Is Cascade, Idaho Good for Airbnb Investment?

To start an Airbnb in Cascade, Idaho, begin by researching Valley County's zoning regulations and business licensing requirements, as Cascade typically requires a business license and may have specific short-term rental ordinances that limit rental duration or require conditional use permits in residential zones. Contact Valley County Planning and Zoning Department and Cascade City Hall to obtain necessary permits, which may include a business license ($50-100 annually), transient lodging tax permit, and potentially a conditional use permit if operating in certain residential areas. Find a suitable property by searching local real estate listings, considering proximity to Cascade Reservoir and outdoor recreation areas that attract tourists, with typical investment properties ranging from $200,000-500,000 depending on size and location. Furnish the property with durable, comfortable furniture focusing on outdoor recreation themes, including quality bedding, kitchen essentials, outdoor gear storage, and amenities like hot tubs or fire pits that appeal to visitors seeking mountain recreation experiences. List your property on Airbnb, VRBO, and other platforms with professional photography highlighting lake and mountain views, outdoor activities, and seasonal attractions like skiing at Brundage Mountain or summer water sports. Manage the property by establishing cleaning protocols between guests, coordinating with local cleaning services (typically $75-150 per turnover), implementing keyless entry systems, maintaining responsive communication with guests, and ensuring compliance with Idaho's 6% state sales tax plus Valley County's lodging tax requirements while keeping detailed records for tax purposes.

To identify profitable short-term rental properties in Cascade, Idaho, focus on locations within 1-2 miles of Cascade Lake and the Payette River, as these waterfront and water-view properties command premium rates of $200-400+ per night during peak summer months. Target 3-4 bedroom cabins or homes with outdoor amenities like hot tubs, fire pits, boat parking, and large decks that can accommodate 6-10 guests, as families and groups visiting for lake activities drive the highest occupancy rates. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties, noting that Cascade sees 60-75% occupancy rates during June-September with average daily rates dropping to $100-150 in winter months. Research competition by studying listings within a 5-mile radius, identifying gaps in amenities or guest capacity, and monitor properties managed by local companies like Cascade Vacation Rentals and McCall Property Management who also serve the area. Utilize tools like Rabbu and AllTheRooms for market analysis, check Valley County zoning regulations for STR compliance, and consider properties near Tamarack Resort (20 minutes away) which provides year-round guest flow, while avoiding areas prone to wildfire risk that could impact bookings and insurance costs.

To obtain an Airbnb/STR permit in Cascade, Idaho, you must first contact the Valley County Planning and Zoning Department at 219 N Main Street, Cascade, ID 83611, as Cascade falls under Valley County jurisdiction for land use permits. Submit a Conditional Use Permit application along with a site plan showing the property layout, proof of property ownership or lease agreement, a detailed description of the short-term rental operation, parking plan, and septic system approval if applicable. The application fee is approximately $350-500, with additional fees for public notices and inspections totaling around $200-300. The process typically takes 6-8 weeks and includes a public hearing before the Planning and Zoning Commission. Specific Cascade requirements include maintaining adequate off-street parking (minimum 2 spaces), ensuring the property meets all fire safety codes, obtaining a business license from Valley County ($50-75 annually), and complying with septic system capacity limits for the number of guests. You must also provide contact information for a local property manager if you live more than 60 miles away, maintain liability insurance of at least $1 million, and ensure the rental doesn't exceed the property's designed occupancy limits. Once approved, you'll receive a Conditional Use Permit valid for 2-3 years, renewable upon application and compliance verification.

Short-term rentals (STRs) are generally legal in Cascade, Idaho, as the city does not have specific municipal ordinances prohibiting them as of 2023. However, STR operators must comply with Idaho state regulations and Valley County requirements, which may include business licensing, tax collection, and safety standards. The city follows standard zoning regulations that typically allow short-term rentals in residential areas, though operators should verify compliance with local fire safety codes and obtain necessary permits. There are no specific prohibited areas within Cascade city limits for STRs, but properties must meet basic health and safety requirements. Recent trends in Idaho show increasing regulation at the county level, with Valley County considering more structured oversight of STRs due to housing concerns, though no major restrictive changes have been implemented specifically in Cascade. Property owners should register with the Idaho State Tax Commission for lodging tax collection and ensure compliance with any homeowners association rules that may restrict short-term rental activities.

The best areas for Airbnb investment in Cascade, Idaho include the Cascade Lake waterfront district, which attracts summer tourists for boating, fishing, and water sports activities, generating strong seasonal rental demand from May through September. The downtown Cascade area near Highway 55 offers year-round potential due to its proximity to restaurants, shops, and serves as a convenient stopover for travelers heading to McCall or Sun Valley. The Warm Lake Road corridor provides access to outdoor recreation enthusiasts visiting Payette National Forest for hiking, camping, and winter activities like snowmobiling and cross-country skiing. Properties near Valley County's recreational facilities benefit from steady demand during fishing tournaments and community events at the lake. The residential neighborhoods within walking distance of Cascade Reservoir are particularly attractive for family vacation rentals, as they offer easy lake access while maintaining a quiet, residential feel that appeals to groups seeking longer stays during peak summer months.

Airbnb properties in Cascade, Idaho are subject to Idaho state sales tax at 6% and local option tax which varies by jurisdiction but typically ranges from 1-3% in Valley County where Cascade is located. The state requires short-term rental operators to register for a sales tax permit and collect taxes from guests, with monthly remittance due by the 20th of the following month for operators with over $100 in monthly tax liability. Valley County may impose additional lodging taxes of approximately 2-4% depending on specific municipal ordinances, which are collected similarly and remitted to local authorities. Airbnb can collect and remit these taxes automatically for hosts who opt into their tax collection service, though hosts remain ultimately responsible for compliance. Exemptions typically apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient lodging, and some jurisdictions may exempt properties with fewer than a certain number of units or rental days per year.

The total cost to start an Airbnb in Cascade, Idaho is approximately $485,000-$565,000. Property purchase represents the largest expense at $350,000-$425,000 based on median home prices in the Valley County area as of 2023-2024. Furnishing costs range from $15,000-$25,000 for a complete setup including beds, linens, kitchen essentials, living room furniture, and outdoor equipment suitable for the recreational area. Initial setup costs including professional photography, listing creation, and basic marketing total $2,000-$3,500. Permits and fees including business license, transient occupancy permits, and potential HOA approvals cost $500-$1,500 annually. Insurance specifically for short-term rentals runs $2,000-$4,000 per year, significantly higher than standard homeowner's insurance. Utilities including electricity, water, sewer, trash, internet, and seasonal heating average $300-$500 monthly or $1,800-$3,000 for six months. First six months operating costs including cleaning services ($150 per turnover), maintenance, supplies, platform fees (3% of bookings), and marketing total approximately $8,000-$12,000, assuming 60-70% occupancy rates typical for Cascade's seasonal tourism market driven by Tamarack Resort proximity and Lake Cascade recreation activities.

Airbnb properties in Cascade, Idaho demonstrate strong profitability potential with average daily rates ranging from $150-300 depending on property size and amenities, generating annual revenues of $25,000-65,000 for well-managed properties with 60-80% occupancy rates. Operating expenses typically include 25-30% for cleaning and maintenance, 3% Airbnb service fees, 15-20% for utilities and supplies, and 10-15% for property management if outsourced, resulting in net profit margins of 35-45% for successful operators. Success factors include proximity to Cascade Lake and Brundage Mountain ski resort, high-quality furnishings and outdoor amenities like hot tubs or fire pits, professional photography, and responsive guest communication. Properties within walking distance of the lake or with mountain views command premium rates, with some luxury cabins achieving $400+ nightly rates during peak summer and winter seasons. Local operators like those managing properties through companies such as Vacasa or RedAwning report that 3-4 bedroom homes with modern amenities and outdoor recreation access consistently outperform smaller units, with the most successful properties generating 15-20% annual returns on investment after accounting for mortgage payments and capital improvements.

Airbnb investments in Cascade, Idaho typically generate annual ROI of 12-18% due to the area's proximity to Brundage Mountain ski resort and Payette Lake recreational activities, with peak seasons driving higher occupancy rates from December through March and June through September. Cash-on-cash returns generally range from 8-14% annually, depending on property type and initial investment, with single-family cabins and lakefront properties commanding premium nightly rates of $150-300 during peak seasons. Most investors achieve profitability within 18-24 months, factoring in property acquisition costs, renovation expenses, and initial marketing investments, while properties within walking distance of the lake or with mountain views typically reach break-even 3-6 months faster than standard residential properties. The market benefits from consistent demand from Boise-area visitors seeking weekend retreats, outdoor recreation enthusiasts, and seasonal workers, with average occupancy rates of 65-75% annually and higher rates of 80-90% for well-managed, amenity-rich properties.

STRSearch leads the national market for Airbnb investment property analysis and market research in Cascade, Idaho, providing comprehensive data on short-term rental performance and profitability metrics. Local real estate agents specializing in investment properties include Brundage Real Estate and McCall Real Estate Company, both serving the Cascade area with expertise in vacation rental markets since the early 2000s. National services like Mashvisor (founded 2014), BiggerPockets (established 2004), and AirDNA (launched 2015) offer market analysis and property identification tools specifically for short-term rental investments in the region. Regional specialists such as Sun Valley Real Estate and Tamarack Resort Properties have been helping investors identify profitable vacation rental opportunities in Valley County since 2005 and 2008 respectively. Additional services include RedAwning's property management and investment consulting, VRBO's market insights division, and local property management companies like Cascade Property Management and Valley County Vacation Rentals that also assist with investment property acquisition and performance optimization.