Missoula has the guests: Griz football weekends, summer river traffic, Glacier and Yellowstone road trips. What it has less of is room for new investor-owned nightly rentals inside city limits, which is why so many STR buyers look just outside town.
In short: LendingStreet finances short-term rentals in the Missoula area with DSCR loans that can qualify on projected short-term rental revenue on some programs, with no W-2s or tax returns and LLC borrowers allowed. Loans start at $150,000, purchases go up to 80% LTV and the standard minimum DSCR is 1.0x. The City of Missoula requires short-term rental permits and has limited non-owner-occupied STRs in many residential zones, so investors often buy in Missoula County, the Bitterroot, Seeley Lake or the Flathead instead.
The City of Missoula requires a permit to operate a short-term rental and, in recent years, has restricted investor-owned, non-owner-occupied short-term rentals in many residential zones. Rules differ by zoning district, and the city has revisited them more than once as housing costs climbed. Before you buy a house in the Rattlesnake, the University District or the Northside expecting nightly income, confirm with the city whether a new permit is available for that address and that zoning.
If the answer is no, the property can still work as a long-term or mid-term rental, and we can underwrite it on a lease instead. What we will not do is size a loan on short-term revenue the property cannot legally earn.
Unincorporated parts of Missoula County, including areas around Lolo, Frenchtown, Clinton and Bonner, follow county zoning rather than city rules, and some allow short-term rentals with fewer limits. Seeley Lake and the Clearwater chain of lakes draw summer cabin guests and winter snowmobilers. South of town, Stevensville, Hamilton and the rest of the Bitterroot Valley attract anglers and hunters.
Farther out, Flathead Lake towns such as Polson and Bigfork, and the Philipsburg and Georgetown Lake area, have established vacation rental demand. Each has its own county, city or HOA rules, and Whitefish in particular has its own restrictions. Our Montana short-term rental page covers the wider state.
| Area | Main draw | What to check |
|---|---|---|
| Missoula city | University events, downtown, river | City STR permit availability by zone |
| Lolo, Frenchtown, Clinton | Access to town and rivers | County zoning, road access, well and septic |
| Seeley Lake | Lakes, snowmobiling, trails | County rules, septic, winter access |
| Bitterroot Valley | Fishing, hunting, mountains | County and city rules, wildfire exposure |
| Flathead Lake, Philipsburg | Lake and mountain vacations | Local permits, HOA covenants |
Missoula demand peaks in summer, when rafters, anglers and road-trippers fill the valley, and on University of Montana home football weekends and graduation, when hotel rooms in town sell out. Fall hunting season brings guests to the Bitterroot and Blackfoot valleys. Winter is quieter in town, though Montana Snowbowl, just north of town, adds some ski traffic.
Wildfire smoke can cut into late-summer bookings in some years. A revenue projection averages these swings over a year, but your cash reserves need to handle them in real time.
Montana has no general sales tax, but short-term lodging is taxed. Hosts generally register with the Montana Department of Revenue and collect the state lodging facility use tax and lodging sales tax, and some areas add local resort or occupancy taxes. Booking platforms collect some of these taxes, but confirm what your platform remits and what you must file yourself.
This example is illustrative and not a quote. An investor buys a single-family home in unincorporated Missoula County near Lolo for $585,000. The county allows the use, and a third-party projection estimates $58,000 a year in short-term rental revenue, or about $4,833 a month.
At 75% LTV the loan is $438,750. Estimated principal and interest is about $2,993. Taxes are budgeted at $475 a month and insurance, including wildfire exposure, at $230. The total payment is about $3,698, so DSCR on the full projection is about 1.31x. At 80% of the projection, DSCR is about 1.05x, still above the 1.0x standard minimum but with little cushion.
| Item | Full projection | 80% of projection |
|---|---|---|
| Loan amount (75% LTV) | $438,750 | $438,750 |
| Estimated principal and interest | $2,993 | $2,993 |
| Taxes | $475 | $475 |
| Insurance | $230 | $230 |
| Total monthly payment | $3,698 | $3,698 |
| Monthly revenue used | $4,833 | $3,867 |
| DSCR | 1.31x | 1.05x |
Montana reappraises residential property on a regular cycle, and recent reappraisals pushed many Missoula County tax bills higher. The state has also changed residential tax rates in ways that favor primary residences over second homes and rentals. Budget taxes on the non-primary-residence figure, and confirm the estimate with the Missoula County treasurer or a local title company.
Montana is also a non-disclosure state, so sale prices are not public record. Appraisers rely on agent and MLS data, which can make values on unusual cabins and acreage harder to support.
Many STRs outside Missoula sit on wells and septic systems, gravel roads or wooded lots in wildfire country. Each of these can affect insurance, appraisal comps and guest experience.
Missoula has steady demand for furnished stays of 30 days or more from traveling nurses at the city's two hospitals, visiting faculty, seasonal Forest Service and wildland fire crews, and families relocating to the valley. Stays of 30 days or longer are often treated differently from nightly rentals under local rules, though you should confirm that for the specific zone.
If an in-town property cannot get a short-term permit, a furnished mid-term or standard 12-month lease may still support the loan. In that case the loan is sized on market rent for a long-term lease rather than projected nightly revenue, so run the numbers both ways before you commit to a purchase price.
Our investor loans are business-purpose loans on non-owner-occupied property. Call (877) 298-1001 or use the form below with the address and your plan, and the team will tell you whether the file fits a projected-revenue program or a long-term lease approach.
It depends on the zoning and current city rules. The city has limited non-owner-occupied STRs in many residential zones, so confirm permit availability for the exact address before you buy.
Investors often look at unincorporated Missoula County, Seeley Lake, the Bitterroot Valley, Flathead Lake and the Philipsburg area. Each has its own rules, so check the county, city and any HOA.
On some programs, yes, using a third-party revenue projection, as long as the property can legally operate as a short-term rental.
Yes. Short-term stays are generally subject to state lodging taxes, and some areas add local taxes. Register with the Montana Department of Revenue and confirm what your platform collects.
Often, yes. Wells and septic are common outside town. Septic capacity, access and acreage limits vary by program.
The property can still be financed as a long-term rental based on market rent, if the numbers work.
Usually only if the projection and your reserves account for slow months. Test the deal at a lower revenue figure, and keep cash on hand for the winter and for smoky late-summer weeks.
No. Our loans are business-purpose loans on non-owner-occupied investment property.
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