Is Rexburg, Idaho Good for Airbnb Investment?

Potentially. Rexburg, Idaho combines visitor demand with long-term real estate upside.

• Presents a potentially strong opportunity, largely influenced by its unique market dynamics.
• Current market conditions in Rexburg are stable, supported by a consistent demand for housing due to Brigham Young University-Idaho and a steady influx of visitors for university-related events and local attractions.
• Tourism trends, while not on the scale of major vacation destinations, are reliable, primarily driven by visiting families, students, and attendees of various university functions.
• Property values in Rexburg have seen consistent growth, offering a reasonable entry point for investors compared to larger metropolitan areas.
• The investment potential for Airbnb in Rexburg is favorable, especially for properties catering to short-term university visitors.

$800–$2,200 per month based on location, season, and property quality.

• Based on available market data and regional analysis, Airbnb hosts in Rexburg, Idaho typically earn between $800-$2,200 per month.
• Properties generally see peak earnings during university semesters (September-December and January-April) when student housing demand is highest.
• Single-bedroom units average $65-85 per night with 60-70% occupancy rates during peak periods, while larger properties (3+ bedrooms) can command $120-180 nightly but face more variable demand.
• Key factors affecting earnings include proximity to BYU-Idaho campus (properties within 2 miles earning 25-35% more), seasonal university events, winter weather accessibility.

Potentially strong, with a typical annual ROI of 12–18%.

• Typically generate ROI between 12-18% annually, significantly outperforming traditional long-term rentals which average 6-9% in the area, primarily due to the strong demand from Brigham Young University-Idaho students.
• The average payback period for Airbnb properties in Rexburg ranges from 5.5 to 8 years, compared to 11-15 years for conventional rental properties.
• Properties within a 2-mile radius of BYU-Idaho campus command premium rates and maintain higher occupancy throughout the academic year, while those further out rely more heavily on summer tourism and university events.

Rexburg, Idaho averages 45–55% annual occupancy, with seasonal variation.

• Airbnb occupancy rates in Rexburg, Idaho average approximately 45-55% annually, with significant seasonal fluctuations driven by Brigham Young University-Idaho's academic calendar and summer tourism patterns.
• Peak occupancy occurs during BYU-I graduation weekends in April and December (75-85%), summer months of June through August (65-75%), and major university events.
• The shoulder seasons of March, May, September, and October typically see moderate occupancy around 50-60%.
• Compared to Idaho's statewide Airbnb average of approximately 50-60% and the national average of 48-52%.

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

• The downtown Rexburg area near Main Street offers the highest rental potential due to its walkability to restaurants, shops, and local events.
• The neighborhoods surrounding Brigham Young University-Idaho campus, particularly areas within a 10-minute walk like the streets near Viking Drive and 2nd South, provide consistent demand from visiting parents.
• The Porter Park vicinity combines family-friendly appeal with proximity to recreational facilities, making it ideal for longer-term stays and family visitors who value quiet residential settings with easy park access.
• Areas near the Rexburg Rapids waterpark and temple grounds attract religious tourists and families, offering strong seasonal demand and higher weekend rates.
• The newer residential developments on the south side of town, particularly near 7th South, provide modern amenities that justify higher nightly rates while remaining accessible to both the university and downtown attractions.
• The neighborhoods around the Madison Memorial Hospital area serve medical tourism and visiting family members, offering steady mid-week occupancy with less seasonal variation.
• Finally, properties near the Legacy Flight Museum and Teton River access points appeal to outdoor enthusiasts and history buffs.

Yes, but only where zoning permits short-term rentals and every required license is current.

• Rexburg, Idaho requires short-term rental operators to obtain a business license and conditional use permit through the city's planning and zoning department.
• The city mandates owner-occupancy for properties in residential zones, meaning the owner must live on-site during rental periods.
• Short-term rentals are prohibited in single-family residential zones (R-1) but may be permitted in higher density residential zones (R-2, R-3) and commercial areas with proper permitting.
• The registration process involves submitting an application with property details, floor plans, parking arrangements.
• Properties must meet safety standards including smoke detectors, carbon monoxide detectors, and emergency exit signage, while maintaining adequate off-street parking for all guests.
• Recent changes implemented around 2022-2023 have tightened enforcement of noise ordinances, established stricter penalties for violations, and required 24/7 local contact information for emergency situations.

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

• Short-term rentals in Rexburg, Idaho are subject to several fees and taxes including Idaho state sales tax of 6% on rental income.
• The city of Rexburg requires a business license costing approximately $25-50 annually, and operators must register with the Idaho State Tax Commission at no cost but must file regular returns.
• There is no specific lodging tax imposed by Rexburg itself, though operators may need to collect and remit the standard sales tax as lodging tax.
• Property owners must also ensure compliance with zoning requirements which may involve permit fees ranging from $100-300 depending on the property type and location.
• Additional costs may include fire safety inspections at $75-150 per inspection and potential homeowner association fees if applicable.
• Some properties may require conditional use permits costing $200-500 depending on zoning classification, and all operators must maintain proper insurance coverage which, while not a tax.