Billings is the largest city in the US state of Montana, with an estimated population of 109,577 as per the population census of 2019. Billings is a perfect blend of culture and history with plenty of sites for outdoor adventures, and the 23rd most expensive city to live in.

The cost of living is basically the cost of maintaining a certain standard of living. In the United States, the cost of living indices are based on a US average of 100. So, any value below 100 indicates that Billings is cheaper than the US average and the cost of living index above 100 indicates that Billings is more expensive than the average American city. A cost of living index of 94.9 indicates that Billings, Montana is relatively cheaper to live in than any other US city.

What is the average cost of living in Billings, Montana?

The average income of a Billings resident is $28,364 a year, which is approximately $190 less than that of an average US citizen residing elsewhere and the median household income per year is estimated at $49,265. Over the years, the job market diminished in Billings, as a result, the cost of living has increased, with housing being the biggest factor in the cost of living difference- the median home price in Billings is around $230,000.

Cost of Living

The table below compares the cost of living in Billings with the rest of Montana:

COST OF LIVING Billings Montana USA
  Overall 94.9 94 100
  Grocery 101.3 99.6 100
  Health 96.7 100.2 100
  Housing 99.7 100.4 100
  Median Home Cost $230,500 $232,100 100
  Utilities 95.6 90.7 100
  Transportation 75.2 75.2 100
  Miscellaneous 102 98 100

While the overall cost of living in Billings is higher than the rest of Montana, health and housing are relatively cheaper.

Median Income & Debt-To-Income Ratio

Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
Owners $67,942 $5,662 $1,585 $2,038
Renters $33,940 $2,828 $792 $1,018

For homeowners, Billings has a median income of about $67,942, so according to this approximately $1,585 should be spent on expenses related to housing. The median income of renters is slightly higher than that of owners, so according to that value, renters should spend no more than $792 on all rental costs for the ideal standard of living.

Comparing Billings, Montana with Denver, Colorado

Cost of Living Indexes Billings, MT Denver, CO Difference
Overall Index: 94.9 128.7 35.6%  +
Food & Groceries 101.3 101.9 0.6%  +
Housing  99.7 184.3 84.9% +
Median Home Cost $230,500 $426,200 $195,700
Utilities 95.6 96.2 0.6% +
Transportation 75.2 116.1 54.4% +
Health 96.7 92.5 4.3%  –
Miscellaneous 102 102.8 0.8% +

The table above shows that Denver is 35.6% more expensive than Billings in terms of the cost of living. Housing is also the largest factor in determining the living cost in Denver, and the difference of median home costs is very large between the two cities, residing at $195,700. This means that the cost of living in terms of housing is approximately 85% more expensive in Denver than it is in Billings.

Even though the cost of living in Billings is relatively higher than the cost of living in the rest of Montana, Billings is relatively cheaper than the rest of the country.

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