Short-Term Rentals Inject $755 Million Into Montana Economy

MISSOULA – The availability of short-term rentals, while sometimes controversial, has resulted in an expansion of Montana’s economy, creating thousands of jobs and generating over $755 million in visitor spending, according to new study conducted by the University of Montana’s Bureau of Business and Economic Research.

The BBER study found that short-term rental guests booked over 430,000 stays in Montana in 2025, and their spending supported approximately:

While the number of short-term rental guests in Montana grew rapidly after 2020, following pandemic-era trends, the growth rate has slowed to 1.8% in 2025 after double-digit growth rates in previous years, according to BBER economist Brietta Russell and BBER Director Jeff Michael, who conducted the study.

“Over 60% of the short-term rental activity is found near Montana’s national parks in the Bozeman/Yellowstone region and the Kalispell/Glacier region, but STRs also bring guests to new areas of the state, expanding lodging and attracting new visitation to places with less tourism activity,” Michael said.

“The short-term rental market enables Montanans to host visitors and receive lodging expenditures that supplement their income,” Russell said. “The increased spending from hosts alone accounted for half of the economic impact and spreads the impact into industries not traditionally associated with tourism.”

“This study puts real numbers behind something Montana’s business community has seen firsthand: Short-term rentals have become an economic driver,” said Todd O’Hair, CEO of the Montana Chamber of Commerce. “This is not a niche market. Short-term rentals have resulted in more visitors coming to Montana, spending more money and creating an economic impact we all benefit from.”

The report, “Short-term Rentals in Montana: Economic Contributions and Trends,” analyzed reservation data from platforms like Airbnb and Vrbo to model the economic impacts of spending by short-term rental visitors in 2025. BBER classified STR listings into three groups: dedicated rentals, home shares and unique properties based on property characteristics, availability and nights rented. For each type of rental, BBER estimated host income and spending on local supplies with adjustments for residency and the non-accommodation spending of guests based on visitor surveys.

To view the full study findings, visit the Bureau of Business and Economic Research website at https://bber.umt.edu/short-term-rental-report.pdf.

The Bureau of Business and Economic Research is a research center located in UM’s College of Business. BBER researchers engage in a wide range of applied research to support its mission of informing Montanans about the economic climate in which they live and work. For more information visit http://bber.umt.edu or call 406-243-5113.

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