Is Twin Falls, Idaho Good for Airbnb Investment?

To start an Airbnb in Twin Falls, Idaho, begin by researching local zoning laws and regulations through the Twin Falls City Planning Department, as the city requires short-term rental permits and compliance with residential zoning restrictions that typically limit rentals to owner-occupied properties or specific zones. Contact Twin Falls City Hall at 735-7268 to obtain the necessary business license and short-term rental permit, which costs approximately $100-200 annually and requires proof of insurance, safety inspections, and neighbor notification. Find a suitable property in permitted zones such as downtown Twin Falls or residential areas that allow short-term rentals, considering proximity to attractions like Shoshone Falls and the Snake River Canyon, with average property prices ranging from $200,000-400,000. Furnish the property with quality basics including comfortable beds, linens, kitchen essentials, WiFi, and local guidebooks, budgeting $5,000-15,000 for initial setup depending on property size. Create your Airbnb listing with professional photos highlighting Twin Falls' outdoor recreation opportunities, setting competitive rates around $80-150 per night based on local market analysis. Implement management systems including automated messaging, professional cleaning services costing $50-100 per turnover, regular maintenance schedules, and 24/7 guest communication, while maintaining compliance with Idaho state tax requirements including 6% sales tax collection and monthly remittance to the Idaho State Tax Commission.

To identify profitable short-term rental properties in Twin Falls, Idaho, focus on locations within 10-15 minutes of Shoshone Falls, the Snake River Canyon, and downtown Twin Falls, as these areas attract tourists year-round. Target properties with 2-4 bedrooms, outdoor spaces like patios or decks with canyon views, hot tubs, and modern amenities since visitors often seek scenic experiences and family accommodations. Analyze pricing by researching comparable Airbnb and VRBO listings in Twin Falls, noting that properties near attractions typically command $120-200 per night while standard residential areas average $80-120, with peak seasons during summer months and fall foliage periods. Research competition using AirDNA and Mashvisor to identify market saturation, with particular attention to properties near Centennial Waterfront Park and the College of Southern Idaho area which see consistent demand. Utilize tools like Rabbu and STR Helper for Twin Falls-specific market analysis, monitor local Facebook groups and Twin Falls Chamber of Commerce resources for tourism trends, and consider properties near the Twin Falls Regional Airport for business travelers, while ensuring compliance with city zoning regulations that may restrict STRs in certain residential areas.

To obtain an Airbnb/STR permit in Twin Falls, Idaho, you must first contact the Twin Falls City Planning and Zoning Department at City Hall located at 305 3rd Avenue East to determine if short-term rentals are permitted in your specific zoning district, as the city implemented STR regulations around 2019-2020. Submit a completed short-term rental permit application along with required documents including proof of property ownership or lease agreement, floor plan of the property, proof of liability insurance (typically $1 million minimum), contact information for a local property manager if you're not local, parking plan showing adequate off-street parking, and waste management plan. Pay the application fee of approximately $200-300 plus annual renewal fees of around $150-200. The city requires STRs to maintain occupancy limits based on bedrooms (typically 2 guests per bedroom plus 2 additional), provide smoke and carbon monoxide detectors in all sleeping areas, maintain quiet hours typically from 10 PM to 7 AM, display the permit number in all advertising, and ensure a responsible party is available 24/7 for issues. The approval process typically takes 4-6 weeks after submitting a complete application, and permits must be renewed annually. Twin Falls also requires STRs to collect and remit local lodging taxes of approximately 7-8% and comply with all building and fire codes, with potential inspections required before permit issuance.

Short-term rentals (STRs) are legal in Twin Falls, Idaho, but operate under specific municipal regulations that were updated around 2021-2022. The city requires STR operators to obtain a business license and conditional use permit, with properties subject to zoning restrictions that generally allow STRs in residential areas but with limitations on density and concentration. Key requirements include occupancy limits based on bedroom count, parking provisions, noise restrictions, and 24/7 contact information for a responsible party. The city prohibits STRs in certain residential zones where they would conflict with neighborhood character, and properties must meet safety and building code standards. Recent changes have included stricter enforcement mechanisms and clearer application processes, with the city conducting periodic reviews of STR impacts on housing availability and neighborhood compatibility, though no outright bans have been implemented as of 2023-2024.

The best Airbnb investment areas in Twin Falls, Idaho include the downtown historic district near Shoshone Falls, which attracts tourists year-round to see the "Niagara of the West" and offers proximity to restaurants and local attractions. The Canyon Rim area provides stunning Snake River Canyon views and appeals to outdoor enthusiasts visiting Perrine Bridge for BASE jumping and scenic photography. The Rock Creek area near the golf courses attracts business travelers and recreational visitors, while properties near the College of Southern Idaho campus benefit from visiting families, prospective students, and academic events. The Pole Line Road corridor offers good access to both downtown attractions and outdoor recreation areas, making it attractive for diverse visitor types. Areas near Twin Falls City Park and the Snake River Canyon rim trail system are particularly appealing to families and adventure tourists visiting attractions like Shoshone Falls Park, especially during peak flow seasons from spring through early summer when Evel Knievel's famous jump site and the dramatic waterfalls draw significant tourism traffic.

In Twin Falls, Idaho, Airbnb hosts are subject to Idaho state sales tax at 6% and local option tax at 2% for a combined 8% tax rate on lodging rentals. The city of Twin Falls imposes an additional lodging tax of 5% on short-term rentals under 30 days, bringing the total tax burden to approximately 13%. These taxes are collected either directly by Airbnb through their automatic tax collection service for participating jurisdictions or must be collected by hosts and remitted monthly to the Idaho State Tax Commission using Form ST-101 by the 20th of the following month. Local lodging taxes are typically remitted to Twin Falls city offices quarterly. Properties rented for 30 days or longer are generally exempt from lodging taxes but may still be subject to sales tax. Hosts must register for an Idaho sales tax permit before collecting taxes, and failure to comply can result in penalties and interest charges. The state has been increasingly active in enforcing tax compliance for short-term rental operators since 2018.

The total cost to start an Airbnb in Twin Falls, Idaho is approximately $285,000-$320,000. Property purchase represents the largest expense at $250,000-$280,000 based on median home prices in the area. Furnishing costs range from $15,000-$25,000 depending on property size and quality level, covering beds, linens, kitchen essentials, living room furniture, and decor. Initial setup costs including professional photography, listing creation, and basic marketing total around $2,000-$3,000. Permits and fees vary but typically include business license ($100-$200), short-term rental permit ($200-$500), and potential HOA approval fees. Insurance specifically for short-term rentals costs approximately $1,500-$2,500 annually. Utility setup and deposits for electricity, gas, water, internet, and cable run about $500-$800 initially. First six months of operating costs including utilities ($200-$300/month), cleaning supplies and services ($150-$250/month), maintenance reserves ($100-$200/month), platform fees (3% of bookings), and miscellaneous expenses total approximately $4,000-$6,000, assuming moderate occupancy rates during the initial period.

Airbnb properties in Twin Falls, Idaho typically generate annual revenues of $15,000-$35,000 for well-positioned properties, with average daily rates ranging from $75-$150 depending on location and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), utilities ($150-$300 monthly), property management (10-20% of revenue), insurance ($1,200-$2,000 annually), and maintenance costs. Properties near Shoshone Falls or downtown Twin Falls command premium rates, with some hosts reporting 65-75% occupancy rates during peak summer months when outdoor recreation drives demand. Net profit margins typically range from 15-35% for hands-on owners, though properties requiring significant renovations or those in less desirable locations may struggle to achieve profitability. Success factors include proximity to attractions like the Perrine Bridge, Snake River Canyon, or Magic Valley attractions, professional photography, competitive pricing strategies, and maintaining high cleanliness standards. A typical successful Twin Falls Airbnb might gross $28,000 annually with $16,800 in expenses, yielding approximately $11,200 in net profit, representing a 40% profit margin, though performance varies significantly based on property condition, location, and host management effectiveness.

Airbnb investments in Twin Falls, Idaho typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the city's proximity to Shoshone Falls and outdoor recreation attractions that maintain steady occupancy rates of 65-75% year-round. Properties in downtown Twin Falls and near the Snake River Canyon average $85-120 per night with acquisition costs between $180,000-280,000 for suitable investment properties, while operational expenses including cleaning, utilities, and platform fees typically consume 35-45% of gross rental income. Most investors achieve profitability within 8-14 months, with vacation rental management companies like Vacasa and RedAwning reporting strong performance metrics for Twin Falls properties due to consistent tourist traffic from Perrine Bridge BASE jumping, Twin Falls County Fair visitors, and business travelers to local agricultural and food processing companies like Simplot and Glanbia.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors, including in Twin Falls, Idaho. Local real estate agents who focus on investment properties in the Twin Falls area include Keller Williams Sun Valley Southern Idaho, Coldwell Banker Tomlinson Group, and Century 21 RiverStone, with agents like Sarah Johnson and Mike Peterson who have experience with vacation rental investments. National services that help investors find Airbnb properties include AirDNA for market analysis, Mashvisor for property analytics, BiggerPockets for networking and deal sourcing, and Roofstock which occasionally features short-term rental opportunities. Local property management companies that can assist with Airbnb operations include Magic Valley Property Management and Twin Falls Rental Solutions. Additional national platforms like Awning, RedAwning, and AvantStay provide market insights and investment guidance for short-term rental properties in secondary markets like Twin Falls, while local mortgage brokers such as First Federal Savings Bank and D.L. Evans Bank can provide financing options specifically tailored for investment properties in the Twin Falls market.