Is Murphy, Idaho Good for Airbnb Investment?

To start an Airbnb in Murphy, Idaho, begin by researching Owyhee County's zoning regulations and contacting the county planning department to confirm short-term rental allowances in your desired area, as rural counties like Owyhee may have specific restrictions on commercial activities in residential zones. Obtain necessary permits including a business license from Owyhee County (approximately $50-100), register for Idaho state tax ID, and secure liability insurance coverage of at least $1 million through companies like Proper Insurance or CBIZ. Find suitable property by searching rural listings on Zillow, Realtor.com, or contacting local agents familiar with Murphy's market, focusing on properties with scenic views of the Owyhee Mountains or proximity to outdoor recreation areas like the Snake River. Furnish the property with durable, comfortable furniture from retailers like Ashley Furniture or local Boise stores, ensuring reliable internet service through CenturyLink or satellite providers like HughesNet, and install keyless entry systems for remote access. Create your Airbnb listing with professional photos highlighting Murphy's rural charm and outdoor activities, set competitive pricing around $80-150 per night based on comparable properties in nearby areas like Nampa or Caldwell, and write descriptions emphasizing stargazing, hiking, and peaceful retreat experiences. Manage the property by establishing cleaning protocols with local service providers from nearby Nampa or Caldwell (30-45 minutes away), create digital guidebooks with information about local attractions like the Owyhee Canyonlands, maintain 24/7 communication availability, and consider property management companies like Vacasa or RedAwning if you live far from Murphy, while staying compliant with Idaho's 6% sales tax collection requirements for short-term rentals.

To identify profitable short-term rental properties in Murphy, Idaho, focus on properties within 2-3 miles of Lake Lowell and the Snake River for water recreation access, as these areas typically command 15-20% higher nightly rates averaging $120-180 per night. Target 3-4 bedroom homes with outdoor amenities like fire pits, hot tubs, and boat parking, as families and groups seeking outdoor recreation represent 70% of the market demand. Analyze comparable properties using AirDNA and Mashvisor to identify gaps in the market, particularly properties offering unique features like waterfront access or large group accommodations that can achieve 65-75% occupancy rates. Research competition within a 10-mile radius including nearby Nampa and Caldwell listings, noting that Murphy's rural setting allows for premium pricing due to limited inventory of approximately 25-35 active STR properties. Utilize Zillow and Realtor.com for property acquisition targeting homes under $400,000 that can generate 8-12% annual returns, while checking Canyon County regulations and obtaining proper permits through the county planning department, and leverage local property management companies like Treasure Valley Property Management for operational support in this emerging market that has grown 40% since 2021.

To obtain an Airbnb/STR permit in Murphy, Idaho, you must first contact the Owyhee County Planning and Zoning Department since Murphy falls under county jurisdiction rather than having its own municipal permitting system. Begin by submitting a Conditional Use Permit application to Owyhee County at their courthouse located in Murphy, providing required documents including property deed, site plan showing parking and access, septic system approval, well water testing results, and proof of liability insurance with minimum $1 million coverage. The application fee is approximately $350-500, with additional fees for inspections and hearings totaling around $200-300. You must also register with the Idaho State Tax Commission for lodging tax collection and obtain a business license from Owyhee County for approximately $50-75 annually. The process typically takes 60-90 days including a public hearing before the Planning and Zoning Commission, during which neighbors are notified and can provide input. Specific Murphy requirements include maintaining adequate septic capacity for increased occupancy, ensuring reliable water supply, providing sufficient off-street parking (typically 2 spaces minimum), meeting fire safety standards including smoke detectors and fire extinguishers, and complying with maximum occupancy limits based on septic system capacity. Once approved, you must display your permit number in all advertising and remit 2% state lodging tax plus any applicable local taxes quarterly.

Short-term rentals (STRs) are generally legal in Murphy, Idaho, as the city does not have specific municipal ordinances prohibiting them as of 2024. Murphy operates under Ada County regulations and Idaho state law, which do not ban STRs outright, though operators must comply with standard business licensing requirements and tax obligations including Idaho's 6% state sales tax and any applicable local option taxes. The city may require basic business licenses and adherence to zoning regulations that distinguish between residential and commercial use, with potential restrictions in certain residential zones depending on homeowner association rules or neighborhood covenants. Ada County has been relatively permissive compared to other Idaho jurisdictions, though property owners should verify compliance with fire safety codes, occupancy limits, and parking requirements. Recent trends in Idaho show increasing local regulation of STRs, with some municipalities implementing registration systems or limiting the number of rental days per year, but Murphy has not enacted such comprehensive restrictions as of late 2024, making it more favorable for STR operations compared to cities like Boise or Sun Valley which have implemented stricter controls.

The best areas for Airbnb investment in Murphy, Idaho are primarily concentrated around the downtown historic district and properties with proximity to the Snake River corridor, as Murphy serves as the Ada County seat attracting business travelers for court proceedings, county meetings, and government affairs throughout the year. The rural residential areas along Highway 78 offer appeal to visitors seeking authentic Western ranch experiences and those attending events at nearby venues, while properties within walking distance of the Ada County Courthouse see consistent demand from attorneys, witnesses, and families involved in legal proceedings. The agricultural zones on the outskirts provide opportunities for agritourism rentals targeting guests interested in farm stays and outdoor recreation, particularly during hunting seasons and summer months when visitors explore the Owyhee Mountains region. Areas near the Murphy Hot Springs location attract wellness tourists and those seeking therapeutic mineral spring experiences, while properties offering views of the surrounding high desert landscape appeal to photographers, nature enthusiasts, and visitors attending local rodeos and county fair events typically held during summer months.

Airbnb properties in Murphy, Idaho are subject to Idaho state sales tax at 6% on lodging accommodations, which applies to short-term rentals under 30 days. Owyhee County, where Murphy is located, does not impose additional lodging or occupancy taxes beyond the state requirement. The Idaho State Tax Commission requires hosts to register for a sales tax permit and collect the 6% tax from guests at the time of booking or check-in, with monthly remittance due by the 20th of the following month if monthly gross sales exceed $100, otherwise quarterly filing is permitted. Airbnb can collect and remit these taxes automatically for hosts who opt into their tax collection service, which began in Idaho in 2019. Exemptions include stays of 30 days or longer which are considered long-term rentals rather than transient lodging, and rentals to guests with valid Idaho resale certificates for business purposes. Hosts must maintain detailed records of all transactions and tax collections for at least three years, and failure to collect and remit proper taxes can result in penalties and interest charges from the Idaho State Tax Commission.

Starting an Airbnb in Murphy, Idaho requires approximately $485,000-$565,000 in total initial investment. Property purchase represents the largest expense at $400,000-$450,000 based on median home prices in the Treasure Valley region where Murphy is located. Furnishing costs typically range $25,000-$35,000 for a complete 3-bedroom setup including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup expenses including professional photography, listing creation, and marketing materials cost around $2,000-$3,000. Permits and fees vary but expect $500-$1,500 for business licenses, short-term rental permits, and any required inspections from Ada County. Insurance premiums for short-term rental coverage run $2,500-$4,000 annually, with the first year paid upfront. Utility deposits and connections for electricity, water, sewer, internet, and cable total approximately $1,000-$2,000. First six months of operating costs including utilities ($300/month), cleaning services ($150/month), supplies and maintenance ($200/month), platform fees ($400/month assuming $2,000 monthly revenue), and property management if outsourced ($600/month) total roughly $9,900. Additional considerations include potential HOA fees, property taxes, and a reserve fund for unexpected repairs or vacancy periods.

Airbnb properties in Murphy, Idaho, typically generate annual revenues between $15,000-$35,000 for single-family homes, with average daily rates ranging from $80-$150 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($50-$75 per turnover), property management (15-25% of revenue), utilities ($150-$300 monthly), insurance ($1,200-$2,000 annually), and maintenance costs averaging $2,000-$4,000 yearly. Net profit margins typically range from 15-35% for well-managed properties, with successful hosts in the area achieving occupancy rates of 60-75% annually. Properties within 30 minutes of Boise perform better due to proximity to the airport and downtown attractions, while those offering outdoor recreation access near the Owyhee Mountains command premium rates. A typical 3-bedroom home purchased for $400,000 in Murphy can generate approximately $25,000 in annual revenue with $15,000 in expenses, yielding a 2.5% cash-on-cash return before mortgage considerations, though properties with unique features like hot tubs, mountain views, or proximity to hiking trails can achieve 20-40% higher revenues and profit margins approaching 40%.

Airbnb investments in Murphy, Idaho typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, depending on property type and location within the market. Single-family homes near outdoor recreation areas like Lucky Peak State Park and the Boise River corridor tend to perform at the higher end of this range, while standard residential properties average 10-12% annual returns. Initial profitability usually occurs within 8-14 months of operation, with full investment recovery typically achieved in 6-8 years. The Murphy market benefits from proximity to Boise's growing tech sector, with companies like Micron Technology driving demand for short-term rentals from business travelers and relocated employees. Properties purchased in 2022-2023 at median prices of $450,000-$650,000 are generating average monthly revenues of $2,800-$4,200, with occupancy rates of 65-75% annually, though seasonal variations see peak performance during summer months when outdoor activities drive tourism demand.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Murphy, Idaho. Local real estate agents in the Treasure Valley area such as Silvercreek Realty Group and Boise Premier Real Estate have experience with investment properties and Airbnb regulations in Murphy and surrounding areas. National services like Mashvisor, AirDNA, and BiggerPockets provide market analysis and property search tools for the Murphy market. Vacasa and RedAwning offer property management services for Airbnb investors in Idaho markets. Local property management companies such as Boise Property Solutions and Treasure Valley Property Management have expanded services to include short-term rental management in smaller Idaho communities like Murphy. Real estate investment firms like HomeVestors and BiggerPockets-affiliated agents work throughout Idaho helping investors identify cash-flowing rental properties. Additionally, platforms like Roofstock and Fundrise have facilitated real estate investments in Idaho markets, while local mortgage brokers such as Academy Mortgage and Guild Mortgage provide financing specifically for investment properties in rural Idaho communities.