Thinking about listing your Bozeman home on Airbnb or VRBO? The rules here changed recently, and what was simple a few years ago now takes planning. Whether you own in the city or just outside it, you need the right permits, inspections, and tax setup before you host. This guide breaks down what is allowed in Bozeman and Gallatin County, how to get permitted, and what to consider if you’re buying or selling a property with STR potential. Let’s dive in.
What counts as an STR here
Short-term rentals in Montana are typically stays under 30 days. The state treats these like lodging, so licensing and taxes apply. In Greater Bozeman, both the City of Bozeman and Gallatin County have their own rules you must follow in addition to state requirements.
Bozeman rules at a glance
Bozeman requires a city STR permit, annual renewal, and your permit number displayed on every listing. The city categorizes STRs by “Type,” and owner-occupied categories require you to use the home as your primary residence for at least 70% of the year. As of December 14, 2023, Bozeman no longer issues new Type‑3 (non‑owner‑occupied whole‑home) permits; only a limited number of legacy permits remain. You can review the categories, zoning map, and application details on the city’s Short‑Term Rentals page on Bozeman’s official site.
Can you buy a whole‑home STR in Bozeman?
If you do not plan to live in the property, generally no. The city prohibited new Type‑3 permits and warns that a change in ownership terminates an existing registration. In other words, permits do not automatically transfer when a property sells; the new owner must reapply. The city’s documentation explains that STR registrations “do not run with the land,” which you can confirm in Bozeman’s official guidance regarding permit transferability.
Bozeman permit steps
Use the city’s page as your master checklist. In general, plan for these steps:
- Confirm your STR type and zoning eligibility on the city’s STR map or by contacting planning staff, then gather required documents listed on the Bozeman STR page.
- Complete state and county prerequisites: initiate your Montana Public Accommodation License (health) process and set up your lodging tax account with the Department of Revenue.
- Schedule or complete a fire and safety inspection and prepare the city’s safety checklist.
- Create an interior floor plan and exterior site sketch; occupancy limits are based on sleeping areas and safety standards.
- For owner‑occupied categories, sign the primary‑residence acknowledgement affirming the 70% residency requirement.
- Apply online through the city portal. Once approved, display the permit number on all listings and renew on time.
Outside city limits: County rules
If the property is in unincorporated Gallatin County, zoning determines whether an STR is allowed by right or requires a conditional use. Rules vary by district, so start with the county’s Short‑Term Rental FAQs and request a zoning determination for a specific address through Gallatin County Planning.
Health licensing basics
Montana requires a Public Accommodation License for tourist homes and vacation rentals statewide. Plan review and inspections happen locally through county environmental health, in coordination with DPHHS. You can read the statewide licensing overview at Montana DPHHS, and see a typical county process example here via Carbon County Environmental Health. Expect verification of potable water and wastewater systems, a guest register, and annual license renewal.
Taxes and local assessments
Montana charges a combined 8% lodging tax on stays under 30 days (4% lodging sales tax plus 4% lodging facility use tax). Marketplaces may collect these taxes on your behalf, but you remain responsible for any bookings taken off‑platform and for proper registration with the Department of Revenue. Review the details and set up your account at the Montana Department of Revenue.
The Gallatin Valley Tourism Business Improvement District (TBID) funds marketing and events with a per‑room‑night fee that applies in Bozeman, Belgrade, and Three Forks. Check the current assessment structure on Visit Bozeman’s TBID page. Separate local resort taxes can apply in certain resort communities like Big Sky.
Enforcement and common pitfalls
Bozeman requires your permit number on all listings, and platforms must remove listings that lack a valid number. Operating without city registration, a public‑accommodation license, or proper tax setup can lead to fines and forced delisting. The city also enforces primary‑residence rules for owner‑occupied categories; evidence such as public records or utility data may be used during investigations. You can find permit rules, penalties, and contacts on the City of Bozeman STR page.
Buying or selling with STR potential
If you’re buying: verify zoning, STR type eligibility, health licensing, and taxes before you write an offer. In Bozeman, do not assume a legacy STR can continue as a whole‑home rental after a sale. If you’re selling: know that a city STR registration will not automatically benefit a buyer, and set expectations accordingly. For addresses in the county, confirm whether STR is permitted, conditional, or prohibited before you market a home for nightly rental potential.
Why the rules tightened
Local policy in 2023 focused on housing supply and the impacts of converting long‑term homes to nightly rentals. The resulting ordinance changes increased owner‑occupancy standards and halted new non‑owner‑occupied whole‑home permits while grandfathering some existing ones. For background on the community debate and timeline, see coverage from Montana Free Press.
Ready for a clear plan tailored to your address and goals? For discreet, high‑touch guidance on buying or selling with STR considerations in Greater Bozeman, reach out to Michelle Horning for a one‑on‑one consultation.
FAQs
What are the current Bozeman rules for whole‑home STRs?
- Bozeman no longer issues new Type‑3 permits for non‑owner‑occupied whole‑home rentals; only legacy units remain and registrations do not automatically transfer on sale. See the city’s rules on Bozeman’s STR page.
Do I need a health license to host an STR in Gallatin County?
- Yes. Montana requires a Public Accommodation License for tourist homes, with local plan review and inspections coordinated through county environmental health and DPHHS.
What taxes apply to Bozeman‑area STRs under 30 days?
- Montana assesses a combined 8% lodging tax; platforms may collect, but you must register and file as needed. A Gallatin Valley TBID per‑night assessment may also apply. Review details at the Montana Department of Revenue and Visit Bozeman.
How do county rules differ from the city of Bozeman?
- Outside city limits, Gallatin County zoning controls whether STRs are permitted or require a conditional use. Start with the county’s guidance and mapping tools via Gallatin County Planning.
Can I advertise my listing before I get the Bozeman permit?
- No. The city requires a valid permit number on every listing, and platforms must remove noncompliant postings. Details and timelines are on Bozeman’s STR page.
