How much income do I need to buy a house in Billings?

To afford the median Billings home ($390,000) using conventional lending guidelines (28% of gross income to housing, 20% down payment), you'd need approximately $31,500 annual household income. With a smaller down payment, you'd need higher income to offset PMI costs, or could qualify for FHA/VA loans with different requirements.

What is the price-to-rent ratio in Billings?

Billings's price-to-rent ratio is 20.3. This ratio divides the median home price by annual rent. Generally, ratios under 15 favor buying, over 20 favor renting, and 15-20 is a toss-up. This suggests renting may be more economical in Billings.

How long should I plan to stay if I buy in Billings?

Our analysis shows a break-even point of 8 years in Billings. This means if you sell before that point, you'd likely have more wealth if you had rented and invested the difference. We generally recommend planning to stay at least 5 years before buying, though in Billings specifically, you may want to plan for a longer stay.

Is Billings a good place to invest in real estate?

Billings has seen positive appreciation of 37.0% over the past 5 years. This moderate growth indicates a healthy market without extreme speculation. For investment analysis, use our Single Family or Multifamily calculator.

How do Billings home prices compare to the national average?

Billings home prices are below the national average by 7%. The median home in Billings costs $390,000 compared to the national median of approximately $420,000. This relative affordability could make homeownership more accessible.

Rent vs Buy in Billings, Montana

Should you rent or buy in Billings? Get a personalized analysis based on current Billings housing market data.

Median Home:$390,000

Median Rent:$1,600/mo

Price Change (1yr):+5.1%

Our Verdict: Toss-Up

⚖️

TOSS-UP

Our Recommendation for Billings

In Billings, Montana, buying and renting are similarly advantageous financially. The wealth difference over 10 years is approximately $25K, which suggests lifestyle factors and personal preferences should drive your decision.

Break-even

8 yrs

10-Year Advantage

+$25,000

buying wins

Confidence

90%

Price-to-Rent

20.3

Billings Market Statistics

Median Home Price

$390,000

-7% vs national

Median Rent

$1,600/mo

-22% vs national

Property Tax Rate

0.83%

Price Change (1 Year)

+5.1%

Price Change (5 Year)

+37.0%

Price-to-Rent Ratio

20.3

+320% vs national avg

Income to Afford

$31,500

Days on Market

49 days

Data sources: Zillow, Tax Foundation. Last updated: 12/1/2024

Billings Market Insights

Home prices in Billings have increased 5.1% over the past year, outpacing many markets. This strong appreciation benefits current owners and buyers who get in now, but also means affordability is declining for those still saving.

Billings's price-to-rent ratio of 20.3 is above the 20 threshold that typically indicates renting may be more financially advantageous. This doesn't mean you shouldn't buy, but the pure math favors renting in the short to medium term.

Billings has a relatively long break-even period of 8 years. Unless you're committed to staying long-term, renting may be the more financially prudent choice. Transaction costs and the opportunity cost of your down payment take time to overcome.

About This Analysis

These insights are generated based on current Billings market data including median home prices, rental rates, property taxes, and historical appreciation. The analysis uses standard assumptions (20% down payment, 7% interest rate, 10-year horizon) for comparability. Your specific situation may differ—use our calculator below to run personalized numbers.

Run Your Own Numbers

Our analysis uses standard assumptions. Your situation may be different. Use our full Buy vs Rent calculator to input your specific income, down payment, and financial goals.

Home: $390,000

Rent: $1,600/mo

Tax: 0.83%

Open Calculator with Billings Data

Other Tools:

🏠 House Hack CalculatorLive in one unit, rent the others 📊 Investment Property AnalyzerAnalyze rental property returns 🏢 Multifamily CalculatorUnderwrite 2-20 unit properties

Compare Nearby Markets

See how Billings compares to other cities in Montana and the surrounding area.

City	Median Home	Median Rent	Price/Rent	Break-even	Verdict
Billings(current)	$390,000	$1,600	20.3	8 yrs	Toss-up
Missoula	$360,000	$1,250	24.0	17 yrs	Rent
Great Falls	$410,000	$1,650	20.7	6 yrs	Toss-up
Bozeman	$390,000	$1,300	25.0	14 yrs	Rent

Click on a city name to see its detailed rent vs buy analysis.

Frequently Asked Questions

Based on current Billings market data (median home price: $390,000, median rent: $1,600/month), our analysis suggests either option could work. The break-even point is approximately 8 years. However, your personal situation (income, savings, job stability, plans to stay) significantly impacts this decision. Use our calculator to run your specific numbers.

Our Methodology

Our rent vs buy analysis uses a comprehensive financial model that compares the total cost of homeownership against renting and investing the difference. Here's how we calculate each verdict:

1Buying Costs We Include

Mortgage principal and interest (P&I)
Property taxes (using local rates)
Homeowner's insurance
PMI (if down payment is less than 20%)
Maintenance costs (1-2% of home value/year)
Transaction costs (closing costs, realtor fees)
Home appreciation over time

2Renting + Investing Assumptions

Monthly rent with annual increases (~3%/year)
Renter's insurance
Down payment invested in stock market
Monthly savings (buy cost - rent cost) invested
7% average annual stock market returns
Investment growth over holding period

Standard Assumptions for City Analysis

Down Payment

20%

Interest Rate

7.0%

Loan Term

30 years

Time Horizon

10 years

How We Determine the Verdict

Buy: When buying builds $20,000+ more wealth than renting over 10 years
Rent: When renting + investing builds $20,000+ more wealth than buying over 10 years
Toss-Up: When the difference is less than $20,000 either way—lifestyle factors should guide your decision

Note: This analysis provides general guidance based on market averages. Individual results will vary based on specific property characteristics, negotiated prices, timing, and personal financial factors. Always run your own numbers with our full calculator for personalized results.

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Ready to Run Your Numbers?

This analysis uses standard assumptions. Your situation is unique. Use our comprehensive Buy vs Rent calculator to input your specific income, savings, down payment, and financial goals.

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