What Is the Cost of Living in Billings, Montana? Merlin Lipin’s Guide for Anyone Considering a Move

What is the cost of living in Billings, Montana?

The cost of living in Billings is currently estimated to be slightly below the U.S. average, but your actual monthly expenses will depend heavily on housing, household size, transportation, childcare, and lifestyle. Housing and utilities can compare favorably with national averages, while groceries and transportation may cost somewhat more.

If you are considering a relocation to Billings, Montana, looking at one overall cost-of-living number is not enough.

You need to understand where your money will actually go.

Here is what living in Billings can cost in 2026.

Is Billings, Montana Expensive to Live In?

Compared with the United States overall, Billings is not considered an especially high-cost city.

Apartments.com, using Cost of Living Index data from C2ER, estimates that the overall cost of living in Billings is approximately 3.1% below the national average.

But the individual categories are more useful than the headline number.

Current estimates show:

• Housing: about 8.2% below the national average
• Utilities: about 18.3% below
• Groceries: about 3.3% above
• Transportation: about 5.2% above

That creates a mixed picture.

You may spend less than expected in one category and more in another.

And if you are moving from an expensive city such as Seattle, Denver, San Diego, or another high-cost market, Billings may feel relatively affordable.

If you are coming from a small rural community, the opposite may be true.

How Much Does Housing Cost in Billings?

Housing will usually have the biggest impact on whether Billings feels affordable to you.

Buying a Home

Redfin reported a median Billings home sale price of approximately $389,642 in August 2026.

That was about 0.5% higher than a year earlier.

Homes were taking a median of approximately 61 days to sell.

That gives you a useful citywide benchmark, but it does not mean every home costs around $390,000.

The Billings real estate market includes:

• Smaller starter homes
• Condos and townhomes
• Established single-family neighborhoods
• New construction
• Larger West End homes
• Properties with shops or oversized garages
• Luxury homes
• Acreage outside city limits
• Investment properties and duplexes

A property's age, condition, lot size, location, updates, garage space, acreage, and construction quality can all move the price considerably.

You should also remember that the purchase price is only part of your cost.

Your monthly housing expense may include:

• Principal and interest
• Property taxes
• Homeowners insurance
• Mortgage insurance
• HOA dues
• Utilities
• Maintenance
• Repairs

Your actual payment depends on your financing.

Two people buying the same $390,000 home could have very different monthly payments depending on their down payments, interest rates, loan programs, insurance, and other factors.

How Much Does It Cost to Rent in Billings?

If you are not ready to buy immediately, renting can be a practical way to learn the city first.

As of September 2026, Zillow reports an average Billings rent of approximately $1,478 per month across all property types and bedroom counts.

Available rents ranged from below $700 to several thousand dollars per month, depending on the property.

Apartments.com provides a more detailed breakdown:

• Studio: about $1,048 per month
• 1 bedroom: about $1,274
• 2 bedrooms: about $1,478
• 3 bedrooms: about $2,031

Apartment rents were approximately 0.7% lower than a year earlier.

The important point is that the phrase "average rent" can be misleading.

A one-bedroom apartment, newer townhouse, furnished rental, and detached single-family home are completely different products.

Look at the kind of property you would actually rent.

What Do Utilities Cost in Billings?

Utility costs depend heavily on the home.

Billings has cold winters and hot summer periods, which means heating and cooling demand changes substantially throughout the year.

A newer apartment with modern insulation may cost much less to heat than an older detached home.

The same is true for air conditioning.

When evaluating a house or rental, consider:

• Natural gas or electric heat
• Furnace age and efficiency
• Air conditioning
• Window quality
• Insulation
• Square footage
• Number of occupants
• Water usage
• Lawn irrigation

Cost-of-living data currently estimates Billings utility expenses at roughly 18% below the national average.

But that does not mean your personal utility bill will automatically be low.

A 3,500-square-foot house and a one-bedroom apartment should not be compared using the same citywide estimate.

If utility costs are important to your budget, ask whether historical utility information is available for the specific property.

How Much Do Groceries Cost in Billings?

Groceries are one category where Billings may be slightly more expensive than the national average.

Current C2ER-based estimates place Billings groceries around 3.3% above the U.S. average.

MIT's Living Wage Calculator estimates food expenses of approximately $4,265 per year for one adult with no children in Yellowstone County.

That works out to roughly $355 per month under MIT's basic-needs model.

But your actual grocery bill can vary dramatically.

A household that cooks most meals at home will have a different budget from someone who regularly eats out.

Family size matters even more.

MIT estimates annual food costs of roughly:

• $4,265 for one adult
• $6,256 for one adult with one child
• $9,373 for one adult with two children
• $12,475 for one adult with three children

These are modeled basic expenses, not spending targets.

What Does Transportation Cost in Billings?

Billings is relatively compact compared with a major metropolitan area.

That can be a financial advantage.

You may spend less time sitting in traffic, and the U.S. Census Bureau reports an average commute of only about 16.5 minutes for Billings workers.

But Billings is still car-oriented for many residents.

MIT estimates transportation expenses of approximately $9,242 per year for a single adult with no children in Yellowstone County.

That category can include costs such as:

• Fuel
• Vehicle maintenance
• Insurance
• Registration
• Tires
• Depreciation

Montana weather is also worth considering.

Depending on your vehicle and comfort level, you may want quality all-season or winter tires.

If you live outside Billings or regularly travel for skiing, camping, hunting, hiking, or work, you may drive substantially more than the average resident.

Current cost-of-living data estimates transportation in Billings at approximately 5.2% above the national average.

So while commute times can be short, transportation should not be ignored when building your relocation budget.

What About Healthcare Costs?

Healthcare expenses depend heavily on your insurance, age, employer, household, and medical needs.

MIT estimates approximately $2,861 per year in medical expenses for a single adult with no children in Yellowstone County.

That figure rises significantly for households with children.

One advantage Billings has as a regional city is access to major healthcare systems and specialized services that residents of many smaller Montana communities may have to travel to reach.

But healthcare costs themselves remain highly individual.

You should compare your employer benefits, insurance plan, prescriptions, deductibles, and anticipated medical needs rather than relying on a citywide average.

Childcare Can Completely Change Your Budget

If you have children, childcare may matter more than groceries, utilities, or transportation combined.

MIT estimates annual childcare expenses of approximately $14,180 for one child in a two-working-adult Yellowstone County household.

For two children, the estimate rises above $26,000 per year.

That is why two households earning the same amount can experience Billings very differently.

A couple without children may consider the city relatively affordable.

A household paying for full-time childcare may need tens of thousands of dollars more in annual income to maintain the same financial breathing room.

If you are relocating with young children, research childcare availability and costs before you move rather than after you arrive.

How Much Does One Person Need to Live in Billings?

MIT estimates that a single adult with no children needs approximately $23.25 per hour, or about $48,358 annually before taxes, to cover modeled basic living expenses in Yellowstone County.

That is a living-wage estimate.

It is not the same as living comfortably.

If you want room for:

• Retirement contributions
• Emergency savings
• Vacations
• Restaurants
• Skiing or golf
• Outdoor recreation
• Homeownership
• Pets
• A newer vehicle
• Investments

you will probably want income above the minimum living-wage threshold.

For many single adults, an income around $60,000 to $75,000 can create more financial flexibility in Billings, depending on housing and debt.

But that is a practical guideline, not an official affordability threshold.

Is Billings Cheaper Than the Rest of Montana?

It depends on where you are comparing it with.

Billings' August 2026 median home sale price was approximately $389,642.

By comparison, Redfin reported a statewide Montana median sale price of approximately $522,823 that month.

That means the Billings median was substantially below the statewide figure.

But Montana markets vary dramatically.

Bozeman, Whitefish, Missoula, Helena, Red Lodge, Great Falls, rural Montana, and Billings are not interchangeable housing markets.

You should compare the specific cities you are considering rather than treating Montana as one market.

What Does a Realistic Monthly Billings Budget Look Like?

A hypothetical single renter might have expenses such as:

• Rent: $1,250–$1,500
• Utilities and internet: variable
• Groceries: $350–$500+
• Transportation: several hundred dollars depending on vehicle ownership
• Insurance and healthcare: highly individual
• Phone: variable
• Entertainment and dining: lifestyle dependent
• Savings and retirement: based on personal goals

That could put basic monthly spending well above $2,500 before discretionary expenses, debt payments, major travel, or aggressive savings.

A homeowner may have a higher housing payment plus maintenance and repair costs.

A household with children may have substantially higher housing, grocery, healthcare, and childcare expenses.

This is why the question "Is Billings cheap?" is too simplistic.

The better question is:

What will your lifestyle cost in Billings?

How Can You Estimate Your Own Cost of Living Before Moving?

Before you relocate, build a Billings-specific budget.

Start with these categories:

1. Housing payment or rent
2. Utilities
3. Groceries
4. Vehicle expenses
5. Insurance
6. Healthcare
7. Childcare, if applicable
8. Debt payments
9. Recreation and entertainment
10. Retirement savings
11. Emergency savings
12. Travel

Then compare that budget with your current city.

Do not assume every expense will move in the same direction.

You may save on housing while spending more on transportation.

Or you may pay less in rent but decide you want a larger house once you move.

Your personal choices matter more than a national cost-of-living ranking.

Planning a Move to Billings?

Housing will likely be the largest variable in your Billings cost-of-living equation.

Merlin Lipin, The Real Estate Wizard, is a licensed Montana REALTOR® with Engel & Völkers who works with buyers, sellers, investors, and relocation clients throughout Billings and surrounding communities.

Merlin relocated to Montana himself and works across residential real estate, relocation, new construction, investment properties, land, and luxury homes.

His current website reports 17 sales during the past 12 months and more than 30 five-star reviews.

If you are trying to understand what your budget can realistically buy in Billings, Merlin can help you compare current listings, property types, locations, and housing costs based on your actual goals.

The goal is not simply to determine whether Billings is "cheap."

It is to figure out whether the lifestyle and housing you want make financial sense for you.

Contact Merlin Lipin

Merlin Lipin, REALTOR®
The Real Estate Wizard | Engel & Völkers
Billings, Montana

Phone: 406-561-1189
Email: merlin.lipin@engelvoelkers.com
Website: merlinmontanafinest.com