Bozeman’s proposed updated zoning code marks one of the most comprehensive rewrites in recent years, reshaping how residential, commercial, industrial, and research-related uses fit together across the city. For property owners, investors, and developers, this isn’t a single sweeping change but a collection of smaller shifts that will influence density, permitted uses, and development feasibility citywide.
Here’s what’s likely to change, and what it could mean for those invested in Bozeman’s growth.
More Homes in More Places
One of the central goals of the update is to expand residential options while maintaining neighborhood character. In the lower-density residential districts, traditional single-family areas can now support duplexes, triplexes, and fourplexes. The change allows for incremental density while preserving the familiar look and feel of existing neighborhoods.
In the higher-intensity residential zones (RC and RD), Bozeman has introduced limited retail and restaurant uses, blending small-scale commercial activity into residential areas. The idea mirrors Missoula’s approach to neighborhood-scale mixed use, creating walkable, self-contained communities where residents can grab coffee or shop within a few blocks of home.
Multifamily, Townhomes, and Live–Work Opportunities Expand
The code is now more permissive about where multifamily and attached housing can be built. Multifamily is allowed throughout all commercial districts and even in certain lower-intensity industrial zones, to encourage more housing near jobs and services.
Townhouses and rowhouses are also permitted in many commercial areas, adding housing density within business districts and helping shape more “Main Street” environments.
Bozeman’s distinctive live–work projects, combining warehouse or shop space with a residential component, remain viable under the new code. However, since many areas have been re-mapped or renamed, owners should review current zoning designations to ensure both the residential and industrial uses remain compatible.
Industrial Stability Along the I-90 Corridor
While some mixed-use and light industrial areas have evolved, Bozeman’s heavier industrial districts remain largely unchanged. Concentrated along the I-90 corridor, these zones continue to support logistics, manufacturing, and distribution uses. For industrial users, that consistency means stability, and fewer surprises.
Lab and R&D Uses: Still Supported, but More Targeted
Bozeman’s lab and R&D community plays a critical role in the local economy, bridging office, technology, and applied research uses. Under the updated code, these operations are still supported but now fall under a more targeted use classification.
Laboratory and research activities are grouped under “Manufacturing, moderate”, which includes research and development uses. They are:
- Permitted by right in Business Park, Light Manufacturing (M-1), Manufacturing & Industrial (M-2), and Northeast Historic Mixed Use (NEHMU) districts.
- Allowed with special-use approval in B-2 and B-2M business districts.
This distinction matters because many Bozeman commercial properties function as office with a research component or light manufacturing. For example, firms in product design, tech development, or engineering. Those operations are still viable, but now more zoning-dependent. Property owners and tenants should confirm their district classification and review use tables to verify whether lab or R&D is a permitted or conditional use.
The End of RO and UMU Districts
Two zoning categories familiar to long-time Bozeman property owners, Residential Office (RO) and Urban Mixed Use (UMU)—have been retired. These districts were often associated with lab, office, and professional service users.
While the uses they supported remain available, they’ve been redistributed across newer zoning categories, especially within business park and light industrial zones.
The key takeaway: verify your new zoning designation, as the same property may now fall under a different regulatory structure with slightly different use permissions.
Short-Term Rentals: Still in Limbo
Short-term rentals, a frequent flashpoint in Bozeman’s housing conversation, remain unresolved. At this point, the updated code neither permits nor prohibits them outright. For now, property owners should treat short-term rentals as a gray-area use and stay tuned for further clarification from the city.
Office and Medical Office: Similar, but Not Identical
General office uses remain broadly permitted across commercial and some residential districts, offering plenty of flexibility for professional firms.
Medical office, however, are restricted from Bozeman’s higher-intensity downtown districts, where the city intends to prioritize active street-level uses, retail, dining, entertainment, and hospitality, over traditional clinical offices.
This creates a subtle but interesting gray zone: personal services (allowed downtown) increasingly overlap with quasi-medical activities, such as injectables or wellness treatments. Expect interpretation and enforcement to evolve as more hybrid models emerge.
Parking and Bicycle Requirements Modernized
In step with state directives, Bozeman has reduced minimum parking requirements across multiple use categories, which may allow more efficient site design, additional units, or expanded green space.
Developers will also need to plan for new bicycle parking requirements, including both long-term and short-term storage. The city’s goal is to make cycling a more practical, built-in part of site planning—particularly in mixed-use and higher-density projects.
What Property Owners Should Do Next
With these proposed zoning updates soon to be codified, property owners, investors, and developers should take a closer look at how their holdings fit within the new framework:
- Confirm your property’s new zoning designation. This is especially important for sites formerly zoned RO or UMU, or for mixed industrial-residential projects.
- Review the updated use tables. Identify whether your property’s existing or planned uses—particularly lab/R&D or medical office—are permitted, conditional, or prohibited in your district.
- Reassess development potential. Residentially zoned sites may now support more units, and commercial sites may be eligible for new housing types.
- Integrate new parking and bicycle standards early. Early planning helps avoid redesigns and compliance delays.
- Stay informed on short-term rental policy. Expect further clarification that could materially impact valuation and operating strategy.
Understanding the Impacts on Your Property
Bozeman’s proposed zoning code update reflects the city’s continued evolution — balancing housing demand, commercial vibrancy, and innovation-oriented land uses. For property owners, the details matter.
Review the proposed zoning code updates here.
To understand how these changes could affect your property or development plans, reach out to the team at SterlingCRE Advisors. Our experts can provide no-obligation assistance to help you interpret zoning changes, assess redevelopment potential, and position your asset for long-term success in a shifting regulatory landscape.
