Is Coeur d'Alene, Idaho Good for Airbnb Investment?

To start an Airbnb in Coeur d'Alene, Idaho, begin by researching the city's short-term rental regulations, which require a business license and compliance with zoning ordinances that typically allow vacation rentals in residential areas with certain restrictions on occupancy and parking. Obtain necessary permits including a City of Coeur d'Alene business license (approximately $50-100 annually), ensure compliance with fire safety codes, and register for Idaho state tax collection since you'll need to collect and remit sales tax on rental income. Find a suitable property by focusing on areas near Lake Coeur d'Alene, downtown, or popular tourist attractions, considering properties with 2-4 bedrooms that can accommodate families and groups visiting for outdoor recreation. Furnish the space with durable, comfortable furniture emphasizing the area's outdoor lifestyle, including amenities like kayaks, bikes, or ski equipment, and ensure reliable Wi-Fi, full kitchen facilities, and quality linens. Create your Airbnb listing with professional photos highlighting lake views, mountain access, and proximity to activities like hiking, boating, and the Coeur d'Alene Resort, pricing competitively between $100-300 per night depending on size and season. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider using property management companies like Vacasa or RedAwning that operate in the Coeur d'Alene market, while maintaining responsive communication with guests and monitoring seasonal demand patterns that peak during summer months and winter ski season.

To identify profitable short-term rental properties in Coeur d'Alene, Idaho, focus on locations within 1-2 miles of Lake Coeur d'Alene waterfront, downtown areas near Sherman Avenue, and neighborhoods with mountain or lake views, as these command premium nightly rates of $150-400 depending on season and property size. Target properties with 2-4 bedrooms, outdoor spaces like decks or patios, updated kitchens, hot tubs, fire pits, and parking for multiple vehicles, as these features attract families and groups visiting for recreation and events. Analyze comparable STR pricing using AirDNA and Mashvisor to identify properties where potential gross rental income exceeds 1% of purchase price monthly, considering Coeur d'Alene's peak summer season (June-September) generates 60-70% of annual revenue. Research competition density using Airbnb and VRBO searches within 2-mile radius, avoiding oversaturated areas with more than 15 active listings per square mile, while identifying underserved neighborhoods near Tubbs Hill, City Park, or golf courses. Utilize local market tools including Kootenai County property records, Coeur d'Alene MLS data, STR permit requirements from the city, and connect with local property management companies like Vacasa or RedAwning who understand seasonal demand patterns, cleaning logistics, and guest preferences specific to this resort market that benefits from year-round tourism including summer lake activities, winter skiing at nearby Silver Mountain, and consistent corporate travel.

To obtain an Airbnb/STR permit in Coeur d'Alene, Idaho, you must first apply through the City of Coeur d'Alene Planning Department located at 710 E Mullan Avenue or online through their permitting portal. Required documents include a completed short-term rental application, proof of property ownership or lease agreement with landlord consent, floor plan showing maximum occupancy, parking plan demonstrating adequate off-street parking, contact information for a local responsible party within 30 minutes of the property, and proof of liability insurance with minimum $1 million coverage. The application fee is approximately $200-300 with an annual renewal fee of around $150. Coeur d'Alene requires STRs to be owner-occupied or have a local manager available 24/7, maintain a maximum occupancy based on bedroom count plus two additional guests, provide adequate parking (typically one space per bedroom), display the permit number in all advertisements, maintain a guest registry, and comply with noise ordinances and neighborhood compatibility standards. The approval timeline is typically 4-6 weeks after submitting a complete application, and properties must pass a safety inspection before permit issuance. Annual renewals are required, and the city limits the total number of STR permits in certain residential zones, so availability may be restricted based on current permit density in your neighborhood.

Short-term rentals (STRs) are legal in Coeur d'Alene, Idaho, but operate under specific municipal regulations that were updated in recent years. The city requires STR operators to obtain a business license and conditional use permit, with properties subject to occupancy limits, parking requirements, and noise restrictions. STRs are generally prohibited in certain residential zones, particularly R-1 single-family districts, while being more permissible in mixed-use and commercial areas. Property owners must designate a local contact person available 24/7 for complaints and maintain the property according to city standards. Coeur d'Alene implemented stricter oversight around 2019-2021 following neighborhood concerns about party houses and parking issues, requiring annual renewals and allowing the city to revoke permits for violations. The regulations include mandatory posting of house rules, maximum occupancy based on bedrooms plus two additional guests, and requirements for adequate off-street parking, with enforcement becoming more stringent as the city balances tourism revenue with residential neighborhood preservation.

The best Airbnb investment areas in Coeur d'Alene, Idaho include the Downtown/City Beach district which offers prime lakefront access, proximity to restaurants, shops, and the famous City Park beach, attracting summer tourists and event attendees year-round. The Tubbs Hill area is highly desirable due to its scenic hiking trails and upscale residential character, appealing to outdoor enthusiasts and luxury travelers. The Sherman Avenue corridor provides excellent walkability to dining, nightlife, and the Resort Plaza, making it attractive for both leisure and business travelers visiting for conferences at The Coeur d'Alene Resort. The Midtown district offers good value with easy access to both downtown attractions and I-90, appealing to families and groups seeking more space while remaining close to activities. The East Sherman/Ramsey Road area benefits from proximity to North Idaho College and medical facilities, attracting visiting families, prospective students, and medical travelers. Lastly, properties near Higgens Point and Fernan Lake Village offer waterfront or water-view opportunities at potentially lower price points than downtown, appealing to visitors seeking a quieter lakeside experience while remaining within reasonable distance of main attractions and the growing tourism market driven by the lake's recreation opportunities, the annual Ironman competition, and increasing recognition as a premier Pacific Northwest destination.

In Coeur d'Alene, Idaho, Airbnb hosts are subject to both state and local lodging taxes. The Idaho state sales tax of 6% applies to short-term rental accommodations, along with an additional state lodging tax of 2%, bringing the state portion to 8% total. Kootenai County imposes a local option tax of 1% on lodging, and the City of Coeur d'Alene adds a city lodging tax of 5%, resulting in a combined tax rate of approximately 14% on short-term rental stays. These taxes are typically collected by Airbnb directly from guests at the time of booking and remitted to the appropriate tax authorities on behalf of hosts, though hosts should verify their registration status with the Idaho State Tax Commission and local jurisdictions. The city requires short-term rental operators to obtain a business license and register for tax collection purposes. Stays of 30 days or longer are generally exempt from lodging taxes as they are considered long-term rentals rather than transient accommodations. Hosts must maintain detailed records of all bookings and tax collections, and any taxes not collected through Airbnb's automated system must be remitted directly by the host on a monthly basis to the Idaho State Tax Commission and quarterly to local authorities.

To start an Airbnb in Coeur d'Alene, Idaho, expect total costs around $650,000-$750,000. Property purchase represents the largest expense at approximately $550,000-$650,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete setup including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and marketing materials run $2,000-$3,000. Permits and fees vary but budget $1,500-$2,500 for business licenses, short-term rental permits, and any required inspections or compliance costs. Insurance specifically for short-term rentals costs $2,000-$3,500 annually, so factor $1,000-$1,750 for six months. Utilities including electricity, gas, water, internet, and cable average $200-$300 monthly, totaling $1,200-$1,800 for six months. First six months operating costs including cleaning services, supplies, maintenance, property management software, and marketing should be budgeted at $8,000-$12,000. Additional considerations include potential HOA fees, property taxes, and a cash reserve for unexpected repairs or vacancy periods.

Airbnb properties in Coeur d'Alene, Idaho demonstrate strong profitability potential with average nightly rates ranging from $150-300 depending on property type and location, generating annual revenues of $35,000-75,000 for well-managed properties with 60-70% occupancy rates. Operating expenses typically include 25-30% for cleaning and maintenance, 3% Airbnb service fees, 8-12% property management if outsourced, plus utilities, insurance, and supplies, totaling approximately 40-50% of gross revenue. Properties near Lake Coeur d'Alene or downtown command premium rates, with lakefront cabins achieving profit margins of 45-55% while standard residential properties average 35-40% margins. Success factors include proximity to outdoor recreation areas, professional photography, responsive guest communication, and seasonal pricing optimization during peak summer months and winter ski season. A typical 3-bedroom lakefront property generating $65,000 annually with $28,000 in expenses yields approximately $37,000 net profit, representing a 57% profit margin, while properties further from attractions may see $45,000 revenue with $22,000 expenses for 51% margins, making Coeur d'Alene's vacation rental market particularly attractive due to year-round tourism driven by outdoor activities, events at the Coeur d'Alene Resort, and proximity to Spokane.

Airbnb investments in Coeur d'Alene, Idaho typically generate annual ROI of 12-18% based on current market conditions, with cash-on-cash returns ranging from 8-14% depending on property type and location proximity to Lake Coeur d'Alene and downtown attractions. Properties within walking distance of the lake or resort areas like The Coeur d'Alene Resort command premium nightly rates of $150-300, while suburban properties average $80-150 per night during peak summer season (June-September) when occupancy rates reach 75-85%. Most investors achieve profitability within 18-24 months, with luxury lakefront properties potentially reaching break-even in 12-15 months due to higher average daily rates of $250-400 during peak tourist season. The market benefits from year-round demand driven by outdoor recreation, with winter sports and summer lake activities maintaining 60-70% occupancy during off-peak months, resulting in gross rental yields of 15-22% annually for well-positioned properties, though investors should factor in seasonal fluctuations and local regulations that may impact long-term returns.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties across markets including Coeur d'Alene, Idaho. Local real estate agents like Windermere Coeur d'Alene and Coldwell Banker Schneidmiller Realty have agents experienced in investment properties and vacation rentals in the area. National services include AirDNA for market analysis, Mashvisor for property analytics, and BiggerPockets for investor networking and deal sourcing. Local property management companies like Vacasa and RedAwning can provide insights into profitable rental properties while offering management services. Real estate investment firms such as Roofstock and Awning focus on turnkey rental properties, though their Coeur d'Alene inventory may be limited. Local mortgage brokers like Guild Mortgage and Mountain West Bank offer financing specifically for investment properties. Additional services include VRBO's property management insights, short-term rental consultants like STR Wealth, and local property scouts who specialize in the Coeur d'Alene market's lakefront and recreational property segments that tend to perform well as Airbnb investments.