The city of Columbia Falls could look to curb the proliferation of vacation rentals as it begins forming a new land use plan in the coming months.

Mayor Don Barnhart said during last week’s council meeting he’d like to see a mechanism that would restrict the number of vacation rentals in the city, noting the lack of affordable housing available in the city limits.

In early 2025, according to a recently completed housing study, there are between 75 and 95 short-term housing rentals listed by sites like Vacation Rental By Owner and Airbnb in Columbia Falls city limits. That excludes hotels and motels.

All told, the study found there were 83 licensed in the city limits and about 223 in the Columbia Falls area. But there appear to be more in the works. Barnhart noted that a building across the street from City Hall was advertising both long and short-term rentals.

Five years ago, there were only 12 licensed vacation rentals in the city, the study found.

Short-term rentals inside the city limits do require a city fire inspection, county health inspection and also have to pay resort tax and have a city business license under the law. But they can be in residential neighborhoods.

City Attorney Justin Breck told the council that the city does have the power to restrict vacation rentals through zoning. 

“Cities are perfectly able to make zoning changes,” he said.

When councilwoman Paul Robinson asked about private property rights, Breck noted that the zone change could “grandfather” in existing vacation rentals, which, in essence, preserves property rights.

Zoning out vacation rentals is commonly done in other states, Breck noted.

“They set aside zones where they’re not allowed,” he said.

Grandfathering falls under notices and due process rights, Breck noted.

The time for looking at the matter is now, Barnhart noted, as the city works on updating its zoning and land use plan to comply with the Montana Land Use Planning Act.

The housing study suggests the city consider action on vacation rentals as well.

“It is worth monitoring this (upward) trend and evaluating the priorities of the city as related to short-term rentals. Existing homes converting to short-term rentals may remove valuable housing stock from the local resident pool. New residences being built for short-term rental purposes decrease development opportunities for resident and workforce housing. Land is already scarce and expensive in the city,” the study noted.