Gallatin County’s Proposed Model Zoning Code: What It Means for Affordable Housing and Short-Term Rentals

What is Gallatin County’s proposed model zoning code, and how could it affect housing and short-term rentals?
Gallatin County planners are developing a model zoning code that local zoning districts could choose to adopt in whole or in part. The goal is to reduce barriers to housing, provide clearer standards for development, and offer guidance for issues like affordable housing and short-term rentals — but none of these proposals are currently law.

Across Southwest Montana, growth has been one of the defining issues of the last decade. Communities around Bozeman, Belgrade, Four Corners, Big Sky, and the rural areas of Gallatin County are balancing demand for housing with the need to protect infrastructure, open space, and the character that draws people here.

During a recent visit to our office, Gallatin County Senior Long-Range Planner Ashlie Burk shared an update on the county’s Model Zoning Code for Affordable Housing and Zoning Reform, part of the broader planning work under the Envision Gallatin initiative.

Here is a community-focused overview of what the county is proposing, how the process has unfolded, and what it could mean for housing in the future.

What Is a Model Zoning Code?

A model zoning code is essentially a framework or toolkit. It provides example regulations, development standards, and policy options that local zoning districts can consider adopting.

Importantly, it does not automatically change zoning rules across Gallatin County.

Instead:

• It acts as guidance for existing zoning districts

• Local districts can adopt pieces of it, modify it, or ignore it

• It helps bring more consistency and clarity to development standards

• It aims to reduce barriers to housing while protecting community character

Gallatin County currently has many different zoning districts created over decades, each with unique rules. Some date back to the 1970s and 1980s.

Because of that patchwork system, planners have been exploring ways to provide updated tools that communities can use if they choose.

That is where the model code comes in.

How the County Built the Model Code: Public Input and Research

One of the most important aspects of the process is how much community feedback went into it.

County planners conducted extensive outreach before drafting the code, including:

• Public listening sessions

• Stakeholder interviews

• Online surveys

• Workshops and open houses

The listening sessions alone included:

• 208 attendees

• 59 verbal testimonies

• 25 written comments

These discussions focused on several key questions:

• What types of housing are needed in Gallatin County?

• How can zoning support attainable housing?

• What infrastructure challenges exist?

• How should short-term rentals be managed?

Participants also expressed interest in:

• A wider variety of housing types

• More walkable communities

• Access to open space, trails, and amenities

• Transportation and infrastructure planning alongside development

County planners then combined this feedback with research on housing trends, zoning barriers, and infrastructure limitations.

The result is a draft model code designed to be flexible, adaptable to different areas of the county, and informed by community input.

How the Future Land Use Map (FLUM) Organizes Growth

Another important part of the proposal is how it connects to the Future Land Use Map (FLUM).

The FLUM is a planning tool that divides Gallatin County into different categories based on how growth and development should occur.

The proposed categories include:

• Urban Growth Areas (UGA)
  Areas expected to support higher density development with infrastructure.

• Rural Growth Areas (RGA)
  Places where moderate development may occur while maintaining rural character.

• Public Infrastructure Holding Areas (PIHA)
  Land where development may wait until infrastructure is available.

• Managed Growth Areas (MGA)
  Locations where development is carefully guided to balance growth and resources.

• Open and Working Lands
  Agricultural lands and open spaces intended to remain largely undeveloped.

• Public, Protected, and Constrained Areas
  Areas with environmental protections or other limitations.

Within those categories, the model code proposes sub-districts such as:

• Community Business

• Mixed-Use Residential

• Residential A

• Residential B

• Residential C

Each sub-district allows different housing types, densities, and uses depending on infrastructure and location.

This approach aims to align housing development with transportation, water, sewer, and community services.

What the Model Code Suggests for Affordable Housing

Housing affordability has become a central concern across Gallatin County, especially as population growth and housing demand continue to increase.

The model zoning code attempts to address this in two ways:

1. Encouraging “Naturally Occurring” Attainable Housing

The proposal includes several zoning changes intended to reduce barriers to building smaller or more diverse housing types, including:

• Allowing a wider variety of unit types

• Permitting small lot sizes

• Removing minimum dwelling square footage requirements

• Allowing manufactured housing

• Broadly allowing Accessory Dwelling Units (ADUs) without a special permit process

These types of changes are designed to support housing that is naturally more attainable due to size and flexibility, rather than relying only on subsidy programs.

Examples of housing types encouraged in the model code include:

• Duplexes

• Triplexes

• Cottage housing

• Townhomes

• Courtyard apartments

The goal is to expand the range of housing choices available in Gallatin County communities.

2. Incentives for Deed-Restricted Affordable Housing

The model code also proposes a voluntary incentive program aimed at creating what planners call “Big A” Affordable Housing.

Under this program:

Developers who include 10% affordable units in a project could receive certain incentives.

Affordability thresholds are proposed as:

• Rental units: 60% of Area Median Income (AMI) or below

• Ownership units: 120% of Area Median Income or below

AMI refers to Area Median Income, a common benchmark used in housing policy.

The incentives would be voluntary, meaning developers could choose whether or not to participate.

What the Proposal Suggests for Short-Term Rentals

Short-term rentals (STRs) have been another topic of community discussion across Gallatin County.

The model code proposes clearer distinctions between two types of STRs.

Owner-Occupied Short-Term Rentals

In this scenario:

• The property is the owner’s primary residence

• The owner may rent bedrooms within the home

• Or a unit on the property such as an ADU

These are generally considered less impactful on housing supply, and the model code suggests they would be more widely permitted.

Non-Owner-Occupied Short-Term Rentals

These are properties where:

• The owner does not live on site

• The entire property is used primarily as a rental

The model code suggests these would be much more limited depending on the zoning district.

The proposal also includes potential requirements such as:

• Registration with the county

• Compliance with health department regulations

• Providing guests with a “Visiting Gallatin County” information sheet

That information sheet could include guidance on:

• Wildlife safety

• Agricultural operations

• Winter driving

• Fire safety

The proposal also notes that STR rules may need adjustments for resort areas, where tourism plays a larger role in the local economy.

Other Important Highlights in the Model Code

In addition to housing and STRs, the model code touches on several other planning topics.

Development Standards

Proposed standards cover areas such as:

• Building height

• Setbacks

• Parking requirements

• Lighting designed to protect dark skies

The draft suggests a minimum of one parking space per housing unit.

Infrastructure and Density

One goal of the model code is to discourage inefficient sprawl by aligning development density with available infrastructure.

For example:

• Higher densities may be appropriate where water and sewer infrastructure exist

• Lower densities may apply where services are limited

This approach aims to ensure that growth occurs in areas where infrastructure can support it.

Planned Unit Developments (PUDs)

The code also outlines guidelines for Planned Unit Developments, which allow more creative site design.

Proposed standards include:

• At least two different residential unit types

• 30% open space

• Demonstrating a public benefit

PUDs may allow flexibility in certain development standards to support thoughtful community design.

A Key Reminder: None of This Is Law Yet

It is important to emphasize that the model zoning code is still a draft and has not been adopted.

Even if the county commission ultimately accepts the model code framework:

• It would not automatically change zoning rules

• Individual zoning districts would still decide whether to adopt it

• Districts could choose specific parts of the code

County planners are currently analyzing feedback and refining the draft, with a final version expected later this spring before further discussion by the county commission.

Because the proposal incorporates extensive research and community input, many observers expect some form of the model code will likely move forward — but the final details are still being shaped.

Looking Ahead: Planning for Gallatin County’s Future

Planning work like this rarely makes headlines, but it plays a major role in shaping how communities grow.

Gallatin County planners are tasked with balancing many priorities:

• Housing availability

• Infrastructure capacity

• Agricultural land protection

• Open space

• Economic growth

• Community character

The Envision Gallatin initiative represents years of work studying these issues and gathering feedback from residents across the county.

While the model zoning code is still evolving, it reflects a broader effort to help communities manage growth thoughtfully while preserving the qualities that make Gallatin County special.

For many residents, that balance — between growth and stewardship — is exactly why they care so deeply about the future of this place.

Stay Informed as the Process Continues

The planning process is ongoing, and public input continues to play an important role.

If you want updates as the county refines the model zoning code and other planning initiatives, consider joining our newsletter.

We regularly share:

• Local planning and development updates

• Housing and real estate insights

• Community news across Gallatin County

Staying informed helps you better understand how decisions today may shape the future of our communities.

Data Sources Consulted

• Envision Gallatin planning initiative

• Gallatin County planning materials

• Model Zoning Code for Affordable Housing presentation by Ashlie Burk

• Gallatin County Long-Range Planning updates