Last checked October 30, 2026.
At late-October 2026 mortgage rates, renting a 2-bedroom comes out ahead of buying the median home after 10 years in all 10 Montana towns where we have both a recent median sale price and current listing rents, under our default assumptions. That changes if rates fall, prices rise faster, you buy a smaller home, or you stay longer. Change any assumption below.
| First month | Buy | Rent |
|---|
| After | Buyer’s net worth | Renter’s net worth | Difference |
|---|
Assumptions you can change
How it works
The calculator follows two people with the same money. The buyer puts down a down payment and pays closing costs, then pays the mortgage, property tax, insurance and upkeep each month. The renter invests what the buyer spent up front, pays rent and renters insurance, and each month whichever of them pays less invests the difference. At the end, the buyer sells (paying selling costs and the rest of the loan) and we compare what each has.
- Property tax uses Montana’s 2026 homestead rates (0.76% of the first $378,000 of value, then 0.90%, 1.10% and 1.9% in tiers) times the mill levy. See Montana property tax.
- Property tax, insurance and upkeep grow with the home’s value; rent grows at the rent growth rate.
- It counts the mortgage interest deduction: each month, mortgage interest plus property tax above the standard deduction ($16,100 for a single filer in 2026, held flat) is multiplied by your tax rate on deductions (default 27%: the 22% federal bracket plus about 5% Montana, which starts from federal taxable income). Set the rate to 0 to leave it out.
- It ignores PMI, HOA dues and capital gains tax. Most single owners’ gains fall under the $250,000 exclusion, but in high-priced towns such as Big Sky the gain over 10 years can exceed it, so the results there flatter buying slightly.
Worked example: Billings
Billings’ median home sold for $389,900 (Redfin, June to September 2026). With 10% down ($38,990) plus 3% closing costs ($11,697), the buyer needs $50,687 up front and borrows $350,910 at 7.24%.
| First month | Buy | Rent |
|---|---|---|
| Mortgage principal and interest (30-year fixed) | $2,391 | |
| Property tax: taxable value $2,980 (0.76% of $378,000 plus 0.90% of $11,900) × 737.18 mills ÷ 1,000 = $2,197 a year | $183 | |
| Homeowners insurance ($2,770 a year) | $231 | |
| Upkeep (1% of value a year) | $325 | |
| Tax saved by itemizing (interest plus property tax above the $16,100 standard deduction, × 27%) | −$259 | |
| Rent (2-bedroom, average of listing sites, 2026) and renters insurance | $1,378 + $15 | |
| Total | $2,871 | $1,393 |
The renter invests the $50,687 the buyer spent up front, plus the $1,478 monthly difference, at 5% a year. After 7 years the buyer’s net worth (home value after selling costs, minus the loan balance) is $129,735 and the renter’s savings are $216,298, so renting comes out about $86,563 ahead. The Billings levy is the 2026 tax-year total for School District 2, City of Billings (737.18 mills, Yellowstone County). Results are rounded to the nearest dollar.
Default results by town
| Town | Median sale price | Default rent | First-month cost to own | Ahead after 10 years |
|---|---|---|---|---|
| Big Sky | $1,895,745 | $2,427 | $11,426 | Renting by $895,954 |
| Whitefish | $894,408 | $1,945 | $5,685 | Renting by $327,529 |
| Bozeman | $649,570 | $2,082 | $4,347 | Renting by $156,539 |
| Belgrade | $569,523 | $1,685 | $3,916 | Renting by $178,947 |
| Missoula | $525,000 | $1,687 | $3,707 | Renting by $158,217 |
| Kalispell | $502,495 | $1,776 | $3,508 | Renting by $115,487 |
| Helena | $441,476 | $1,681 | $3,184 | Renting by $97,253 |
| Billings | $389,900 | $1,378 | $2,871 | Renting by $113,881 |
| Butte | $349,769 | $1,164 | $2,631 | Renting by $123,301 |
| Great Falls | $339,715 | $1,585 | $2,571 | Renting by $42,594 |
Our calculation, with 10% down, a 7.24% 30-year rate (Freddie Mac, Oct 29, 2026), a 27% tax rate on itemized deductions, homeowners insurance of $2,770 a year, 3% home price and rent growth, a 5% return on savings, 1% upkeep, 3% closing costs and 6% selling costs. Mill levies are the official in-town totals for Bozeman, Billings, Missoula, Helena, Great Falls, Kalispell, Whitefish, Belgrade, Butte, Laurel and Big Sky (listed on the property tax page); other towns use a 600-mill placeholder. Prices are Redfin medians (June to September 2026; see home prices by town); rents are the current 2-bedroom listing averages from each town page. Hamilton, Dillon, Livingston, Laurel and Red Lodge are left out of this table because we only have older Census rents there; the calculator still includes them, but enter a current listing rent for a fair comparison.
The median home sold is usually bigger than a 2-bedroom apartment, which also tilts the default comparison toward renting. For a fair test, enter the price of a home similar to the place you’d rent.