Missoula is western Montana's largest city and a regional hub for education, healthcare, and outdoor recreation. Understanding the cost of living here is essential whether you're considering a move or comparing Missoula to other Montana communities. This guide breaks down housing, income, affordability, and employment data to give you a clear picture of what it costs to call Missoula home. For a broader overview of the city, see our Missoula guide.
At a Glance
Housing Costs
Housing is the single largest expense for most Missoula residents. The median home value stands at $547K according to Zillow's Home Value Index as of January 2026. The U.S. Census Bureau's American Community Survey puts the figure lower at $427K, reflecting the multi-year survey window.
Renters pay a median of $1,526 per month. Home values rank in the 88th percentile among Montana towns, while rents sit at the 82nd percentile. For a detailed look at market trends, inventory, and buying conditions, see our Missoula housing market guide.
Income & Affordability
The median household income in Missoula is $65K, placing the city at the 50th percentile among Montana towns. The affordability ratio — median home value divided by median household income — is 8.4. For context, the commonly cited national benchmark is around 3.0 to 5.0. A ratio of 8.4 means housing in Missoula is stretched relative to local incomes, a pattern common in desirable Western mountain communities.
This doesn't mean Missoula is unaffordable in absolute terms — median home values here remain well below those in comparable cities like Bend, Oregon or Boise, Idaho. And Montana's lack of a state sales tax provides some relief on everyday expenses.
Monthly Budget Estimate
While individual budgets vary widely, here's a rough breakdown of monthly costs for a household earning Missoula's median income:
| Category | Estimated Monthly | % of Income |
|---|---|---|
| Housing (rent or mortgage) | $1,526 | 28% |
| Utilities | $250 | 5% |
| Groceries | $500 | 9% |
| Transportation | $400 | 7% |
| Healthcare | $350 | 6% |
Estimates based on local medians and regional cost indices. Actual costs vary.
Employment & Economic Context
Missoula's economy is anchored by Education & Healthcare, which accounts for 26.2% of employment. The next largest sectors are Professional Services (14.1%) and Tourism & Hospitality (13.8%). The University of Montana is the city's single largest employer, followed by several major healthcare systems.
The unemployment rate is 4.7%, and labor force participation stands at 72.6% — higher than the national average of roughly 62%. This reflects Missoula's younger-skewing population and university-driven job market. For the full industry breakdown, see our Missoula jobs and economy guide.
How Missoula Compares
Among Montana's larger cities, Missoula falls in the middle tier for overall cost of living. Bozeman is significantly more expensive (median home values exceed $700K), while Great Falls and Billings offer lower housing costs but fewer of the outdoor recreation and cultural amenities that draw people to western Montana.
Missoula's combination of a university-driven economy, access to five major river valleys, and a vibrant downtown makes it attractive to remote workers, retirees, and outdoor enthusiasts — which in turn keeps upward pressure on housing costs. The 15% year-over-year increase in for-sale inventory suggests the market may be shifting toward more balance.
Key Takeaways
- Housing is the biggest cost driver, with home values in the top 12% of Montana towns.
- Incomes are middle-of-the-pack for Montana, creating an affordability gap.
- Montana's zero state sales tax offsets some daily expenses.
- The job market is stable, driven by education, healthcare, and professional services.
- Inventory is growing, which may ease prices for buyers over time.