Introduction: What Makes a Good Rental Property?

Investing in rental properties can be a lucrative venture if approached strategically. A good rental property combines several key factors: location, property condition, market demand, and potential for appreciation. Among these, location often plays the most critical role. A prime location attracts reliable tenants, ensures higher occupancy rates, and typically commands higher rental income.

When selecting a rental property, consider the area's economic stability, growth prospects, local amenities, and lifestyle attractions. Proximity to employment centers, schools, public transport, and recreational facilities can significantly impact a property's desirability and rental income potential.

Yellowstone County, MT: An Investment Hotspot

Yellowstone County, Montana, is an attractive destination for real estate investors, thanks to its diverse economy, growing population, and scenic beauty. The county offers a mix of urban and suburban living, with Billings as its largest city and economic hub. Here's an overview of the best neighborhoods and areas in Yellowstone County for rental property investments, graded on various essential factors.

1. Billings Heights

Grades:

• Convenience: A
• Tourist Attractions: B
• Things to Do: B
• Average Home Prices: B
• Return on Investment: A
• Proximity to Work-Related Travel: B
• X-Factor: A

Convenience Billings Heights offers a range of amenities, including shopping centers, restaurants, and schools. Its strategic location provides easy access to downtown Billings and other key areas.

Tourist Attractions While not a major tourist destination, Billings Heights is close to attractions like the Yellowstone River and Lake Elmo State Park, offering recreational opportunities.

Things to Do Residents can enjoy local parks, hiking trails, and community events. The area has a suburban feel with a strong sense of community.

Average Home Prices Home prices in Billings Heights are relatively moderate, making it an affordable option for investors. The average home price ranges around $300,000.

Return on Investment Billings Heights boasts a strong rental market with high demand, ensuring a good return on investment. The area’s stable economy supports consistent rental income.

Proximity to Work-Related Travel The area is conveniently located near major roads, making commuting to downtown Billings, hospitals, and business centers relatively easy.

X-Factor Billings Heights is known for its family-friendly environment and excellent schools, making it a desirable location for long-term renters.

2. Downtown Billings

Grades:

• Convenience: A
• Tourist Attractions: A
• Things to Do: A
• Average Home Prices: C
• Return on Investment: B
• Proximity to Work-Related Travel: A
• X-Factor: A

Convenience Downtown Billings offers unparalleled convenience with its proximity to businesses, restaurants, shops, and entertainment venues.

Tourist Attractions The downtown area is a hub for cultural attractions, including museums, theaters, and historic sites.

Things to Do There is always something happening in downtown Billings, from festivals and concerts to art walks and farmers markets.

Average Home Prices Homes in downtown Billings tend to be more expensive, with average prices around $400,000. However, the higher prices are offset by the area's desirability and potential for appreciation.

Return on Investment While the initial investment might be higher, downtown properties can command higher rents, offering a good return on investment. The vibrant atmosphere attracts a steady stream of renters.

Proximity to Work-Related Travel Downtown Billings is the business center of the county, with many offices, hospitals, and convention centers nearby, making it ideal for professionals.

X-Factor The vibrant, urban lifestyle and the rich cultural scene make downtown Billings a unique and highly desirable place to live.

3. West End Billings

Grades:

• Convenience: A
• Tourist Attractions: B
• Things to Do: B
• Average Home Prices: B
• Return on Investment: B
• Proximity to Work-Related Travel: B
• X-Factor: B

Convenience West End Billings is known for its convenient access to shopping centers, restaurants, and schools. The area is well-connected by public transportation.

Tourist Attractions While not a primary tourist area, West End Billings is close to several parks and recreational areas, providing ample outdoor activities.

Things to Do Residents enjoy various local amenities, including parks, sports facilities, and community centers. The area has a suburban feel with plenty of family-friendly activities.

Average Home Prices Home prices in West End Billings are reasonable, averaging around $320,000, making it a good option for investors.

Return on Investment The area offers a stable rental market with a good return on investment. The demand for rental properties is consistent due to the area's amenities and quality of life.

Proximity to Work-Related Travel West End Billings is well-connected to major roads and public transport, facilitating easy commutes to downtown and other business areas.

X-Factor The community-oriented atmosphere and high-quality schools make West End Billings an attractive option for families, ensuring steady rental demand.

4. Lockwood

Grades:

• Convenience: B
• Tourist Attractions: C
• Things to Do: C
• Average Home Prices: A
• Return on Investment: A
• Proximity to Work-Related Travel: B
• X-Factor: B

Convenience Lockwood offers a quieter, suburban lifestyle with essential amenities nearby. It's a short drive from downtown Billings, providing access to more extensive facilities.

Tourist Attractions Lockwood is not a major tourist destination but offers proximity to natural attractions like the Yellowstone River and Pictograph Cave State Park.

Things to Do The area provides outdoor activities, including hiking and fishing. However, it has fewer entertainment options compared to other neighborhoods.

Average Home Prices Lockwood boasts some of the most affordable home prices in Yellowstone County, averaging around $250,000, making it highly attractive for investors.

Return on Investment The lower home prices and steady demand for rentals ensure a high return on investment. The area attracts long-term renters looking for affordable housing.

Proximity to Work-Related Travel Lockwood is conveniently located near major highways, facilitating easy commutes to Billings and other employment centers.

X-Factor The blend of affordability, suburban charm, and proximity to natural attractions makes Lockwood a unique and desirable place to live.

5. Laurel

Grades:

• Convenience: B
• Tourist Attractions: B
• Things to Do: B
• Average Home Prices: B
• Return on Investment: B
• Proximity to Work-Related Travel: C
• X-Factor: B

Convenience Laurel offers a small-town feel with essential amenities, including shops, restaurants, and schools. It's located about 15 miles from Billings, providing a balance of rural and urban living.

Tourist Attractions Laurel is close to several outdoor attractions, including the Yellowstone River and Clarks Fork of the Yellowstone River, offering recreational opportunities.

Things to Do Residents can enjoy local parks, fishing, and community events. The town has a friendly, close-knit community atmosphere.

Average Home Prices Home prices in Laurel are reasonable, averaging around $280,000, making it an affordable option for investors.

Return on Investment Laurel offers a stable rental market with good return on investment potential. The area's affordability attracts a steady stream of renters.

Proximity to Work-Related Travel While not as close to Billings as other areas, Laurel still offers manageable commutes to major employment centers.

X-Factor The small-town charm, combined with the affordability and access to outdoor activities, makes Laurel a unique and appealing place for renters.

Conclusion

Yellowstone County, MT, offers a diverse range of neighborhoods and areas for real estate investors, each with its own unique attributes and investment potential. Whether you're looking for urban convenience, suburban charm, or affordable rural living, Yellowstone County has something to offer. By carefully considering the factors outlined in this guide, you can unlock the investment potential of rental properties in this beautiful region.