# Montana home buying: the price-to-income gap, the homestead rate and MBOH loans

> Montana mortgage numbers: home values 5.6 times income, the homestead tax rate you apply for, no transfer tax and Board of Housing aid of up to $15,000.

URL: https://mail.mortgage-math-us.com/location/montana/  
Last reviewed: 2026-10-29 · By the MortgageMath US Editorial team

## Quick answer

The median Montana home is worth $425,400, 5.6 times the state’s median household income, the 8th-highest ratio in the country. With 10% down at the 7.24% national average rate it costs about **$3,219 a month**, including property tax at 0.69% of value. Montana bars transfer taxes, and the Montana Board of Housing lends up to 5% of the price, capped at $15,000, for the down payment. After you buy, apply for the homestead reduced tax rate or the home is taxed at the full residential rate.

## Key facts

| Fact | Value | Source | As of |
|---|---|---|---|
| Median home value in Montana | $425,400 | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=040XX00US30) | 2024 ACS 1-year |
| Median household income | $75,340/yr | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B19013?g=040XX00US30) | 2024 ACS 1-year |
| Effective property tax rate | 0.69% | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=040XX00US30) | 2024 ACS 1-year |
| Real estate transfer tax | 0% | [Montana Constitution, Art. VIII §17](https://mca.legmt.gov/bills/mca/title_0000/article_0080/part_0010/section_0170/0000-0080-0010-0170.html) | Oct 28, 2026 |
| Board of Housing down payment help, up to | $15,000 | [Montana Board of Housing: Down Payment Assistance](https://commerce.mt.gov/Housing/Homeownership/Down-Payment-Assistance) | Oct 29, 2026 |
| Minimum credit score for that help | 620 | [Montana Board of Housing: Down Payment Assistance](https://commerce.mt.gov/Housing/Homeownership/Down-Payment-Assistance) | Oct 29, 2026 |
| Residential tax rate without the homestead rate | 1.9% | [Montana Department of Revenue: 2026 Homestead Reduced Tax Rate FAQs](https://revenue.mt.gov/property/property-tax-changes/homestead-faqs) | Oct 29, 2026 |

## Montana’s price-to-income gap

Montana’s median home value of $425,400 ranks 17th among the states and DC, above the US median of $360,600. Its median household income of $75,340 ranks only 36th. Divide one by the other and Montana homes cost 5.6 times income — the 8th-highest ratio in the country, against 4.4 for the US.

That gap shapes everything below: at today’s rates, a median local income doesn’t stretch to a median local home without help, a second earner or a cheaper house.

## The monthly cost of a median Montana home

> **Worked example: $425,400 home, 10% down, 30-year fixed at 7.24%**
>
> | Part of the payment | Monthly |
> |---|---:|
> | Principal and interest on $382,860 | $2,609 |
> | Property tax at 0.69% | $245 |
> | Homeowners insurance at the national $4.90 per $1,000 | $174 |
> | PMI (midpoint of Freddie Mac’s range) | $191 |
> | **Total** | **$3,219** |

Property tax is the lighter part: Montana’s effective rate of 0.69% is below the national 0.89% and the 19th-lowest in the country. The weight is in principal and interest, because prices are high relative to pay. Adjust the inputs in the [payment calculator](https://mail.mortgage-math-us.com/tools/mortgage-payment-calculator/?price=425000&down=10&tax=0.69&state=MT).

## Shopping at the price a Montana income supports

Freddie Mac suggests keeping housing under 30% of gross income. For the median Montana household that is $1,884 a month, which supports a home of about **$249,000** with 10% down at today’s rate — $176,400 below the state median.

> **Worked example: A first-time buyer at $249,000 with a low down payment and Board of Housing help**
>
> | | Amount |
> |---|---:|
> | Down payment at 3.5% (the FHA minimum) | $8,715 |
> | Closing costs at the low end of the CFPB range | $4,980 |
> | Board of Housing assistance (5% of the price, up to $15,000) | $12,450 |
> | **Cash you bring** (at least $1,000) | **$1,245** |
> 
> The assistance turns a down payment and closing bill into a much smaller check, but it doesn’t lower the price your income supports. The [affordability calculator](https://mail.mortgage-math-us.com/tools/affordability-calculator/?state=MT&income=75340) shows that price at several debt-to-income limits.

## Montana Board of Housing down payment loans

The Montana Board of Housing (MBOH), part of the Department of Commerce, offers two down payment and closing cost loans. Both require you to qualify first for an MBOH Regular Bond Program first mortgage through a participating lender, a credit score of at least 620 for every borrower, a cash investment of at least $1,000 (gifts allowed) and homebuyer education.

*Montana Board of Housing down payment assistance*

| | Bond Advantage DPA | MBOH Plus |
|---|---|---|
| Amount | Up to 5% of the price, max $15,000 | Up to 5% of the price, max $15,000 |
| Interest | Same fixed rate as the first mortgage | 0% |
| Repayment | 15-year amortizing loan | No payments; due when you sell, transfer, refinance or pay off the first loan |
| Income limit | Regular Bond Program limits | $80,000 for 1–2 people, $90,000 for 3 or more |

At the median price, the $15,000 cap is lower than 5% of the price, so the dollar cap is the limit that binds. On the median home, the full Bond Advantage amount would add about $137 a month for 15 years at a rate equal to today’s national average (the actual rate matches your MBOH first mortgage); MBOH Plus adds nothing monthly but has lower income limits. Compare both in the [first-time buyer programs guide](https://mail.mortgage-math-us.com/first-time-buyers/programs/).

## Apply for the homestead tax rate after you buy

Montana now taxes a principal residence at a reduced homestead rate — but only if you apply. Homes without it are taxed at the residential rate of 1.9% of market value (the share that local mill levies are applied to). To qualify, you must own the home as an individual or through a revocable trust and live in it at least 7 months of the year.

**Getting the homestead rate as a new Montana owner**

1. **Move in** — Close on the home and make it your principal residence.
2. **Apply** — File the Department of Revenue’s homestead application online or by mail. For 2026 the window ran from December 1, 2025, to March 1, 2026; check the department’s dates for the next tax year.
3. **Stay current** — Pay your property taxes on time; you must be current by the deadline for the application to be approved.
4. **Reapply when you move** — If you sell and buy another Montana home, file a new application for the new address.

A separate homestead declaration, filed with your county, protects home equity from unsecured creditors up to a limit set in state law — $350,000 in 2021, rising 4% each year since. It doesn’t change your tax bill.

## No transfer tax, by constitution

Montana’s constitution bars both state and local governments from taxing the transfer of real property, so no transfer or deed tax appears on your closing statement — only recording fees. Closing costs on the median home, at the CFPB’s typical range, would run $8,508–$21,270. The [closing cost calculator](https://mail.mortgage-math-us.com/tools/closing-cost-calculator/?state=MT) itemizes them.

## Frequently asked questions

### Does Montana have a real estate transfer tax?

No. Montana’s constitution prohibits state and local transfer taxes on real property, so buyers and sellers pay recording fees but no tax based on the price.

### How do you get the homestead property tax rate in Montana?

Apply to the Department of Revenue online or by mail after you buy; for 2026 the deadline was March 1. You must live in the home at least 7 months of the year; without the reduced rate it is taxed at 1.9% of market value.

### What down payment assistance does the Montana Board of Housing offer?

Bond Advantage DPA and MBOH Plus each lend up to 5% of the price, capped at $15,000. Bond Advantage is repaid over 15 years; MBOH Plus is 0% and deferred, for households earning up to $80,000 (1–2 people) or $90,000 (3 or more).

### What credit score do you need for Montana Board of Housing assistance?

Every borrower needs a score of at least 620, and you must put in at least $1,000 of your own money, which can be a gift.

### What is the property tax rate in Montana?

Census figures put the median Montana homeowner’s bill at $2,939 a year, about 0.69% of home value. Your bill depends on local mill levies and on whether you have the homestead reduced rate.

### How much income do you need to buy a house in Montana?

To keep housing under 30% of gross income on the median $425,400 home with 10% down at today’s average rate, you would need about $128,757 a year before other debts, against a median household income of $75,340.

## Sources

- [Freddie Mac Primary Mortgage Market Survey](https://www.freddiemac.com/pmms) — 30-year fixed rate, national weekly average (Week of Oct 29, 2026)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=040XX00US30) — Median value of owner-occupied homes (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B19013?g=040XX00US30) — Median household income (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=040XX00US30) — Effective property tax rate (median taxes ÷ median home value); Median real estate taxes paid by homeowners (2024 ACS 1-year)
- [Freddie Mac Research](https://www.freddiemac.com/research/insight/homeowners-insurance-costs) — Average homeowners insurance premium per $1,000 of home value (2023 data)
- [Freddie Mac My Home](https://myhome.freddiemac.com/buying/breaking-down-pmi) — Typical PMI cost, low end; Typical PMI cost, high end (Oct 28, 2026)
- [Freddie Mac My Home](https://myhome.freddiemac.com/blog/homebuying/how-much-can-you-afford) — Freddie Mac guidance: housing costs below this share of gross income (Jan 22, 2026)
- [CFPB](https://www.consumerfinance.gov/owning-a-home/prepare/figure-out-how-much-you-want-to-spend/) — Typical closing costs, low end (share of purchase price); Typical closing costs, high end (share of purchase price); Minimum FHA down payment (Oct 28, 2026)
- [Montana Board of Housing: Down Payment Assistance](https://commerce.mt.gov/Housing/Homeownership/Down-Payment-Assistance) — Montana Board of Housing down payment assistance, up to; Montana Board of Housing down payment assistance, up to (share of the sales price); Montana Board of Housing down payment assistance: minimum buyer cash investment (may be gifted) (Oct 29, 2026)
- [Montana Department of Revenue: 2026 Homestead Reduced Tax Rate FAQs](https://revenue.mt.gov/property/property-tax-changes/homestead-faqs) — Montana tax rate for residential property without the homestead reduced rate (share of market value); Montana homestead reduced tax rate: owner must live in the home at least this many months of the year (Oct 29, 2026)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=010XX00US) — Median value of owner-occupied homes (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=010XX00US) — Effective property tax rate (median taxes ÷ median home value) (2024 ACS 1-year)
- [Montana Code Annotated 70-32-104](https://archive.legmt.gov/bills/MCA/title_0700/chapter_0320/part_0010/section_0040/0700-0320-0010-0040.html) — Montana homestead value limit protected from unsecured creditors, 2021 (rises 4% a year) (Jan 1, 2021)
- [Montana Constitution, Art. VIII §17](https://mca.legmt.gov/bills/mca/title_0000/article_0080/part_0010/section_0170/0000-0080-0010-0170.html) — State real estate transfer tax (Oct 28, 2026)
- [Montana Board of Housing: Down Payment Assistance](https://commerce.mt.gov/Housing/Homeownership/Down-Payment-Assistance)
- [Montana Department of Revenue: 2026 Homestead Reduced Tax Rate FAQs](https://revenue.mt.gov/property/property-tax-changes/homestead-faqs)

_General information, not financial advice._