Montana nightly rentals earn their money in two seasons: summer around Glacier and Yellowstone, and winter on the ski hills. A DSCR loan that qualifies on projected revenue lets the cabin or condo carry itself on the numbers, not your W-2.
In short: LendingStreet finances Montana short-term rentals with DSCR loans that can qualify on projected nightly revenue on some programs, starting at $150,000 with a 620 minimum credit score and LLC borrowers allowed. The property has to be legal to rent nightly where it sits, and that varies widely: resort areas like Big Sky and West Yellowstone are built around vacation rentals, while Bozeman has restricted new whole-home STRs.
Big Sky is the state's best-known vacation rental market, with ski-in condos, townhomes and cabins tied to the resort and summer trips into Yellowstone. Whitefish and the Flathead Valley draw Glacier National Park visitors in summer and Whitefish Mountain Resort skiers in winter, and homes around Flathead Lake rent well in July and August.
Gateway towns like West Yellowstone, Gardiner and Red Lodge depend heavily on park traffic. Missoula and Bozeman see demand from university events, business travel and outdoor visitors, but city rules shape what can operate there.
| Market | Typical property | What drives bookings | Rule to check |
|---|---|---|---|
| Big Sky | Ski condos, townhomes, cabins | Skiing, Yellowstone summer trips | HOA and covenant rules are the main check |
| Whitefish and Flathead Lake | Cabins, lake homes, condos | Glacier National Park, skiing, lake season | City zoning limits where STRs operate |
| West Yellowstone and Gardiner | Cabins and small homes | Yellowstone park entrances | Heavily seasonal; check local permits |
| Bozeman and Missoula | Single-family homes, condos | University, business travel | Bozeman restricts new whole-home STRs |
Montana has no single statewide STR permit. Rules come from cities, counties and HOAs. Bozeman has limited new short-term rentals of a whole home not occupied by the owner, so investors there should verify whether a property already holds a valid registration before counting on nightly income. Whitefish allows STRs only in certain zones, and Missoula requires a permit.
In unincorporated resort areas, covenants often matter more than county zoning. Many Big Sky subdivisions were built with nightly rentals in mind, while some newer developments around Flathead Lake limit rentals under 30 days. Read the covenants before you write an offer.
A standard DSCR loan compares a property's monthly rent with its full monthly payment: principal, interest, taxes, insurance and any HOA dues. For a short-term rental, some programs replace the long-term lease with a projection of nightly revenue, typically from a third-party revenue report built on comparable listings nearby.
Underwriting looks at the annual revenue figure divided across 12 months, not your best month. Some programs also review the property's own booking history when it has one, and some adjust the projection for expenses or seasonality. Each program sets its own method, so ask how the figure will be used before you lock in a price.
This example is illustrative and not a quote. An investor buys a three-bedroom cabin near Whitefish for $725,000. A third-party report projects $72,000 in gross annual short-term rental revenue, or about $6,000 a month. Taxes are budgeted at $420 a month and insurance at $310.
At 75% LTV the loan is $543,750, estimated principal and interest is about $3,858, and the full payment is about $4,588, for a DSCR of about 1.31x. If the year comes in 15% below the projection, the ratio drops to about 1.11x.
At 65% LTV the loan is $471,250, the payment falls to about $4,074 and the DSCR rises to about 1.47x, which leaves more cushion for a slow season in Whitefish.
| Item | 75% LTV | 65% LTV |
|---|---|---|
| Loan amount | $543,750 | $471,250 |
| Estimated principal and interest | $3,858 | $3,344 |
| Property taxes | $420 | $420 |
| Insurance | $310 | $310 |
| Total monthly payment | $4,588 | $4,074 |
| Projected monthly revenue | $6,000 | $6,000 |
| DSCR | About 1.31x | About 1.47x |
| DSCR if revenue is 15% lower | About 1.11x | About 1.25x |
Montana charges statewide taxes on lodging, and resort communities such as Big Sky, Whitefish and West Yellowstone add a local resort tax. Your platform may collect some of these, but you are responsible for registering where required. Montana has no general sales tax, so lodging taxes are the main tax your guests see.
Recent Montana property tax changes have shifted more of the burden toward homes that are not a primary residence, so budget your taxes on investment property treatment and confirm the estimate with the county. Wildfire exposure in forested areas and snow load on mountain cabins both push insurance costs up; get a quote early.
Most Montana STRs book heavily from late June through early September and again from mid-December through March in ski areas. April, May, October and November are slow, and some gateway towns near Yellowstone see little winter traffic at all because park roads close. A projection that shows smooth year-round occupancy outside a ski town deserves a second look.
A long-term tenant usually pays the utilities and handles day-to-day upkeep. A nightly guest does not. Plan on cleaning fees, laundry, utilities, internet, consumables, platform charges, more frequent maintenance and management, which for remote owners can be a sizable share of revenue. Budget for furnishing the property, too.
The ratio a lender calculates covers the debt, not these costs. Treat 1.0x as a floor for the loan, not a target for your business, and build your own monthly budget alongside the projection.
Our investor loans are business-purpose loans on non-owner-occupied property. STR DSCR loans follow the same basics as our long-term rental loans, with the income coming from projected or actual nightly revenue.
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Possibly, but Bozeman has restricted new whole-home short-term rentals not occupied by the owner. Confirm the property's registration status with the city before you buy and before relying on nightly income.
Montana has no general sales tax, but it does tax lodging, and resort areas such as Big Sky, Whitefish and West Yellowstone add a local resort tax. Check current requirements with the Montana Department of Revenue and the town.
Usually very little. Most Yellowstone roads close to cars in winter, so gateway towns there are heavily summer-weighted. Expect underwriting to look at the annual total, not a peak month.
Many Big Sky properties were built for nightly rental, so zoning is less of a hurdle. HOA dues, condo project review and insurance still go into the payment and the ratio.
No. On some programs a third-party revenue projection can qualify a property with no history, which works for purchases. On a refinance, actual booking history often carries more weight.
Yes, 620. You qualify on the property's income rather than your personal income, so W-2s and tax returns are not required.
No. LLC ownership is standard. You sign for the loan personally as the member.
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