Montana Short-Term Rentals Generate $755 Million in Visitor Spending and Support 5,559 Jobs Statewide, University Study Finds

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Meta Description: A University of Montana BBER study reveals short-term rentals generated $755M in visitor spending, $797M in GDP value, and $47.6M in tax revenue.
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Standfirst: A study by the University of Montana's Bureau of Business and Economic Research shows short-term rentals generated $755 million in visitor spending and supported 5,559 jobs across the state in 2025.

Article

A study released by the University of Montana’s Bureau of Business and Economic Research (BBER) reveals the scale of short-term rental contributions to Montana's economy. Titled Short-term Rentals in Montana: Economic Contributions and Trends, the report details how vacation rentals listed on platforms such as Airbnb and VRBO support employment, gross domestic product, and tax revenues.

Led by BBER Director Jeff Michael and economist Brietta Russell, the research was supported by a $30,000 grant from Airbnb to measure economic data across urban, gateway, and rural communities.

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Key Financial Figures and Economic Impact

During 2025, guests staying in Montana short-term rentals generated $755 million ($754.5 million) in total visitor spending across more than 430,000 guest stays.

The study's economic findings include:

• Lodging Expenditure: $510.5 million spent directly on accommodations.
• Non-Lodging Visitor Spend: $243.95 million spent at local businesses.
• Total GDP Contribution: $797 million in value added to Montana’s gross domestic product.
• Labor & Host Income: $356 million in rental income for hosts and $277 million in labor income, supporting 5,559 jobs.
• Supplemental Host Earnings: Individual hosts earned between $586 and $1,648 per month, which was frequently reinvested in local household expenses, mortgages, and healthcare.
• Public Tax Revenue: $47.6 million total tax revenue, including $40.8 million in lodging and tourism sales taxes plus $6.7 million in local resort taxes.

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Regional Concentration and Breakdown of Non-Lodging Spending

Approximately 60 percent of short-term rental activity was concentrated in Bozeman (Gallatin County) and Kalispell (Flathead County), serving as primary gateways to Yellowstone National Park and Glacier National Park.

Top spending by county included:

• Flathead County: $207 million
• Gallatin County: $152.2 million
• Madison County: $85.8 million
• Park County: $64.3 million

Non-lodging spending benefited several business sectors, led by arts, entertainment, and recreation ($79.71 million), food services ($61.9 million), food and beverage stores ($31.86 million), gasoline stations ($31.53 million), and retail trade ($22.39 million).

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Longer Stay Behaviors and Housing Market Observations

BBER Director Jeff Michael noted that guests using short-term rentals tend to stay longer in a single location and travel shorter daily distances compared to traditional hotel guests. This behavioral pattern directs a larger share of visitor spending into local retail and dining rather than fuel.

Addressing housing considerations, Daniel Sidder, Director of Housing Whitefish, noted that while Whitefish contains approximately 400 registered short-term rentals (7% to 8% of local housing units), nearly 20 percent of homes are classified as "dark homes" (seasonally occupied second homes). The report noted that second-home ownership represents a larger factor in regional housing availability than short-term rentals alone.

By 2026, Montana recorded more than 21,000 active short-term rental properties managed by over 8,000 hosts.

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Data Table

Economic Metric / Sector	2025 Performance Figure	Key Operational & Regional Details
Total Visitor Spending	$755 Million ($754.5M)	Generated across 430,000+ guest stays
Lodging Expenditure	$510.5 Million	Received directly by Montana property hosts
Non-Lodging Visitor Spend	$243.95 Million	Arts ($79.71M), Dining ($61.9M), Groceries ($31.86M), Gas ($31.53M), Retail ($22.39M)
Statewide GDP Contribution	$797 Million	Value added to Montana's gross domestic product
Employment Supported	5,559 Jobs	Supported by $277 million in labor income
Host Rental Income	$356 Million	Average supplemental earnings of $586 to $1,648 per month per host
Total Tax Revenue	$47.6 Million	$40.8M lodging/tourism sales taxes + $6.7M local resort taxes
Top Spending Counties	Flathead ($207M), Gallatin ($152.2M)	Madison ($85.8M) and Park ($64.3M) follow
Active Market Footprint	21,000+ Properties / 8,000+ Hosts	Operates across digital platforms including Airbnb and VRBO

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Key Takeaways

• $755M Visitor Economic Footprint: Short-term rentals generated over $755 million in visitor spending in Montana during 2025.
• 5,559 Jobs Supported: The sector supported 5,559 jobs, $277 million in labor income, and $797 million in total GDP value.
• Gateway Hub Concentration: 60% of short-term rental activity remains concentrated near Glacier and Yellowstone gateways in Flathead and Gallatin counties.
• $47.6M Tax Revenue: Short-term rentals produced $47.6 million in statewide lodging, tourism, and local resort taxes in 2025.

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FAQ

How much visitor spending did short-term rentals generate in Montana?

According to the University of Montana BBER study, guests staying in short-term rentals generated $755 million ($754.5 million) in visitor spending during 2025.

How many jobs are supported by short-term rentals in Montana?

Short-term rental activity supported 5,559 jobs and $277 million in labor income across Montana in 2025.

Which Montana counties saw the highest visitor spending from short-term rentals?

Flathead County recorded the highest visitor spending at $207 million, followed by Gallatin County at $152.2 million, Madison County at $85.8 million, and Park County at $64.3 million.