Miles City, Montana Short Term Rental Regulations Guide for Airbnb hosts

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.

What do Airbnb hosts actually earn in Miles City?

Miles City hosts earn a median $22,020/year with $123 ADR and 59% occupancy.

Top performers pull in $34,036+ per year.

See the full Miles City market breakdown

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

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

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

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

Verify current local requirements with Miles City authorities before investing
Consider the low-regulation environment as a competitive advantage
Monitor regulatory changes in Montana and neighboring cities
Plan for state-level compliance as the minimum operating standard
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.

Next step

Found a property in Miles City?

Paste any address and get estimated revenue, cash-on-cash return, and comparable STR performance in under 5 minutes. 3 free analyses per day.

Ask the AI Advisor about Miles City

Miles City sits in southeastern Montana as the seat of Custer County, a small ranching town of roughly 8,500 residents set where the Tongue River meets the Yellowstone. The community carries a strong cowboy identity, rooted in cattle drives and the open range, and it is best known as the home of the annual Bucking Horse Sale, one of the most recognizable rodeo events in the northern plains. Travelers and road-trippers pass through on Interstate 94, which links Miles City to the larger metro of Billings roughly 150 miles to the west.

The Range Riders Museum is one of the most visited stops in town, showcasing the cattle, rodeo, and frontier history of eastern Montana through photographs, pioneer artifacts, and recreated homestead and saloon scenes. Located on the west side of the city, it offers a compact but rich look at life on the open range, and serves as a useful orientation point for anyone curious about the region's ranching roots.

A short drive to the east opens up dramatically different scenery at Makoshika State Park, Montana's largest state park, situated near Glendive about 120 miles from Miles City. The park's eroded badlands, dinosaur fossils, and caprock formations make it a favorite for hikers and paleontology enthusiasts, and it provides a striking contrast to the rolling grasslands that surround the city itself. (Makoshika State Park)

To the southwest, Little Bighorn Battlefield National Monument preserves the site of the famous 1876 battle between the U.S. Army's 7th Cavalry and Lakota, Northern Cheyenne, and Arapaho forces. The drive from Miles City takes roughly three hours, but the monument's visitor center, walking trails, and views over the rolling prairie make it a meaningful day trip for visitors interested in the history of the northern plains.

Miles City appeals to short-term rental investors and guests because it offers an authentic slice of Montana ranch country without the crowds of the bigger gateway towns. Its central location between Billings, Glendive, and the surrounding public lands makes it a natural base for travelers exploring southeastern Montana, while events like the Bucking Horse Sale and the steady flow of I-94 traffic provide a dependable seasonal rhythm of visitors looking for a comfortable, distinctly western place to stay.