Property Type Performance
The distribution of property types in Billings demonstrates a clear preference for entire homes, with 408 such listings compared to only 37 private room options.
- Performance Metrics: Two-bedroom properties tend to excel in occupancy and revenue, making them a favorable choice for investors.
- Configuration Recommendations: Properties that include essential amenities such as kitchens and parking tend to attract a wider audience and command higher rates.
Overall, understanding which property types perform best can guide investment decisions and property management strategies.
Guest Preferences & Amenities
Reviewing guest preferences reveals important insights into what amenities drive booking decisions in Billings:
- Must-Have Amenities: Internet access, kitchens, and parking are highly sought after by guests.
- Nice-to-Have Amenities: Features like hot tubs and air conditioning can enhance guest experiences but do not significantly influence pricing.
Guest ratings reflect a high level of satisfaction, with an average overall rating of 4.85, which underscores the importance of maintaining property standards and amenities.
Regulatory Environment
Billings operates under a regulatory framework that aims to balance community livability with economic opportunity from tourism.
Key considerations include:
- Licensing and Permits: Hosts must obtain appropriate permits and comply with local business licensing requirements.
- Zoning Compliance: STRs must operate within designated zoning districts and may be restricted to the host’s primary residence.
- Health and Safety Standards: Compliance with safety regulations is mandatory, including smoke detectors and occupancy limits.
For the latest regulatory updates, property owners should consult the City of Billings Official Website.
Neighborhood Analysis
The performance of STRs varies significantly across neighborhoods in Billings. Areas close to attractions like ZooMontana and the Montana Art Museum typically see higher occupancy rates due to increased tourist footfall.
- Top Performing Areas: Neighborhoods near downtown and major attractions show promising performance metrics.
- Emerging Neighborhoods: Areas undergoing development may present new investment opportunities, particularly if they align with local tourism trends.
Investors should consider location factors, such as proximity to attractions and transportation access, when selecting properties for STR.
Market Outlook & Trends
Looking ahead, the STR market in Billings shows potential for growth driven by increasing tourism and a stable local economy. However, investors should remain vigilant regarding the following risk factors:
- Economic Developments: Ongoing local projects may enhance market appeal but could also lead to increased competition.
- Seasonality: Seasonal fluctuations in occupancy must be anticipated and managed effectively.
Overall, the outlook suggests that with careful strategic planning, there are opportunities for growth in the Billings STR market.
Frequently Asked Questions
What is the average ROI for STRs in Billings?
- Investors can expect an ROI of approximately 8-10% annually based on local property values.
When is the best time to visit Billings?
- The peak tourist season is from June to August when occupancy rates are at their highest.
What are the STR regulations in Billings?
- Hosts must comply with local licensing, zoning, and health and safety regulations. Consult the City of Billings Official Website for details.
Which property type performs best?
- Two-bedroom entire homes generally yield the highest revenue and occupancy rates.
How does Billings compare to other Montana markets?
- Billings offers competitive returns with solid demand but faces challenges from traditional accommodations and seasonality.
This analysis provides valuable insights for investors considering entering the Billings STR market, emphasizing the need for data-driven decisions and strategic planning.
