Short-Term Rentals in Billings, MT: What Residents Actually Need to Know
If you live in Billings or are thinking about moving there, short-term rentals are one of those things you probably won't think about until they affect you directly. Billings has 6 specific rules on the books covering different aspects of short-term rentals, and some of them might surprise you.
Permit Requirements
Billings requires short-term rental operators to obtain a business license and register with the city before listing properties on platforms like Airbnb or Vrbo for stays under 30 days.
Key details: Business license: BMC Chapter 8 required. Lodging tax: 7% MT plus 4% sales. Stay threshold: Under 30 days. Enforcement: BMC Chapter 11.
Operating without a business license, failing to remit lodging taxes, or violating zoning code can trigger fines, license revocation, and platform listing removal under BMC Chapter 11.
Taxes & Fees
Billings short-term rentals collect Montana's combined 11% lodging tax: a 7% lodging facility use tax and a 4% sales tax on lodging, both remitted to the Montana Department of Revenue quarterly.
Key details: Facility tax rate: 7% MCA Title 15. Sales-on-lodging: 4% additional. Combined rate: Approximately 11%. Remittance: Montana DOR quarterly.
Failure to register, collect, or remit Montana lodging taxes can result in MT DOR penalties, interest on unpaid amounts, and administrative enforcement actions against the host.
Noise Rules
Billings short-term rental guests must comply with city noise ordinances under BMC Chapter 23, including quiet hours typically observed from 10pm to 7am. Hosts share responsibility for guest conduct.
Key details: Quiet hours: 10pm to 7am typical. Authority: BMC Chapter 23. Host liability: Nuisance under Ch. 11. Enforcement: Billings Police.
Repeated noise violations at an STR can result in misdemeanor citations to guests, host nuisance abatement actions, and potential business license revocation under BMC Chapter 11 enforcement.
Occupancy Limits
Billings short-term rental occupancy follows Montana building code and city zoning standards, typically limiting overnight guests to two per bedroom plus two additional, with safety egress requirements.
Key details: Occupancy formula: Two per bedroom plus two. Min bedroom area: 70 sq ft. Required alarms: Smoke and CO. Code basis: MT-adopted IBC IRC.
Exceeding posted occupancy or violating egress and life-safety requirements can trigger building code citations, host fines, and enforcement actions limiting future STR operation.
Parking Rules
Billings short-term rentals must accommodate guest parking on-site or via legal street parking, following BMC Title 27 zoning rules and avoiding obstruction of neighbors' driveways or fire lanes.
Key details: Off-street requirement: Two spaces typical. Authority: BMC Title 27. RV parking: BMC Chapter 39 limits. Street parking: Posted restrictions apply.
Improper parking, blocking driveways, or violating BMC Title 27 zoning standards can result in vehicle citations, towing, and host nuisance abatement under code enforcement.
The rules around parking rules in Billings lean permissive, but that does not mean anything goes.
Insurance Requirements
Billings does not mandate specific short-term rental insurance, but hosts are strongly advised to carry commercial liability or platform-provided coverage since standard homeowner policies often exclude STR activity.
Key details: City requirement: None mandated. Homeowner coverage: Often excludes STR. Platform coverage: Limited backup only. Recommended: Commercial liability policy.
Operating without adequate insurance is not a city violation but can result in personal liability for guest injuries, property damage claims, and potential breach of mortgage or HOA terms.
If you are coming from a city with tighter rules, you will find Billings gives residents more flexibility on insurance requirements.
The Bottom Line
Compared to many U.S. cities, Billings gives residents more room on short-term rentals. 2 of the 6 rules here are rated permissive. But permissive does not mean unregulated. There are still requirements, and the city does enforce them when violations are reported.
These rules come from Billings's publicly available municipal code. For complete penalty schedules, exemption details, and answers to common questions, see the individual ordinance pages throughout this guide.