Updated 2026 · Based on median market data for Billings, MT
Billings sits in the West with a population of 121,000 growing at 1% annually. The median home costs $340,000 while rents average $1,380/mo, producing an estimated cap rate of 3.10%. Cash flow investing here requires creative strategies like BRRRR or value-add approaches.
Billings works best for experienced investors with a clear strategy — Section 8, student housing, or deep value-add rehabs. The 3.10% cap rate at median prices is tight, so success depends on buying below market, forcing appreciation through renovation, or accessing above-market rent streams through niche tenant bases.
Target properties priced 15-25% below the $340,000 median — around $272,000 or less. At this price point with $1,380/mo rents, your cap rate improves to roughly 4.3%. Factor in 0.74% property taxes ($2,516/yr), budget 5% of gross rent for maintenance, and underwrite to a 4.8% vacancy rate. On a 20% down conventional loan at 7%, monthly PITI will run approximately $2,118.
Every deal should be evaluated individually using our calculator tools. Median data provides a starting point; actual returns depend on the specific property, financing, and your management approach.
Run the numbers on a specific Billings property using our cap rate calculator (pre-filled with Billings data). Compare Billings against similar markets in the West region. If you're considering a value-add approach, try our BRRRR calculator to model a rehab scenario.