Updated 2026 · Based on median market data for Billings, MT
The median monthly rent in Billings, MT is $1,360, translating to $16,320 in annual gross rental income per unit. The rent-to-price ratio is 0.34% — well below the 1% rule, making pure cash flow investing challenging at median prices and requiring investors to target below-median purchases or value-add strategies. For context, a 0.34% rent-to-price ratio means that for every $100,000 invested in property, you collect approximately $340/mo in gross rent. The gross rent multiplier of 24.5x means it takes 24.5 years of gross rent to equal the purchase price — a high ratio that reflects price appreciation outpacing rent growth.
Renters in Billings spend approximately 29% of the local median household income ($56,800) on rent. This is within the healthy 25-30% range, indicating rent is affordable relative to local incomes. There may be room for moderate rent increases, especially for updated or well-located units. The 30% affordability ceiling suggests maximum supportable rent of approximately $1,420/mo — that is $60/mo above current median rent.
The vacancy rate in Billings is 4.8%. This is extremely tight — expect strong tenant demand, quick lease-ups, and leverage to set favorable lease terms. In markets this tight, landlords often see multiple applications per listing and can be highly selective on credit scores and income verification. You can also justify annual rent increases of 3-5% without significant pushback. Population growth of 1% annually provides stable demand.
Billings's GRM (price divided by annual rent) is 24.5x. A GRM above 16x means the property is expensive relative to its income. Investors here are typically betting on appreciation rather than current cash flow, which adds risk if the appreciation thesis does not materialize. For comparison, the national average GRM for investment-grade rentals is approximately 13-15x. To beat Billings's median GRM, target properties where you can achieve rents above $1,360 through renovations, better marketing, or targeting underserved tenant segments — or buy at a discount to the $400,000 median price. Every point lower on GRM translates to roughly 0.5-0.8% improvement in your cap rate.
At the median rent of $1,360/mo, a single-family rental in Billings generates approximately $16,320 in gross annual income. After accounting for 4.8% vacancy ($783 lost), property taxes of $2,960, insurance (~$1,600), and maintenance (~$1,600), the estimated NOI is $9,377 per year, or $781/mo. Adding an 8% management fee ($1,306/yr) reduces investor cash flow further. Before debt service, you are looking at approximately $8,071/yr in landlord net income. Whether this is attractive depends on your total capital invested — at a $80,000 down payment, the unlevered yield on equity from NOI alone is 11.7%.
Rent growth in Billings is driven by the interplay of population growth (1%), income growth, and housing supply constraints. Moderate population growth of 1% supports steady rent increases of approximately 2.5% per year. That trajectory takes today's $1,360/mo to $1,465 in 3 years and $1,539 in 5 years. The affordability headroom of $60/mo between current rents and the 30% income threshold offers some room for increases, though landlords should be strategic about timing and magnitude.
The median income of $56,800 supports a mixed tenant base of young professionals, small families, and long-term renters. In a smaller market of 121,000 residents, word-of-mouth and local listing platforms may be more effective than national sites for finding tenants.
As a mid-sized market, Billings has property management options but less competition among PMs. Expect fees of 8-12% of collected rent. At $1,360/mo, budget $136/mo for management. Self-management makes sense if you are local, have fewer than 5 units, and the rent level justifies your time — at $1,360/mo, self-management of a small portfolio saves meaningful dollars but professional management becomes economical at 3-4 units.
Billings vs Montana state average and national average across key investment metrics. Billings's cap rate is below both benchmarks — deal sourcing is critical here.