Is Mountain Home, Idaho Good for Airbnb Investment?

To start an Airbnb in Mountain Home, Idaho, begin by researching local zoning laws and regulations through the Mountain Home City Planning Department, as the city requires short-term rental permits and compliance with residential zoning restrictions that typically limit rentals to no more than 30% of units in residential areas. Obtain necessary permits including a business license from Mountain Home City Hall (approximately $50-100 annually), a short-term rental permit (around $200-300), and ensure compliance with Idaho state tax requirements by registering for sales tax collection. Find a suitable property by searching areas near Mountain Home Air Force Base or downtown, considering that properties within 1000 feet of the base may have additional restrictions, with average home prices ranging $200,000-350,000 as of 2023. Furnish the property with military-friendly amenities given the base proximity, including reliable WiFi, comfortable bedding for 2-6 guests, full kitchen appliances, and consider patriotic or western Idaho themes, budgeting $15,000-25,000 for complete furnishing. List your property on Airbnb, VRBO, and Booking.com with competitive pricing around $80-150 per night depending on size and amenities, highlighting proximity to the air base, outdoor recreation access, and clean mountain air. Manage the property by establishing relationships with local cleaning services (typically $75-125 per turnover), maintenance contractors, and consider using property management companies like Vacasa or RedAwning if you're not local, while maintaining response times under 1 hour for guest communications and ensuring 24/7 availability for military guests with varying schedules.

To identify profitable short-term rental properties in Mountain Home, Idaho, focus on locations within 10-15 minutes of Mountain Home Air Force Base, as military personnel and visiting families represent a consistent demand source, along with properties near recreational areas like CJ Strike Reservoir and the Bruneau Dunes. Target 2-4 bedroom single-family homes or townhomes built after 1990 with modern amenities, full kitchens, reliable internet, and parking, as these appeal to both military families and outdoor enthusiasts visiting the area. Conduct pricing analysis using AirDNA and Mashvisor to benchmark nightly rates between $80-150 depending on size and amenities, while analyzing seasonal demand patterns that typically peak during summer months and military training exercises. Research competition by examining existing Airbnb and VRBO listings within a 5-mile radius, noting occupancy rates, guest reviews, and pricing strategies, with particular attention to properties targeting military guests or outdoor recreation visitors. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Zillow or Realtor.com to analyze purchase prices, renovation costs, and projected returns, while connecting with local property management companies familiar with Mountain Home's unique military-influenced rental market and seasonal tourism patterns around nearby state parks and recreational areas.

To obtain an Airbnb/STR permit in Mountain Home, Idaho, contact the Mountain Home City Planning Department at City Hall located at 150 N 3rd E Street or call (208) 587-2103 to begin the application process. You'll need to submit a completed short-term rental application form, provide proof of property ownership or lease agreement, submit a site plan showing parking areas and property layout, obtain liability insurance with minimum $1 million coverage naming the city as additional insured, pass a fire safety inspection conducted by the Mountain Home Fire Department, and provide contact information for a local property manager if you live more than 50 miles away. Required documents include a valid Idaho business license, zoning compliance verification, neighbor notification letters sent to properties within 300 feet, and payment of application fees typically ranging from $150-300 plus annual renewal fees of approximately $100-150. The approval timeline generally takes 4-6 weeks from complete application submission, during which the planning department reviews zoning compliance, conducts inspections, and processes neighbor notifications. Mountain Home specific requirements include maintaining adequate off-street parking (minimum 2 spaces), limiting occupancy to 2 people per bedroom plus 2 additional guests, ensuring 24/7 local contact availability, posting the permit number in rental listings, and adhering to quiet hours from 10 PM to 7 AM with no outdoor amplified music permitted.

Short-term rentals (STRs) are generally legal in Mountain Home, Idaho, as the city does not have specific municipal ordinances prohibiting them as of 2023-2024. Mountain Home operates under Idaho state law, which does not restrict STRs at the state level, allowing property owners to rent their homes for periods less than 30 days through platforms like Airbnb and VRBO. However, STR operators must comply with standard business licensing requirements, collect and remit Idaho state sales tax (6%) and any applicable local option taxes, and ensure their properties meet basic safety and zoning requirements for residential use. The city may require STRs to obtain a business license and comply with residential zoning restrictions, meaning they're typically permitted in residential areas but must maintain the character of the neighborhood. There are no specific prohibited areas within Mountain Home city limits for STRs, though properties must comply with HOA restrictions if applicable. Recent legal changes have been minimal, with the city maintaining a relatively permissive stance toward short-term rentals while ensuring they operate within existing residential zoning frameworks and business registration requirements.

The best areas for Airbnb investment in Mountain Home, Idaho are the downtown historic district near Main Street, which attracts visitors exploring the city's heritage and provides easy access to local restaurants and shops, and neighborhoods close to Mountain Home Air Force Base, which generate consistent demand from military families, visiting personnel, and contractors needing temporary housing. The areas near Elmore County Fairgrounds are particularly attractive during the annual county fair in August and other events throughout the year, while properties within a 10-15 minute drive of the Snake River offer appeal to fishing enthusiasts, boaters, and outdoor recreation visitors. The residential areas along Highway 20 corridor provide good accessibility for business travelers and those using Mountain Home as a stopover point between Boise and eastern Idaho destinations, with companies like Simplot and various agricultural businesses in the region generating periodic business travel demand.

Mountain Home, Idaho imposes a local lodging tax of 2% on short-term rental accommodations including Airbnb properties, which is collected on the gross rental amount excluding cleaning fees. This tax is administered by the Mountain Home City Clerk's office and must be remitted monthly by the 20th of the following month using forms available from the city. Additionally, Idaho state sales tax of 6% applies to short-term rentals under 30 days, which Airbnb typically collects and remits directly to the Idaho State Tax Commission on behalf of hosts. Elmore County may also impose a transient room tax of up to 5%, though the current rate is approximately 3%, collected similarly to the city tax. Property owners must register with both city and state authorities, obtain necessary business licenses, and maintain records of all transactions for at least three years. Exemptions generally apply to rentals exceeding 30 consecutive days, which are considered long-term leases rather than transient accommodations, and certain properties used for agricultural or religious purposes may qualify for reduced rates or exemptions.

The total cost to start an Airbnb in Mountain Home, Idaho is approximately $285,000-$320,000. Property purchase represents the largest expense at $220,000-$250,000 based on median home prices in the area. Furnishing costs range from $15,000-$25,000 to create an attractive, fully-equipped rental including furniture, appliances, linens, and décor. Initial setup costs of $3,000-$5,000 cover professional photography, listing creation, welcome materials, and basic marketing. Permits and fees total $500-$1,500 including business licenses, short-term rental permits from the city, and potential HOA approvals. Insurance costs $1,200-$2,000 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits require $500-$800 for electricity, water, gas, internet, and cable services. First six months of operating costs add $8,000-$12,000 covering utilities ($200-300/month), cleaning services ($100-150 per turnover), supplies and maintenance ($200-300/month), property management software ($50-100/month), and marketing expenses ($100-200/month). Additional considerations include potential property management fees of 15-25% if outsourced, which would increase ongoing operational costs significantly.

Airbnb properties in Mountain Home, Idaho typically generate annual revenues between $15,000-$35,000 for a standard 2-3 bedroom home, with nightly rates averaging $80-$140 depending on seasonality and proximity to Mountain Home Air Force Base. Operating expenses generally run 40-50% of gross revenue, including cleaning fees ($40-60 per turnover), utilities ($150-250 monthly), property management (15-25% if outsourced), insurance ($1,200-2,000 annually), and maintenance costs. Net profit margins typically range from 15-25% after all expenses, with properties near the air base commanding premium rates due to consistent military personnel demand. Success factors include maintaining high cleanliness standards, offering military-friendly amenities like early check-in/late check-out flexibility, and strategic pricing during peak PCS (Permanent Change of Station) seasons in summer and winter. Properties within 10 miles of Mountain Home AFB consistently outperform those in the downtown area by 20-30% in occupancy rates, with some hosts reporting annual net profits of $8,000-$12,000 on properties valued around $200,000-$300,000, representing solid 3-4% cash-on-cash returns when combined with appreciation potential in this growing military community.

Airbnb investments in Mountain Home, Idaho typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, primarily driven by the proximity to Mountain Home Air Force Base which creates consistent demand from military personnel and their families. Properties in the $200,000-$350,000 range can expect gross rental yields of 15-22% annually, with average daily rates of $85-$120 depending on property size and amenities. Most investors achieve profitability within 18-24 months after accounting for initial setup costs, furnishing, and marketing expenses, while the military presence provides year-round occupancy rates of 65-75% compared to seasonal markets. The combination of affordable property prices, steady military housing allowance payments, and limited hotel options in the area creates favorable conditions for short-term rental investments, though investors should factor in property management costs of 15-25% if not self-managing.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental investment opportunities in Mountain Home, Idaho, offering comprehensive market analysis and property recommendations. Local real estate agents like Coldwell Banker Tomlinson Group and RE/MAX Executives have experience with investment properties in the Mountain Home area and understand the local vacation rental market dynamics. Awning provides nationwide Airbnb investment services including market analysis, property management, and revenue optimization specifically for Mountain Home properties. Mashvisor offers data-driven investment analysis tools and property recommendations for the Mountain Home market, while AirDNA provides detailed short-term rental market insights and performance metrics for the area. RedAwning specializes in vacation rental property investments and management services throughout Idaho including Mountain Home. Local property management companies like Treasure Valley Property Management can assist with ongoing Airbnb operations, and national services like Vacasa and AvantStay provide full-service short-term rental management for investors purchasing properties in Mountain Home around 2020-2024.