Is Pocatello, Idaho Good for Airbnb Investment?

To start an Airbnb in Pocatello, Idaho, begin by researching local regulations through the Pocatello Planning and Development Services department, as the city requires short-term rental operators to obtain a Conditional Use Permit and business license, with properties needing to comply with zoning requirements and maintain owner occupancy or local management within 50 miles. Contact Bannock County for additional permit requirements and ensure compliance with Idaho state tax obligations including sales tax registration. Find a suitable property in residential zones that allow short-term rentals, focusing on areas near Idaho State University or downtown for higher demand, with average nightly rates ranging $75-150 depending on size and location. Furnish the space with essential amenities including WiFi, kitchen basics, linens, and local guidebooks, ensuring all safety equipment like smoke detectors and fire extinguishers meet code requirements. Create your Airbnb listing with professional photos highlighting proximity to ISU, Pocatello Regional Medical Center, and outdoor recreation opportunities in the nearby mountains, setting competitive pricing based on local market analysis. Manage the property by establishing cleaning protocols between guests, maintaining 24/7 communication availability, coordinating key exchange systems, and keeping detailed records for tax purposes while monitoring guest reviews and adjusting services accordingly to maintain high ratings in Pocatello's growing short-term rental market.

To identify profitable STR properties in Pocatello, Idaho, focus on locations near Idaho State University campus, downtown historic district, and properties with mountain or river views along the Portneuf River corridor, as these areas attract both university visitors and outdoor recreation tourists. Target 2-4 bedroom single-family homes or condos built after 1980 with modern amenities, full kitchens, parking, and outdoor spaces like patios or decks that appeal to families and groups visiting for university events, outdoor activities, or business travel. Conduct pricing analysis using AirDNA and Mashvisor to evaluate average daily rates ($80-150 range estimated for Pocatello market), occupancy rates (typically 45-65% in smaller Idaho markets), and seasonal demand patterns, with peak periods likely during ISU academic calendar and summer outdoor recreation season. Research competition by analyzing existing Airbnb and VRBO listings within 3-mile radius of target areas, identifying gaps in amenities or property types, and monitoring pricing strategies of top-performing hosts. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Pocatello Board of Realtors, while connecting with local property management companies like RedAwning or Vacasa for market insights, and consider proximity to key attractions such as Pebble Creek Ski Area (45 minutes away), Lava Hot Springs (30 minutes), and Craters of the Moon National Monument (2 hours) to capture diverse traveler segments.

To obtain an Airbnb/STR permit in Pocatello, Idaho, you must first contact the Pocatello Planning and Development Services Department at City Hall located at 911 North 7th Avenue to determine if short-term rentals are permitted in your specific zoning district, as the city implemented regulations around 2019-2020. You'll need to submit a conditional use permit application along with required documents including a site plan showing the property layout, proof of property ownership or lease agreement, a business license application, proof of liability insurance (typically $1 million minimum), a parking plan demonstrating adequate off-street parking, and a management plan detailing how the property will be maintained and managed. The application fee is approximately $500-800 for the conditional use permit plus additional fees for the business license (around $50-100 annually). You must also provide contact information for a local property manager if you live more than 50 miles away, ensure the property meets all building and fire safety codes, and limit occupancy to no more than 2 people per bedroom plus 2 additional guests. The review process typically takes 6-8 weeks and includes a public hearing before the Planning and Zoning Commission, after which you'll receive approval or denial, and if approved, you can then apply for your business license and begin operations while maintaining compliance with noise ordinances, parking requirements, and regular safety inspections.

Short-term rentals (STRs) are legal in Pocatello, Idaho, but operate under specific municipal regulations established around 2019-2020. The city requires STR operators to obtain a business license and comply with zoning restrictions that generally allow STRs in residential areas with certain limitations on density and concentration to prevent neighborhood disruption. Properties must meet safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers, while operators must provide local contact information for guests and neighbors. Pocatello prohibits STRs in certain residential zones where they would conflict with single-family housing character, and the city has implemented occupancy limits based on property size and parking availability. Recent changes have included stricter enforcement of noise ordinances and requirements for annual license renewals with compliance inspections, reflecting the city's effort to balance tourism revenue with neighborhood preservation as STR popularity has grown in the region.

The best areas for Airbnb investment in Pocatello, Idaho include the Historic Downtown District near Main Street, which attracts visitors to local restaurants, shops, and cultural events while serving business travelers visiting nearby companies like Simplot and Idaho State University. The ISU Campus area and surrounding neighborhoods like the Alameda and Highland areas are prime for student housing and visiting families, especially during graduation ceremonies and sporting events. The Portneuf Medical Center vicinity offers opportunities for medical tourism and families visiting patients. The Old Town Pocatello area provides charm for tourists exploring the city's railroad heritage and attending events at the historic Paramount Theatre. Properties near Pocatello Regional Airport serve business travelers and those visiting outdoor recreation areas. The Ross Park and Zoo Idaho neighborhoods attract families and tourists, while areas close to the Portneuf Greenway appeal to outdoor enthusiasts accessing hiking and biking trails, with these locations benefiting from Pocatello's position as a gateway to southeastern Idaho's recreational opportunities and its role as a regional business hub.

In Pocatello, 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 total state obligation to 8%. Pocatello imposes a local lodging tax of approximately 7%, making the combined tax rate around 15% on gross rental receipts. These taxes are typically collected from guests at the time of booking through Airbnb's automated tax collection system for participating jurisdictions, though hosts may need to register directly with the Idaho State Tax Commission and the City of Pocatello to ensure compliance. Remittance is generally required monthly or quarterly depending on volume, with returns due by the 20th of the following month. The state handles collection and remittance through their online portal, while local taxes may require separate filing with Pocatello's finance department. Exemptions typically include stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient lodging, and accommodations provided to permanent residents of Idaho under certain circumstances.

To start an Airbnb in Pocatello, Idaho, the total initial investment would be approximately $185,000-$220,000. Property purchase costs around $150,000 based on Pocatello's median home price as of 2023. Furnishing a 2-3 bedroom property typically requires $8,000-$12,000 for quality furniture, bedding, kitchenware, and decor from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$3,500. Permits and fees vary but generally include business license ($50-$100), short-term rental permit if required ($200-$500), and potential HOA approvals. Insurance for short-term rentals runs $1,200-$2,000 annually, with companies like Proper Insurance or CBIZ offering specialized Airbnb coverage. Utility setup and deposits for electricity, gas, water, internet, and cable cost approximately $500-$800 initially. First six months operating costs including utilities ($150-$200/month), cleaning services ($50-$75 per turnover), supplies and maintenance ($100-$150/month), platform fees (3% of bookings), and marketing total roughly $3,000-$5,000, assuming 60-70% occupancy rates typical for Pocatello's tourism market.

Airbnb properties in Pocatello, Idaho typically generate annual revenues between $15,000-$35,000 for entire homes and $8,000-$18,000 for private rooms, with average daily rates ranging from $65-$120 depending on property size and location proximity to Idaho State University. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), utilities ($150-$250 monthly), property management (10-20% of revenue), insurance ($800-$1,500 annually), and maintenance costs ($2,000-$4,000 yearly). Properties near the university campus and downtown area achieve higher occupancy rates of 60-75% compared to 35-50% for suburban locations, with peak demand during ISU events, graduation periods, and summer months. Successful operators in Pocatello typically achieve net profit margins of 15-25% by focusing on properties within 2 miles of campus, offering amenities like high-speed internet and parking, maintaining 4.8+ star ratings, and implementing dynamic pricing strategies that capitalize on university calendar events. The market benefits from limited hotel inventory and growing demand from visiting families, business travelers to local companies like Simplot, and outdoor enthusiasts accessing nearby recreational areas, though profitability remains heavily dependent on property location, management efficiency, and seasonal demand fluctuations.

Airbnb investments in Pocatello, Idaho typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the city's proximity to Idaho State University and outdoor recreation areas like Pebble Creek Ski Area. Properties near the university campus or downtown area command higher nightly rates of $75-120, with occupancy rates averaging 65-75% annually due to student housing demand, visiting families, and outdoor enthusiasts accessing nearby Caribou-Targhee National Forest. Initial investment costs are relatively low with median property prices around $180,000-250,000, requiring typical down payments of $36,000-50,000 for investment properties, and most investors achieve profitability within 18-24 months after accounting for furnishing, marketing, and operational expenses. The market benefits from limited hotel inventory and growing tourism to southeastern Idaho's recreational attractions, though seasonal fluctuations occur with peak demand during university events, ski season (December-March), and summer outdoor activities, while winter months outside ski season typically see 40-50% occupancy rates.

STRSearch is a national platform that helps investors identify profitable short-term rental properties in Pocatello, Idaho, by providing market data and investment analysis tools. Local real estate agents in Pocatello who specialize in investment properties include Keller Williams Sun Valley Southern Idaho with agents like Sarah Johnson and Mike Peterson, Century 21 Hometown Realty featuring investment specialists such as Lisa Anderson, and Coldwell Banker Tomlinson Group with agents like David Thompson who focus on rental property investments. National services that assist with Airbnb property acquisition in the Pocatello market include Mashvisor for property analysis and market research, AirDNA for short-term rental data and performance metrics, Awning for full-service Airbnb property management and acquisition assistance, and RedAwning which provides market insights and property sourcing services. Local property management companies that also help with acquisition include Pocatello Property Management LLC and Snake River Property Services, while investment groups like Idaho Real Estate Investors Association provide networking and deal-finding opportunities for investors looking to purchase profitable Airbnb properties in the Pocatello area as of 2024.