What Is the Cost of Living in Montana?

The cost of living encompasses expenses associated with maintaining a certain standard of living, including housing, food, transportation, and healthcare. These financial demands are important for individuals and families considering a move to Montana, as they directly influence budgeting and financial planning.

Understanding Montana’s Cost of Living

Montana’s cost of living index is 103.7, indicating it is about 3.7% more expensive than the national average (100). This places Montana among states that are moderately more expensive, ranking around 34th or 35th in affordability.

Inflation has impacted Montana more significantly than the national average. As of September 2024, prices for goods and services in Montana have increased by 22.1% since January 2021, surpassing the national average increase of 20.5%. This suggests an additional monthly expenditure of approximately $1,135 for households.

Major Household Expenses

Housing Costs

Housing represents a significant portion of living expenses in Montana, with costs varying depending on whether one rents or buys. The median home sale price in Montana was approximately $514,900 in 2024, indicating homeownership can be notably higher than the national median. For renters, the average monthly rent across the state can range from about $1,427 to $1,995 as of August 2025.

Specific rental prices often depend on the property type and number of bedrooms. A studio apartment averages around $1,525 per month, while a one-bedroom unit typically costs about $1,427 monthly. Two-bedroom apartments average approximately $1,729, and three-bedroom units can reach about $2,131 per month. For those with a mortgage, the median monthly cost was reported around $1,538 based on 2021 census data.

Utilities

Utility costs are a consistent monthly expenditure for all households. The average utility bill for a single person in Montana was approximately $105 per month in January 2024. Broader estimates for average monthly utility costs across the state range from $297 to $379.

More detailed breakdowns include:
Energy bill: around $97.84
Internet service: about $45 per month
Natural gas: approximately $37
Water bills: typically around $38
Phone bill: around $114

Transportation

Transportation expenses in Montana are generally higher than the national average, with overall costs estimated to be 9% greater. A single adult might anticipate annual transportation costs exceeding $5,300, partly influenced by gasoline prices averaging between $3.23 and $3.40 per gallon as of late 2024 and mid-2025.

Car insurance premiums for full coverage typically range from about $1,900 to $2,350 annually, or approximately $158 to $196 monthly. Vehicle maintenance costs can range from $900 to $1,800 annually, with mechanics generally charging around $35 per hour for labor. While public transportation exists in larger Montana cities, personal vehicles are often a practical necessity due to the state’s expansive geography. Local transport tickets cost around $2.77 per ride, with monthly passes available for about $36.9.

Food Expenses

Food costs in Montana generally align with or are slightly below national averages for groceries, though dining out can be quite affordable. An individual’s monthly grocery bill typically ranges from approximately $331 to $574. Annual non-restaurant food expenses are estimated to be around $3,971 per person.

When dining out, an inexpensive restaurant meal might cost around $22.77. A meal at a mid-range restaurant was reported at approximately $10 per person in early 2024. For a three-course meal for two at a mid-range establishment, the cost averages about $63.80.

Healthcare

Healthcare costs in Montana are close to the national average, with a health index of 99.6. For those with employer-sponsored health insurance, the average cost is around $101.58 per month. Individuals seeking non-employer-sponsored insurance might find the cheapest average premiums to be about $635 per month.

Typical out-of-pocket costs for medical services include:
General doctor’s visit: approximately $106
Dentist visit: $99.77
Optometrist visit: $108.82
The estimated annual healthcare cost per person in Montana is about $8,289.

Miscellaneous Personal Expenses

Beyond the major categories, various miscellaneous personal expenses contribute to the overall cost of living. Montana’s miscellaneous goods and services index is 90, indicating these costs are generally below the national average. General “all other personal expenditures” can account for a significant portion of a budget, estimated at around $26,532 annually per person.

Income and Affordability

Income levels in Montana provide context for the state’s cost of living, influencing overall affordability. The average household income in Montana was reported at $94,544 in 2024. The median household income was approximately $69,922 in 2024, or $70,804 in 2023. This compares to a median family income of about $80,779 as of April 2024.

Montana’s average household income is about 14% lower than the national average, and its median household income is roughly 11% lower than the U.S. median. For individuals, the per capita income stands at approximately $39,842. This lower income environment, coupled with a cost of living slightly above the national average, can present financial challenges for residents. To live comfortably, an individual in Montana might need to earn around $2,030 per month.

Cost Variations Across Montana

The cost of living in Montana is not uniform across the state, exhibiting significant variations based on geography, economic activity, and population density. Certain areas, particularly popular tourist destinations and larger cities, typically have higher expenses. Bozeman is frequently cited as the most expensive city, with a cost of living approximately 20.4% higher than the national average. This is reflected in median rents, which were about $2,078 for a one-bedroom and $2,442 for a two-bedroom apartment in December 2024.

Other higher-cost areas include Missoula, where median rents for a one-bedroom were $1,432, Kalispell, Whitefish, and Helena. These areas often experience increased housing demand and economic activity, contributing to elevated prices.

Conversely, more rural or less populated regions tend to offer a lower cost of living. Havre is recognized as one of the most affordable places to live, with a median home value of $224,202 and average rent around $1,696. Miles City, Butte, and Great Falls are also considered affordable, with Great Falls reporting a cost of living 14.3% lower than the national average. Areas like Anaconda and Hardin also provide lower costs, particularly for transportation and utilities.