Short-Term Rental Laws in Bozeman, MT (2026)
Bozeman requires an annual Short Term Rental (STR) Hosting Permit ($325/year) for any rental under 28 consecutive days, and since December 14, 2023 all new STRs must be tied to the host's primary residence (occupied at least 70% of the calendar year) — non-owner-occupied 'Type 3' rentals are banned except for a limited pool of legacy permits. A completely rewritten Unified Development Code took effect February 1, 2026, consolidating zoning districts; in the new low-density R-A district (former R-S/R-1/R-2) only Type 1 (hosted bedroom) rentals are allowed. Stays are subject to Montana's combined 8% lodging facility sales and use tax, which platforms like Airbnb/Vrbo collect for platform bookings.
Reviewed by the STR Rule Watch research team against 9 official sources. How we verify data
Bozeman STR rules at a glance
| Legal status | Primary residence only |
|---|---|
| Permit required | Yes |
| Permit name | Short Term Rental (STR) Hosting Permit |
| Permit fee | $325 |
| Renewal | Annual |
| Owner occupancy required | Yes |
| Primary residence only | Yes |
| Total occupancy taxes | ~8% of gross revenue |
| Insurance | No city-mandated STR insurance. The city advises that standard homeowner's insurance may not cover short-term rental use and that hosts should verify they have adequate home, personal property, and liability insurance; compatibility with insurance and mortgage contracts is the host's sole responsibility. |
| Enforcement | The Director of Community Development may suspend or revoke a hosting permit for code violations, nuisance operation, loss of the health department public accommodation license or tax registration, or fraud in the application. |
| Current rules effective | 2026-02-01 |
What will guests pay in taxes on a Bozeman stay?
Itemized occupancy taxes for Bozeman, MT — enter your nightly rate to see the real cost breakdown.
Bozeman occupancy tax calculator
| Gross rent | $450.00 |
| Montana Lodging Facility Use Tax (4%)· collection varies | $18.00 |
| Montana Lodging Facility Sales Tax (4%)· collection varies | $18.00 |
| Total tax (8%) | $36.00 |
| Guest pays | $486.00 |
Estimate only. Platform collection varies by listing site and agreement; verify rates with the taxing authorities.
Permits & licensing
Bozeman requires Short Term Rental (STR) Hosting Permit to operate a short-term rental — the fee is $325, renewed annually.
Annual registration fee of $325 per STR (a separate permit is required for each rental). A separate city fire inspection fee also applies for the required initial fire inspection (inspections recur every 3 years; re-inspections incur additional fees) — current inspection fee amount is set by city commission resolution and was not published on the STR page. Applicants must also obtain a Montana DOR lodging tax registration and a Gallatin County/state public accommodation license (county/state fees separate).
Zoning & location rules
Under the new Unified Development Code effective Feb 1, 2026, STRs are allowed only as accessory uses in certain zones. Former R-S, R-1 and R-2 districts were consolidated into the new R-A district, where the city states only Type 1 STRs (rented bedrooms in an occupied host residence) are allowed; Type 2 STRs previously operating there may no longer be permitted. The adopted UDC use table authorizes Type 1 and Type 2 STRs as accessory uses in R-B, R-C, R-D, B-2, B-2M, B-3, B-3C, REMU and NEHMU districts, and prohibits STRs in B-1, B-P, M-1, M-2 and PLI. Type 3 (non-primary-residence) STRs are prohibited citywide; pre-Dec-14-2023 'Legacy Type 3' permits may continue only while their permit stays continuously valid. NOTE: a pending 2026 text amendment (Application 26307) would add Type 2 STRs as an accessory use in the R-A district; the Community Development Board recommended on June 15, 2026 allowing any Type 2 (existing or new) in R-A, and the City Commission held its public hearing July 14, 2026 — outcome not yet published as of July 21, 2026.
Taxes
| Tax | Rate | Who collects |
|---|---|---|
| Montana Lodging Facility Use TaxState tax under MCA 15-65. Short-term rental marketplaces (Airbnb/Vrbo) must collect, report and pay taxes on sales they facilitate; hosts must register with the Montana Department of Revenue and remit on any direct (non-marketplace) bookings. The City of Bozeman does not charge or collect any local lodging tax. | 4% | varies |
| Montana Lodging Facility Sales TaxState tax under MCA 15-68 (combined 8% with the use tax). Collected by the marketplace for platform bookings; host collects/remits for direct bookings. Rentals of 30 continuous days or more to the same purchaser are exempt. | 4% | varies |
Enforcement & penalties
The Director of Community Development may suspend or revoke a hosting permit for code violations, nuisance operation, loss of the health department public accommodation license or tax registration, or fraud in the application. Hosting platforms must list the city permit number on all listings, file quarterly reports of Bozeman bookings, and remove noncompliant listings within 10 business days. Fire inspections are required every 3 years with annual self-certification in between. Legacy Type 3 and 2017-grandfathered permits terminate permanently if allowed to lapse or upon transfer of the property.
Civil penalty of up to $500 per violation for hosts and up to $500 per violation for hosting platforms, with each day a violation continues constituting a separate violation. Operating an unregistered STR is also a misdemeanor offense subject to fines, imprisonment, and civil penalties under the municipal code.
⚠️ HOA/condo rules may prohibit STRs regardless of city law.
Getting legal in Bozeman: the playbook
Generated from this market's verified rules — each step traces to the sources at the bottom of this page.
- 1
Confirm you qualify
Bozeman limits short-term rentals to your primary residence — check this threshold before spending anything on applications. Investment properties generally do not qualify.
- 2
Verify your zoning
Location rules apply: Under the new Unified Development Code effective Feb 1, 2026, STRs are allowed only as accessory uses in certain zones. Former R-S, R-1 and R-2 districts were consolidated into the new R-A district, where the city states only Type 1 STRs (rented bedrooms in an occupied host residence) are allowed; Type 2 STRs previously operating there may no longer be permitted. Confirm your parcel's zoning with the city before applying — the full zoning rules are detailed above.
- 3
Check the covenant layer
HOA/condo rules may prohibit STRs regardless of city law.
- 4
Apply for the Short Term Rental (STR) Hosting Permit
Budget $325, renewed annually. Annual registration fee of $325 per STR (a separate permit is required for each rental). Apply through the city — the official application page is linked in the sources below.
- 5
Line up required insurance
No city-mandated STR insurance. The city advises that standard homeowner's insurance may not cover short-term rental use and that hosts should verify they have adequate home, personal property, and liability insurance; compatibility with insurance and mortgage contracts is the host's sole responsibility.
- 6
Set up tax collection & remittance
Platforms don't collect everything here: Montana Lodging Facility Use Tax (4%), Montana Lodging Facility Sales Tax (4%) are remitted by the host. Register with the taxing authority before your first booking and calendar the filing deadlines.
- 7
Calendar the renewal before you forget it
This permit renews annually (budget $325 again). Most cities take weeks to process renewals and don't send reminders — our Host plan emails you at 60/30/7 days out.
- 8
Know the cost of getting it wrong
Civil penalty of up to $500 per violation for hosts and up to $500 per violation for hosting platforms, with each day a violation continues constituting a separate violation. Operating an unregistered STR is also a misdemeanor offense subject to fines, imprisonment, and civil penalties under the municipal code. Full enforcement details and penalties are covered above.
Recent rule changes in Bozeman
May 12, 2026material
PENDING — Text amendment (App 26307) to allow Type 2 STRs in the R-A district
City Commission initiated a text amendment on May 12, 2026 to amend Sec. 38.300.020 to add Short Term Rental Type 2 as an accessory use in the R-A zoning district and clarify standards/permitting for Type 2 STRs in R-A (addressing locations made non-conforming by the Feb 1, 2026 UDC). On June 15, 2026 the Community Development Board (acting as Planning Commission) recommended allowing ANY Type 2 STR — existing or new — as an accessory use in R-A, broader than the original existing-only proposal. The City Commission public hearing was held July 14, 2026; the vote outcome had not been published as of July 21, 2026. Until adopted and effective, only Type 1 STRs are allowed in R-A.
Official source →February 1, 2026material
New UDC and zoning map take effect — district consolidation impacts STRs
Former R-S, R-1 and R-2 districts became the new R-A district. Per the city, only Type 1 STRs are allowed in R-A, and Type 2 STRs previously operating there may no longer be permitted under the new UDC.
Official source →December 16, 2025material
Ordinance 2151 — new Unified Development Code adopted
City Commission adopted a full repeal-and-replace of Chapter 38 (UDC) and a new zoning map. STR regulations moved to Sec. 38.320.060.B with the primary-residence framework carried forward (Type 1, 2A, 2B; civil penalties up to $500/day).
Official source →December 14, 2023critical
Ordinance 2149 — Type 3 (non-owner-occupied) STRs banned
New Type 3 STRs prohibited citywide; STR types redefined as Type 1, 2A and 2B, all tied to the host's primary residence (70% of the calendar year). Compliant Type 3 STRs with an active permit or complete application before Dec 14, 2023 may continue as 'Legacy Type 3' only while their permit remains continuously valid.
Official source →August 11, 2023material
Ordinance 2131 — hosting platform obligations take effect
Bozeman adopted affirmative obligations on STR hosting platforms (Sec. 38.360.260.J): platforms must list the active STR Hosting Permit number on all public listings and provide quarterly booking reports to the Community Development Department.
Official source →
Frequently asked questions
›Is Airbnb legal in Bozeman?
Airbnb is legal in Bozeman, MT, only for your primary residence — dedicated investment properties generally cannot be short-term rentals. Always confirm current requirements with the city before operating.
›Do I need a permit for a short-term rental in Bozeman?
Yes. Bozeman requires a Short Term Rental (STR) Hosting Permit to operate a short-term rental, which costs $325 and must be renewed annually. Always confirm current requirements with the city before operating.
›How much does a Bozeman short-term rental permit cost?
The Short Term Rental (STR) Hosting Permit costs $325 (annual renewal). Annual registration fee of $325 per STR (a separate permit is required for each rental). A separate city fire inspection fee also applies for the required initial fire inspection (inspections recur every 3 years; re-inspections incur additional fees) — current inspection fee amount is set by city commission resolution and was not published on the STR page. Applicants must also obtain a Montana DOR lodging tax registration and a Gallatin County/state public accommodation license (county/state fees separate).
›Can I Airbnb a non-primary residence in Bozeman?
Generally no. Bozeman limits short-term rentals to the operator's primary residence, which rules out running a dedicated investment property as a short-term rental in most cases. Always confirm current requirements with the city before operating.
›What taxes do short-term rental hosts pay in Bozeman?
Hosts in Bozeman are subject to: Montana Lodging Facility Use Tax (4%), Montana Lodging Facility Sales Tax (4%) — roughly 8% total on gross rental revenue. Platforms like Airbnb collect some of these automatically; check each line's collection method on this page.
›Do I need insurance to run a short-term rental in Bozeman?
No city-mandated STR insurance. The city advises that standard homeowner's insurance may not cover short-term rental use and that hosts should verify they have adequate home, personal property, and liability insurance; compatibility with insurance and mortgage contracts is the host's sole responsibility. Always confirm current requirements with the city before operating.
›Does Airbnb collect taxes automatically in Bozeman?
No — in Bozeman hosts are responsible for registering, collecting, and remitting the listed occupancy taxes themselves. Always confirm current requirements with the city before operating.
›What happens if I operate a short-term rental illegally in Bozeman?
Civil penalty of up to $500 per violation for hosts and up to $500 per violation for hosting platforms, with each day a violation continues constituting a separate violation. Operating an unregistered STR is also a misdemeanor offense subject to fines, imprisonment, and civil penalties under the municipal code. See the enforcement section on this page for full details.
›When did Bozeman's current short-term rental rules take effect?
The current ordinance took effect on February 1, 2026. See the change timeline on this page for amendments since, and the sources section for the official text.
Bozeman's STR rules changed 3 times recently.
Get an email the moment Bozeman changes its short-term rental rules — plus renewal reminders before your permit expires.
Watch Bozeman for changes →Free monthly digest · same-day alerts from $5/mo · cancel anytime
Related
Nearby covered markets
- Jackson, WYRestricted
- Boise, IDAllowed
- Salt Lake City, UTRestricted
- Park City, UTPermit required
- Steamboat Springs, CORestricted
More resources
- How to get a short-term rental permit in Bozeman
- Bozeman short-term rental taxes explained
- Can I Airbnb in Bozeman?
- All Montana STR laws by city
- Occupancy tax calculator
- Compare STR permit costs across cities
- Bozeman ranks among most expensive str permit cities
- Bozeman ranks among primary-residence-only str cities
- STR city rankings: strictest, cheapest permits & more
- What is a primary-residence requirement?
- What is transient occupancy tax?
- Best STR compliance tools, compared
- Latest STR rule changes nationwide
Sources
- Short Term Rentals | City of Bozeman (official STR program page)retrieved July 20, 2026
- Bozeman Unified Development Code, Ordinance 2151 Adoption Draft (Dec 16, 2025) — Sec. 38.320.060.B Short term rentalretrieved July 20, 2026
- Unified Development Code Adopted — Engage Bozeman (Ordinance 2151, effective Feb 1, 2026)retrieved July 20, 2026
- Montana Department of Revenue — Lodging Facility Sales and Use Taxretrieved July 20, 2026
- Bozeman, Montana Code of Ordinances (Municode, codified through Dec 16, 2025)retrieved July 20, 2026
- City of Bozeman STR Hosting Permit Portal (Deckard)retrieved July 20, 2026
- Bozeman votes to ban some short-term rentals, 'grandfathers' others — Montana Free Press (Oct 18, 2023)retrieved July 20, 2026
- Revised Notice of Public Hearing, Application 26307 (Type 2 STRs in R-A district text amendment) — Bozeman Daily Chronicle legal noticeretrieved July 21, 2026
- Bozeman STR page snapshot (Wayback Machine, May 13, 2026) — used for verification; live city site blocks automated fetchesretrieved July 21, 2026
This page is informational only and is not legal, tax, or financial advice. Rules change and enforcement varies — verify current requirements with Bozeman and a qualified professional before operating.