Calculate cap rates and net operating income for commercial properties in Montana. Compare your results against Montana's tertiary market benchmarks sourced from CBRE H2 2025.
Montana has experienced significant in-migration from California and other states, driving Bozeman and Missoula to become two of the fastest-growing small cities in the US. Bozeman in particular has seen dramatic price appreciation and cap rate compression. Tourism (Yellowstone, Glacier parks) supports hospitality and retail. Limited institutional investment, but strong private capital activity.
| Property Type | Typical Low % | Typical High % |
|---|---|---|
| Multifamily | 5.5% | 7.5% |
| Industrial | 6.5% | 8.5% |
| Retail | 6.0% | 8.5% |
| Office | 7.0% | 9.5% |
Benchmarks sourced from CBRE H2 2025 Cap Rate Survey, JP Morgan, Matthews, and Cushman & Wakefield market data. Ranges represent typical stabilized assets — actual rates vary by asset quality, location, and market conditions.
Montana cap rates typically range from 5.5–7.5% for multifamily, 6.0–8.5% for retail, 6.5–8.5% for industrial, and 7.0–9.5% for office. Bozeman's exceptional growth and limited supply has compressed multifamily rates more than typical for its market size.
Bozeman has experienced one of the most dramatic CRE booms of any small US market, driven by remote worker in-migration, its proximity to Big Sky ski resort, Montana State University growth, and quality-of-life appeal. The market shifted from a university/agricultural town to a tech-adjacent lifestyle market with significant California and Pacific Northwest migration.
Montana offers high growth potential in Bozeman and Missoula but is highly illiquid — very few institutional buyers, limited comparable sales, and a small local economy. Properties can sit on market significantly longer than primary/secondary markets. The in-migration tailwind is real but sensitive to remote work trends and California economic conditions.
This tool is for informational and educational reference only and does not constitute real estate investment advice. Cap rate benchmarks are estimates based on published industry surveys and may not reflect current conditions in your specific market, submarket, or asset class. Actual cap rates vary significantly based on property condition, location, tenant quality, lease terms, and local market dynamics. Always consult a licensed commercial real estate broker, appraiser, or investment advisor before making real estate investment decisions.