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Intro to Bozeman

Vacation Rental Investment Property in Bozeman

by Liz Nitz

Rental Investment Property in Bozeman

A few years ago, Bozeman redid the city zoning map. In an attempt to control and steer growth, and to keep home prices affordable, Vacation Rental Investment Property were curtailed and limited to very specific areas.  Any grandfathered vacation rentals could not keep that status if the home sold.  Bozeman also designated some areas as higher density which would allow for ADUs to be built on the property.

Short Term Rentals are defined in Sec. 38.42.2835 of the Bozeman Municipal Code as:

“A vacation home, tourist home as defined in MCA 50-51-102, a dwelling as defined in 38.42.940, accessory dwelling unit, or room within a vacation home or dwelling, which is rented by or on behalf of the owner to the general public for compensation for transient occupancy as provided for in article 22.”

 

The distinctions between different types of Short terms rentals

  • Type-1:  A short term rental of one or more bedrooms in an owner-occupied dwelling while the owner is occupying the same dwelling unit for the entire rental period.
  • Type-2:
    1. A short term rental of an owner-occupied dwelling if the owner is not occupying the dwelling during the entire rental period.
    2. A short term rental of a permitted accessory dwelling unit (ADU) whether or not the ADU’s owner is present in the primary dwelling unit during the rental period.
    3. A short term rental of one dwelling unit within a duplex whether or not the duplex’s owner is present in the duplex’s other dwelling unit during the rental period.
  • Type-3:   A short term rental that is not owner-occupied.

Bozeman zoning map

  • The red areas do not allow vacation rentals of any kind.
  • The orange areas only allow type 1 vacation rental.
  • The yellow areas only allow type 1 or 2 vacation rental.
  • The green areas allow all types of vacation rental.

As Bozeman is a favorable destination spot for vacationers, the type 3 Green properties are very desirable for investment purposes.

What Should Affordable Housing Look Like in Bozeman?

Where to start investing in vacation rentals in Bozeman

The following is a list of the green zones allowing all types of vacation rental investment properties, with up-to-the-minute active listings. When you save the search on each page, you will receive email updates any time a new listing is added to the MLS!

  • Bozeman South
  • Bozeman East
  • Bozeman Main Street
  • Bozeman Huffine
  • Bozeman Four Corners
  • Bozeman North 7th
  • Bozeman North 19th
  • Bozeman Baxter West

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