How to Start an Airbnb Business in Idaho

Why Idaho Is a Top Market for Short-Term Rentals

Idaho has been the fastest-growing state in the U.S. by population percentage for several consecutive years, and that growth is reshaping its short-term rental market in real time. Boise’s population surge brought national attention, but the STR opportunity extends well beyond the capital. Sun Valley has long been a luxury ski and summer destination. Coeur d’Alene draws lake tourism from the Pacific Northwest. McCall serves as Boise’s mountain getaway. Together, these markets create a diversified STR landscape with entry points at every price level.

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Idaho’s tourism industry hit $5.2 billion in visitor spending in 2024 — a 12% increase over 2023 — with outdoor recreation driving the bulk of that growth. The state’s combination of ski resorts, hot springs, whitewater rivers, hiking trails, and pristine lakes creates year-round demand in many markets. Unlike states that depend on a single tourism driver, Idaho’s appeal spans all four seasons.

The investment fundamentals still work, though they’ve shifted. Boise’s median home price has climbed to approximately $440,000 (up from $280,000 in 2019), which has squeezed margins for property purchases. But rental arbitrage thrives in Boise — lease rates haven’t kept pace with home prices, creating a gap that savvy operators exploit. A two-bedroom Boise apartment leasing for $1,400 per month can generate $2,800 to $4,000 in monthly STR revenue. In resort towns like Sun Valley and McCall, property prices are higher but so are nightly rates — $300 to $800 per night during peak seasons.

Idaho also benefits from a migration tailwind. People relocating from California, Oregon, and Washington often rent Airbnbs while they house-hunt, sometimes for weeks or months. This relocation-driven demand supplements traditional tourism and provides mid-term booking opportunities that stabilize revenue between peak seasons.

Idaho Short-Term Rental Laws and Regulations

Idaho’s political culture leans strongly toward property rights, and that philosophy extends to STR regulation. The state has proactively protected operators’ ability to run short-term rentals, though resort communities have adopted more specific local rules.

State-Level Requirements

Idaho passed House Bill 216 in 2023, which is one of the most operator-friendly STR laws in the country. The law prevents cities and counties from imposing outright bans on short-term rentals in areas where residential use is allowed. Local governments can still regulate health and safety standards, noise, parking, and nuisance issues, but they cannot prohibit STRs entirely. This preemption gives Idaho operators a level of regulatory security that’s rare nationally.

At the state level, you need an Idaho business license (available through the Idaho Secretary of State) and must register with the Idaho Tax Commission for sales tax collection. Idaho’s 6% state sales tax applies to all short-term accommodation revenue. You’ll also need to collect any applicable local sales taxes, which vary by jurisdiction. All properties must comply with state building and fire codes.

Key City Regulations

Boise: Idaho’s capital requires a short-term rental permit, which involves registering with the city planning department and passing a safety inspection. Boise distinguishes between owner-occupied and non-owner-occupied STRs. Owner-occupied rentals (where the host lives on-site) face fewer restrictions. Non-owner-occupied STRs require a conditional use permit in most residential zones, which involves a public hearing and neighborhood notification. The process takes four to eight weeks and approval isn’t guaranteed in all neighborhoods. Boise collects a 5% local option tax on accommodations.

Sun Valley / Ketchum: The Sun Valley resort area has embraced short-term rentals as part of its tourism infrastructure. Ketchum (the town adjacent to Sun Valley Resort) requires an STR permit and annual renewal. The city levies a 4% local option tax. Properties must meet specific safety standards, and the city limits the number of occupants based on bedroom count. During peak ski season (December through March) and summer (July through August), demand far exceeds supply, which supports premium pricing even with regulatory overhead.

Coeur d’Alene: This lakeside city in northern Idaho requires a business license and STR registration. Coeur d’Alene has been more cautious about STR growth than some Idaho cities, implementing a registration system that tracks property locations and requires annual renewal. The city collects a 7% resort city tax (one of the highest local rates in Idaho) plus applicable sales tax. Despite the tax burden, Coeur d’Alene’s stunning lakefront setting and summer tourism make it highly profitable for well-positioned properties.

McCall: McCall is Boise’s primary weekend getaway destination, about two hours north of the capital on the shore of Payette Lake. The city requires STR permits and has implemented a cap on the total number of non-owner-occupied permits in the downtown core. Outside the core area, permits are more accessible. McCall collects a 3% local option tax. Demand peaks during ski season (Brundage Mountain) and summer lake season, with shoulder seasons slower.

Recent Regulatory Changes (2025-2026)

Idaho’s state-level STR preemption (HB 216) was tested in 2025 when Boise attempted to impose a moratorium on new non-owner-occupied STR permits in the North End neighborhood. The state attorney general’s office issued guidance that the moratorium likely conflicted with state law, and Boise withdrew the proposal. This reinforced the strength of Idaho’s preemption protection.

Ketchum updated its STR ordinance in 2025 to require all operators to use a noise monitoring device (such as NoiseAware or Minut) in their properties. Properties receiving noise complaints without an active monitoring system face accelerated enforcement actions. This trend toward technology-based compliance is likely to expand to other Idaho resort towns.

Tax Obligations for Idaho Airbnb Hosts

Idaho’s tax structure is moderate and manageable for STR operators, though the combination of state and local taxes adds up in resort areas.

The base is Idaho’s 6% state sales tax, which applies to all accommodations under 30 days. Most cities add a local option tax: Boise charges 5%, Sun Valley/Ketchum 4%, Coeur d’Alene 7%, and McCall 3%. Your total combined rate ranges from 9% in McCall to 13% in Coeur d’Alene. That Coeur d’Alene rate is worth noting — at 13%, it’s among the highest in the Mountain West.

Airbnb and VRBO collect and remit Idaho state sales tax automatically. Local option taxes are also increasingly collected by platforms, but verify with your specific jurisdiction — some smaller resort communities still require manual filing.

Idaho state income tax applies to net rental profits at a flat rate of 5.695% (as of 2025). Idaho allows all standard business deductions: mortgage interest, property taxes, insurance, utilities, cleaning, supplies, depreciation, and property management fees. If you’re operating via rental arbitrage, lease payments are deductible.

A significant tax consideration for Idaho operators: the state offers a Property Tax Reduction Program for owner-occupied residences, but properties used primarily as short-term rentals typically don’t qualify. Your property tax rate will be assessed at the non-homestead rate, which is notably higher. In Blaine County (Sun Valley area), property taxes on non-homestead properties can run $4,000 to $12,000+ annually depending on property value. Factor this into your pro forma before purchasing.

Best Cities for Airbnb in Idaho

Idaho’s STR markets range from urban corporate-and-tourism demand in Boise to luxury resort markets in Sun Valley and lakefront tourism in Coeur d’Alene. Each market requires a different strategy and investment level.

Boise

Boise is Idaho’s largest city and has transformed from a quiet state capital into one of America’s fastest-growing metro areas. The city draws a diverse guest mix: corporate travelers (Micron Technology, Albertsons, HP, and a growing tech sector), relocators scouting the area, outdoor enthusiasts using Boise as a base for the surrounding mountains, and event attendees (Treefort Music Fest, Boise State football and basketball).

ADRs in Boise range from $120 to $220 for standard properties, with high-end homes and larger group accommodations hitting $250 to $400. Annual occupancy averages 62% to 72%, making Boise one of the most consistent STR markets in the Mountain West. Gross annual revenue for a well-managed two- to three-bedroom property: $32,000 to $55,000.

The best performing neighborhoods are the North End (walkable, charming character), Downtown/Linen District (restaurants, breweries, entertainment), and the Bench (affordable, close to the airport). Boise’s rental arbitrage market is particularly strong — the gap between lease rates and STR revenue creates margins that make the numbers work even without property ownership. A detailed look at how to profit from Airbnb without owning property reveals why Boise is a top arbitrage market.

Sun Valley / Ketchum

Sun Valley is Idaho’s premier luxury resort destination, attracting affluent skiers in winter and outdoor enthusiasts (hiking, fly fishing, mountain biking) in summer. The area has a long history as a celebrity and executive retreat, which shapes guest expectations and pricing.

Winter peak ADRs (December through March) range from $300 to $800, with ski-in/ski-out or premium mountain-view properties exceeding $1,000 per night during holiday weeks. Summer rates are lower but still strong at $200 to $500. Annual occupancy averages 55% to 68%, with two distinct peak seasons. Gross annual revenue: $50,000 to $120,000+ for well-positioned properties.

Sun Valley demands quality. Guests are paying premium rates and expect premium experiences — hot tubs, fireplaces, high-end furnishings, ski storage, and impeccable cleanliness. This isn’t a market for budget furnishings or bare-minimum amenities. Your investment in property quality directly correlates with revenue performance. The investment threshold is high (properties typically start at $600,000+), but so is the return for operators who execute well.

Coeur d’Alene

Coeur d’Alene sits on the shore of one of the most beautiful lakes in the western United States, drawing summer tourists from across the Pacific Northwest. The city also attracts winter visitors for Schweitzer and Silver Mountain ski resorts, though winter demand is notably lower than summer.

Summer ADRs (June through September) range from $180 to $400 for properties with lake views or lake access. Lakefront properties command $350 to $700+ per night in peak summer. Winter rates drop to $100 to $200. Annual occupancy: 50% to 62%. Gross revenue: $35,000 to $70,000, with summer months accounting for 60% to 70% of annual revenue.

Coeur d’Alene’s premium properties are lakefront or lake-view. Properties with a private dock or beach access are in extremely limited supply and generate exceptional returns. The city’s walkable downtown — the Coeur d’Alene Resort, Sherman Avenue shops, and lakefront path — makes downtown properties attractive to visitors who want a town-and-lake experience. Northern Idaho’s growing population (spillover from Spokane, Washington, and remote workers) also generates relocation-related mid-term rental demand.

McCall

McCall is a small mountain town on Payette Lake that serves as Boise’s weekend escape. It’s a two-hour drive from the capital, making it accessible for Friday-through-Sunday getaways. Brundage Mountain provides winter skiing, while the lake and surrounding national forest deliver summer recreation.

ADRs run $150 to $350 for standard properties, with lakefront cabins and larger group homes hitting $400 to $600+ during peak periods. Annual occupancy: 48% to 60%. Gross revenue: $28,000 to $55,000. McCall’s Winter Carnival (late January/early February) creates a significant demand spike — properties book months in advance, and rates surge 50% to 100% above normal winter pricing.

McCall rewards operators who create authentic mountain experiences. Cabins with wood-burning fireplaces, hot tubs with forest views, and outdoor recreation gear (sleds, kayaks, fishing poles) meaningfully outperform generic vacation rentals. This market is about selling a getaway feeling, not just a bed.

How Much Do Airbnbs Make in Idaho?

Idaho’s STR revenue varies substantially by market and property positioning. Here’s the comparative breakdown.

The gap between average operators and top performers in Idaho is wider than in most states. In Sun Valley, the difference between a $50,000 year and a $120,000 year comes down to property positioning, listing quality, dynamic pricing execution, and guest experience design. The properties that earn top-tier revenue invest heavily in professional photography, luxury furnishings, and five-star hospitality — and they price accordingly.

How to Start Your Idaho Airbnb Business

Idaho’s market rewards preparation and precision. The state’s growth has attracted more competition, which means the days of listing a basic property and printing money are over. Here’s how to launch with an edge.

Step 1: Match Your Budget to the Right Market. Sun Valley requires $600,000+ for a competitive property purchase. Coeur d’Alene and McCall sit in the $350,000 to $600,000 range. Boise offers the widest range, from $250,000 starter properties to $500,000+ premium homes. For rental arbitrage, Boise is your best entry point — lease rates create workable margins. Evaluate your capital and risk tolerance honestly before choosing your market.

Step 2: Understand Seasonal Dynamics. Boise is relatively consistent year-round. Sun Valley has dual peaks (winter ski, summer outdoor). Coeur d’Alene is summer-dominant. McCall has winter and summer peaks with quiet shoulder seasons. Your pricing strategy, minimum stay requirements, and marketing approach need to align with your market’s seasonal rhythm. Study 12 months of comparable listing data before committing.

Step 3: Navigate the Permit Process. Boise’s conditional use permit for non-owner-occupied STRs takes four to eight weeks and involves a public hearing. Don’t assume approval — research your target neighborhood’s history with STR permits. Sun Valley and Ketchum have more streamlined permitting. Register with the Idaho Tax Commission for sales tax collection. Set up your LLC and get your business license through the Secretary of State.

Step 4: Design for the Idaho Guest. Idaho visitors are overwhelmingly outdoor-oriented. They want gear storage, information about local trails and recreation, and a comfortable base camp for active days. In Sun Valley, that means ski storage, boot dryers, and hot tub access. In Coeur d’Alene, it means lake recreation equipment and water access guidance. In Boise, it means trail maps, restaurant recommendations, and a comfortable space for mixing outdoor adventure with remote work. Tailor every detail to your guest’s reason for visiting.

Step 5: Invest in Quality and Photography. Idaho’s STR market has matured beyond the point where any listing generates bookings. You’re competing against experienced operators with beautiful properties and professional photography. Professional photos aren’t optional — they’re the single highest-ROI investment you can make in your listing. Follow that with quality furnishings, thoughtful touches (local coffee, quality toiletries, a curated guidebook), and relentless attention to cleanliness.

Step 6: Build Local Relationships. Idaho’s resort communities are tight-knit. Your cleaning crew, maintenance person, and co-host partner (if managing remotely) need to be people who understand the community and can represent your property well. In small towns like McCall and Ketchum, your reputation as an operator matters — neighbors talk, and community goodwill translates into smoother permitting, fewer complaints, and better referrals.

Step 7: Implement Dynamic Pricing from Day One. Idaho’s seasonal swings make dynamic pricing essential. A flat nightly rate will leave money on the table during peak weeks (Christmas/New Year’s in Sun Valley, Fourth of July in Coeur d’Alene, McCall Winter Carnival) and overcharge during slow periods, killing occupancy. Tools like PriceLabs, Beyond, or Wheelhouse integrate with Airbnb and VRBO to automate rate adjustments based on demand patterns, local events, and competitive positioning.

Idaho STR Insurance and Liability

Idaho’s outdoor-focused tourism creates specific liability considerations that go beyond standard STR insurance. Guests engaging in skiing, hiking, mountain biking, boating, and other active recreation increase the risk profile of your property.

A dedicated STR insurance policy in Idaho typically costs $1,200 to $3,500 annually for standard properties. Resort-area properties (Sun Valley, McCall, Coeur d’Alene) trend toward the higher end due to property values and activity-related liability exposure. Proper Insurance, CBIZ, and SafelyStay are established providers in Idaho’s market.

Wildfire coverage is a critical consideration that’s grown in importance. Idaho experienced significant wildfire activity in recent years, and properties in the wildland-urban interface (common in McCall, Sun Valley, and Coeur d’Alene areas) face elevated fire risk. Verify that your policy covers wildfire damage without excessive exclusions, and check whether your insurance premium reflects the specific fire risk zone of your property. Some insurers charge significantly more for properties in high-risk wildfire zones.

If your property includes or is near water access (lake, river, hot tub, pool), ensure your liability coverage accounts for drowning and water recreation risks. An umbrella policy ($1 million for $200 to $400 annually) is strongly recommended for any Idaho property that promotes outdoor activities or water access.

Airbnb’s Host Protection Insurance covers certain liability claims but excludes property damage, natural disasters, and many outdoor activity-related incidents. Treat it as supplementary, not primary. Our detailed guide on Airbnb insurance coverage explains exactly where the gaps are.

Why 10XBNB Gives You the Edge in Idaho

Idaho’s STR market has become genuinely competitive. The state’s population growth attracted a wave of new operators over the past three years, and the ones succeeding are those who operate with professional-grade systems rather than a casual “list it and see what happens” approach.

10XBNB provides the frameworks for competing at the highest level in markets exactly like Idaho’s. Whether you’re navigating Boise’s permitting process, pricing a Sun Valley ski property through its dual-season cycle, or building a rental arbitrage portfolio in the Boise metro, the system gives you tested strategies that compress your learning curve.

The 10XBNB community is particularly valuable for Idaho operators. Members share real-time market intelligence — which Boise neighborhoods are getting permit approvals, what ADRs are actually booking (not just listed) in Sun Valley, which property management tools work best for remote management of McCall cabins. That peer network means you don’t have to learn expensive lessons on your own. Explore how Idaho ranks among top STR states in our best states for Airbnb breakdown.

Frequently Asked Questions