Rent vs buy in Bozeman, MT

The typical home in Bozeman, Montana costs $721,678, while the typical rent is $2,199 a month.

Rent

Over 7 years, renting comes out $80k ahead

The figures rely on Bozeman's typical rent and home value, plus 20% down and today's mortgage rate. The break-even point is year 15.

An opinion, clearly labeled with the math shown. These figures are estimates, not quotes. Adjust any number and the stamp updates.

Renting leads by: $80k
Break-even point: year 15
Actual cost of owning: $6,018 /mo

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Is renting or buying cheaper in Bozeman?

After counting the money returned when you sell, renting costs $80,484 less over 7 years. For the first 14 years, renting costs less. By year 15, owning catches up.

Rent. Ownership. Net cost so far, shown by year.

Average rent versus mortgage payment in Bozeman

Year 1 has more than just rent and mortgage costs. Here's every monthly cost based on Bozeman's typical price.

Each month, year 1	Amount	What it is
Rent	$2,199	All of it, every month
Mortgage payment	$3,935	$3,468 of it is interest in year 1
Property tax	$367	0.61% of the value a year
Insurance	$108	Census median for the city
Upkeep	$601	1% of the value a year
Owning, cash out	$5,011	$467 of it builds equity
Lost return on the down payment	$1,173	The yearly return on the cash at 8.3%
Buying costs, spread out	$301	3.5% of the price over 7 years
True cost of owning	$6,018	Cash out, minus the equity portion, plus the two amounts above

The figures behind Bozeman's result

Typical home valueZillow ZHVI, September 2026: $721,678
Typical rentZillow ZORI, September 2026: $2,199 /mo
Down payment20% avoids private mortgage insurance, which the engine does not model: 20%
Mortgage rateFreddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US): 7.24%
Home price growthFHFA house price index, Montana, 1995 to 2025: 5.3% a year
Rent growthCPI rent of primary residence, yearly growth 2006 to 2026: 3.5% a year
Return on savings60% S&P 500 with dividends and 40% 10-year Treasuries, rebalanced yearly, 1928 to 2025: 8.3% a year
Property taxCensus ACS 2020-2024, Bozeman: 0.61% of value
Home insuranceCensus ACS 2020-2024, Bozeman: $108 /mo
MaintenanceFannie Mae, low end of 1% to 4%: 1% of value a year
Buying costsFreddie Mac, middle of 2% to 5%: 3.5% of price
Selling costsAgent commission plus closing costs: 6% of price

What would reverse the result in Bozeman?

Each line marks the point where the 7-year Bozeman verdict changes, while everything else stays as it is.

Renting is cheaper when

Home prices rise at a rate below 6.6% each year. Our calculation uses 5.3%, based on Montana's long-run rate.
The condition is a mortgage rate that stays above 5.25%.
A similar home rents for under $3,060 each month, compared with the typical $2,199 here.
Before year 15, you move.

When buying wins

Home prices rise by more than 6.6% a year.
You lock in a mortgage rate under 5.25%, compared with 7.24% today.
The same home would cost over $3,060 a month to rent.
You stay for 15 years or longer.

Bozeman and the other 812 cities, side by side

Measure	Bozeman	Median city
Typical home value	$721,678	$422,451
Typical rent	$2,199 /mo	$1,837 /mo
Price-to-rent ratio	27.3 (#99 of 813)	18.5
Home prices, last 10 years	6.9% a year	6.2% a year
Rents, last 5 years	3.2% a year	4% a year
Property tax	0.61%	0.87%
Households that rent	55%	42%

Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.

Other Montana cities

For Billings, MT, renting saves $43k.
For Missoula, MT, renting saves $89k.
For Great Falls, MT, renting saves $14k.

Montana numbers for rent vs buy