Missoula, Montana Short-Term Rental Market Analysis
The short-term rental (STR) market in Missoula, Montana, currently boasts approximately 710 listings, with an average daily rate (ADR) of $209.21 and an occupancy rate of around 60%. Notably, the average monthly revenue per property stands at $2,878, reflecting the area's appeal to visitors seeking both adventure and cultural experiences.
Table of Contents
Missoula, Montana Short-Term Rental Market Overview
Visitor Profile
Missoula, Montana, attracts approximately 1.3 million visitors annually, making it a vibrant hub for tourism in the region. The visitor demographic is diverse, with a significant portion being outdoor enthusiasts aged 25-54, often traveling in family groups or as couples. The primary reasons for visiting include outdoor recreation, cultural experiences, and events such as the Missoula Marathon and various music festivals. The economic impact of tourism in Missoula is substantial, contributing over $200 million to the local economy, supporting jobs and businesses in the hospitality sector. For more insights, visit the official tourism site at Destination Missoula (https://destinationmissoula.org/).
In-depth analysis reveals that the majority of visitors to Missoula hail from neighboring states, particularly Washington, Idaho, and Wyoming, with a growing number coming from urban centers like Seattle and Denver. The average length of stay is around 2.5 nights, with peak seasons occurring during summer and fall, coinciding with outdoor activities like hiking, fishing, and river sports. According to a report detailing the impact of recreational tourism on Montana (https://www.kpax.com/news/montana-news/report-details-impact-of-tourism-on-montana), this influx of visitors significantly boosts local businesses, particularly in lodging and dining. STR data indicates that hotel occupancy rates in Missoula can reach upwards of 80% during peak months, highlighting the demand for accommodations. The blend of natural beauty, cultural richness, and community events continues to draw a varied demographic, ensuring Missoula remains a key player in Montana’s tourism landscape. For a comprehensive guide to activities, check out Epic7Travel (https://epic7travel.com/things-to-do-in-missoula-montana).
Top Attractions
Missoula, Montana, is a vibrant city nestled in the heart of the Rocky Mountains, offering a unique blend of outdoor adventure, cultural experiences, and family-friendly activities. Known for its stunning landscapes and rich history, Missoula is home to signature attractions like the Missoula Art Museum and the iconic Rattlesnake National Recreation Area. Visitors can expect a variety of experiences, from exploring the local arts scene to enjoying the great outdoors. Whether you’re an adventure seeker or a culture enthusiast, Missoula has something for everyone, making it a must-visit destination in the Pacific Northwest.
One of the top attractions in Missoula is the Missoula Art Museum, which showcases contemporary art and offers free admission. This museum features rotating exhibitions and a permanent collection that highlights regional artists. For more information, visit their official website. Another popular spot is the Rattlesnake National Recreation Area, where outdoor enthusiasts can hike, bike, or fish in a stunning natural setting. The area is known for its diverse wildlife and breathtaking views, making it a perfect escape into nature. Families will enjoy the Montana Natural History Center, which provides interactive exhibits and educational programs about the region’s ecology and wildlife. This center is ideal for kids and adults alike, fostering a love for nature and science. For a comprehensive list of attractions, check out the official visitor guide at Epic7Travel.com (https://epic7travel.com/things-to-do-in-missoula-montana/) and explore more options at 2TravelDads (https://2traveldads.com/easy-visit-missoula-montana/). With so much to see and do, Missoula is a destination that promises unforgettable experiences year-round.
Regulations
Missoula short-term rental regulations are designed to ensure safety, compliance, and neighborhood harmony. Property owners looking to operate short-term rentals (STRs) in Missoula must obtain a business license and a short-term rental permit from the city. This process includes submitting an application that demonstrates compliance with local zoning laws. Additionally, owners are required to collect and remit a 7% lodging tax on rental income, which supports local tourism and community services. Understanding these regulations is crucial for property owners to avoid penalties and ensure a successful rental operation. For a deeper dive into the specifics of Missoula’s STR laws, read on.
Key regulatory information for short-term rentals in Missoula includes several essential requirements. First, property owners must obtain a business license and a short-term rental permit, which requires adherence to zoning regulations outlined in the Missoula Municipal Code. The city has specific zoning districts where STRs are permitted, and owners must ensure their property complies with these regulations. Additionally, the 7% lodging tax must be collected from guests and reported to the city on a quarterly basis. Safety requirements, such as maintaining a safe environment for guests, are also mandated, although specific details may vary. Failure to comply with these regulations can result in fines or revocation of the rental permit. For more information, visit the City of Missoula’s official website (https://www.ci.missoula.mt.us/). You can also review the municipal code for specific zoning and permit requirements (https://library.municode.com/mt/missoula/codes/code_of_ordinances).
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Vacation Rental Market Overview for Missoula
Missoula attracts visitors with its beaches and waterfront activities and cultural attractions and historic sites. 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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Missoula, Montana Market Performance Trends
Short-Term Rental Market Performance Analysis for Missoula
The short-term rental market in Missoula 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: year-round stability with consistent occupancy
Market data updated daily. Professional-grade analytics trusted by thousands of property managers and real estate investors.
Missoula, Montana Rental Market Insights
10-Year Market Growth
Booking Activity
- 1-3 Months:61.5% Booked
- 4-6 Months:61.8% Booked
- 7-9 Months:40.6% Booked
- 10-12 Months:7.9% Booked
Cancellation Policies
- Flexible:0%
- Moderate:0%
- Strict:0%
- Super Strict:0%
Minimum Stay
- 1 Day:0
- 2 Days:0
- 3 Days:0
- 4-6 Days:0
- 7-29 Days:0
- 30+ Days:0
Short-Term Rental Regulations and Booking Patterns in Missoula
Missoula 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 structured minimum stays optimizing for weekly rentals. 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.
Missoula, Montana Housing Market Data
Home Value Trends
Market Overview
- Typical Home Value:$568,707
- Median Sale Price:$559,000
- Median List Price:$613,133
Current Inventory
- Homes For Sale:518
- New Listings:153
Detailed Market Analysis
Real Estate Market Analysis for Missoula, Montana
The residential real estate market in Missoula, Montana presents unique opportunities for investors and homebuyers alike. Current market dynamics show steady growth patterns in an established market with inventory levels and pricing trends that reflect broader economic conditions and local demand factors.
Key Market Factors
Important considerations for this market include: market stability, reasonable property taxes, and strong rental demand These factors contribute to the overall market performance and future growth potential.
Real estate investments in Missoula, Montana benefit from consistent market appreciation and strong resale values. Prospective buyers and investors should consider both current market conditions and long-term growth indicators when evaluating opportunities in this market.
Missoula, Montana Rental Market Composition
Entire Place by Beds
Common Rental Amenities
Amenity data is not available for this location.
Vacation Rental Property Types in Missoula
The vacation rental market in Missoula 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 predominantly entire home rentals catering to families. 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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Missoula's STR market is characterized by a unique blend of outdoor recreational opportunities and cultural attractions. The city has a population of approximately 75,000 and attracts around 1.3 million visitors annually, with a diverse demographic that includes outdoor enthusiasts and families.
Key performance metrics illustrate that Missoula's average occupancy rate of 60% aligns closely with the state average but falls short of some national benchmarks. The ADR of $209.21 is competitive, indicating a healthy demand for STRs. However, it is crucial to consider the market's fluctuations, particularly during the off-peak months, which can significantly impact revenue.
Missoula's unique characteristics include its proximity to attractions such as the Rattlesnake National Recreation Area and the Missoula Art Museum. These factors contribute positively to the STR market, although the city also faces challenges, such as increasing competition and regulatory constraints.
Key Performance Indicators
As of the latest data, the average daily rate for STRs in Missoula is $209.21, reflecting a stable market. The occupancy rate of 60% suggests that while there is demand, there is also room for growth.
- Revenue per Property: The average monthly revenue per property is $2,878, offering a realistic expectation for investors.
- Rental Demand Score: With a score of 72.49, the rental demand indicates a moderate level of interest in the market, which can fluctuate based on seasonal factors.
For investors, understanding these metrics is vital for making informed decisions about property acquisition and pricing strategies.
10-Year Growth Analysis
The Missoula STR market has experienced varying growth over the past decade. Historical performance data shows that the market has both expanded and contracted, reflecting broader economic and tourism trends.
- Compound Annual Growth Rate (CAGR): While exact figures fluctuate, the CAGR has remained modest, with notable growth inflection points correlating with economic improvements and tourism campaigns.
- Comparison to State Averages: Compared to other Montana markets, Missoula has maintained a competitive position, but investors should remain cognizant of periods of decline, particularly during economic downturns or shifts in tourism patterns.
Investment Potential & ROI
Examining the investment potential in Missoula, a realistic return on investment (ROI) can be anticipated based on local property values and performance metrics.
- Property Value Trends: Recent data indicates that the average home value is approximately $582,065, which aligns with the regional market.
- Property Type Performance: STR ROI varies significantly by property type, with entire homes generally outperforming private rooms in terms of revenue generation.
- Cash Flow Projections: Investors should consider cash flow projections that account for seasonal variations and potential regulatory costs, ensuring that they have a comprehensive understanding of their investment's profitability.
Seasonal Market Patterns
Missoula's STR market exhibits distinct seasonal patterns that impact occupancy and revenue.
- Monthly Performance Variations: The summer months typically see the highest occupancy rates, often exceeding 80%, while winter months experience significant declines.
- Peak vs. Shoulder Seasons: Identifying true peak seasons is essential for pricing strategies. For instance, the months of June through August are peak times, while November through March typically see lower demand.
- Booking Strategies: Investors should adjust their booking strategies accordingly, maximizing revenue during peak times and employing competitive pricing during slower months.
Property Type Performance
Analyzing the performance of various property types reveals valuable insights for potential investors.
- Distribution by Bedrooms: The majority of listings are one- and two-bedroom properties, which tend to perform well due to demand from couples and small families.
- Entire Place vs. Private Room Profitability: Entire homes typically yield higher revenues compared to private rooms, emphasizing the importance of property configuration in maximizing income.
Investors are encouraged to tailor their property offerings to align with market demand while also considering the amenities that enhance guest satisfaction.
Guest Preferences & Amenities
Understanding guest preferences is crucial for optimizing rental performance.
- Impact of Amenities on Pricing: Key amenities such as kitchens and high-speed internet significantly influence pricing and guest satisfaction.
- Must-Have vs. Nice-to-Have Amenities: Identifying the right mix of must-have amenities can enhance occupancy rates and guest reviews, directly impacting revenue.
- Cost-Benefit Analysis: Investors should conduct a thorough cost-benefit analysis when considering amenity enhancements to ensure they provide a return on investment.
Regulatory Environment
Missoula's regulatory environment for STRs is well-defined but requires careful compliance from property owners.
- Licensing Requirements: Owners must obtain a business license and a STR permit, complying with local zoning laws to avoid penalties.
- Lodging Tax: A 7% lodging tax is mandated, which must be collected and remitted quarterly.
- Future Outlook: Staying informed about potential regulatory changes is essential for maintaining compliance and optimizing rental operations. For more information, visit the City of Missoula's official website.
Neighborhood Analysis
Missoula features various neighborhoods, each with distinct characteristics that influence STR performance.
- Top Performing Areas: Areas close to major attractions like the Rattlesnake National Recreation Area and downtown Missoula generally see higher demand.
- Emerging Neighborhoods: Investors should monitor neighborhoods showing signs of development or increased visitor interest for future investment opportunities.
Market Outlook & Trends
Looking ahead, the Missoula STR market presents both opportunities and challenges.
- Future Growth Projections: Based on recent trends, modest growth is anticipated, particularly if tourism continues to rebound post-pandemic.
- Economic Developments: Local economic developments, such as infrastructure improvements and events, can significantly impact STR performance.
- Risks: Investors should consider risks such as regulatory changes and shifts in tourism patterns, which may affect occupancy and revenue.
Frequently Asked Questions
What is the average ROI for STRs in Missoula?
- The ROI varies by property type, but realistic projections can be made based on current market metrics.
When is the best time to visit Missoula?
- Summer months, particularly June to August, are peak times for tourism.
What are the STR regulations in Missoula?
- Property owners must obtain a business license and STR permit, in addition to collecting a 7% lodging tax.
Which property type performs best?
- Entire homes typically perform better than private rooms in terms of revenue.
How does Missoula compare to other Montana markets?
- Missoula holds a competitive position among Montana markets, with unique attractions that draw visitors year-round.
In summary, Missoula's STR market offers a mix of opportunities and challenges. Investors should approach the market with a clear understanding of its dynamics, leveraging data-driven insights to inform their strategies. Careful consideration of property types, guest preferences, and regulatory compliance will be crucial for achieving success in this evolving landscape.
