Building and permits · Guide
How to Start a Billboard Business: Steps and Costs (2026)
By Gabie Research · Updated Oct 12, 2026 · 7 min read
Short answer
To start a billboard business, you need a legal site, a ground lease with the landowner, state and local permits, a structure and advertisers. A 14' x 48' steel monopole cost about $80,000 to $112,000 to build in 2025, based on Billboard Insider reports. Permits are the hard part. Federal law limits billboards near major highways to commercial and industrial areas.
- The Highway Beautification Act of 1965 controls billboards along Interstates and other major federal-aid roads.
- Four states ban billboards, and more than 700 communities do too (Scenic America). The OAAA finds no bulletins in Alaska, Hawaii, Maine or Vermont.
- One in three Billboard Insider readers spent $80,000 to $100,000 to build a 14' x 48' steel monopole in 2025.
- Lamar pays landowners about 17% of its billboard revenue in ground rent.
- SBA 7(a) loans go up to $5 million. SBA 504 loans go up to $5.5 million for long-life assets.
To start a billboard business, you need six things. You need a legal site, a ground lease and permits. You also need a structure, advertisers and a way to track it all. The structure is the big cost. A 14' x 48' steel monopole cost $80,000 to $112,000 in 2025 (Billboard Insider). The permit is the hard part. Many good sites can't get one.
This guide walks through each step in order. Costs come from public sources. Where we use our own example numbers, we say so.
What do you need to start a billboard business?
| What | Why it matters | Typical cost |
|---|---|---|
| A legal site | Zoning and spacing rules decide where a board can stand | Time to search |
| A ground lease | You rent the land from its owner | A share of revenue or a flat rent |
| Permits | State and local approval to build | Fees vary by state |
| A structure | The steel, the faces and the lights | About $80,000 to $112,000 for a 14' x 48' monopole |
| Advertisers | They pay rent for each face | Your rate card sets this |
| Systems | Track faces, leases, permits and bookings | Varies by tool |
Step 1: Learn the rules where you want to build
Start with the law, not the land. A site with no permit is worth nothing to you.
The Highway Beautification Act became law in 1965. It controls billboards along Interstates, the National Highway System and other federal-aid primary roads (FHWA). Inside urban areas, it covers signs within 660 feet of the road. Outside urban areas, it reaches as far as a sign can be seen. Signs are allowed in commercial and industrial areas. Each state's agreement with FHWA sets size, lighting and spacing. A state that fails to control signs can lose 10% of its federal highway money.
Some places ban billboards outright. The OAAA finds no bulletins in Alaska, Hawaii, Maine or Vermont (OAAA). Scenic America says more than 700 communities ban them too (Scenic America).
State fees are small next to the build. Florida, for example, charges $300 a year for an outdoor advertising license. It adds $71 a year for each sign face (Florida Rule 14-10.0043). Florida also caps a face at 950 square feet of copy.
Our state guides cover each state's agency, fees and spacing. Start with Tennessee, Texas or Florida.
This is a summary, not legal advice. Check with the agency before you build or sign.
Step 2: Find a site
A good site has traffic people can see, a clear view and room under the rules. Look for these things.
- Traffic. State DOTs publish traffic counts for major roads. More cars mean more impressions.
- Sight line. Drivers need to see the face for several seconds. Trees, bridges and curves cut that time.
- Zoning. Near controlled roads, the land usually must be commercial or industrial.
- Spacing. States set a minimum distance between signs, called a spacing rule. A new board can't crowd an old one.
- A willing owner. Someone must agree to lease you the land.
New sites are scarce in many places. OUTFRONT says about 75% of its US structures are legal nonconforming (OUTFRONT 10-K). They were legal when built but could not be built under today's rules. That scarcity is why existing boards hold their value.
Buying existing boards is another way in. North Carolina's tax guide notes that boards are usually sold in groups. The sale includes the leases with the landowners (NC Department of Revenue).
Step 3: Sign a ground lease
Most operators rent the land under their boards with a ground lease. Lamar leases about 71,500 sites and owns about 11,200 parcels (Lamar 10-K). Its ground rent was about 17% of billboard revenue in 2025. By our math, that is about $4,870 per site per year.
Rent can be a flat amount, a share of ad revenue, or both. Make sure the lease runs at least as long as you need to pay off the structure. Also make sure it lets you reach the board for repairs and lighting.
Read billboard lease rates for typical terms and what to put in the lease.
Step 4: Get your permits
You may need several approvals for one board.
- State permit. Required near Interstates and other controlled roads.
- Local zoning. The city or county must allow a sign on that parcel.
- Building permit. Engineers stamp the design for wind and soil.
- Electrical permit. For lights or a digital screen.
- Business license. Some states, like Florida, license the operator too.
Keep every permit number, renewal date and fee in one place. A lapsed permit can cost you the site.
Step 5: Build the structure
Steel monopoles are the standard for new bulletins. Here is what builders and readers reported in 2025.
| Structure | Cost | Source |
|---|---|---|
| 14' x 48' steel monopole | One in three readers spent $80,000 to $100,000 | Billboard Insider poll, Feb 2025 |
| 12' x 25' steel monopole | Six in ten readers spent over $40,000 | Billboard Insider poll, Feb 2025 |
| 14' x 48', I-beams, 60 ft tall, two faces | $87,000 with footings, concrete, permits and survey | Builder report, Mar 2025 |
| 14' x 48' center-mount monopole, 55 ft tall, two faces | $112,000 with footing, LED lights, permits and survey | Builder report, Mar 2025 |
Sources: Billboard Insider poll, Billboard Insider builder tips.
North Carolina's 2026 tax guide gives another view. It lists what it costs to replace a structure new. A single-face, center-mount monopole with a 672-square-foot face runs $72,670 at 20 feet tall or less. It runs $145,130 above 80 feet. A wood A-frame with a 300-square-foot face costs $10,640 (NC Department of Revenue).
Location changes the price a lot. Wind rules matter most. One builder said a board in a 175-mph wind zone in south Florida costs about twice as much. That is compared with the usual 115-mph zone. Another operator said doing the work with its own crews saves around $20,000 per structure.
Want a digital face? See digital billboard cost. A screen adds about $200,000 to $260,000.
Step 6: Pay for it
A billboard is a long-lived asset. North Carolina's tax guide depreciates steel structures over 50 years. That makes boards a fit for long loans.
| Loan | Maximum | Good for |
|---|---|---|
| SBA 7(a) | $5 million | Real estate, equipment, working capital |
| SBA 504 | $5.5 million | Buildings and equipment with 10+ years of life; 10-, 20- or 25-year terms |
Sources: SBA 7(a), SBA 504. The 504 program can't be used for working capital. Ask a lender whether your project fits each program.
Lenders will want your lease, your permit and a sales plan. A signed advertiser for the first faces helps a lot.
Step 7: Sell your first faces
Local businesses are the core of the market. Local ads were 65% of out of home sales in 2025 (OAAA). The top buyers by category were lawyers, hospitals and clinics, and banks.
Set a price before you call anyone. In markets ranked 101 and up, the median deal was $1,200 per four weeks (AdQuick). Then build a short list of nearby businesses.
These guides help with the next steps:
- How to sell billboard advertising
- How to find billboard advertisers
- Billboard rate card
- Billboard proposal template
Step 8: Set up your systems
From day one, track five things for every face. Track the lease, the permit, the rate, the bookings and proof of posting. Small mistakes here cost real money. A booking that runs past a lease is a problem you can't sell your way out of.
Many operators start with a spreadsheet and accounting software. In a 2024 Billboard Insider survey, QuickBooks, Apparatix and BillboardPlanet were the top tools readers named (Billboard Insider). See best billboard software to compare options.
What mistakes do new operators make?
Most early losses come from paperwork, not steel. Watch for these.
- Leasing before you check the permit. Confirm the site can get a permit first. Then sign the lease.
- A lease shorter than the loan. If the lease ends first, you may lose the board before it pays off.
- Ignoring the sight line. Trees grow and new buildings go up. OUTFRONT's leases let it cut rent when a board is blocked, which shows how much it matters.
- No buyers lined up. A built board with no advertiser costs you rent every month. Start selling before the steel goes up.
- Pricing by guess. Check what nearby faces of the same size sell for. Then set your rate card.
What could your first board earn?
Here is a simple example. The structure cost is from the builder report above. The rate is AdQuick's small-market median. The rent share is Lamar's. The occupancy is our assumption.
| Line | Assumption | Per year |
|---|---|---|
| Two faces x $1,200 per four weeks x 13 periods | Full year, both faces sold | $31,200 |
| Faces sold 75% of the time | Our assumption | $23,400 |
| Ground rent at 17% of revenue | Lamar's average share | –$3,978 |
| Left before other costs | $19,422 | |
| Structure | Builder report, 2025 | $87,000 |
| Simple payback | $87,000 ÷ $19,422 | About 4.5 years |
Other costs come out of that $19,422. They include insurance, power for lights, property tax, repairs and your own selling time. Get local quotes for each. See how much billboard owners make for a full example.
Questions people ask
How much does it cost to start a billboard business?
Plan on the structure first. A 14' x 48' steel monopole cost about $80,000 to $112,000 in 2025, by Billboard Insider reports. Add permits, the ground lease, lights, insurance and money to live on until faces sell.
Do you need a permit to put up a billboard?
Yes, almost always. Near Interstates and major highways you need a state permit under the federal Highway Beautification Act. Most cities and counties also require zoning and building approval.
Can you put a billboard on your own land?
Only if the site meets state and local rules. Near a controlled highway, the land usually must be zoned or used for commercial or industrial purposes. Spacing from other signs also applies.
How much do billboard companies pay landowners?
It varies by site. Lamar's ground rent averaged about $4,870 per leased site in 2025, by our math from its annual report. That was about 17% of its billboard revenue.
How long does a billboard structure last?
North Carolina's tax guide depreciates steel billboard structures over 50 years and wood ones over 25. Digital screens wear out much faster than the steel.
Sources
- 01Federal Outdoor Advertising Control Program · Federal Highway Administration · accessed Oct 8, 2026
- 02Billboards and Sign Control · Scenic America · accessed Oct 8, 2026
- 03Bulletins · OAAA · accessed Oct 8, 2026
- 04Rule Chapter 14-10, Outdoor Advertising Permits (Rule 14-10.0043, license and permit fees) · Florida Department of Transportation (Florida Administrative Code) · accessed Oct 8, 2026
- 05Billboard Construction Costs (February 27, 2025) · Billboard Insider · accessed Oct 8, 2026
- 06Reader Tips on Managing Billboard Construction Costs (March 3, 2025) · Billboard Insider · accessed Oct 8, 2026
- 072026 Billboard Structures Valuation Guide · North Carolina Department of Revenue · accessed Oct 8, 2026
- 08Form 10-K for fiscal year 2025 · Lamar Advertising Company (SEC filing) · accessed Oct 8, 2026
- 09Form 10-K for fiscal year 2025 · OUTFRONT Media (SEC filing) · accessed Oct 8, 2026
- 107(a) loans · U.S. Small Business Administration · accessed Oct 8, 2026
- 11504 loans · U.S. Small Business Administration · accessed Oct 8, 2026
- 122025 OOH Facts & Figures: Ad Spend Performance (April 2026) · OAAA · accessed Oct 8, 2026
- 13How much is billboard advertising? (reviewed September 2026) · AdQuick · accessed Oct 8, 2026
- 14QuickBooks, Apparatix and BillboardPlanet Are Most-Used OOH Software Tools (June 17, 2024) · Billboard Insider · accessed Oct 8, 2026
Billboard operations and sales research
The Gabie team studies how billboard companies price, sell and run their boards. Every number we publish links to its source.
Published Oct 8, 2026 · Updated Oct 12, 2026 · How we check facts