Is Ketchum, Idaho Good for Airbnb Investment?

To start an Airbnb in Ketchum, Idaho, begin by researching the city's short-term rental regulations, as Ketchum requires a business license and conditional use permit for properties operating as vacation rentals, with specific zoning restrictions that limit short-term rentals in certain residential areas and require properties to be owner-occupied or have an on-site manager within 25 miles. Obtain the necessary permits by applying for a Ketchum business license ($50-100 annually), a conditional use permit through the Planning and Zoning Department ($500-800), and ensure compliance with fire safety inspections and health department requirements. Find a suitable property by focusing on areas zoned for short-term rentals, typically in resort or commercial zones, with properties near Sun Valley Resort, downtown Ketchum, or along the Big Wood River commanding premium rates of $200-600 per night depending on season and size. Furnish the property with high-quality, durable furniture suitable for mountain recreation guests, including ski storage, outdoor gear space, hot tub if possible, and amenities like high-speed internet, smart TVs, and fully equipped kitchens, budgeting $15,000-40,000 for a complete furnishing depending on property size. List your property on Airbnb, VRBO, and local platforms like Sun Valley Resort's preferred partner sites, emphasizing proximity to skiing, hiking, and downtown dining, with professional photography showcasing mountain views and seasonal activities. Manage the property by either hiring local management companies like Sun Valley Property Management or RedAwning (charging 15-25% commission) or self-managing with reliable local cleaning services ($100-200 per turnover), maintenance contacts familiar with mountain property challenges, and 24/7 guest communication systems to handle the high-demand winter ski season and summer recreation periods.

To identify profitable short-term rental properties in Ketchum, Idaho, focus on locations within walking distance or short drive to Sun Valley Resort and downtown Ketchum's restaurants and shops, prioritizing properties with mountain or valley views and easy winter access roads. Target 2-4 bedroom condos, townhomes, or single-family homes built after 1990 with amenities like hot tubs, fireplaces, updated kitchens, ski storage, and parking, as these command premium rates during peak ski season (December-March) when nightly rates can reach $400-800+ compared to summer rates of $200-400. Analyze comparable properties on Airbnb and VRBO within a 2-mile radius, noting that successful STRs in Ketchum typically achieve 60-75% occupancy with average daily rates of $300-500 depending on size and location, generating annual revenues of $65,000-150,000 for well-positioned properties. Research competition density using AirDNA, STR Helper, or Mashvisor to identify undersupplied areas, while monitoring Blaine County's STR regulations and permit requirements which limit new licenses in some zones. Utilize local market data from Sun Valley MLS, consult with Ketchum-based property managers like RedAwning or Vacasa for operational insights, and consider properties priced 20-30% below comparable long-term rental investments to account for higher management costs and seasonal vacancy periods.

To obtain an Airbnb/STR permit in Ketchum, Idaho, you must first apply through the Ketchum Planning and Building Department located at City Hall on 4th Street East, submitting a completed Short-Term Rental License Application along with required documents including proof of property ownership or lease agreement, floor plan showing maximum occupancy, parking plan demonstrating adequate off-street parking, contact information for a local property manager within 30 minutes of the property, proof of liability insurance (minimum $1 million), and septic system inspection if applicable. The application fee is approximately $200-300 annually with additional inspection fees of around $100-150, and the process typically takes 4-6 weeks for approval once all documents are submitted. Ketchum-specific requirements include maintaining a maximum occupancy based on bedroom count plus two additional guests, providing adequate parking spaces (typically one space per bedroom), ensuring the property manager can respond to issues within 30 minutes, displaying the permit number in all advertising, maintaining a guest registry, and adhering to noise ordinances with quiet hours from 10 PM to 7 AM. Properties must also comply with fire safety codes, have working smoke and carbon monoxide detectors, and pass an initial inspection before the permit is issued, with annual renewals required thereafter.

Short-term rentals (STRs) are legal in Ketchum, Idaho, but operate under strict regulations implemented by the city to manage their impact on the community. As of 2023, Ketchum requires STR operators to obtain a business license and conditional use permit, with properties limited to a maximum occupancy based on bedroom count plus two additional guests. The city prohibits STRs in certain residential zones and requires a minimum 48-hour rental period to distinguish them from nightly hotel-style accommodations. Properties must meet specific safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers, while operators must provide 24/7 contact information and respond to complaints within one hour. Ketchum has implemented a cap on the total number of STR permits available and requires annual renewals, with violations potentially resulting in permit revocation. Recent changes include stricter enforcement mechanisms and increased penalties for non-compliance, reflecting the city's effort to balance tourism revenue with neighborhood livability concerns in this popular Sun Valley area resort community.

The most lucrative Airbnb investment areas in Ketchum, Idaho center around the Sun Valley Resort vicinity, particularly properties within walking distance or short shuttle rides to the base lodges, as this area attracts year-round visitors for world-class skiing in winter and mountain biking, hiking, and festivals in summer. The historic downtown Ketchum area along Main Street and surrounding residential neighborhoods offer excellent investment potential due to proximity to restaurants, shopping, galleries, and the free bus system, appealing to tourists who prefer walkable access to amenities. The Warm Springs area on the east side of town is highly desirable for its direct ski access and luxury appeal, commanding premium rates during peak ski season from December through March. River Run and Elkhorn areas provide good investment opportunities with slightly lower acquisition costs while still offering resort amenities and shuttle access. The areas near Trail Creek and surrounding Ketchum's northern residential zones attract visitors seeking quieter accommodations while maintaining reasonable access to skiing and summer activities, with properties here benefiting from events like the Sun Valley Music Festival, Wagon Days, and various corporate retreats that bring consistent business travel throughout the year.

Airbnb properties in Ketchum, Idaho are subject to multiple lodging taxes including the Idaho state sales tax of 6%, Blaine County lodging tax of 8%, and the City of Ketchum lodging tax of 3%, totaling approximately 17% in combined taxes on short-term rental accommodations. 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 individual hosts may need to register with the Idaho State Tax Commission and local jurisdictions to ensure compliance. The Blaine County lodging tax and Ketchum city tax are specifically designated for tourism promotion and infrastructure improvements, with funds often supporting the Sun Valley/Ketchum Chamber & Visitors Bureau marketing efforts. Properties rented for 30 days or longer may be exempt from lodging taxes and instead subject to standard sales tax, while some jurisdictions offer exemptions for stays by government employees or certain non-profit organizations. Hosts should verify their registration status with both state and local tax authorities, as failure to properly collect and remit these taxes can result in penalties and back-tax assessments, particularly given Ketchum's status as a major ski destination with significant short-term rental activity.

Starting an Airbnb in Ketchum, Idaho requires significant upfront investment due to the area's premium ski resort location. Property purchase costs average $1.2-1.8 million for a suitable 2-3 bedroom home or condo near Sun Valley, with luxury properties reaching $3+ million. Furnishing costs typically range $25,000-45,000 for high-quality mountain lodge aesthetic furniture, appliances, linens, and amenities expected by affluent guests. Initial setup expenses include professional photography ($500-800), listing optimization ($1,000-2,000), and marketing materials ($500-1,500). Permits and fees include business license ($100-300), transient occupancy tax registration ($50-200), and potential HOA approval processes ($0-500). Insurance costs run $3,000-6,000 annually for short-term rental coverage. Monthly utilities average $200-400 for electricity, gas, water, internet, and cable. First six months operating costs include cleaning services ($150-250 per turnover), property management if used (25-30% of revenue), maintenance reserves ($500-1,000 monthly), supplies and amenities ($200-400 monthly), and marketing ($300-600 monthly). Total startup costs range approximately $1.3-1.9 million including the property purchase, with ongoing monthly operating expenses of $1,500-3,000 depending on occupancy rates and service levels.

Airbnb properties in Ketchum, Idaho demonstrate strong profitability potential, with average nightly rates ranging from $200-500 during peak ski season (December-March) and $150-300 in summer months, generating annual revenues of $45,000-85,000 for well-positioned properties. Operating expenses typically include 25-30% for property management fees, $8,000-12,000 annually for utilities and maintenance, $3,000-5,000 for insurance, and $4,000-8,000 in property taxes, resulting in net profit margins of 35-45% for successful operators. Properties within walking distance of Sun Valley Resort or downtown Ketchum command premium rates, with luxury ski-in/ski-out condos achieving occupancy rates of 75-85% during winter months. Success factors include proximity to skiing and outdoor recreation, high-end amenities like hot tubs and mountain views, professional photography and staging, and responsive guest communication. A typical 3-bedroom condo near the resort purchased for $800,000 in 2019 generated $72,000 in gross rental income in 2022 with $28,000 in expenses, yielding a 5.5% cash-on-cash return plus property appreciation of 8-12% annually, making Ketchum's Airbnb market particularly attractive for investors targeting affluent travelers seeking luxury mountain experiences.

Airbnb investments in Ketchum, Idaho typically generate annual ROI of 12-18% due to the town's proximity to Sun Valley Resort and year-round tourism demand. Cash-on-cash returns generally range from 8-14% annually, with properties near Dollar Mountain or within walking distance of downtown Ketchum commanding premium rates of $200-400 per night during peak ski season (December-March) and $150-250 during summer months. Most investors achieve profitability within 18-24 months, with luxury properties and ski-in/ski-out locations reaching break-even faster at 12-18 months. The market benefits from consistent occupancy rates of 65-75% annually, driven by Sun Valley's reputation as a premier destination and limited hotel inventory in the area. Properties purchased in the $800K-$1.5M range typically generate $80K-$180K in gross annual revenue, with net returns after expenses, property management, and maintenance averaging 10-15% annually.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Ketchum, Idaho. Local real estate agents serving the Ketchum market include Sun Valley Real Estate, Ketchum Real Estate Company, and Engel & Völkers Sun Valley, who have expertise in vacation rental properties in the area. National services like Mashvisor, BiggerPockets, and AirDNA provide market analysis and property identification tools for Ketchum's short-term rental market. Regional companies such as RedAwning and Vacasa offer property management and investment advisory services for Airbnb properties in the Sun Valley region. Local property management firms like Sun Valley Property Management and Blaine County Vacation Rentals can assist investors with both acquisition guidance and ongoing management of profitable Airbnb investments. Additional national platforms including Roofstock, HomeUnion, and Awning focus on turnkey short-term rental investments and may have inventory in the Ketchum area, while local mortgage brokers and investment advisors familiar with Idaho's vacation rental regulations can provide financing and compliance guidance for Airbnb property purchases.