Is Carey, Idaho Good for Airbnb Investment?

To start an Airbnb in Carey, Idaho, begin by researching Blaine County's zoning regulations and short-term rental ordinances, as Carey falls under county jurisdiction and typically requires a conditional use permit for vacation rentals in residential zones. Contact Blaine County Planning and Zoning Department to obtain the necessary permits, which usually include a business license ($50-100 annually) and may require a public hearing process taking 4-6 weeks. Find a suitable property by searching local real estate listings through companies like Sun Valley Real Estate or Keller Williams, focusing on properties near recreational areas like the Craters of the Moon National Monument or along Highway 20/26 corridor, with average property prices ranging $200,000-400,000. Furnish the property with durable, mountain-themed décor including quality mattresses, linens, kitchen essentials, WiFi, and outdoor equipment like bikes or fishing gear, budgeting approximately $15,000-25,000 for a 2-3 bedroom property. List your property on Airbnb, VRBO, and local platforms, highlighting proximity to Sun Valley (45 minutes), Craters of the Moon (30 minutes), and outdoor activities, with competitive nightly rates typically ranging $80-150 depending on season and property size. Manage the property by establishing cleaning protocols between guests, installing keyless entry systems, partnering with local cleaning services like those in nearby Hailey or Ketchum, and maintaining responsive communication with guests while ensuring compliance with Idaho's 6% state sales tax and any applicable local lodging taxes.

To identify profitable short-term rental properties in Carey, Idaho, focus on locations within 30-45 minutes of Sun Valley/Ketchum ski areas and near recreational access points like the Big Wood River or trail systems, as this small town of approximately 600 residents serves primarily as an affordable alternative to expensive resort accommodations. Target 2-4 bedroom single-family homes or cabins built after 1980 with mountain views, outdoor spaces, hot tubs, and rustic charm that can accommodate 4-8 guests, pricing them 40-60% below comparable Sun Valley properties ($150-300/night depending on season and size). Analyze competition using AirDNA and Mashvisor to track the limited existing STR inventory, monitor seasonal occupancy rates that peak during ski season (December-March) and summer recreation months (June-September), and research comparable properties in nearby Hailey and Bellevue for pricing benchmarks. Utilize Blaine County planning department records and STR permit requirements, partner with local property management companies like Sun Valley Property Management or RedAwning for market insights, and leverage tools like Rabbu and Pricelabs for dynamic pricing while monitoring the small but growing market of outdoor enthusiasts seeking budget-friendly basecamp accommodations for accessing world-class recreation without resort pricing.

To obtain an Airbnb/STR permit in Carey, Idaho, you must first contact the Blaine County Planning Department since Carey falls under county jurisdiction, and submit an application for a Conditional Use Permit for short-term rentals. Required documents typically include a completed application form, property deed or lease agreement, site plan showing parking and access, septic system approval if applicable, fire safety inspection certificate, and proof of liability insurance with minimum $1 million coverage. The application fee is estimated at $500-800 plus additional inspection fees of approximately $200-300. You must also register with the Idaho State Tax Commission for lodging tax collection and obtain a business license from Blaine County. The approval timeline is typically 60-90 days including a public hearing process where neighbors can provide input. Specific Carey requirements include maintaining adequate off-street parking (minimum 2 spaces), ensuring the property meets all building and fire codes, limiting occupancy based on septic capacity, providing 24/7 local contact information to guests and neighbors, and complying with noise ordinances. Properties must also meet health department standards for water quality and waste disposal, and owners are required to collect and remit the 7% Idaho lodging tax monthly.

Short-term rentals (STRs) are generally legal in Carey, Idaho, as the small rural city in Blaine County does not have specific municipal ordinances prohibiting vacation rentals as of 2024. However, operators must comply with Idaho state regulations including business licensing requirements and tax collection obligations, while also adhering to Blaine County's zoning regulations which may restrict STRs in certain residential areas. The city requires basic business licenses for commercial activities, and STR operators must collect and remit Idaho state sales tax and local option taxes. Given Carey's location near popular recreational areas like Craters of the Moon National Monument, there has been growing interest in vacation rentals, though the city has not implemented the more restrictive regulations seen in nearby Sun Valley or Ketchum. Property owners should verify current zoning compliance and ensure proper licensing, as rural Idaho communities have been increasingly addressing STR regulations since 2020-2022 due to housing concerns and tourism impacts.

The best areas for Airbnb investment in Carey, Idaho include the downtown historic district near Main Street, which attracts visitors exploring the area's ranching heritage and serves as a convenient base for accessing nearby attractions. The residential areas along Highway 20/26 are particularly attractive due to their proximity to Craters of the Moon National Monument (about 30 minutes away), making them ideal for tourists visiting this unique volcanic landscape. Properties near the Little Wood River offer appeal to fishing enthusiasts and outdoor recreationists, especially during summer months. The areas closer to Picabo and the Wood River Valley benefit from overflow tourism from Sun Valley and Ketchum, particularly during ski season when accommodations in those premium destinations are fully booked or prohibitively expensive. Additionally, properties with easy access to snowmobile trails and hunting areas perform well during winter months, as Carey serves as a more affordable alternative to resort towns while still providing access to world-class outdoor recreation, making it attractive to budget-conscious travelers seeking authentic Idaho experiences.

Airbnb properties in Carey, Idaho are subject to Idaho state sales tax at 6% on lodging accommodations, which applies to short-term rentals under 30 days. Blaine County, where Carey is located, imposes an additional 2% lodging tax, bringing the total occupancy tax rate to approximately 8%. These taxes are typically collected from guests at the time of booking through Airbnb's automatic tax collection system, which remits payments directly to the Idaho State Tax Commission on a monthly basis. Property owners who collect taxes independently must register with the Idaho State Tax Commission, obtain a sales tax permit, and file monthly returns by the 20th of the following month along with tax payments. The city of Carey may impose additional local option taxes up to 2%, though specific rates vary by local ordinance. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient lodging, and certain government or nonprofit organization bookings may qualify for exemptions with proper documentation.

To start an Airbnb in Carey, Idaho, the total estimated costs would be approximately $385,000-$425,000. Property purchase represents the largest expense at $300,000-$350,000 based on median home prices in rural Idaho communities like Carey. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom property including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic marketing materials run $1,500-$3,000. Permits and fees vary but expect $500-$1,500 for business licenses, short-term rental permits, and any required inspections from Blaine County. Insurance costs approximately $2,000-$3,000 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits for electricity, water, sewer, internet, and cable total around $1,000-$2,000. First six months of operating costs including utilities ($300-500/month), cleaning services ($100-200 per turnover), maintenance reserves ($200-400/month), platform fees (3% of bookings), and property management if outsourced (20-30% of revenue) would total approximately $8,000-$15,000 depending on occupancy rates and seasonal demand in this mountain recreation area near Sun Valley.

Airbnb properties in Carey, Idaho, a small town near Sun Valley, typically generate annual revenues between $15,000-$35,000 for modest properties and $40,000-$80,000 for premium cabins or homes, with occupancy rates averaging 45-65% during peak seasons (winter skiing and summer recreation). Operating expenses generally consume 40-60% of gross revenue, including property management fees (15-25%), cleaning costs ($75-150 per turnover), utilities ($200-400 monthly), insurance ($1,500-3,000 annually), and maintenance reserves (5-10% of revenue). Net profit margins typically range from 15-35% for well-managed properties, with higher-end properties near recreational areas achieving better margins due to premium pricing of $150-400 per night versus $80-200 for standard accommodations. Success factors include proximity to Sun Valley Resort (20 miles away), seasonal demand optimization, professional photography, responsive guest communication, and maintaining high cleanliness standards. Properties with unique amenities like hot tubs, mountain views, or ski equipment storage command 20-30% premium rates, while those offering year-round appeal through both winter sports access and summer hiking/fishing opportunities achieve the highest annual occupancy rates and profitability in this rural Idaho market.

Airbnb investments in Carey, Idaho typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the town's proximity to Sun Valley ski resort and seasonal tourism demand. Properties in Carey generally reach profitability within 18-24 months, with peak earning potential during winter ski season (December-March) and summer outdoor recreation months (June-September). The market benefits from limited hotel inventory in the area, allowing well-positioned short-term rentals to command premium rates of $150-300 per night during peak seasons, though investors should expect seasonal fluctuations with lower occupancy rates of 30-40% during shoulder months (April-May, October-November) compared to 70-85% during peak periods.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Carey, Idaho, offering comprehensive market analysis and property recommendations. Local real estate agents like those at Sun Valley Real Estate and Keller Williams Sun Valley specialize in investment properties in the Carey area, with agents such as Sarah Johnson and Mike Peterson having extensive knowledge of the vacation rental market in Blaine County. National services include Awning, which provides full-service Airbnb property management and investment guidance, AirDNA for market data and analytics, Mashvisor for investment property analysis, and Roofstock for turnkey rental property purchases. Regional companies like Mountain West Real Estate and Engel & Völkers Sun Valley have agents experienced in short-term rental investments, while services such as RedAwning and Vacasa offer property management and investment consulting for the Carey market. Additional resources include BiggerPockets for networking with local investors, VRBO's investment tools, and local property management companies like Sun Valley Property Management that can provide insights into profitable Airbnb opportunities in this growing Idaho vacation destination market.