Billings is not a resort town, and that is part of its appeal for short-term rental investors. Guests come for hospital stays, refinery and energy work, MetraPark events and the drive toward Red Lodge and Yellowstone, which spreads demand across more of the year than a ski or lake market.
In short: LendingStreet finances Billings short-term rentals with DSCR loans that can qualify on projected rental revenue on some programs, with no W-2s or tax returns and LLC borrowers standard. Loans start at $150,000, purchases go up to 80% LTV and the minimum credit score is 620. Confirm city zoning and any HOA limits for the address, and register for Montana's lodging taxes before your first guest.
Billings and Yellowstone County regulate land use through zoning, and whether a whole-home rental to short-stay guests is allowed can depend on the zoning district and any rules the city adopts. Rules for short-term rentals in Montana cities have been debated at both the local and state level in recent years, so confirm current requirements with the City of Billings planning division before you buy.
Many newer subdivisions on the West End and in the Heights have covenants that set minimum lease terms. Those private rules apply even where city zoning allows nightly rentals, so read them before you write an offer.
Billings is the medical center for a large part of Montana and northern Wyoming, so families and patients visiting Billings Clinic and St. Vincent Regional Hospital need places to stay for days or weeks. Traveling nurses fill longer stays.
The city's refineries and the energy and rail industries bring contractors for turnarounds and projects, often for a month or more. MetraPark hosts rodeos, concerts and the fair, and Montana State University Billings and Rocky Mountain College bring graduation and sports traffic. Summer adds road-trippers headed to the Beartooth Highway, Red Lodge and Yellowstone National Park.
Summer is the clear peak, when tourism and events overlap. Fall stays busy with hunting season visitors and university events. Winter is the slowest for leisure travel, but medical and work stays continue, which is why Billings revenue tends to be steadier than in purely seasonal markets.
Projections average these months, so look at the monthly breakdown. A property near the hospitals or the interstate may hold occupancy in winter better than one in a quiet residential area.
| Season | Main guests | General pattern |
|---|---|---|
| June to August | Yellowstone and Beartooth travelers, events, families | Peak nightly prices |
| September to November | Hunters, university and MetraPark events | Steady; good weekends |
| December to March | Medical stays, contractors | Slowest leisure demand; longer bookings help |
| April and May | Graduations, spring events, work crews | Building back toward summer |
This example is illustrative and not a quote. An investor buys a three-bedroom house on the West End for $340,000 where zoning and covenants allow short stays. A third-party projection supports average revenue of $2,900 a month over the year.
At 75% LTV the loan is $255,000 and estimated principal and interest on a 30-year term is about $1,783. With taxes of $285 a month and insurance of $150, the payment is about $2,218 and DSCR is about 1.31x, above the 1.0x standard minimum.
If winter months come in weaker than projected, the 1.31x ratio leaves room. A unit that can switch to 30-day stays for contractors or nurses in the slow months adds another layer of protection.
Montana has no general sales tax, but short stays are subject to state lodging taxes, and some areas add local resort or tourism assessments. Montana also does not charge a real estate transfer tax, which keeps closing costs lower than in many states.
The state reappraises residential property on a two-year cycle, and recent reappraisals raised many bills. Montana has also changed how it taxes different kinds of residential property, including how primary homes, long-term rentals and other homes are classified. Ask the Department of Revenue how your property will be classified and use that figure in your DSCR math.
Billings sits in a part of the country with regular hail, and roof claims are common. Insurers may set percentage deductibles for wind and hail, and an older roof can raise the premium or limit coverage. Ask for roof age and material up front.
Winter means frozen-pipe risk in a home that sits empty between guests, plus snow removal on walkways and driveways. Budget for a reliable cleaner and a local contact who can check the property in cold snaps. Get an insurance quote that names short-term rental use.
Furnishing for Billings guests is practical rather than luxurious: reliable heat, a garage or plug-in for winter, laundry and a workspace appeal to the medical and contractor guests who fill the off-season. Good reviews from those longer stays also help the listing rank in summer.
If a Billings address does not work for nightly stays, investors look to Red Lodge, about an hour southwest, a gateway to the Beartooth Highway and home to a small ski area, and to towns along the routes toward Yellowstone. Laurel and Columbus, west of Billings, see some interstate and outdoor-recreation traffic.
Each town and county has its own rules and lodging requirements. Our Montana short-term rental page covers Bozeman, Big Sky, Whitefish and other resort markets.
Send the address, price, zoning and covenant status and a third-party revenue projection. We will check the ratio using the classified tax figure and an STR insurance quote and tell you whether the property fits an STR program or works better on a long-term or 30-day lease.
Our investor loans are business-purpose loans on non-owner-occupied property. Call (877) 298-1001 or use the form below to get a quote.
It depends on zoning, any city rules in effect and private covenants. Check with the City of Billings planning division and read the subdivision covenants before you buy.
On some programs, yes. A third-party revenue projection can be used instead of a long-term lease.
State lodging taxes apply to short stays even though Montana has no general sales tax. Register with the Department of Revenue.
No. Montana does not charge a real estate transfer tax.
Medical and contractor stays help. Many owners accept 30-day bookings in winter to keep the home occupied, then return to nightly stays when summer travel picks up.
Yes. Refinances can use booking history on some programs, with cash-out up to program limits.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so the loan is only for rentals you do not occupy.
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