Cost of Living in Billings, MT

Cost of Living in Billings, MT: A Detailed Overview

With a median household income of $57,803, residents of Billings, MT earn $16,777 less than the national median of $74,580. What makes that figure meaningful is the local cost context: Billings's cost of living index sits at 94.8, placing it below the national baseline of 100. In practical terms, everyday expenses here run about 5.2 percent less than the U.S. average. The city is a moderately sized city of roughly 119,510 people, situated in the West Coast. Even though raw incomes are modest, the lower cost base boosts effective purchasing power, meaning residents can afford more than the headline salary might suggest.

What Makes Billings, MT Unique

Billings is Montana's largest city and the commercial hub of the northern Great Plains, serving as a regional center for healthcare, agriculture, and energy. Billings Clinic and St. Vincent Healthcare are the two largest employers, while refineries from CHS and ExxonMobil process crude oil from the Bakken formation and Wyoming's Powder River Basin.

The downtown core along Montana Avenue features a growing collection of locally owned restaurants, breweries, and galleries, while the Yellowstone Art Museum in the former county jail building anchors the cultural scene. The Rimrocks, dramatic sandstone cliffs bordering the city's north side, offer hiking trails and panoramic views of the Yellowstone Valley.

Billings benefits from its proximity to outdoor destinations including the Beartooth Highway, Bighorn Canyon, and Yellowstone National Park, two hours to the southwest. The city has focused development efforts on its downtown streetscape improvements and the South Billings Urban Renewal District, seeking to balance growth with the quality of life that attracts residents to Montana.

Housing Costs in Billings, MT

The most revealing housing metric in Billings is the rent-to-income ratio, which currently stands at 22.8 percent. That single number distills what raw rent and income figures can obscure: at this level, the typical renting household keeps three-quarters or more of gross income for everything else — groceries, transportation, savings, and discretionary spending — a ratio that signals genuine housing affordability. Median rent in Billings is $1,100, with one-bedrooms at $950 and two-bedrooms at $1,250. On the purchase side, the median home price of $330,000 is $82,300 lower than the national median of $412,300. Housing overall represents about 31 percent of an average household's monthly budget — the single largest line item by a wide margin.

Monthly Expenses and Budget Breakdown in Billings, MT

The total estimated monthly cost of living in Billings comes to approximately $3,555, compared to a national average of roughly $4,357. That total spans housing, groceries, utilities, transportation, healthcare, entertainment, childcare, and local taxes. The biggest slice goes to housing at $1,100 per month, followed by childcare at $900. Groceries for a typical household run $345 monthly — below the national average, a small but consistent savings that adds up over the course of a year. Utility bills, covering electricity, gas, water, and internet, average $135, while transportation — fuel, insurance, maintenance, and any transit fares — runs $110. Healthcare costs average $425 per month, at or below the national figure of $450, offering some financial relief for residents with ongoing medical needs. Rounding out the budget, entertainment and dining average $120, and childcare averages $900 for families who need it.

How Billings, MT Compares to the National Average

At a cost of living index of 94.8, Billings delivers measurable savings against the national baseline of 100. A household that would spend $4,357 per month in an average-cost city needs only about $3,555 here — a monthly advantage of roughly $802 that compounds to approximately $9,624 per year. Over five years, that totals roughly $48,120, money available for a down payment, retirement savings, or eliminating debt. For remote workers earning salaries pegged to higher-cost metros, the leverage is even greater.

Living in Billings, MT: Different Lifestyles

Families: Raising a family in Billings means accounting for childcare at $900 per month, housing that claims 31 percent of the budget, and grocery costs of $345. Childcare costs below the national average provide welcome relief for working parents. On a median income of $57,803, families can cover core expenses while maintaining room for extracurricular activities, college savings, and an emergency fund.

Young professionals and singles: For those early in their careers, the one-bedroom rent of $950 per month is the make-or-break number. That figure sits below the national one-bedroom median of $1,190, giving young earners more room to pay down student debt, build an investment portfolio, or simply enjoy life. Monthly entertainment spending averages $120, covering dining, nightlife, fitness, and cultural outings.

Retirees: Billings qualifies as retirement-friendly, with healthcare costs of $425 per month and a tax-advantaged environment in Montana that protects fixed-income streams.

Is Billings, MT Right for You?

Choosing where to live is ultimately a forward-looking decision, and the financial data on Billings equips you to project ahead with confidence. At today's prices — rent of $1,100, home values of $330,000, total monthly expenses near $3,555 — you can model exactly how your income, savings rate, and lifestyle spending play out over one, five, and ten years. Below-average costs compound into significant wealth-building advantages over time, especially for disciplined savers. Before committing, plug your numbers into our comparison calculator, identify the expense categories that weigh most heavily on your budget, and spend time in Billings to verify that the lifestyle matches the data. The smartest relocations merge quantitative analysis with the qualitative judgment that only a personal visit can provide.