Bozeman Short-Term Rental Regulations

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Permit & Licensing

Short Term Rental (STR) Hosting Permit

The property must be your primary residence. This means investment properties are not eligible for this permit type.

Application Process

Pre-register and identify STR Type and zoning district; obtain a Sales and Use Tax permit from the MT Department of Revenue and a Gallatin City-County Health Department public accommodation license; for Types 1, 2A and 2B sign an annual form certifying the home is the host's primary residence (70%+ of the calendar year); complete a fire-safety inspection; submit an interior floor plan and exterior sketch plan; then apply online for the STR Hosting Permit. Renew annually before expiration.

Tax Obligations

Combined rate: 8% of gross rental income.

Collection: Hosts register with the Montana Department of Revenue for a seller's permit and self-remit the 8% lodging facility sales and use tax; short-term rental marketplaces and online hosting platforms are required to register and collect, report, and pay the tax on sales they facilitate. The City of Bozeman does not collect lodging taxes for the state.

Filing: Quarterly; reports and payments are due the last day of the month following the calendar quarter (April 30, July 31, October 31, January 31)

Rental Limits

Bozeman does not impose an annual cap on the number of nights you can rent.

Occupancy & Density Limits

Type 1: up to two bedrooms may be rented (only one bedroom in a two-bedroom dwelling). Type 2: two persons per bedroom plus two additional persons, subject to reduction by the city based on available parking. Overall maximum of two guests per sleeping area.

Zoning & Restrictions

Bozeman uses three STR types, all requiring the host's primary residence: Type 1 (host present) is allowed in nearly all residential districts plus most commercial zones; Type 2 (host absent, owner-occupied) is allowed in R-2, R-3, R-4, R-5, R-O, REMU and commercial zones. Type 3 (non-owner-occupied / whole-home) STRs are prohibited citywide for new permits as of December 14, 2023 — only legacy Type 3 permits issued before that date may continue operating.

Insurance & Safety

Insurance

Bozeman does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Safety & Operating Requirements

• Fire-safety inspection required, conducted every three years; if not yet completed the host must schedule one and pay the appropriate fee
• Gallatin City-County Health Department public accommodation license required (inspection conducted only after the fire inspection)
• Interior floor plan and exterior sketch/site plan must be submitted with the application

Platform Requirements

Effective August 11, 2023 (Ordinance 2131, Sec. 38.360.260.J), hosting platforms must list the active STR Hosting Permit Number on all publicly available STR listings and provide a quarterly report to the City's Community Development Department naming the owner/responsible person and the STR address for each booking transaction.

Compliance Checklist

Follow these steps to legally operate a short-term rental in Bozeman:

1. Confirm eligibility. The property must be your primary residence. Investment properties are not eligible.
2. Meet safety requirements. Fire-safety inspection required, conducted every three years; if not yet completed the host must schedule one and pay the appropriate fee. Gallatin City-County Health Department public accommodation license required (inspection conducted only after the fire inspection). Interior floor plan and exterior sketch/site plan must be submitted with the application.
3. Apply for Short Term Rental (STR) Hosting Permit. Submit application + $325 fee.
4. Register for tax accounts. Set up lodging tax accounts with Montana Department of Revenue.
5. Display your permit number. Include your permit/license number in all listings and advertisements.
6. Collect and remit taxes. 8% on all bookings.
7. Renew annually. $325 renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Bozeman?

Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Bozeman requires a Short Term Rental (STR) Hosting Permit.

Are there major restrictions on short-term rentals in Bozeman?

Yes — Type 3 (non-owner-occupied / whole-home) STRs are prohibited citywide for new permits as of December 14, 2023 — only legacy Type 3 permits issued before that date may continue operating. Review the full rules above before listing.

How much does a short-term rental permit cost in Bozeman?

A Short Term Rental (STR) Hosting Permit in Bozeman costs $325 per year.

Does Bozeman require a short-term rental to be your primary residence?

Yes. Every Bozeman permit type requires the property to be your primary residence, so investment or non-owner-occupied rentals generally are not eligible.

How many days a year can you short-term rent in Bozeman?

Bozeman does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.

What taxes do you pay on a short-term rental in Bozeman?

Short-term rental stays in Bozeman are subject to a combined 8% in lodging taxes. This combines 4% Montana Lodging Facility Use Tax + 4% Montana Lodging Sales Tax. The host is responsible for collecting and remitting them.