Overview: Are STRs allowed in Sidney, MT?

• Citywide: Sidney’s zoning code does not expressly authorize “vacation rentals” or “short-term rentals” in most residential zones. The only clearly defined, rentable lodging use in residential districts is Bed & Breakfast, which is allowed only as a conditional use (CUP) and must meet use‑specific standards. Investors should assume renting fewer than 30 days in a dwelling unit (whole‑home or private‑room) is not allowed as‑of‑right in residential zones; a CUP may be required at minimum.
• Recreational vehicle (RV) parks (C‑3): Short‑stay RV rentals (less than 180 days per stay) are a permitted use. Stays of 180 days or more require a CUP. Existing manufactured homes may remain under an RV park approval.
• Hotels/motels: Hotels and motels are permitted uses in B‑1 (Community–Highway Business) and B‑3 (Central Business) districts, and conditionally permitted in R‑3. They are not permitted in R‑1/R‑2 residential districts.
• Bottom line for STR investors: The typical “whole-home STR” is not expressly permitted in Sidney’s residential districts. Your legal pathways are:
  1. Operate as a licensed Bed & Breakfast (CUP in R‑1/R‑2/R‑3; B‑1/B‑2/B‑3 allow B&B conditionally),
  2. Locate in the C‑3 RV‑Park district and rent RV spaces for stays under 180 days (no CUP), or
  3. Develop a hotel/motel in a commercial district (B‑1, B‑3; R‑3 requires a CUP).

How to start a STR business in Sidney

1. Confirm zoning district and permitted lodging uses
   • Use the City’s Official Zoning Map (kept by the Zoning Administrator; the PDF link in References). Verify whether your parcel is R‑1, R‑2, R‑3, B‑1, B‑2, B‑3, or C‑3. Allowed lodging differs by district.
   • In R‑1/R‑2/R‑3: Bed & Breakfast is a conditional use. Hotels/motels are prohibited in R‑1/R‑2 and allowed only conditionally in R‑3. Whole‑home or room‑by‑room STRs are not listed as permitted or conditional uses.
   • In C‑3: RV rentals under 180 days are permitted; 180+ days require a CUP.
   • In B‑1/B‑3: Hotels/motels are permitted uses (B‑2 does not list hotels/motels).
2. Secure land use approvals
   • Bed & Breakfast (residential zones): Apply for a Conditional Use Permit (CUP) with the Zoning Commission. A CUP requires “findings of fact” under Section 11.17.10; operation must also comply with use‑specific standards (Section 11.17.22A) and general zoning standards.
   • RV‑Park STR (C‑3): File for a Zoning Conformance Permit; meet 11.9.60 and 11.17.22E standards. For stays ≥180 days, apply for a CUP.
   • Hotel/motel in commercial zones (B‑1/B‑3; R‑3 with CUP): Secure any applicable CUP and a Zoning Conformance Permit. Coordinate building permits and Certificate of Occupancy.
3. Obtain building and occupancy approvals
   • Building permits: Required for any construction, alteration, or change of use (Section 11.2.0). No permits issue if the use conflicts with zoning.
   • Certificate of Occupancy: Required before occupancy; must comply with zoning and building codes (Section 11.2.0).
4. Zoning Conformance Permit
   • For any permitted or conditionally approved use, obtain a Zoning Conformance Permit after receiving CUP approval (if applicable). Utilities connections will not be authorized until zoning and city standards are met (Section 11.2.3).
5. State and health requirements (Montana)
   • Register and collect the Montana Lodging Facility Use Tax (12% on lodging; in addition to local taxes, if any). If selling alcohol, obtain liquor licensing from the Montana Department of Revenue (DOR).
   • If serving food, obtain appropriate food service permits/licensing from the Montana DOR (restaurants/lodging food service).
   • Short‑term rental marketplace registration and 4% accommodation tax (effective July 1, 2024) apply statewide to platforms and lodging providers; verify current applicability and local collection/registration requirements.
6. Final compliance checks
   • Ensure building, life‑safety, fire, and ADA standards are met; provide required landscaping/screening; maintain sidewalks; verify parking per zone standards; file any required business licenses with the City/County as applicable.
   • Maintain records to document CUP conditions, occupancy limits, and tax remittances.

Required documents, permits, licenses, and guidelines

• Zoning and land use
  • Zoning Conformance Permit (post‑CUP, if applicable)
  • Conditional Use Permit (CUP) for Bed & Breakfast (residential zones) and for RV‑Park stays ≥180 days; potentially for hotels/motels in R‑3
  • Compliance with use‑specific standards:
    • Bed & Breakfast standards: Section 11.17.22A
    • RV‑Park standards: Section 11.17.22E; C‑3 district standards: Sections 11.9.50–11.9.60
  • Building & occupancy:
    • Building Permit(s) and Certificate of Occupancy (Section 11.2.0)
  • Utilities:
    • Utility connections require zoning and city standards met (Section 11.2.3)
• State of Montana
  • Montana Lodging Facility Use Tax registration and remittance (12%)
  • Marketplace registration/accommodation tax (4%) where applicable
  • Liquor license (if applicable)
  • Food service permits/licensing (if applicable)
• Operational standards (general)
  • Site design, screening, fencing, yard, sidewalk, parking, landscaping, and building design standards per zoning district (e.g., B‑1/B‑2/B‑3 screening next to residential; R‑1/R‑2/R‑3 accessory structure rules; RV‑Park design standards)

Specific STR regulations by district Residential districts (R‑1, R‑2, R‑3)

• Bed & Breakfast: Conditional use in all three residential districts. Requires a CUP and must meet Section 11.17.22A and the general standards of Article 11.18.0. R‑3 also conditionally permits Bed & Breakfast; R‑1/R‑2 list it as conditional.
• Hotels/motels: Prohibited in R‑1/R‑2; conditionally permitted in R‑3.
• Short‑term rentals (whole‑home, private‑room) for <30 days: Not listed as permitted or conditional uses. Investors should plan for a CUP pathway (Bed & Breakfast) if seeking to operate lodging in these zones.
• Accessory/Guest house: Permitted as an accessory use in R‑1/R‑2/R‑3, but not intended for separate transient rental; must meet accessory structure standards and cannot be used as a standalone residence (temporary or permanent).

Commercial districts (B‑1, B‑2, B‑3)

• B‑1 (Community–Highway Business): Hotels & motels are permitted; Bed & Breakfast is conditional.
• B‑2 (Neighborhood Business): Hotels/motels not listed; Bed & Breakfast is conditional; suitable for small, neighborhood‑scale lodging operations (with CUP).
• B‑3 (Central Business): Hotels & motels are permitted; Bed & Breakfast is conditional; historic compatibility standards apply to new/expanded buildings.
• Screening/yard standards: Non‑residential uses must screen service areas/parking lots adjacent to residential with a solid fence/vegetation at least 6 ft high (B‑1/B‑2/B‑3). Additional design compatibility and yard landscaping standards apply.

Recreational Vehicle Park district (C‑3)

• Under 180 days: RVs/temporary dwelling units are permitted (no CUP required).
• 180+ days: RVs/temporary units are conditional (CUP required).
• Minimum district size: 5 acres. Parkland at 0.03 acres per RV space required. Manager/superintendent facilities limited to 5% of gross units. New manufactured homes prohibited; existing with valid permits may remain.
• Design standards: Section 11.17.22E applies; 50% vegetative landscaping required; sidewalk, fencing, and yard standards apply.

Industrial and other districts (CLM, M‑I)

• Residential uses are prohibited in CLM and M‑I. Hotels/motels are not listed as permitted/conditional uses. These districts are unsuitable for STR lodging businesses.

Additional general zoning constraints affecting STRs

• Utilities: Connections withheld until zoning and city standards are met (Section 11.2.3).
• Certificates and permits: No permits or certificates issued for uses conflicting with zoning; any issued in conflict are null and void (Section 11.2.0).
• Building height and lot coverage: Per district standards (e.g., B‑3 height 70 ft; R‑1/R‑2/R‑3 height 35 ft; lot coverage limits vary).
• Sidewalks/ADA: Continuous sidewalks with ADA compliance required per Section 11.18.75.
• Fencing and setbacks: Height limits and setbacks differ by district; accessory structures must meet design, material, and timing requirements.
• Nonconforming uses: Governed by Article 11.20.0; prior approvals may continue if valid.

Local authority contacts (STRs, zoning, permits)

• City of Sidney – Zoning Administrator/Planning
  • Physical address: City of Sidney, 115 1st St NE, Sidney, MT 59270
  • Phone: (406) 433‑2800
  • Website: cityofsidneymt.com
• City Clerk (permits, records, utility connections)
  • Physical address: City of Sidney, 115 1st St NE, Sidney, MT 59270
  • Phone: (406) 433‑2800
• Building Inspections/Fire Marshal (separate attachment; no direct contacts provided in the materials)
  • Phone: (406) 433‑2800 (general City line; ask for Building/Fire)
• Richland County (planning/records outside city limits)
  • Website: www.richland.org

State-level guidance and contacts (Montana)

• Department of Revenue (lodging use tax, marketplace tax, liquor, food service)
  • Website: mtrevenue.gov
• Montana short‑term rental marketplace/accommodation tax rules and registration
  • Montana DOR – Accommodation Tax: mtrevenue.gov/taxes-fees/accommodation-tax/
  • Marketplace platform registration guidance is provided on the DOR site; confirm current applicability for your operation.

Key links to source materials

• Sidney Zoning Ordinance (Title 11; PDF; April 2022 revision):
  • cityofsidneymt.com/sites/default/files/fileattachments/fire_marshal_/_building_inspector/page/2343/zoning_code_updated_april_2022.pdf
• City of Sidney official site:
  • cityofsidneymt.com
• Montana Department of Revenue (lodging/marketplace taxes, licensing):
  • mtrevenue.gov
• Montana DOR – Accommodation Tax information:
  • mtrevenue.gov/taxes-fees/accommodation-tax/
• Richland County official site:
  • www.richland.org

Practical investor takeaways

• Residential‑zone STRs (whole‑home/room‑by‑room) are not expressly permitted; expect to pursue a Bed & Breakfast CUP path to legally operate lodging.
• RV‑Park model (C‑3) is a clear, permitted pathway for short‑stay rentals under 180 days; beyond 180 days requires a CUP.
• Commercial districts allow hotels/motels (B‑1/B‑3) or conditionally (R‑3). These are “hospitality product” rather than “residential STR,” but offer another investment route.
• Build a compliance plan that includes: (1) CUP (if required), (2) Zoning Conformance Permit, (3) Building Permit and CO, (4) Montana lodging/marketplace tax registration, and (5) any food/alcohol licensing.
• Confirm district standards early (height, coverage, setbacks, landscaping, screening, sidewalks). Noncompliance can stop utility connections and invalidate permits.
• Verify the most current forms, contacts, and fees with the City Clerk/Zoning Administrator and the Montana DOR before investing or opening.