Short-Term Rental Laws in Missoula, Montana

Missoula's ordinance distinguishes Type 1 (Owner-Occupied / Hosted) STRs — allowed by right in all residential zones — from Type 2 (Non-Owner-Occupied / Whole-Home) STRs which require a Conditional Use Permit (CUP) in residential zones and are permitted by right only in commercial and mixed-use zones. The CUP framework gives the Planning Board discretion to deny based on neighborhood density and complaints. Type 1 (host present or host's primary residence) is straightforward; Type 2 in residential is materially harder.

Missoula Municipal Code Title 20 (Zoning) governs. Type 1 (Owner-Occupied) STRs allowed by right in R-5.4, R-8, R-11, R-15, R-20, R-40, R-80 residential zones. Type 2 (Non-Owner-Occupied) in those residential zones requires CUP with neighbor notification + Planning Board hearing. Type 2 by-right in B-1, B-2, M Commercial and mixed-use zones. Missoula County (unincorporated areas: Frenchtown, Bonner, East Missoula, Lolo) operates a separate county registration system.

Operators must hold a short-term rental permit before listing. See the official permit portal.

Missoula Development Services administers business licensing for STRs. Montana Department of Revenue collects the 4% Lodging Facility Use Tax + 4% sales tax on accommodations. Annual renewal. Application requires Montana lodging tax registration, designated local 24/7 contact, life-safety inspection, parking plan, and proof of insurance. Operating without a permit: administrative fines + back-tax assessment. Type 2 CUP applications often face neighborhood opposition — track Planning Board agendas before assuming approval.

Combined short-term lodging tax in Missoula is approximately 8.000% of gross nightly revenue (state sales + state TRT + local TRT + applicable resort/city options).

Montana Lodging Facility Use Tax 4% + Montana sales tax on accommodations 4% — combined ~8.0% on transient lodging (Missoula does not have a local resort tax)

Verify the current combined rate via the Utah State Tax Commission before remitting — rates drift quarterly.