Short-term rentals in Flathead County brought in $207 million in revenue during 2025, making it the leading county in Montana for that sector, according to a new report from the University of Montana Bureau of Business and Economic Research. The findings, which draw on AirDNA data, underscore how deeply the vacation rental market has become embedded in the Flathead Valley’s economy.

A Statewide Economic Force

Across Montana, the short-term rental market generated substantial numbers last year. Guests booked more than 430,000 reservations statewide, collectively spending $755 million on lodging and related goods. Those bookings contributed an estimated $797 million to Montana’s gross domestic product and supported roughly 5,559 jobs across the state.

Gallatin, Madison, and Park counties trailed Flathead in STR revenue, reflecting the outsized role that gateway communities near national parks play in Montana’s tourism economy. Notably, regions outside the immediate vicinity of Glacier and Yellowstone national parks still accounted for more than three-quarters of statewide STR revenue — a sign that the market extends well beyond iconic tourist corridors.

Kalispell and Bozeman Dominate the Market

The Kalispell and Bozeman regions together represent roughly two-thirds of all reservation days booked in Montana annually. Kalispell averaged 4,899 Airbnb listings per month, slightly ahead of Bozeman’s 4,479, while the central eastern region of the state averaged just 347 — illustrating a sharp geographic concentration of the industry.

Seasonality remains pronounced in Flathead County. Kalispell reservations in July 2025 ran nearly ten times higher than in November, tracking closely with the summer surge that defines much of northwestern Montana’s visitor economy.

For property owners, the financial returns can be meaningful. Dedicated properties — those available at least 270 days per year with a minimum of 90 reserved nights — earned a median monthly revenue of $2,969 in the Kalispell market. Home-share arrangements, where owners rent out a portion of their primary residence, brought in a median of $1,551 per month.

Employment in the sector is similarly concentrated. Kalispell alone accounted for 1,644 STR-related jobs generating $74.5 million in labor income, and the Bozeman and Kalispell regions together represent 65 percent of total STR employment statewide.

Housing Pressures and Regulatory Responses

The growth of short-term rentals has not come without tension. Out-of-state residents own 15.4 percent of residential properties in Flathead County — a figure that fuels ongoing debate about whether vacation rentals are reducing housing availability for year-round residents and workers.

Whitefish, one of the most popular destinations within Flathead County, moved to address the issue in 2023 when the city council voted to crack down on listings operating outside permitted zoning. The city hired a dedicated STR enforcement specialist, who has now been on staff for three years, tasked with identifying and resolving illegal listings.

The Whitefish approach reflects a broader challenge facing fast-growing Montana communities: how to capture the economic benefits of a booming short-term rental market while maintaining enough housing supply for the local workforce. As drought conditions and fire weather stretch across western Montana this summer, seasonal tourism pressure remains high — adding urgency to housing and land-use conversations in communities like Whitefish and Kalispell.

What Comes Next

The BBER report gives policymakers and local governments a clearer baseline for evaluating the industry’s footprint. Flathead County officials, along with city leaders in Kalispell and Whitefish, may look to the data when revisiting zoning ordinances, licensing requirements, or enforcement priorities ahead of the 2027 legislative session, when any state-level regulatory framework for STRs could come back into play.

For now, the numbers confirm what residents in the Flathead Valley have long observed: short-term rentals have become one of the most consequential economic forces reshaping the region, bringing both significant revenue and persistent questions about long-term community character.