Trying to decide whether to finance a Somers place as a short‑term rental or a second home? You are not alone. The choice changes your loan options, taxes, insurance, and how you plan to use the property. This guide walks you through the key tradeoffs for Somers and Flathead County so you can move forward with confidence. Let’s dive in.
The core difference in Somers
A short‑term rental is a home you rent to guests for fewer than about 30 days at a time, primarily to generate income. In Flathead County, STRs are regulated and may require an administrative conditional‑use permit depending on zoning. A second home is purchased for your personal use rather than as an income business. Lenders treat second homes differently from investment properties, and those differences affect your rate, down payment, and rules for how you can use the home under Fannie Mae’s occupancy guidance.
Rules and permits to expect
Flathead County requires many STRs to get an administrative conditional‑use permit. The county outlines zone rules, neighbor notification, occupancy limits, parking standards, and a 24/7 local contact requirement, and notes that unzoned parcels may not need a permit. Plan for about 30 to 45 days for administrative review when a permit is required. Start with the county’s guide to short‑term rental regulations and the permit process.
Montana also imposes lodging facility sales and use taxes on stays under 30 days. The combined state lodging tax rate is 8 percent, and hosts are responsible for registering and remitting even if a platform collects some taxes. You can review the state’s requirements on the Montana lodging facility tax page.
Property taxes to model now
Montana passed changes that take fuller effect in 2026. Primary residences and qualifying long‑term rentals receive preferential rates. Second homes and STRs are generally categorized as non‑homestead and taxed at a higher flat rate than homesteads. Before you buy, model how the new classification could change your annual carrying costs using the state’s 2026 property tax information.
How lenders view each option
Lenders classify your loan by occupancy. Second home loans are designed for one‑unit properties you will personally occupy part of the year, and they often come with lower down payments and better pricing than investment loans. Investment property loans, which are common for STRs operated as a business, usually mean larger down payments, higher rates, and more cash reserves. For an overview of common differences, see this summary of second‑home vs investment guidelines.
Many second‑home riders require that you keep exclusive control over occupancy. Placing the home into a rental pool or ceding control to a management company can push a lender to treat the property as an investment loan. Read your loan documents closely and align your intended use with the loan you choose.
Using rental income to qualify
Lenders can count rental income, but what they accept depends on documentation and history. Long‑term lease income is easier to document. Short‑term rental income usually needs a two‑year history reported on tax returns or other verifiable documentation to be used reliably in qualification. Review how major investors look at rental income in this Freddie Mac rental income bulletin summary.
Insurance you will actually need
Standard homeowners policies often exclude business activity. If you host frequently, expect to buy an STR‑specific or landlord policy, and confirm liability coverage. Platform programs are not a substitute for a proper policy. Learn why with this insurer’s overview of home insurance and short‑term renting.
Somers revenue realities and seasonality
Flathead Valley demand is seasonal. Summer draws visitors for Flathead Lake and Glacier National Park, which sees around 3 million visitors in a typical recent year, according to NPS visitation data. Shoulder seasons can be slower in Somers compared with ski‑oriented areas.
Recent Somers market snapshots show median annual revenue around the low‑to‑mid $30,000s, average daily rates in the low‑to‑mid $400s, and occupancy in the mid‑40 to mid‑50 percent range, depending on the property and season. Use conservative assumptions, since results vary by location, size, amenities, management, and reviews. Explore current Somers STR metrics on AirDNA’s Somers overview.
STR vs second home: quick checklist
- Zoning and permits: Confirm whether your Somers parcel needs an administrative conditional‑use permit and understand timing and standards. Start with the county’s STR guidance.
- Lodging taxes: Budget for Montana’s 8 percent lodging tax and registration steps. Review the state’s lodging tax details.
- Property taxes: Model 2026 scenarios for non‑homestead classification using the state’s property tax update.
- Loan fit: Decide if your primary goal is personal use or income. Align with Fannie Mae occupancy definitions and ask lenders how they will classify your loan.
- Income to qualify: If you plan to use STR income, gather two years of Schedule E or other documentation and note Freddie Mac documentation expectations.
- Insurance: Get written confirmation that your policy covers your intended use. See why STR coverage differs in this insurance explainer.
- HOA and covenants: Verify recorded CC&Rs and any HOA rules that limit STRs.
- Cash‑flow basics: Model ADR, occupancy, platform fees, cleaning, management, utilities, maintenance, lodging tax, and higher insurance premiums. Cross‑check with Somers revenue benchmarks.
Which path fits your goals
Choose a second home if your priority is personal time in Somers with occasional renting, simpler financing, and fewer business requirements. Choose an STR loan if your plan centers on regular hosting and maximizing income with policies and reserves tailored to a rental business. In both cases, align your intended use with lender rules, county permitting, taxes, and insurance so there are no surprises at closing or after you start hosting.
Ready to compare properties and run real numbers for Somers? Connect with Nelson Schwab for local guidance, property picks that fit your plan, and a clear path from offer to keys.
FAQs
What is the difference between an STR and a second home in Somers?
- An STR is rented to guests for stays under about 30 days and often requires county permits, while a second home is primarily for your personal use and follows different loan rules under Fannie Mae occupancy guidance.
Do you need a permit to operate an STR in Somers, MT?
- Many zones in Flathead County require an administrative conditional‑use permit with standards for parking, occupancy, and neighbor notice; start with the county’s STR page.
Can lenders count short‑term rental income when you qualify for a loan?
- Often yes, but lenders usually require a two‑year history of STR income or other verification, and they may accept less projected income without prior experience; see this Freddie Mac guidance summary.
What lodging taxes apply to STR stays in Montana?
- Montana imposes a combined 8 percent lodging facility sales and use tax on stays under 30 days, and hosts are responsible for registering and remitting; details are on the state lodging tax page.
How will Montana’s 2026 property tax changes affect second homes and STRs?
- Second homes and STRs are generally categorized as non‑homestead and taxed at a higher flat rate than homesteads, which can raise carrying costs; review the state’s 2026 property tax information.
What insurance is recommended for a Somers STR?
- Standard homeowners policies may exclude business activity, so consider an STR‑specific or landlord policy and confirm liability coverage; see this overview on insurance for short‑term renting.
What revenue can a Somers STR reasonably expect?
- Recent snapshots show median annual revenue near the low‑to‑mid $30,000s with ADR in the low‑to‑mid $400s and occupancy around the mid‑40 to mid‑50 percent range, per AirDNA’s Somers data.
