Flathead County’s Short-term Rentals Generated $207 Million in Revenue Last Year
Experts at the University of Montana’s Bureau of Business and Economic Research estimate visitors spent $755 million statewide on lodging, goods and services in 2025, three-quarters of which was spent in regions outside of Glacier and Yellowstone national parks
By Maggie Dresser
Flathead County’s short-term rentals (STR) in 2025 generated the highest volume of statewide visitor spending totaling $207 million, according to a new University of Montana Bureau of Business and Economic Research (BBER) report, which utilized AirDNA data.
Gallatin, Madison and Park counties followed Flathead County, with the two regions outside of Glacier and Yellowstone national parks accounting for more than three-quarters of the total STR-generated revenue in Montana.
Statewide, guests in 2025 booked more than 430,000 STR reservations and spent $755 million on lodging and non-lodging goods, which added $797 million to Montana’s gross domestic product.
According to the report, the Kalispell region, which includes the northwest part of the state, and Bozeman region consistently supply the highest volume of available listings and account for two-thirds of the total days reserved in Montana each year.
While STRs generate significant tourism dollars to the Flathead Valley’s economy, the recent growth in listings has triggered controversy surrounding the tight real estate inventory as housing advocates argue the accommodations tailored to visitors hurts the long-term market.
Following the pandemic-driven rise in STRs, the City of Whitefish in 2023 cracked down on listings operating in illegal zoning areas, which exist in most areas excluding downtown and at Whitefish Mountain Resort. The city council voted to hire an STR enforcement specialist, who has been on staff for three years, leading to a drop in listings.
Since the lion’s share of the Flathead Valley visitors travel to the area during the summer, the Kalispell region’s reservation bookings last year were nearly 10 times as high in July compared to November.
On average, Kalispell’s monthly available Airbnb supply totaled 4,899 listings while Bozeman trailed behind with 4,479 listings. By comparison, the central eastern region, which does not include Billings or Great Falls, had only 347 listings.
In the Kalispell region, property owners earned a monthly median revenue of $2,969 for dedicated properties, which are defined as entire homes available for 270 days and have 90 reservation nights in a 12-month period. By comparison, home share properties, which include spare rooms, guest suites or guest houses on the host’s property, totaled a median of $1,551 per month.
While STRs provide supplemental income to many Montana residents, hosts are not required to have their primary residence in the same city or state as their STR, which is most prominent in Flathead County where the out-of-state residential property share is 15.4%.
STRs supported 5,559 statewide jobs with 65% of total employment in the Bozeman and Kalispell regions. In Kalispell, there were 1,644 jobs totaling $74.5 million in labor income, which does not include property owners who host and manage their own STRs.
According to BBER officials, the largest visitor spending contributions occurred in the retail sector, which includes gas stations, the food and beverage industry along with arts, entertainment and recreation.
As tourism continues to play a fundamental role in Montana’s economy, experts say STR expansion has unlocked new destinations available to visitors while gateway communities outside of Glacier and Yellowstone national parks are most benefited.