Montana Rental Portfolio Guide
What you need to know before building or growing a rental portfolio in Montana — property tax burden, state income tax, security-deposit rule, source-of-income law, and the metros that actually cash-flow after accounting for local taxes.
Tax burden on Montana rentals
Property tax
0.74%
effective rate on median home value
At 0.74% effective, the property tax burden sits in the lower half nationally (rank 18 of 51). Modest annual carrying cost keeps cash flow projections realistic on median-priced homes.
State income tax
5.90%
top marginal rate
A top marginal rate of 5.90% is moderate. Portfolio income above the federal deduction stack still faces this rate on top of federal, so tax-optimized holding structures (installment sales, 1031s, cost-segregation) matter more here than in no-tax states.
Security deposit rule
No statutory cap on security deposits. Landlords set the deposit at whatever the market accepts — typically one to two months' rent, sometimes more for higher-risk applicants or pets. Local ordinances may still apply.
Deposit rules change; verify current statute before drafting a lease.
Best cash-flow markets in Montana
Modeled monthly cash flow on a median-priced single-family purchase at 20% down, 30-year fixed, using Montana’s 0.74% effective property tax rate plus 25% of rent for insurance, maintenance, vacancy and management.
| Market | Median price | Median rent | Annual property tax | CF / month |
|---|---|---|---|---|
| Butte, MT | $288,827 | $1,330 | $2,137 | $-695 |
| Great Falls, MT | $344,945 | $1,382 | $2,553 | $-985 |
| Billings, MT | $410,666 | $1,435 | $3,039 | $-1,330 |
| Helena, MT | $477,996 | $1,656 | $3,537 | $-1,559 |
| Missoula, MT | $580,429 | $1,567 | $4,295 | $-2,226 |
| Kalispell, MT | $649,746 | $1,934 | $4,808 | $-2,356 |
State median across the metros: $477,996 home, $1,567 rent, $-1,559/mo modeled cash flow.
Track your Montana rental portfolio
The Pro Portfolio Tracker rolls up every property in your portfolio, auto-revalues them monthly against local price data, and flags DSCR risk and equity milestones. Each Montana property carries the state-specific tax burden shown above through to the cash flow calculation.
Property tax rate: Tax Foundation. Security deposit rule: state statute. Verify current law before making decisions — statutes change and this page is a planning reference, not legal or tax advice.