Is Idaho Falls, Idaho Good for Airbnb Investment?

To start an Airbnb in Idaho Falls, Idaho, begin by researching local zoning laws and regulations through the City of Idaho Falls Planning Department, as the city requires short-term rentals to comply with residential zoning restrictions and may require a business license through the City Clerk's office. Contact Bonneville County for any additional county-level requirements and check if your property's HOA allows short-term rentals. Obtain necessary permits including a business license from Idaho Falls (approximately $25-50 annually), register with the Idaho State Tax Commission for sales tax collection (Idaho charges 6% state sales tax plus local taxes), and secure appropriate insurance coverage that includes short-term rental protection. Find a suitable property by researching neighborhoods near popular attractions like the Snake River Greenbelt, downtown Idaho Falls, or areas close to Yellowstone National Park access routes, considering properties with 2-3 bedrooms that typically perform well in this market with average nightly rates ranging $80-150. Furnish the property with quality basics including comfortable beds, linens, towels, kitchen essentials, WiFi, and local guidebooks highlighting nearby attractions like the Idaho Falls Temple and Museum of Idaho. Create your listing on Airbnb and VRBO platforms with professional photos, competitive pricing based on local market analysis, and detailed descriptions emphasizing proximity to outdoor recreation and Yellowstone. Manage your property by establishing cleaning protocols between guests, maintaining responsive communication, coordinating key exchanges or installing smart locks, and staying compliant with tax collection requirements by remitting collected taxes to the Idaho State Tax Commission quarterly and maintaining detailed records for both state and potential local tax obligations.

To identify profitable short-term rental properties in Idaho Falls, Idaho, focus on locations within 2-3 miles of downtown, near the Snake River greenbelt, or close to major attractions like the Idaho Falls Zoo and Temple. Target 3-4 bedroom single-family homes or condos built after 1990 with modern amenities, outdoor spaces, and parking, as these appeal to families visiting Yellowstone National Park (90 minutes away) and business travelers to companies like Melaleuca and Idaho National Laboratory. Analyze pricing by researching comparable STRs on Airbnb and VRBO, aiming for properties under $300,000 that can command $120-180 nightly rates during peak summer months and $80-120 in winter. Study competition density using AirDNA and avoid oversaturated neighborhoods while identifying underserved areas near recreational activities like fishing, hiking, and winter sports. Utilize tools like Mashvisor, BiggerPockets calculators, and local MLS data through Intermountain MLS, while consulting with Idaho Falls-based property managers and reviewing city zoning regulations since some residential areas restrict short-term rentals. Consider seasonal demand patterns driven by Yellowstone tourism (May-September), INL contractor visits, and regional events, ensuring your investment can achieve 60-70% occupancy rates to maintain profitability in this growing eastern Idaho market.

To obtain an Airbnb/STR permit in Idaho Falls, Idaho, you must first contact the Idaho Falls Planning and Building Department at City Hall located at 680 Park Avenue to determine if short-term rentals are permitted in your specific zoning district, as the city has been developing regulations for STRs since 2019. You'll need to submit an application that typically includes a completed STR permit application form, proof of property ownership or authorization from the owner, a site plan showing parking arrangements, floor plans indicating maximum occupancy, proof of liability insurance (usually $1 million minimum), contact information for a local property manager if you're not local, and evidence of compliance with fire safety codes. The application fee is estimated at $150-300 with potential additional inspection fees of $75-150. Required documents also include a business license from the city, which costs approximately $25-50 annually, and you must register with the Idaho State Tax Commission for lodging tax collection. The approval timeline typically ranges from 4-8 weeks depending on completeness of application and any required inspections. Idaho Falls specific requirements include maintaining a guest registry, posting maximum occupancy limits, providing adequate parking (usually 1-2 spaces per unit), ensuring 24/7 contact availability for complaints, and complying with noise ordinances and neighborhood compatibility standards that may limit the number of STRs per block or require minimum distances between properties.

Short-term rentals (STRs) are legal in Idaho Falls, Idaho, but operate under specific municipal regulations established by the city. Idaho Falls requires STR operators to obtain a business license and comply with zoning restrictions that primarily allow STRs in residential zones with certain limitations on density and operational standards. The city prohibits STRs in some residential areas where homeowner associations have specific restrictions, and operators must adhere to occupancy limits, parking requirements, and noise ordinances. Recent changes around 2022-2023 included updated registration requirements and enhanced enforcement mechanisms, with the city requiring annual renewals and implementing complaint response protocols. Properties must meet safety standards including smoke detectors and emergency egress requirements, and operators are subject to taxation under local lodging tax ordinances. While not banned outright in any specific zones, the city maintains the authority to revoke licenses for repeated violations of noise, parking, or occupancy regulations.

The most promising Airbnb investment areas in Idaho Falls, Idaho include the Historic Downtown District, which attracts business travelers visiting the Idaho National Laboratory and tourists exploring local attractions like the Snake River Greenbelt and Falls. The Tautphaus Park neighborhood offers excellent potential due to its proximity to the zoo and recreational facilities, drawing families year-round. The area near Eastern Idaho Regional Medical Center presents strong opportunities for medical tourism and visiting families of patients. The Snake River Landing development zone is attractive for corporate travelers and conference attendees, as it houses major businesses and event venues. The residential areas around Freeman Park and Lincoln Drive appeal to visitors seeking quiet, family-friendly accommodations while remaining close to downtown attractions. The neighborhoods near College of Eastern Idaho campus offer potential for visiting academics, prospective students, and families during graduation periods. Properties within walking distance of the Snake River Greenbelt system are particularly desirable for outdoor enthusiasts visiting for fishing, walking, and seasonal events, while areas near the Idaho Falls Regional Airport capture travelers seeking convenient accommodation options.

In Idaho Falls, Idaho, Airbnb hosts are subject to both state and local lodging taxes that must be collected from guests and remitted to tax authorities. The Idaho state sales tax of 6% applies to short-term rental accommodations, while Bonneville County imposes an additional lodging tax of approximately 5%, bringing the total occupancy tax rate to around 11% on gross rental receipts. Idaho Falls may also levy a local option tax of up to 2% specifically on transient lodging, potentially increasing the total rate to 13%. These taxes are collected by the host at the time of booking or check-in and must be remitted monthly to the Idaho State Tax Commission for state portions and to Bonneville County for local portions, with returns typically due by the 20th of the following month. Hosts must register for a sales tax permit with the state and may need separate registration with local authorities. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient lodging, and some exemptions may exist for certain government or charitable organization bookings, though hosts should verify current exemption criteria as regulations can change.

The total cost to start an Airbnb in Idaho Falls, Idaho is approximately $285,000-$315,000. Property purchase represents the largest expense at $250,000-$275,000 based on median home prices in the area. Furnishing costs range from $15,000-$20,000 for a complete 2-3 bedroom setup including beds, living room furniture, kitchen essentials, linens, and decor. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees including business license, short-term rental permit, and inspection fees cost approximately $500-$1,000. Insurance for short-term rental coverage adds $1,200-$2,000 annually. Utility setup and deposits for electricity, gas, water, internet, and cable total $500-$800. First six months operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance reserves ($200/month), platform fees on estimated $2,000 monthly revenue ($300/month), and marketing expenses ($100/month) total approximately $7,800. Additional considerations include property taxes averaging $2,500-$3,500 annually and potential HOA fees if applicable.

Airbnb properties in Idaho Falls, Idaho typically generate annual revenues between $18,000-$35,000 for well-positioned properties, with average daily rates ranging from $85-$150 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), property management (15-25% if outsourced), utilities ($150-$300 monthly), insurance ($1,200-$2,000 annually), and maintenance costs. Properties near Snake River attractions or downtown areas achieve higher occupancy rates of 65-75% compared to suburban locations at 45-60%. A typical 3-bedroom home purchased for $280,000 in 2022 with a $2,100 monthly mortgage can generate $2,800-$3,200 monthly gross revenue during peak summer months, resulting in net profit margins of 15-25% after all expenses. Success factors include proximity to outdoor recreation areas like Yellowstone National Park (90 minutes away), professional photography, competitive pricing strategies, and maintaining 4.8+ star ratings. Properties targeting business travelers near Idaho National Laboratory or families visiting regional attractions tend to outperform generic residential listings, with some hosts reporting annual net profits of $8,000-$15,000 on properly managed properties.

Airbnb investments in Idaho Falls, Idaho typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the market. Properties near downtown Idaho Falls or close to attractions like the Snake River and Idaho National Laboratory tend to perform better, with investors commonly seeing break-even points within 18-24 months of initial investment. The market benefits from consistent demand from business travelers visiting Idaho National Laboratory, outdoor recreation tourists, and visitors to nearby Yellowstone National Park, with average daily rates ranging from $85-140 and occupancy rates of 65-75% annually. Single-family homes and condos in neighborhoods like Ammon or near the greenbelt typically require initial investments of $200,000-350,000 and can generate monthly gross revenues of $1,800-3,200, resulting in net annual returns of $8,000-18,000 after expenses including property management, utilities, maintenance, and local taxes.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors in Idaho Falls, Idaho. Local real estate agents like those at Keller Williams Sun Valley Southern Idaho, Coldwell Banker Tomlinson Group, and RE/MAX of Idaho Falls have extensive knowledge of the area's vacation rental market and zoning regulations. National services include Awning, which provides comprehensive Airbnb investment analysis, and Mashvisor, offering data-driven property investment insights for the Idaho Falls market. RedAwning and Vacasa provide property management services specifically for short-term rentals in the region, while AirDNA offers market analytics and revenue projections for potential Airbnb investments. Local property management companies such as Snake River Property Management and Mountain West Property Management have expanded into short-term rental services around 2019-2021. Additional national platforms like BiggerPockets connects investors with local experts, and companies like Roofstock and Arrived Homes have begun featuring Idaho Falls properties in their short-term rental investment portfolios since 2020.