Cost of Living in Red Lodge, MT

With a cost of living index of 87, Red Lodge, MT is a very affordable place to live. Living here is 13% cheaper than the national average and in line with the Montana state average. Red Lodge is a small community of 2,399 residents.

Housing costs are the biggest factor in Red Lodge's cost of living. The median monthly rent is $805 (39% below the US median of $1,319), and the median home value sits at $374,900 (23% above the national median of $304,900). At current prices, the median home costs roughly 8.5x the median household income — a challenging ratio that puts homeownership out of reach for many residents.

The median household income in Red Lodge is $43,857, which is 42% lower than the national median of $75,149. Residents spend roughly 22% of household income on rent. This is a comfortable ratio, well below the 30% threshold that financial experts recommend as a maximum. Lower incomes here are balanced by the significantly lower cost of living, stretching each dollar further.

Climate is another factor for anyone considering a move to Red Lodge. The area sees an average annual temperature of 48.2°F, with summers averaging 70°F and winters around 28°F. Annual rainfall totals 14.3 inches spread over roughly 97 days. Cold winters mean higher heating bills, an important cost-of-living consideration.

Everyday prices in the Billings, MT (Metropolitan Statistical Area) metro area are generally below the national average. Out of 6 common items tracked by the Bureau of Labor Statistics, 6 are priced lower than the US average. These real-world prices — from groceries to electricity — add up and should be factored into any cost of living comparison.

Data sources: US Census Bureau (ACS 2023), Zillow Home Values, HUD Fair Market Rents, BEA Regional Price Parities, BLS Average Prices, and NOAA Climate Normals. Updated monthly.