Townsend, Montana Short-Term Rental Market
Townsend, MT STRs averaged $158/night at 42.8% occupancy in April 2026 with revenue up 1.9% year-over-year.
Quick Answer: Townsend, Montana is an active short-term rental market. average occupancy is 43%. average monthly revenue is $1,788. average daily rate is $158. the top operator is Evolve with 166 listings. market score is 53/100 (grade D).
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
The Townsend short-term rental market covers a broad south-central Montana footprint anchored by Canyon Ferry Lake in Broadwater County, with the operator landscape also reflecting activity in the Carbon County and Red Lodge area. Total listings across channels reach 4,398. Entire-place rentals dominate at 4,116 listings (93.6% of supply), with 282 private rooms. No shared rooms appear in the dataset.
The bedroom mix favors smaller to mid-size properties: 1-bedroom leads at 1,520 listings, followed by 2-bedroom at 1,253 and 3-bedroom at 956. Larger properties account for 420 4-bedroom and 235 5-bedroom listings.
In April 2026, the market posted a $158 average daily rate and 42.8% occupancy, generating $1,788 average monthly revenue. RevPAR was $68. Year-over-year in April, occupancy was essentially flat (up 0.03 percentage points), ADR rose 2.9%, and revenue grew 1.9%. The 2025 full-year average was $2,514 per month at 50.0% occupancy and $183 ADR.
Channel distribution: Airbnb lists 2,120 properties, VRBO 456, and 1,822 appear on both platforms. The overall market score is 52.71 out of 100, with investability at 71.24 and regulation at 70.15. The below-average composite score reflects a challenging regulatory environment and lower revenue growth trajectory.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 38% | $151 | $1,649 |
| Feb | 46% | $157 | $1,747 |
| Mar | 46% | $156 | $1,921 |
| Apr | 43% | $138 | $1,570 |
| May | 52% | $151 | $1,805 |
| Jun | 64% | $192 | $2,889 |
| Jul | 66% | $201 | $3,575 |
| Aug | 59% | $190 | $3,104 |
| Sep | 52% | $172 | $2,422 |
| Oct | 45% | $148 | $1,904 |
| Nov | 47% | $144 | $1,757 |
| Dec | 43% | $163 | $1,836 |
Top Short-Term Rental Operators in Townsend
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Evolve | 166 | 7,587 | ★ 4.84 |
| 2 | AAA Red Lodge Rentals | 46 | 3,535 | ★ 4.92 |
| 3 | Red Lodge Reservations | 32 | 1,813 | ★ 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 Townsend?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 1,520 |
| 2 bed | 1,253 |
| 3 bed | 956 |
| 4 bed | 420 |
| 5 bed | 235 |
ADR by Property Tier
| Entire Home | $163 |
| Luxury | $340 |
| Professionally Managed | $183 |
Revenue by Dwelling Type
| Apartment | $1,550 |
| Entire Place | $1,827 |
| House | $1,884 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 48.2% |
| vrbo | 10.4% |
| both | 41.4% |
Investment Analysis
Townsend has the highest acquisition cost of the five markets in this batch. The Zillow typical home value is $444,677 as of April 2026, with median list price at $513,333. With April 2026 average monthly revenue of $1,788, annualized revenue runs approximately $21,456, producing a gross yield of roughly 4.8% before expenses. At the stronger 2025 full-year average of $2,514 per month, the annualized figure is $30,168, yielding approximately 6.8%.
These yield figures are the lowest of the five markets processed and reflect the gap between a high-cost Montana property market and revenue that, while consistent, does not scale proportionally with acquisition cost. Investors should stress-test against slower market conditions before committing to full-priced acquisitions.
The ADR tier data offers more optimism. The all-listings ADR was $158 in April 2026, entire-home properties averaged $163, and professionally managed properties averaged $183. Luxury-tier properties averaged $340, more than double the market average, indicating a viable premium segment in lakefront and mountain properties.
Revenue by listing type in April: houses averaged $1,884, entire-place listings $1,827, and apartments $1,550. Year-over-year revenue trends show stabilization: 2023 ($2,456), 2024 ($2,495), 2025 ($2,514), a slow but consistent upward drift. The market investability score of 71.24 reflects the higher entry cost and moderate demand levels.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
April 2026 data shows an average booking lead time of 38 days and an average length of stay of 4.4 nights in the Townsend market.
A 38-day lead time is slightly shorter than comparable outdoor recreation markets, suggesting demand that books roughly 5 weeks ahead. Canyon Ferry Lake visitors from Helena (35 miles) tend to book closer to arrival for weekend trips, while out-of-state guests planning 4-to-5-day fishing or hiking vacations book further in advance. Pricing calendars should be updated at least 6 weeks ahead of summer weekends to capture planned visitors.
At 4.4 nights, Townsend has the longest average length of stay of the five markets in this batch. This reflects the destination’s appeal for multi-day fishing, boating, and recreation trips rather than one-night stopovers. A 3-night minimum stay during peak summer months (June through August) aligns well with this demand profile and reduces cleaning costs. In the shoulder season, a 2-night minimum retains flexibility without sacrificing material bookings.
Short-Term Rental Regulations
The regulatory environment in Townsend is in active transition and carries meaningful short-term uncertainty.
Townsend city ordinances classify STRs as tourist residences and require a permit issued by the building inspector. However, as of March 2026, the city had not developed a permit application or issuance process, meaning operators cannot obtain the required permit. Over 55 STRs were operating inside city limits without permits due to this gap. In March 2026, the Townsend Planning Commission recommended a six-month moratorium on new tourist residences to allow time to build out the enforcement framework. As of the profile update date, the moratorium had not been formally adopted by the full commission.
Zoning: STRs are permitted in R-1 and R-2 residential zones and prohibited in R-1E Low Density Residential Exclusive zones and in Commercial zones.
No permit fee has been publicly established. Owner-occupancy and primary-residence requirements do not apply. Broadwater County imposes no additional lodging tax beyond state obligations.
Tax obligations: Montana imposes an 8% combined state lodging tax on reservations of 29 days or fewer (4% Lodging Facility Use Tax plus 4% Lodging Sales Tax). Major platforms collect and remit these taxes automatically. All STR operators in Montana also need a Public Accommodation License from the Montana Department of Public Health and Human Services.
Enforcement is currently minimal, but the regulatory environment is moving toward greater structure. Investors should monitor ordinance developments in 2026 before committing to new acquisitions inside Townsend city limits.
Market Comparison
Against national STR benchmarks (median occupancy approximately 55%, median ADR approximately $220), Townsend’s April 2026 occupancy of 42.8% and ADR of $158 both fall below average. The 2025 full-year averages (50.0% occupancy, $183 ADR) are closer but still trail the national medians. The market’s overall score of 52.71 out of 100 is the lowest of the five markets in this analysis, reflecting moderate demand and the higher acquisition cost relative to revenue output.
The top operators in this market skew toward regional specialists. Evolve leads with 166 listings and 7,587 reviews at a 4.84 rating. AAA Red Lodge Rentals ranks second with 46 listings and 3,535 reviews at an excellent 4.92 rating. Red Lodge Reservations holds third with 32 listings and 4.89 rating. Alpine Basin Homes and Anaconda Pintler Property Services are both at 30 listings with ratings above 4.95, the highest of the top 5. The presence of Red Lodge-named operators in the top 5 reflects the broad geographic footprint of this area code.
The top 3 operators account for 244 listings out of 4,398 total. Independent hosts control approximately 94% of supply, consistent with the other markets in this batch. The strong ratings from the top regional specialists (4.92 to 4.95) suggest that local expertise drives measurable quality advantages over generic national management.
Frequently Asked Questions About Townsend, Montana
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