Billings Renters Exceed 30% Income Benchmark for Housing Costs

Billings renters now spend more than 30 percent of income on rent in 38 percent of households earning under $58,000 a year, according to fresh figures released this week by Yellowstone County.

The jump matters because median asking rents climbed 9 percent between January and June 2026 while wage growth in the metro area lagged at 3.4 percent, squeezing budgets already stretched by higher property taxes and insurance.

Landlords along 27th Street in the Heights and near the intersection of Grand Avenue and 4th Avenue North report vacancy rates below 4 percent, with one-bedroom units listed at $1,175 to $1,325. The Yellowstone County Housing Authority and the local office of the Montana Department of Commerce both field daily calls from tenants seeking emergency rental assistance after crossing the 30 percent line.

Rent burdens by neighborhood

June 2026 data from the Billings Association of Realtors shows the West End zip code 59102 carries the highest concentration of over-30-percent renters, followed closely by the South Side. A two-bedroom apartment there now averages $1,450, which equals 31 percent of the median household income of $55,800 recorded for that tract in the latest American Community Survey release.

Property managers say applications from service workers and hospital staff at Billings Clinic have risen sharply since spring, many citing the 30 percent rule as the point where they begin looking for roommates or second jobs.

Buyer alternatives gaining traction

Some households are crossing into ownership instead. The median sale price for single-family homes stood at $382,000 last month, with 30-year fixed rates hovering near 6.35 percent. First-time buyers using the state down-payment assistance program through the Montana Board of Housing can qualify for properties under $400,000 with as little as 3 percent down.

Tenants weighing the switch should run the numbers with a local lender before the next lease renewal, compare total monthly costs including taxes and maintenance against current rent, and check listings through the Billings Multiple Listing Service for homes under the $400,000 threshold in the Heights or near the airport corridor.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.