Overview: Are Short-Term Rentals Allowed in Miles City?

Yes, short-term rentals are explicitly allowed in Miles City, Montana. Based on available data, Miles City maintains a low regulation environment for short-term rentals compared to other Montana communities like Bozeman and Missoula, which have implemented restrictive ordinances. While many Montana cities are tightening STR regulations due to housing concerns, Miles City currently operates under minimal local restrictions beyond state requirements, making it one of the more STR-friendly markets in Montana.

How to Start a Short-Term Rental Business in Miles City

1. Research State Requirements

Start with the Montana Department of Public Health and Human Services website to understand the Public Accommodation License requirement that applies statewide.

2. Verify Local Zoning Compliance

While Miles City has minimal STR-specific regulations, confirm your property zoning allows short-term rental operations through the city planning department.

3. Obtain State Public Accommodation License

All Montana short-term rental operators must obtain this license regardless of local jurisdiction.

4. Register for Tax Collection

Register with the Montana Department of Revenue to collect and remit required lodging taxes.

5. Secure Adequate Insurance

Standard homeowners insurance typically doesn't cover commercial short-term rental activities.

6. Establish Local Management

While not specifically required in Miles City, having a local contact person is recommended for non-resident owners.

Required Documents, Permits, Licenses, and Guidelines

State-Level Requirements (Required for All Montana STRs)

Public Accommodation License

• Issued by Montana Department of Public Health and Human Services
• Required for all short-term rental operators statewide
• Application requires detailed property information, safety certifications, and fee payment

Tax Registration

• Montana Department of Revenue registration
• Required for collection of lodging taxes

Essential Safety Documentation

• Working smoke detectors
• Carbon monoxide alarms (properties with gas appliances/fireplaces)
• Fire extinguishers
• Emergency exit plans
• Building code compliance verification
• Maximum occupancy documentation

Miles City-Specific Requirements

Based on available information, Miles City does not appear to have city-specific short-term rental licensing requirements beyond state mandates. However, operators should verify current local requirements with:

• City Business Licensing Division
• Planning and Zoning Department
• Building Safety Division

Recommended Documentation

• Property deed/ownership proof
• Property floor plans and specifications
• Owner and local contact information
• Insurance coverage documentation
• Safety compliance certificates
• Guest registry (required by state)
• Tax identification numbers

Specific Regulations: City, County, and State Level

State of Montana Regulations

Public Accommodation License Requirement

• All STR operators must obtain and maintain state licensing
• Basic health and safety standards including potable water, wastewater disposal, hygienic amenities
• Guest registry requirement
• Lodging tax obligations (8% total: 4% Lodging Facility Use Tax + 4% Lodging Sales Tax)

Custer County Regulations

No specific county-level short-term rental regulations were identified in the provided sources. County regulations typically defer to state requirements unless specifically implemented.

Miles City Regulations

Current Status: Minimal Local Restrictions

• Miles City maintains a low-regulation environment for STRs
• No city-specific licensing requirements identified beyond state mandates
• No apparent zoning restrictions specifically targeting short-term rentals
• Standard city business license requirements may apply

Note: While Miles City currently has minimal restrictions, the regulatory landscape can change. Other Montana cities like Bozeman and Missoula have recently implemented significant restrictions, though Miles City has not followed this trend.

Comparison with Other Montana Cities

Bozeman: Prohibits non-owner occupied STRs in residential districts Missoula: Considering similar bans; currently requires neighbor notification Great Falls, Kalispell, Billings: No current restrictions (as of 2023) Miles City: Low regulation environment maintained

Contact Information

State Authorities

Montana Department of Public Health and Human Services

• Licensure and permitting for Public Accommodation License
• Website: dphhs.mt.gov
• Phone: Contact through main department line

Montana Department of Revenue

• Tax registration and collection
• Website: revenue.mt.gov
• Phone: Contact through main department line

Miles City Local Authorities

City of Miles City - Planning/Building Department

• Address: 101 E. Main St., Miles City, MT 59301
• Phone: 406-234-3462
• Email: Contact through city main number
• Website: milescity.com

Custer County Planning Department

• Address: 1010 Main St., Miles City, MT 59301
• Phone: 406-874-8200
• Website: custercountymt.com

Miles City Business Licensing

• Address: 101 E. Main St., Miles City, MT 59301
• Phone: 406-234-3462
• Handles general business license requirements

Links to Source Pages

Primary Sources

• Montana Airbnb Laws: A Guide to Short-Term Rental Regulations
• Miles City Airbnb Market Analysis 2025: Short Term Rental Data
• Short-term rentals are on the chopping block in some Montana cities

Supporting Documentation

• City of Miles City Council Meeting Agenda - August 12, 2025

Important Considerations for Miles City STR Investors

Market Advantages

• Low regulatory burden compared to other Montana cities
• Established market with 32 active listings and growing demand
• Moderate profitability with median annual revenue of $20,352
• Flexible operating environment with fewer restrictions than neighboring communities

Risk Factors

• Regulatory changes possible as Montana communities reassess STR policies
• Market size limitations as a smaller Montana community
• Seasonal demand variations with peak season in July and low season in February

Investment Recommendations

1. Verify current local requirements with Miles City authorities before investing
2. Consider the low-regulation environment as a competitive advantage
3. Monitor regulatory changes in Montana and neighboring cities
4. Plan for state-level compliance as the minimum operating standard
5. Evaluate property location within Miles City for optimal guest access and attraction

This guide reflects information available as of 2025. Given the evolving nature of short-term rental regulations in Montana, investors should regularly verify current requirements with local authorities before making investment decisions.