Median home: $445,000 | Mortgage rate: 7% | Property tax: 0.84% | Insurance: $1,100/yr
Montana is a scenic Big Sky state with surging post-pandemic demand. With a median home price of $445,000 and mortgage rates averaging 7%, understanding what you can afford before house hunting is essential.
The 28/36 rule is the gold standard: spend no more than 28% of gross income on housing and no more than 36% on total debt. In Montana, with a property tax rate of 0.84% and average insurance of $1,100/year, these costs add significantly to your monthly payment beyond just principal and interest.
A 20% down payment on the median Montana home requires $89,000. FHA loans with 3.5% down need just $15,575, but you will pay mortgage insurance. Montana has no sales tax. The Homestead Exemption reduces residential assessment rates.
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Based on the 28/36 rule, your total housing payment should not exceed 28% of gross monthly income, and total debts should stay under 36%. In Montana, with median home prices at $445,000, you typically need a household income of at least $445,000 to afford the median home.
To afford the median Montana home at $445,000 with 20% down at 7% interest, you need approximately $101,506 annual household income. This is based on the 28% housing cost guideline.
The median home price in Montana is approximately $445,000 as of 2026. Prices vary significantly by city and county. Montana is a scenic Big Sky state with surging post-pandemic demand.
A 20% down payment on the median Montana home ($445,000) is $89,000. FHA loans allow 3.5% down ($15,575) and VA loans offer 0% down for eligible veterans.
Montana has a property tax rate of 0.84%, which is near the national average. On the median home, that is $3,738/year. Montana has no sales tax. The Homestead Exemption reduces residential assessment rates.