In 2023, Bozeman implemented stringent rules on short-term rentals, among the strictest in the country. First, the city mandated hosting platforms like VRBO and Airbnb to remove properties lacking an active Short-Term Rental (STR) license. Consequently, hundreds of homes were delisted within city limits.
In an unexpected turn, the city later imposed a near-total ban on short-term rentals, effective December 14th, 2023, through Ordinance 2149. This prohibition primarily targeted Type 3 rentals, defined as homes not serving as someone's primary residence, encompassing properties in commercial and business districts.
Currently, there's no straightforward avenue for full-time rentals in the city unless utilizing a multifamily loophole (explained below). Remaining in the short-term rental inventory are grandfathered properties. ADUs can still be rented as full-time short-term rentals, and residents have the option to rent their primary homes for up to 30% of the year. Home sharing, or renting rooms in a residence while the owner resides there, is permitted but limited to two rooms.
Concerning the multifamily loophole, Type-2B allows leasing one unit in the dwelling. Previously, only owners residing in one unit could rent it out. However, the language was modified to "host," expanding the possibility for tenants in unit A to apply for a hosting permit for unit B, with the tenant's agreement, potentially at a reduced rental rate.
Mountain Home is closely monitoring developments, as the county is also moving towards eliminating short-term rentals. Despite Gallatin County zoning not explicitly addressing short-term rentals since 1995, the recent shutdown of a licensed property in Bridger Canyon during a February 8th, 2024 Planning and Zoning Commission meeting is causing concern. Although the ruling may face legal challenges, the precedent is worrisome. Visitors to Bozeman can anticipate a reduced array of lodging options. Stay informed by joining our mailing list as we observe developments in the greater Gallatin Valley.