Red Lodge, MontanaSTR Bonus Depreciation Market Profile · #37 in the DepreciMax Top 50

Why Red Lodge ranks #37 for STR bonus depreciation

Red Lodge ranks #37 because Beartooth Pass tourism drives strong seasonal cabin demand, Montana's full §168(k) conformity captures the state benefit, and log-cabin construction with heavy outdoor improvement stacks — hot tubs, fire pits, decks — pushes bonus-eligible % to 23.4%.

What drives Red Lodge's bonus depreciation profile?

Red Lodge STRs lean on the amenity categories the IRS classifies as 15-year land improvements — hot tub or spa, fire pit / fire feature, outdoor deck or wraparound porch, and mud room / ski storage. All 100% bonus-eligible in Year 1 under §168(k). Combined with land ratios that stay in the 19–25% band (leaving 75–81% of purchase price as depreciable basis), that amenity density pushes the market-median bonus-eligible % to 23.4%.

Does Montana conform to federal §168(k) bonus depreciation?

Investors capture the entire federal-plus-state Year 1 benefit. On a median-priced $725k Red Lodge STR, that's ~$63k in federal savings at a 37% bracket plus ~$8k in Montana state savings at 5.9% top marginal — combined ~$71k in Year 1. Model with your CPA before committing.

Common bonus-eligible amenities in Red Lodge STRs

Prevalence of 15-year land improvements we typically see across Red Lodge short-term rentals — all 100% bonus-eligible in Year 1 under IRS §168(k):

Red Lodge vs Santa Fe vs Windham — bonus depreciation comparison

Red Lodge and the two DepreciMax Top 50 markets ranked immediately adjacent by median bonus-eligible %. The comparison is intentionally close-ranked so the deltas that matter — price point, Diamond density, state §168(k) conformity — are directly visible.

Deeper comparative reading: The best STR markets for bonus depreciation in 2026.

Red Lodge bonus depreciation calculator (by zip code)

Red Lodge spans multiple sub-markets across the Red Lodge corridor with materially different STR economics. The calculator below has a zip dropdown — switch it to your area. The bonus-eligible percentage (Red Lodge's market-typical 23.4%) stays constant across zips because it reflects the property type, not the location.

Red Lodge zip code comparison

Looking for a deeper read on your specific property, not just the market median? Run the $99 Red Lodge property report — our AI analyzes 7–9 listing photos against the IRS classification rules and returns a line-item §168(k) estimate closely calibrated to a formal $5K–$8K cost seg study.

Representative listings & deductions

Three representative Red Lodge listings spanning entry, mid, and high price tiers. Year 1 deduction is estimated as a range around the Red Lodge market bonus-eligible average (23.4% ± 3 percentage points). Click any card to run a full property report to tighten to one exact number.

Entry — Red Lodge

$495,000

3 bd · 2 ba · 1,700 sqft

Cabin near Fromberg, MT 59029

Est. Year 1 Deduction

$101k–$131k

~$37k–$48k federal savings @ 37%

Get DepreciMax Breakdown On This Property →

Mid — Red Lodge

$725,000

4 bd · 3 ba · 2,400 sqft

Log cabin near Red Lodge, MT 59068

Est. Year 1 Deduction

$148k–$191k

~$55k–$71k federal savings @ 37%

Get DepreciMax Breakdown On This Property →

High — Red Lodge

$1,200,000

5 bd · 4 ba · 3,300 sqft

Home near Absarokee, MT 59001

Est. Year 1 Deduction

$245k–$317k

~$91k–$117k federal savings @ 37%

Get DepreciMax Breakdown On This Property →

How to use this data to underwrite a Red Lodge STR deal

The market-median numbers on this page are a screening tool, not a final answer. Here's how STR investors and their CPAs actually convert a market rank + median bonus-eligible % into an underwriting number for a specific offer.

1. Screen the deal against the market median. If a Red Lodge listing is priced within the p25–p75 range ($613k–$1.01M) and looks like a typical ski STR, the market-median 23.4% bonus-eligible is a defensible screening estimate. That gives you a Year-1 deduction range you can plug into an initial underwriting model in about 60 seconds — before you invest CPA time or offer-drafting effort.
2. Adjust up or down based on amenity signals. Red Lodge properties with a full outdoor stack trend toward the Diamond tier at 24%+ bonus-eligible. Properties with minimal outdoor amenities — condos, plain subdivision homes without hot tubs / decks / fire pits — trend toward the Bronze tier at 18–20%. Use the amenity checklist to categorize before you commit.
3. Model the offer with the deduction baked in. Take the estimated Year-1 deduction × your federal marginal rate (typically 37% for high-earner STR investors) = federal tax savings. Add this to your effective Year-1 cash-on-cash return. On a $725k Red Lodge STR at 23.4% bonus-eligible, that's ~$63k in federal savings plus ~$8k in Montana state savings at 5.9% top marginal.
4. Verify with a $99 property-level report before you sign. Once you're past screening and preparing to make an offer, run the specific property through DepreciMax's photo-analysis pipeline. The $99 report tightens the estimate to a single number, line-items the 5-year / 15-year / 39-year breakdown, and delivers a calibrated Year-1 number closely calibrated to a formal cost segregation study's bonus-eligible %. Your CPA can build the return directly from this output; a formal engineered study (typically $5,000–$8,000) is only necessary post-closing for IRS-defensible filing on very large deductions or high-scrutiny audit risk.

For further reading on the pre-offer bonus-depreciation workflow, see how to use §168(k) before closing on a short-term rental. To catch missed prior-year bonus depreciation using Form 3115, see the Form 3115 catch-up guide.