Investment property loans that qualify on rent.
A DSCR loan in Montana is an investment property mortgage that qualifies on the rent the property earns, not your personal income. HUD puts the 2 bedroom Fair Market Rent for the Billings metro at $1,432 a month (HUD User). Pillar Mortgage Group (NMLS 2700076) arranges DSCR loans in Montana up to $5 million.
Facts checked November 1, 2026. Not a commitment to lend.
DSCR loans by state
We lend DSCR in 35 states. Pick yours.
Every value links to its primary source. Details for each follow further down the page.
| Montana fact | Value | Source |
|---|---|---|
| Security instrument | Trust indenture (deed of trust) under the Small Tract Financing Act for property of 40 acres or less; mortgages also used | mca.legmt.gov |
| Foreclosure | Trust indentures may be foreclosed nonjudicially by advertisement and sale, or judicially at the beneficiary's option | MCA 71-1-304 |
| Transfer and recording taxes | None | Mont. Const. Art. VIII, 17 |
| Security deposit | No statutory cap found | MCA 70-25-201, 70-25-202 |
| Notice for unpaid rent | 3 days written notice | MCA 70-24-422(2) |
| Rent control | Preempted | mca.legmt.gov |
| LLC formation fee | $35 Articles of Organization (plus $50 per series named in a series LLC) | sosmt.gov |
| Median listing price | $635,000 in September 2026 ($637,000 in September 2025) | Realtor.com via FRED |
| HUD 2 bedroom Fair Market Rent | $1,432, The Billings metro | HUD User |
Full walk through: how DSCR is calculated.
The guidelines that set our Montana DSCR loans apart.
Loan amount
Up to $5M
Credit
660 and up
Down
20 to 25%
Vesting
LLC ok
Guidelines summarized; subject to program terms, property and borrower eligibility. Not a commitment to lend. Compare with typical DSCR programs.
Before you run a Montana deal, anchor the rent to public benchmarks instead of a listing agent's guess.
Median listing price
$635,000
September 2026, down 0.3% from $637,000 in September 2025
Quick math (computed from the figures above): On a Montana home at the Montana median of $635,000, 25% down comes to $158,750, leaving a $476,250 loan. A year of rent at the Fair Market Rent for the Billings metro ($1,432) is $17,184, or 2.7% of that price. A year of rent at the Fair Market Rent for the Missoula metro ($1,690) is $20,280, or 3.2% of that price.
Fair Market Rent is a HUD benchmark, not an appraisal.
The rent field starts at the HUD 2 bedroom Fair Market Rent for the Billings metro. HUD also lists the Billings metro at $1,432 and the Missoula metro at $1,690. Swap in your lease or appraisal rent, then add your quoted rate. For a price reference, the median Montana listing was $635,000 in September 2026.
See how a rental's income stacks up against its full monthly payment. Your numbers stay in your browser.
Enter rent, price and your quoted rate to see your DSCR.
Loan amount (L) = Price × (100 minus Down %) ÷ 100
P&I (30 year fixed) = L × r × (1 + r)^360 ÷ ((1 + r)^360 minus 1), where r = annual rate ÷ 100 ÷ 12
P&I (40 year interest only) = L × r
PITIA = P&I + Tax ÷ 12 + Insurance ÷ 12 + HOA
DSCR = Monthly rent ÷ PITIA
Rent needed for a target DSCR = Target × PITIA
Estimates only. Not a loan offer. Rates and terms vary by lender, property and borrower. Company NMLS #2700076. Example values are illustrations, not a quote.
Hypothetical PITIA of $1,775 (P&I $1,400, taxes $250, insurance $125), real Montana rents. Not a quote or a rate.
0.81DSCR
$1,432 / $1,775 = 0.81: fits programs down to 0.50.
0.95DSCR
$1,690 / $1,775 = 0.95: fits programs down to 0.50.
Share the deal and we will run the ratio, compare lenders and lay out your options in plain numbers.
Investors from any state can buy in Montana.
No commitment · Under 2 minutes
We will reach out shortly to run your numbers.
A DSCR loan underwrites the rent, so the rules that govern collecting it matter. Here is what Montana law says, with the statute for each.
| Topic | The rule | Citation |
|---|---|---|
| Security deposit cap | No statutory cap found | MCA 70-25-201, 70-25-202 |
| Deposit return deadline | 30 days with written list of deductions; 10 days if no damage, cleaning or unpaid rent | MCA 70-25-202 |
| Notice nonpayment | 3 days written notice | MCA 70-24-422(2) |
| Notice end month to month | 30 days written notice | MCA 70-24-441(2) |
| Rent control | Preempted. Local governments are denied any power to control the amount of rent charged for private residential or commercial property. | mca.legmt.gov |
Not legal advice.
Every dollar of tax raises the payment the rent has to cover. Here is how Montana assesses and taxes property.
Who closes your loan, which security instrument you sign and what the state charges to record it.
What it costs to form and keep an LLC in good standing with the Montana Secretary of State.
Run through these Montana rules before you write an offer on a rental.
Documents: contract, lease or rent schedule, bank statements, LLC papers, insurance quote. No tax returns. Details.
Montana is highlighted. We also lend DSCR in Wyoming, Washington and Colorado next door, and in 30 more states. Tap a gold state to open its guide.
Straight answers for investors buying or refinancing rentals in Montana.
PMG guidelines summarized; subject to program terms, property and borrower eligibility. Not a commitment to lend.
Book a free callInvesting across state lines? We lend DSCR in these neighbors of Montana too.
Primary sources, each with the date checked. PMG program facts come from Pillar Mortgage Group.
Send the Montana property and rent. We run the ratio and lay out terms before you offer.
No commitment · Under 2 minutes
We will reach out shortly to run your numbers.
Pillar Mortgage Group, LLC is an Equal Housing Lender, doing business in accordance with the Fair Housing Act and Equal Credit Opportunity Act. Not a commitment to lend.
Company NMLS# 2700076 | Arizona License MB-2009671 | View NMLS Consumer Access