A new study from the University of Montana’s Bureau of Business and Economic Research found that short-term rentals generated roughly $755 million in visitor spending across Montana in 2025, supporting thousands of jobs and producing tens of millions in tax revenue statewide.

Scope of the Industry

The study, released in 2026, examined short-term rental activity throughout the prior year and found that guests booked more than 430,000 stays. Of the $754.5 million in total guest spending, approximately $510.5 million went directly toward lodging costs, with the remainder flowing into local restaurants, retail, and services.

Short-term rental hosts collectively earned $356 million in rental income in 2025. The sector supported 5,559 jobs statewide, generating $277 million in labor income. When accounting for broader economic ripple effects, short-term rentals added $797 million in total value to Montana’s gross domestic product.

On the tax side, the industry produced $47.6 million in total revenue — $40.8 million from lodging sales and tourism taxes, and an additional $6.7 million in local resort taxes applicable to roughly 20 percent of rentals. The study was funded in part by a $30,000 contribution from Airbnb.

Geographic Concentration

About 60 percent of short-term rental activity was concentrated in Bozeman and Kalispell, both of which sit near major national parks — Yellowstone and Glacier, respectively. That proximity to high-traffic destinations makes both cities natural hubs for leisure travelers seeking alternatives to traditional hotels.

Flathead County led all Montana counties in short-term rental visitor spending, with guests pouring $207 million into the local economy in 2025. Gallatin County followed at $152.2 million, with Madison County at $85.8 million and Park County at $64.3 million rounding out the top four.

Billings showed a different pattern from the western resort markets. The city attracted more business travelers than leisure tourists through short-term rentals, reflecting its role as Montana’s commercial center rather than a gateway to outdoor recreation.

Even less-heralded areas recorded measurable activity. The Central Eastern region hosted more than 40,000 reservation nights in 2025, supporting 112 jobs, $4.3 million in labor income, and $12 million in value added to its local economy.

Housing Tensions in Resort Communities

The study also touched on the housing pressures that short-term rentals create in smaller resort towns. Whitefish, a ski and outdoor destination in northwestern Montana, has approximately 400 registered short-term rentals — representing between 7 and 8 percent of the city’s total housing units. Close to 20 percent of Whitefish homes are classified as “dark homes,” meaning they are used only seasonally and sit vacant for extended periods.

That dynamic sits at the center of ongoing debates in many Montana communities about whether the economic benefits of short-term rentals outweigh their effects on housing availability and affordability for year-round residents.

For hosts operating home shares — renting out a private room rather than an entire property — monthly income ranged from $586 to $1,648 depending on location and rental frequency, the study found.

Broader Tourism Context

The short-term rental figures represent a significant slice of Montana’s overall tourism economy. Out-of-state visitors spent roughly $5 billion in Montana in 2024, meaning short-term rental guest spending in 2025 accounted for a substantial share of what travelers contribute to the state each year.

As Montana communities continue weighing local ordinances on short-term rental registration and taxation, findings like these are likely to shape policy conversations heading into the 2027 legislative session. Supporters of the industry point to job creation and tax generation; critics in resort communities argue that the concentration of short-term rentals displaces long-term housing stock and strains local infrastructure.

The University of Montana’s Bureau of Business and Economic Research has become a go-to source for policymakers examining the economic footprint of tourism and hospitality in the state, and this study is expected to inform both local zoning debates and future state-level discussions around tourism taxation and housing supply.