Bozeman sits between two of the strongest vacation draws in the Rockies, Yellowstone and Big Sky, yet the city itself has closed the door on new investor-owned short-term rentals. If you want nightly income in the Gallatin Valley, where you buy matters as much as what you buy.
In short: LendingStreet finances short-term rentals in the Bozeman region with DSCR loans that can qualify on projected nightly revenue on some programs, with no W-2s or tax returns and LLC borrowers allowed. Inside Bozeman city limits, new short-term rentals in homes that are not the owner's primary residence have been prohibited since 2023, so investor STRs there generally will not qualify. Most of our Gallatin Valley STR requests are in Big Sky, West Yellowstone, Gardiner and other areas where local rules and covenants allow nightly rentals.
In 2023 the Bozeman City Commission voted to stop new short-term rentals in homes that are not the owner's primary residence. Owners who live in a property can still rent a room or their home on a limited basis after registering. For an investor, that means a Bozeman house, condo or townhome bought to rent nightly is not a viable STR purchase.
If you already own a Bozeman rental, the practical choices are a long-term lease, a mid-term furnished rental of 30 days or more where the rules allow it, or a sale. Mid-term demand from traveling nurses at Bozeman Health, visiting faculty at Montana State University and people relocating to the valley is real, but confirm how the city classifies stays of 30 days or longer before you count on that income.
Our investor loans are business-purpose loans on non-owner-occupied property, so we underwrite Bozeman rentals on long-term rent, not on nightly income the city would not allow.
Rules outside the city vary by town, county zoning district and, very often, by homeowners association covenants. Check each property's covenants and local zoning before you write an offer.
| Area | Season | What to check |
|---|---|---|
| Bozeman city | New investor STRs not allowed | Owner-occupancy requirement, city registration |
| Big Sky | Ski season and summer | HOA covenants, resort tax, high HOA dues |
| West Yellowstone | Summer peak, winter snowmobile | Town rules, resort tax, short shoulder seasons |
| Gardiner, Paradise Valley | Summer, park traffic | County rules, wells and septic, access in winter |
Montana applies statewide lodging taxes to short-term rentals, and operators generally register with the Montana Department of Revenue. Booking platforms collect tax on many stays. Big Sky and West Yellowstone also levy local resort taxes on lodging and many retail sales. Ask a Montana tax professional how these apply to your listing.
Montana changed its residential property tax structure in 2025, and how a home is used, whether as a primary residence, a long-term rental or a short-term rental, can affect its tax rate. Confirm with the Department of Revenue how your property will be classified, and budget on that rate, not the seller's.
Big Sky earns in two seasons: ski months from late November into April and a summer season driven by Yellowstone, hiking, fishing and events. April, May, October and early November are slow. West Yellowstone leans even harder on summer. Lenders that use projected revenue look at the annual figure spread over 12 months, so a property with a strong July can still show a healthy ratio.
Keep reserves for the shoulder seasons, and remember that winter brings snow removal, roof loads and higher heating costs that come out of your pocket even when the condo sits empty.
This example is illustrative and not a quote. An investor buys a two-bedroom Big Sky condo for $1,100,000. A third-party projection estimates $110,000 a year in gross nightly revenue, about $9,167 a month on average. Property taxes are budgeted at $520 a month, HOA dues at $950 and the investor's own insurance at $210.
At 70% LTV the loan is $770,000 on a 30-year term. Estimated principal and interest is about $5,305, the total payment is about $6,985 and DSCR on the full projection is about 1.31x. If a program discounted the projection by 20%, income would be about $7,333 and DSCR about 1.05x. The HOA line is large in Big Sky, and it counts in the payment.
| Item | Full projection | Projection less 20% |
|---|---|---|
| Purchase price | $1,100,000 | $1,100,000 |
| Loan at 70% LTV | $770,000 | $770,000 |
| Monthly revenue used | $9,167 | $7,333 |
| Estimated principal and interest | $5,305 | $5,305 |
| Taxes, HOA and insurance | $1,680 | $1,680 |
| Total monthly payment | $6,985 | $6,985 |
| DSCR | About 1.31x | About 1.05x |
On some programs, a third-party projection can replace a lease. In Big Sky, projections should compare units in the same complex or area, with similar bedrooms and ski access, since a ski-in, ski-out unit earns differently from one that needs a shuttle. For West Yellowstone or Gardiner cabins, distance to the park entrance and winter access matter.
If you are refinancing a property you already run, 12 months of platform statements are the strongest evidence. A first year that started mid-season may look better on a projection. Our team can compare both.
Many cabins outside town rely on wells and septic systems, and some sit on private or seasonal roads. Lenders want year-round legal access. Wildfire risk is a growing insurance issue across southwest Montana, and some carriers limit coverage in high-risk areas. Get an insurance quote early, before you are past your inspection deadline.
Condo projects in Big Sky may also need a review of the HOA's budget, reserves and rental rules. A project with a pending special assessment can change your numbers quickly.
DSCR loans start at $150,000 with no stated maximum. Purchases go up to 80% LTV, often lower on STRs and high balances, and cash-out goes up to 75% LTV, with seasoning that varies by program. The minimum credit score is 620. Send the address, covenants, any booking history and a revenue projection through the form below, or call (877) 298-1001.
New short-term rentals in homes that are not the owner's primary residence have been prohibited in Bozeman since 2023, so investor STRs in the city generally will not qualify.
Yes, where HOA covenants and local rules allow nightly rentals. Big Sky condos often carry high HOA dues, which count in the DSCR.
Montana's statewide lodging taxes apply to most short-term stays, and Big Sky and West Yellowstone add resort taxes. Register with the Department of Revenue.
On some programs, yes, using a third-party projection based on comparable local listings. Some programs discount it.
Stays of 30 days or longer are often treated differently from short-term rentals, but confirm with the city. We would underwrite it on long-term rent.
Mostly through insurance. Get a quote early, since coverage in high-risk areas can be limited or costly.
Yes. LLC borrowers are standard.
DSCR loans start at $150,000 with no stated maximum. Larger balances get more review, and max LTV can be lower.
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