The Real Cost of Living in Billings, MT: 2025 Guide

In the Mountain West, Bozeman and Missoula have surged — but Billings, Montana’s largest city with 117k–120k people, offers a different value: the “Magic City” is the regional hub for healthcare, banking, and energy, giving urban amenities without the resort-town premium and generally more affordable living.

For anyone thinking about moving to Billings, the financial picture is generally welcoming: the cost of living in Billings MT runs roughly 5–6% below the national average - Cost of Living Index ≈ 94.6. Costs have risen like everywhere else, but Billings remains a practical option compared with many western neighbors — and there’s a big bonus residents appreciate: Montana has no statewide sales tax.

Housing Costs: Renting vs. Buying in Billings

Housing is the biggest budget line — and Billings’ market has risen in recent years but stayed steadier than many Western boomtowns. Through 2025 it’s more balanced and tilting slightly toward buyers, which means more negotiation room on well-priced homes for sale in Billings MT than a few years ago.

Median listing prices typically sit at $390,000–$425,000, with recent sold prices near $375,000–$393,000; neighborhoods matter — starter homes in The Heights are far more affordable than new builds in Shiloh or the West End. Renting is nudging up to 1.1% YoY, but remains reasonable, with average rents around $1,270–$1,500/month. Looking at the best neighborhoods in Billings MT is important.

Here is how that breaks down by unit size:

• Studio: ~$1,037 per month
• 1-Bedroom: ~$1,367 per month
• 2-Bedroom: ~$1,550 per month

Utility Costs: Heating, Water, and Internet

Once you have secured a roof over your head, you need to keep the lights on and the heat running. Overall, utility costs in Billings are actually quite low—roughly 18-19% below the national average. However, if you are new to the area, you need to account for the "Winter Factor."

Montana winters are no joke. While your bills might look low in June, gas and electric usage spikes significantly from November to March when temperatures drop below zero. You need to budget for that seasonality. Major internet providers like Charter Spectrum and CenturyLink serve the area well, so staying connected for remote work is rarely an issue.

To be safe, a monthly utility budget usually looks like this:

• Basic Utilities like Electric, Heating, Water, and Garbage for a 915 sq ft apt: ~$148 - $160
• Internet - 60 Mbps+: ~$75 - $86
• Total Budget: Plan for $250–$300/month to avoid surprises.

Groceries and Dining Out

Billings is the regional hub for hundreds of miles, and that geography nudges some grocery prices higher — expect staples to run about 4–5% above the national average due to shipping and distribution. Locals shop at big chains like Walmart, Costco, and Albertsons, while budget-minded shoppers often choose WinCo. A typical grocery marker: gallon of milk ≈ $3.50–$4.00.

Dining options span no-frills diners to solid mid-range steakhouses, with an inexpensive meal usually costing $15–$20. One clear perk: Montana has no statewide sales tax, so the price on the menu or the shelf is the price you pay — that adds up to noticeable savings over time.

Transportation: Gas, Insurance, and Commuting

Billings is largely car-dependent—MET Transit exists but has limited routes and hours—so most people rely on personal vehicles. Traffic is light and commutes are short - about 15–20 minutes.

• Transit: MET Transit runs in the city, but schedules and coverage are limited compared with bigger metros.
• Commute: Average drive time is a relaxed 15–20 minutes; congestion is minimal.
• Fuel: Gas tends to follow the oil market and usually sits near or slightly above the national average - commonly $3.10–$3.40/gal.
• Hidden costs: Winterization is essential—plan for winter tires and related upkeep. Routine tire balancing/maintenance runs about $88/year.
• Insurance: Auto insurance costs vary—shop local carriers and compare rates, especially if you’re adding winter coverage or a second vehicle.

Healthcare Costs in Yellowstone County

Billings and Yellowstone County are a regional medical hub — home to Billings Clinic and St. Vincent Healthcare — drawing patients from across Montana, Wyoming and the Dakotas. That access to specialty care and hospital services is a major reason people move here.

That convenience comes with higher prices: local healthcare costs commonly run about 6–11% above the national average, and a routine doctor visit without insurance often costs $130–$150. If you’re planning a move, double-check health insurance premiums, deductibles, and out-of-pocket maximums — this is one budget category where Billings isn’t the cheapest option.

Taxes in Montana: The Good and The Bad

Taxes are one of Montana’s biggest financial perks — the state has 0% sales tax, which can save you roughly 5–10% on everyday purchases and big-ticket items alike, such as clothing, furniture, and vehicles). Those savings add up over a year and make dining, shopping, and major purchases noticeably cheaper than in many other states.

Income tax is straightforward: Montana’s reworked brackets top out around 5.9%. Property taxes in Yellowstone County run about 0.85% on median rates — lower than the national average by percentage — but rising home values mean the actual dollar amount homeowners pay has increased, so factor that into your monthly mortgage calculations.

Income and Job Market Opportunities

Affordability is relative to how much you earn. Fortunately, wages in Billings have been rising. The median household income sits around $71,855. The local economy is diverse, anchored by major industries like healthcare, energy, agriculture, and retail trade.

Top employers include the hospital systems like Billings Clinic and St. Vincent, First Interstate Bank, Walmart, and ExxonMobil. A living wage for a single person is estimated at about $34,400 per year; many households aim for a combined income near $71,000 to cover typical expenses.

Is Moving to Billings Right for Your Wallet?

When you weigh the pros and cons, Billings remains one of the most practical places to live in Montana financially. You get the proximity to the outdoors and the "Big Sky" lifestyle without the extreme "mountain tax" pricing found in the western part of the state. While you have to prepare for winter heating bills and slightly higher healthcare costs, the savings from affordable housing and zero sales tax make it a very attractive option for many.

How to Compare Costs - Using the Right Calculators & Benchmarks

Before you move, run a few simple comparisons so you can compare the cost of living and know whether Billings will let you maintain your standard of living. Start with three online tools: a general cost of living calculator, a living wage calculator (for example, MIT’s living wage calculator), and a mortgage/rent affordability tool. Use those calculators to compare Billings versus your current city and to test scenarios like two working adults vs. a single earner.

1. Run a cost of living calculator and a living calculator to see how billings cost of living stacks up to the U.S. and to many other cities (BestPlaces and Numbeo are good cross-checks).
2. Plug in median household income in Billings, median home price in Billings, and current mortgage rates to estimate monthly housing costs.
3. Compare rent prices and monthly rent for common units (studio, two-bedroom) to homeownership upfront costs (down payment, closing).
4. Use MIT’s living wage calculator (enter local wage data) to see recommended average annual income and whether that meets your desired standard of living.

What to watch out for:

• Housing costs in Billings (median home, rent in Billings) are often cheaper than the national average for housing and groceries but healthcare or certain goods may be higher than the national average.
• Transportation in Billings: residents rely on cars (limited public transit and walkability), so factor commute time, transportation expenses, winterization, and insurance into your budget.
• Consider affordability and availability: lower rents and lower sales tax can offset upfront costs of homeownership, but childcare costs, healthcare, and rising home values are significant expense drivers.

FAQs

Is Billings, MT expensive to live in?

No, generally speaking, it is not expensive. The cost of living in Billings is approximately 5.4% lower than the national average. It is also significantly more affordable than other Montana cities like Bozeman or Missoula.

What is the average cost of a house in Billings, MT?

As of late 2024 and going into 2025, the median listing price for a home falls between $390,000 and $425,000. Prices can vary depending on whether you are looking in established neighborhoods or newer developments.

Does Billings, Montana have sales tax?

No, Montana is one of the few states with 0% sales tax. This applies to everything from your daily coffee to buying a new vehicle, which offers substantial savings.

What salary do you need to live comfortably in Billings?

A single person typically needs an annual salary of around $35,000 to $40,000 to cover basics comfortably. A combined household income of about $71,000 or more is generally recommended to comfortably cover typical living expenses..

How much are utilities in Billings?

For a standard apartment, basic utilities run about $150 to $160 per month. However, once you add high-speed internet and account for winter heating spikes, you should budget closer to $300 per month.