Dillon, Montana Short-Term Rental Market
Dillon, MT STRs averaged $158/night at 42.9% occupancy in April 2026 across a southwest Montana outdoor-recreation market.
Quick Answer: Dillon, Montana is an active short-term rental market. average occupancy is 43%. average monthly revenue is $1,790. average daily rate is $158. the top operator is Evolve with 167 listings. market score is 53/100 (grade D).
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
The Dillon, Montana short-term rental market covers a broad southwest Montana region anchored by the Beaverhead Valley and surrounding recreational lands. The market comprises approximately 4,408 active listings, nearly all of which are entire-place units (4,124 listings, or 93.6%), with 284 private-room listings rounding out the inventory.
In April 2026, the average daily rate across all listing types was $158, with average monthly revenue of $1,790 per listing. April is a shoulder period for this market, and the numbers understate peak performance. Occupancy in April was 42.9%, up a marginal 0.2 percentage points year-over-year, while ADR increased 2.8% and revenue grew 2.0% compared to the prior year’s April.
By bedroom count, 1-bedroom properties lead the inventory (1,525 units), followed by 2-bedrooms (1,256), 3-bedrooms (955), 4-bedrooms (422), and 5-bedroom-plus properties (237). Channel distribution shows Airbnb as the dominant single-platform channel (2,126 listings), with 1,823 listings cross-listed on both Airbnb and VRBO, and 459 VRBO-only. The market scores 52.87 overall, with investability (71.16) and regulation (70.44) as the strongest sub-scores, reflecting low regulatory friction and moderate returns for the investment tier.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 38% | $151 | $1,649 |
| Feb | 46% | $157 | $1,747 |
| Mar | 46% | $156 | $1,921 |
| Apr | 43% | $138 | $1,571 |
| May | 52% | $151 | $1,805 |
| Jun | 64% | $192 | $2,890 |
| Jul | 66% | $201 | $3,575 |
| Aug | 59% | $190 | $3,104 |
| Sep | 52% | $172 | $2,423 |
| Oct | 45% | $148 | $1,904 |
| Nov | 47% | $144 | $1,757 |
| Dec | 43% | $163 | $1,836 |
Top Short-Term Rental Operators in Dillon
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Evolve | 167 | 7,613 | ★ 4.84 |
| 2 | AAA Red Lodge Rentals | 45 | 3,512 | ★ 4.92 |
| 3 | Red Lodge Reservations | 32 | 1,818 | ★ 4.89 |
| 4 | Alpine Basin Homes | 30 | 881 | ★ 4.95 |
| 5 | Anaconda Pintler Property Services | 30 | 713 | ★ 4.95 |
What Kind of STR Should I Buy in Dillon?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 1,525 |
| 2 bed | 1,256 |
| 3 bed | 955 |
| 4 bed | 422 |
| 5 bed | 237 |
ADR by Property Tier
| Entire Home | $163 |
| Luxury | $340 |
| Professionally Managed | $183 |
Revenue by Dwelling Type
| Apartment | $1,558 |
| Entire Place | $1,829 |
| House | $1,883 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 48.2% |
| vrbo | 10.4% |
| both | 41.4% |
Investment Analysis
Dillon’s investment case centers on low regulatory barriers and a stable, growing ADR trend. Average monthly revenue of $1,790 in April 2026 is a shoulder-month figure; the July peak at $3,575 per listing is more representative of the market’s earning ceiling. Annualizing the all-month historical average across the seasonal pattern yields a blended revenue figure in the range of $2,100-$2,500 per month based on historical averages by year, with 2025 full-year average revenue of $2,514.
Tier comparisons highlight the upside for quality properties. The all-listings ADR of $158 compares to an entire-home tier ADR of $163, but the luxury tier commands $340 per night, a 115% premium over the market average. Professionally managed properties averaged $183 per night, a 16% premium that suggests operator quality matters in this market.
Houses average $1,883 per month revenue versus $1,829 for entire-place listings and $1,558 for apartments. The spread is narrower than in many markets, reflecting the relatively uniform inventory of Western Montana cabin-style properties.
No Zillow housing data was available for this area at time of publication, so entry-cost benchmarks for yield calculation are not available here. Investors should obtain local comp data before underwriting. The investability score of 71.16 and the relatively permissive regulatory environment (enforcement rated minimal) are positive signals.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Dillon STR guests book an average of 38 days in advance, consistent with a planned outdoor-recreation travel pattern. Anglers booking Beaverhead River float trips, hunters planning seasonal access to Beaverhead-Deerlodge National Forest, and road-trippers routing through southwest Montana tend to plan 4-6 weeks out, particularly for prime summer dates when inventory at quality properties tightens.
The average length of stay of 4.4 nights is notably longer than many comparable markets. This extended stay profile reflects the nature of the demand base: outdoor pursuits in a rural Montana setting typically draw guests for multi-day immersive trips rather than quick weekend getaways. Longer stays reduce turnover frequency, which improves net revenue per booked night when cleaning costs and operational overhead are factored in.
For pricing strategy, the 38-day booking window means operators should have pricing locked in at least 6 weeks ahead for peak summer dates. Last-minute pricing adjustments (within 2 weeks) can capture walk-in demand from anglers seeking same-week access, particularly on the Beaverhead during peak hatch seasons.
Short-Term Rental Regulations
Dillon has no city-level or county-level short-term rental ordinance. Beaverhead County maintains minimal zoning, and most county land is unzoned, meaning STR use is generally not restricted by local zoning rules. Operators in the City of Dillon should confirm their specific parcel’s standards, but no dedicated STR permit from the city or county is required.
The binding requirement is a Montana state-level Public Accommodation License issued by the Department of Public Health and Human Services (DPHHS). This license applies to any lodging operation, including tourist homes listed on Airbnb or VRBO, costs approximately $100 for a typical property, requires a health and safety inspection, and renews annually by December 31.
Operators must also register with the Montana Department of Revenue and collect an 8% state lodging tax on stays under 30 days (4% Lodging Sales and Use Tax plus 4% Lodging Facility Use tax). Dillon does not impose a local-option resort tax. There is no owner-occupancy requirement, no primary-residence requirement, and no published cap on rental nights per year.
This is one of the more permissive STR environments in Montana. No significant local regulatory changes were identified as of mid-2026. Enforcement is rated minimal, with compliance primarily limited to state licensing and tax remittance.
Market Comparison
Against national STR benchmarks (roughly 55% median occupancy, $220 median ADR), the Dillon market trails on both metrics in April 2026, with 42.9% occupancy and $158 ADR. However, the market’s peak-season performance is more competitive: July occupancy of 66.1% and ADR of $201 align closer to national norms for recreational mountain markets.
The average length of stay (4.4 nights) exceeds typical national STR averages of 2.5-3.5 nights, which is a positive indicator for operational efficiency. Year-over-year trends are modestly positive: ADR grew 2.8% and revenue grew 2.0%, which, while below inflation, reflects a stable and not declining market.
On operator concentration, the top-5 property managers collectively hold a relatively small share of the approximately 4,408-unit market. Evolve leads with 167 listings (3.8% market share) and 7,613 reviews at a 4.84 average rating. Regional specialists AAA Red Lodge Rentals (45 listings, 4.92 rating), Red Lodge Reservations (32 listings, 4.89 rating), Alpine Basin Homes (30 listings, 4.95 rating), and Anaconda Pintler Property Services (30 listings, 4.95 rating) reflect the region’s independent, local-operator character. The high ratings across all top-5 operators indicate a quality-competitive market where guest experience standards are elevated.
Frequently Asked Questions About Dillon, Montana
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