Overview: Are STRs allowed in Bozeman, MT?

• Yes, short‑term rentals are allowed in Bozeman, but only under specific types and in specific zoning districts. As of December 14, 2023, the City bans new “Type 3” STRs (non‑owner‑occupied homes). Only owner‑occupied categories—Type 1, Type 2A, and Type 2B—are eligible for new permits. Legacy Type 3 properties that held valid permits or had complete applications before the ban may continue as “Legacy Type 3” STRs as long as their permits remain active and they remain code‑compliant.
• Bozeman defines an STR as transient lodging for fewer than 28 consecutive days by guests whose primary residence is elsewhere. Long‑term rentals (≥28 days) fall under Montana’s Residential Landlord and Tenant Act and are not regulated as STRs by the City.
• Zoning matters. STR use is authorized only in certain residential and non‑residential districts, and the permitted STR type varies by zone.
• The City’s rules include safety, tax, licensing, occupancy, parking, and platform‑reporting requirements.

How to start a short‑term rental business in Bozeman

1. Confirm eligibility and zoning

• Identify your proposed STR Type (see Types and Zoning table below).
• Use the City’s STR Zoning Map Viewer to verify the property is in a district that authorizes your STR type.

2. Complete state and county prerequisites

• Sales and Use Tax registration: Register with the Montana Department of Revenue (DOR). You will receive an Account ID ending in LFT; this is required for the City application.
• Public Accommodations License: Apply through the Montana Department of Health and Human Services with inspection by the Gallatin City‑County Health Department (see County section for contacts and process). The Health Department will not inspect until after your fire inspection.

3. Primary Residence Acknowledgment (Types 1, 2A, 2B)

• Hosts of Types 1, 2A, and 2B must certify the property is their primary residence (≥70% of each calendar year). Submit the City’s Primary Residence Acknowledgement form annually.

4. Prepare plans and schedule inspections

• Create an interior floor plan and an exterior sketch/site plan showing sleeping areas, egress, and off‑street parking. The City provides examples.
• Complete a fire‑safety inspection. Fire inspections are required every three years or upon certain changes (new host; change in STR use area; permitted alteration affecting the STR area). Call the Fire Department to schedule and pay the applicable fee. Upload the approved inspection during your online application.

5. Apply online and renew annually

• Apply via the City’s STR Permit Portal. An annual registration fee of $250 is required. You will receive email confirmation upon approval. Renew through the same portal before your expiration date each year.

Required documents, permits, licenses, and guidelines

• City short‑term rental hosting permit (Type 1, 2A, or 2B only; Type 3 new permits prohibited).
• Montana Sales and Use Tax Account (Account ID from DOR ending in LFT).
• Public Accommodations License (issued by Montana DHHS after inspection by Gallatin City‑County Health Department).
• Primary Residence Acknowledgement form (Types 1, 2A, 2B).
• Fire‑Safety Inspection approval (every three years; new host/use changes require re‑inspection).
• Interior floor plan and exterior sketch/site plan.
• Zoning verification (STR Zoning Map Viewer).
• Annual renewal prior to expiration (City portal).

Bozeman short‑term rental types and zoning authorization

• Type 1: One or more bedrooms in the host’s primary residence while the host occupies the same dwelling for the entire rental period.
• Type 2A: Dwelling unit is the host’s primary residence; host not present during rental.
• Type 2B: Accessory Dwelling Unit (ADU) on the same lot as the host’s primary residence OR one additional dwelling unit within the same building as the host’s primary residence.
• Type 3 (Legacy only): Entire home that is not owner‑occupied. New Type 3 STRs are prohibited as of Dec 14, 2023. Only pre‑existing, compliant STRs with a valid or complete application by that date may continue as “Legacy Type 3.”

Permitted STR types by zoning district Residential districts

• R‑S, R‑1, R‑2, R‑3, R‑4, R‑5, R‑O, REMU, RMH
  • Type 1: Allowed in R‑S, R‑1 through R‑5, R‑O, REMU; not allowed in RMH.
  • Type 2: Allowed in R‑2 through R‑5, R‑O, REMU; not allowed in R‑S, R‑1, RMH.
  • Type 3: Only Legacy Type 3 in non‑residential zoning districts; not allowed in residential districts.

Non‑residential districts

• B‑1, B‑2, B‑2M, B‑3, UMU, HMU
  • Type 1: Allowed in B‑2, B‑2M, B‑3, UMU, HMU; not allowed in B‑1.
  • Type 2: Allowed in B‑2, B‑2M, B‑3, UMU, HMU; not allowed in B‑1.
  • Type 3: Legacy Type 3 allowed only; new Type 3 prohibited.

Key occupancy and parking rules

• Occupancy limits:
  • Type 1: Host may rent or offer up to two bedrooms, except in a two‑bedroom dwelling, only one bedroom may be rented. No other areas of the dwelling may be rented.
  • Type 2 and Legacy Type 3: Maximum of two persons per bedroom plus two additional persons; the City may reduce the number based on available parking spaces.
• Off‑street parking: Required; count only spaces available to guests (garage spaces only if guests will have access during their stay).

Hosting platform obligations (Airbnb, VRBO, etc.)

• Per Ordinance 2131, hosting platforms must:
  • Display the active STR permit number on each listing.
  • Provide quarterly reports to the City (owner/responsible person and STR address for all bookings).
• Contact: STR@bozeman.net.

Legacy and grandfathering

• Legacy Type 3 STRs: Existing STRs with an active City permit or a complete application submitted prior to Dec 14, 2023 may continue, provided they maintain a valid permit and remain code‑compliant. If the permit expires, is revoked, or ownership transfers, the property is no longer eligible as a Legacy Type 3.
• 2017 grandfathered STRs: STRs operating legally before Dec 1, 2017 that obtained a city license within 60 days may continue only while their permit remains valid and is renewed on time. If a grandfathered license expires, it cannot be reinstated.
• STR registrations terminate upon sale or transfer; a new application is required.

Penalties and compliance

• Operating an unregistered STR is a misdemeanor, subject to fines, imprisonment, and civil penalties under Bozeman Municipal Code 38.200.160. Inspections, renewals, and platform obligations are actively enforced.

County‑level regulations (Gallatin County)

• Bozeman city limits regulate STRs within the City; outside City limits (unincorporated Gallatin County), the County does not maintain STR‑specific zoning standards (per the provided content). However, any lodging operating as a short‑term rental is subject to state law and health/safety requirements through the Gallatin City‑County Health Department (public accommodations licensing) even when outside City limits.
• Health inspections are conducted by the Gallatin City‑County Health Department for public accommodations licensing. Apply to Montana DHHS; the Health Department will schedule an inspection (typically only for new STR permits), and it will not inspect until after the City’s fire inspection is completed.

State‑level regulations (Montana)

• Sales and Use Tax registration is required for lodging. Register with the Montana Department of Revenue and file returns as required.
• Public Accommodations License is issued by the Montana Department of Health and Human Services following inspection by the local health department (Gallatin City‑County Health Department).
• The City does not administer lodging taxes; state lodging taxes must be paid directly to the Montana Department of Revenue.

Contact information

• City of Bozeman STR Program: STR@bozeman.net
• Bozeman Fire Department (inspections): 406‑582‑2350; fireschedule@bozeman.net
• Gallatin City‑County Health Department (Public Accommodations): 406‑582‑3120; ehs@gallatin.mt.gov
• Bozeman City Main Line: 406‑582‑2300
• Montana Department of Revenue (Sales & Use Tax registration): revenue.mt.gov

Links to source pages (as provided)

• City of Bozeman Short‑Term Rentals: www.bozeman.net/services/short-term-rentals
• City STR Permit Portal: str.deckard.com/mt-gallatin-city_of_bozeman/
• STR Permit Renewal Portal: portal.deckard.com/mt-gallatin-city_of_bozeman-str-portal/
• STR Complaints Portal: complaints-str.deckard.com/bozeman-mt-str-complaints
• STR Zoning Map Viewer: www.arcgis.com/apps/webappviewer/index.html?id=6b335ddcd93f4a54943c493101dc72ff
• Gallatin City‑County Health Department: www.healthygallatin.org/
• Montana Department of Revenue Sales & Use Tax Registration (TAP): tap.dor.mt.gov/_/#3
• City STR Hosting Tutorial (YouTube): youtu.be/NW4rwbG9m5U
• Bozeman Municipal Code – Penalties (38.200.160): librarystage.municode.com/mt/bozeman/codes/code_of_ordinances?nodeId=PTIICOOR_CH38UNDECO_ART2PELEACPR_DIV38.200JUSCAU_S38.200.160VIPEASABADRE
• Avalara blog summary: www.avalara.com/mylodgetax/en/blog/2024/01/bozeman-bans-new-strs-unless-they-re-owner-occupied.html
• Mountain Home Montana blog: www.mountain-home.com/blog/vacation-planning/bozemans-new-short-term-rental-rules
• Bozeman Realty Group overview: bozemanrealtygroup.com/bozeman-short-term-rental-rules/

Practical checklist for investors

• Confirm STR Type (1/2A/2B) and zoning eligibility on the City map.
• Complete Montana DOR sales/use tax registration (obtain Account ID ending in LFT).
• Secure Public Accommodations License through Montana DHHS/Gallatin Health (after fire inspection).
• Prepare and submit Primary Residence Acknowledgement (annually for Types 1, 2A, 2B).
• Schedule fire inspection; meet the City’s safety checklist; upload approval.
• Prepare interior floor plan and exterior sketch/site plan.
• Apply and pay the $250 annual fee via the STR Permit Portal.
• Ensure platforms list your active permit number; monitor quarterly reporting obligations.
• Renew annually before expiration; monitor City communications (e‑notifications available).