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By Robin Simon, President, Harpoon Capital · About · LinkedIn · Author, The Book on DSCR Loans (Available on Amazon)
Idaho pairs mid-priced Mountain West homes with one of the most investor-friendly short-term rental laws in the country, and its six markets below run from Boise and Caldwell in the Treasure Valley to Idaho Falls, Twin Falls, the lake city of Coeur d'Alene and Island Park, the busy rental hub just outside Yellowstone. Typical home values run from about $370,000 in Twin Falls to about $606,000 in Coeur d'Alene (Zillow, September 2026), and BiggerPockets puts rent-to-price ratios between 0.29% and 0.33% across the four metros it covers. Investors buying here typically finance with Idaho DSCR loans, which are qualified primarily based on the property rather than the borrower's personal income, although at Idaho's price-to-rent levels the “DSCR Ratio” generally leans on a solid down payment or, in the resort markets, nightly revenue.
This breakdown uses market data collected as of October 2026, the most current snapshot available heading into next year's buying season. If you're evaluating a purchase in the final months of 2026, keep in mind that your first full year of rental income, appreciation, or short-term rental revenue lands in 2027 regardless of when you close. A deal you underwrite today is already a 2027 investing decision, just one made with the freshest data available right now.
The biggest change for Idaho investors this year came from the Legislature. House Bill 583, signed March 16, 2026 and in effect since July 1, 2026, rewrote the state's short-term rental statute so that no Idaho city or county may require a license, fee, permit or registration to operate a short-term rental, and local governments can no longer impose owner-occupancy rules, caps on the number of rentals, limits on rental days or conditional use permits in residential zones (Idaho Code 67-6539, HB 583). Cities can still require basic safety items such as smoke alarms, fire extinguishers and carbon monoxide detectors, and general noise, parking and nuisance rules still apply. However, the law is silent on private HOA covenants, so existing CC&Rs can still restrict nightly rentals, although under Idaho Code 55-3211 an HOA generally cannot add new rental limits that bind an owner who did not agree to them in writing.
On the tax side, stays of 30 days or less carry Idaho's 6% sales tax plus a 2% travel and convention tax (Idaho State Tax Commission), and some areas add their own tax on top, e.g. an auditorium district tax in parts of the Boise and Idaho Falls areas and local option taxes in resort cities such as McCall, Ketchum and Sandpoint. Booking platforms such as Airbnb and Vrbo collect these taxes, while owners who book guests directly must register and collect them themselves.
Below, we break down six Idaho markets worth watching, using current data from Zillow, Redfin, BiggerPockets, and AirDNA.
Note: Home price appreciation and rent-growth figures below come from Redfin's median sale price data, Zillow's Home Value Index and BiggerPockets' Market Finder (last updated June 2026), which use different methodologies and can vary from one another, so treat them as directional. BiggerPockets covers Caldwell within its Boise City metro page, so Zillow's figures are used for Caldwell, and BiggerPockets has no Island Park page. Redfin's Island Park figures rest on too few sales to be useful, so Zillow's figure is the headline there. AirDNA treats Caldwell as a submarket of its Boise market, Idaho Falls and Island Park as submarkets of its Idaho Falls/Rexburg market, and Twin Falls as a submarket of its “Idaho Area” market, and its Boise market reaches well beyond the city into Nampa and Meridian.
Capital city, chip-plant catalyst
Boise is Idaho's capital and largest city, set along the Boise River at the foot of the foothills, with Boise State University, St. Luke's and St. Alphonsus hospital systems and Micron Technology's headquarters. It is the deepest rental market in the state and the anchor of a Treasure Valley metro that also takes in Meridian, Nampa and Caldwell.
The case for Boise rests on jobs, led by state government, the university, the hospital systems and Micron, whose multibillion-dollar memory chip plant expansion in southeast Boise is expected to support about 17,000 Idaho jobs, including about 3,500 direct Micron employees, by the company's estimate (KIVI). Census estimates show the city itself barely grew from 2020 to 2025 while its suburbs boomed, so the new rental demand is spread across the valley rather than concentrated downtown (U.S. Census Bureau). First Street data on Redfin rates the flood risk as “minor” (3% of properties). On the STR side, Boise falls under the new state law, so the city cannot require an STR license or cap the number of rentals, although stays in much of the area carry the Greater Boise Auditorium District tax on top of the state's 8% (Idaho State Tax Commission).
AirDNA's Boise market posts a score of 76/100, with Rental Demand (93) leading, Seasonality (76) and Revenue Growth (67) next, and Investability (63) and Regulation (61) the “soft spots.” Annual revenue per listing averages $35,477 (up 5.2% year-over-year), with an average daily rate of $156.29 (up 2.2%) and occupancy of 69% (up 4.0%), the highest occupancy on this list. Total active listings sit at 2,360, down 1.1%, and the North End (84), Nampa (83) and Meridian (79) are its top-rated submarkets. Note that this market reaches well beyond the city into the rest of the Treasure Valley.
Financing note: Harpoon Capital offers industry leading DSCR Loans for properties in Boise and all throughout the market area. Check out our full DSCR Loans Program here, or if you want a quote on what terms look like today, fill out this two-minute form!
Sources: Zillow Home Value Index↗ · Redfin Housing Market↗ · BiggerPockets Market Finder↗ · KIVI on Micron↗ · AirDNA Market Data↗
Investor Takeaway: Boise offers the deepest rental market in Idaho, a growing job base and homes that sell in about two weeks. Investors should generally underwrite for the long-term rent with a solid down payment, given rent-to-price ratios near 0.32% to 0.38%, and treat nightly rentals as a year-round, high-occupancy play rather than a resort one.
Canyon County cash flow
Caldwell sits on the western edge of the Treasure Valley in Canyon County, about 25 miles west of downtown Boise along I-84, home to the College of Idaho and the Sunnyslope wine region along the Snake River. It is the value play of the Boise metro, with lower prices than Boise or Meridian and the best Zillow rent-to-value ratio in the article.
The case for Caldwell rests on growth, with Census estimates showing the city's population up about 27% from 2020 to 2025, to roughly 76,600, as families priced out of Ada County move west for newer, cheaper homes (U.S. Census Bureau). The College of Idaho is small, so this is a family rental market rather than a student-housing one, and with more than four in ten listings cutting price, buyers typically have room to negotiate. First Street data on Redfin rates the flood risk as “moderate” (15% of properties). On the STR side, Caldwell follows the same state law as the rest of Idaho, so there is no city STR license or cap, and the city is not on the Tax Commission's list of cities with a local option tax.
The Caldwell submarket of AirDNA's Boise market posts a score of 76/100, with Rental Demand (96) the highest subscore on this list, Seasonality (79) and Investability (64) next, and Revenue Growth (58) and Regulation (56) the “soft spots.” Annual revenue per listing averages $30,983 (up 3.9% year-over-year), with an average daily rate of $148.34 (up 2.1%) and occupancy of 65% (up 4.4%). Total active listings sit at 247, up 5.1%, a small but growing market.
Financing note: Harpoon Capital offers industry leading DSCR Loans for properties in Caldwell and all throughout the market area. Check out our full DSCR Loans Program here, or if you want a quote on what terms look like today, fill out this two-minute form!
Sources: Zillow Home Value Index↗ · Redfin Housing Market↗ · U.S. Census Bureau↗ · AirDNA Market Data↗
Investor Takeaway: Caldwell offers the best rent-to-value ratio in Idaho, fast population growth and Boise-metro jobs at a discount. Investors should generally buy newer single-family homes for the long-term rent and use the slower sales pace, compared with Boise, to negotiate.
Lab-powered leases
Idaho Falls sits on the Snake River in eastern Idaho, known for its riverside greenbelt and the falls along the Snake River downtown, and it is the home base for Idaho National Laboratory, the federal nuclear research lab out in the desert to the west. It is the steady, government-backed rental market in the article, and a gateway city for Yellowstone and Grand Teton travelers.
The case for Idaho Falls rests on Idaho National Laboratory, which employed about 6,400 people as of early 2025 (Post Register) and anchors a base of engineers, contractors and federal workers who rent while they settle in, and on Census estimates showing the city's population up about 9% from 2020 to 2025. However, the three sources tell three different stories on price growth, from Redfin's flat year to BiggerPockets' 14.49%, so investors should lean on recent comparable sales for a specific neighborhood. First Street data on Redfin rates the flood risk as “minor” (2% of properties). On the STR side, the state law applies here too, so there is no city STR license or cap, although stays in the Idaho Falls Auditorium District carry its tax on top of the state's 8% (Idaho State Tax Commission).
The Idaho Falls submarket of AirDNA's Idaho Falls/Rexburg market posts a score of 66/100, with Rental Demand (84) and Revenue Growth (84) leading, and Investability, Seasonality and Regulation (57 each) the “soft spots.” Annual revenue per listing averages $28,915 (up 10.4% year-over-year), the fastest revenue growth on this list, with an average daily rate of $151.46 (up 7.6%) and occupancy of 63% (up 2.2%). Total active listings sit at 572, up 6.1%, and the broader Idaho Falls/Rexburg market scores 71, with Island Park, covered below, as its top-rated submarket.
Financing note: Harpoon Capital offers industry leading DSCR Loans for properties in Idaho Falls and all throughout the market area. Check out our full DSCR Loans Program here, or if you want a quote on what terms look like today, fill out this two-minute form!
Sources: Zillow Home Value Index↗ · Redfin Housing Market↗ · BiggerPockets Market Finder↗ · Post Register on INL↗ · AirDNA Market Data↗
Investor Takeaway: Idaho Falls offers a lab-anchored tenant base, moderate prices and fast-growing STR revenue for Yellowstone and Teton travelers. Investors should generally buy for the long-term rent near the lab's commuter routes, check recent comps given the mixed price data, and consider nightly rentals as a summer-weighted bonus.
Thinking About One of These Markets?
Get a same-day DSCR Loan quote for a specific deal, or browse the full Harpoon Capital DSCR Loan Program to see rates, LTV, and qualification details before you keep reading.
Falls, food plants and fewer bidders
Twin Falls is the hub of south-central Idaho's “Magic Valley,” on the rim of the Snake River Canyon, home to Shoshone Falls, the Perrine Bridge and the canyon Evel Knievel tried, and failed, to jump in 1974, which makes buying a rental here look downright conservative. It has the lowest Zillow and BiggerPockets prices in the article, the top AirDNA score and the least competition among buyers.
The case for Twin Falls rests on food processing and agriculture, led by Chobani's yogurt plant, which the company has called the largest yogurt manufacturing facility in the world (Food Manufacturing), and on a regional hospital and college that draw tenants from across the Magic Valley. A Compete Score of 24 means buyers here can typically negotiate rather than bid against a crowd. On the STR side, there is no city STR license or cap under state law, and Twin Falls is not on the Tax Commission's list of cities with a local option tax.
The Twin Falls submarket of AirDNA's “Idaho Area” market posts a score of 90/100, the highest on this list, with Rental Demand (88) and Revenue Growth (83) leading, Seasonality (73) and Investability (69) next, and Regulation (68) the “soft spot.” Annual revenue per listing averages $30,173 (up 7.8% year-over-year), with an average daily rate of $143.09 (up 3.5%) and occupancy of 65% (up 6.0%), the fastest occupancy growth in the article. Total active listings sit at 368, down 1.1%, so supply is holding steady while bookings climb.
Financing note: Harpoon Capital offers industry leading DSCR Loans for properties in Twin Falls and all throughout the market area. Check out our full DSCR Loans Program here, or if you want a quote on what terms look like today, fill out this two-minute form!
Sources: Zillow Home Value Index↗ · Redfin Housing Market↗ · BiggerPockets Market Finder↗ · Food Manufacturing on Chobani↗ · AirDNA Market Data↗
Investor Takeaway: Twin Falls offers the lowest Zillow and BiggerPockets prices, the best BiggerPockets rent-to-price ratio and the top AirDNA score in Idaho, in a market where buyers hold the leverage. Investors should generally buy for the long-term rent, negotiate on price, and look at nightly rentals near the canyon as a year-round option rather than a seasonal one.
Lake-town living at a premium price
Coeur d'Alene sits on the north shore of Lake Coeur d'Alene in the Idaho Panhandle, about 30 miles east of Spokane, with a resort and floating boardwalk downtown, a busy summer lake season and Silver Mountain skiing about 30 minutes away. It is the priciest market in the article and the one where long-term rents are rising fastest.
The case for Coeur d'Alene rests on two kinds of demand at once, with Spokane-area commuters and new residents renting year-round and summer visitors filling lakefront and downtown homes from Memorial Day through Labor Day. However, at a rent-to-price ratio near 0.29% to 0.31%, a long-term rental here generally needs a larger down payment to cover its payment. On the STR side, Coeur d'Alene follows the state law, so there is no city STR license or cap, and the city is not on the Tax Commission's list of cities with a local option tax, so stays carry only the state's 8%.
The Coeur d'Alene submarket of AirDNA's Coeur d'Alene market posts a score of 45/100, the lowest on this list, with Revenue Growth (68) and Rental Demand (67) leading, Investability (58) and Regulation (57) next, and Seasonality (46) the “soft spot.” Annual revenue per listing averages $45,594 (up 2.5% year-over-year), with an average daily rate of $302.42 (up 6.5%) and occupancy of 57% (down 2.8%). Total active listings sit at 930, up 1.8%, within a broader market of 1,440 listings where Post Falls (64) is the top-rated submarket.
Financing note: Coeur d'Alene vacation rentals often qualify on TTM actuals or STR revenue projections given the summer-weighted revenue, and Harpoon Capital offers industry leading DSCR Loans for properties throughout the market area. Check out our full DSCR Loans Program here, or if you want a quote on what terms look like today, fill out this two-minute form!
Sources: Zillow Home Value Index↗ · Redfin Housing Market↗ · BiggerPockets Market Finder↗ · Idaho State Tax Commission↗ · AirDNA Market Data↗
Investor Takeaway: Coeur d'Alene offers lake-town demand, the fastest rent growth in Idaho and nightly rates above $300, at the highest prices in the article. Investors should generally plan on a larger down payment for a long-term rental, underwrite nightly rentals on summer-weighted revenue, and check HOA covenants before buying near the lake.
Yellowstone's backyard bookings
Island Park stretches along US-20 in Fremont County, between Ashton and the Montana line, with Island Park Reservoir, the Henrys Fork of the Snake River, Harriman State Park and Upper Mesa Falls nearby, and Yellowstone's West Entrance at West Yellowstone only about 20 minutes away (Visit Idaho). It is the vacation rental market in the article – busy with Yellowstone visitors and fly fishers in summer and snowmobilers in winter!
The case for Island Park rests on two seasons of demand, with summer Yellowstone traffic and fishing on the Henrys Fork, which Visit Idaho calls one of the best fly-fishing rivers in the country, and winter snowmobiling on the area's groomed trails, and on revenue that runs at roughly 11% of the typical home value a year, the strongest revenue-to-price ratio in the article. However, the area is remote, winters are long and services are spread out, so investors should budget for snow removal, winter-ready systems and a reliable local cleaning and maintenance team. On the STR side, there is no county or city STR permit under the state law, and Island Park is not on the Tax Commission's list of cities with a local option tax, so stays carry the state's 8%.
The Island Park submarket of AirDNA's Idaho Falls/Rexburg market posts a score of 69/100, with Revenue Growth (80) and Investability (79) leading, Rental Demand (76) and Regulation (64) next, and Seasonality (44) the “soft spot.” Annual revenue per listing averages $63,590 (up 6.2% year-over-year), the highest in the article, with an average daily rate of $457.69 (up 1.0%), also the highest, and occupancy of 58% (up 2.1%). Total active listings sit at 1,402, up 15.5%, the fastest supply growth on this list, so new competition is arriving quickly.
Financing note: Island Park deals often qualify on TTM actuals or STR revenue projections given the seasonal revenue base, and Harpoon Capital offers industry leading DSCR Loans for properties throughout the market area. Check out our full DSCR Loans Program here, or if you want a quote on what terms look like today, fill out this two-minute form!
Sources: Zillow Home Value Index↗ · Idaho Code 67-6539↗ · Idaho State Tax Commission↗ · AirDNA Market Data↗
Investor Takeaway: Island Park offers the highest STR revenue and nightly rates in Idaho, two booking seasons and no local permit or lodging tax. Investors should generally underwrite on trailing twelve-month actuals, budget for winter operating costs, and watch how the 15.5% jump in listings affects occupancy.
| MARKET | AIRDNA SCORE | ANNUAL REVENUE | AVG. DAILY RATE | OCCUPANCY | YOY LISTING GROWTH |
|---|---|---|---|---|---|
| Twin Falls | 90 | $30,173 (+7.8%) | $143.09 (+3.5%) | 65% (+6.0%) | -1.1% (368 listings) |
| Boise | 76 | $35,477 (+5.2%) | $156.29 (+2.2%) | 69% (+4.0%) | -1.1% (2,360 listings) |
| Caldwell | 76 | $30,983 (+3.9%) | $148.34 (+2.1%) | 65% (+4.4%) | +5.1% (247 listings) |
| Island Park | 69 | $63,590 (+6.2%) | $457.69 (+1.0%) | 58% (+2.1%) | +15.5% (1,402 listings) |
| Idaho Falls | 66 | $28,915 (+10.4%) | $151.46 (+7.6%) | 63% (+2.2%) | +6.1% (572 listings) |
| Coeur d'Alene | 45 | $45,594 (+2.5%) | $302.42 (+6.5%) | 57% (-2.8%) | +1.8% (930 listings) |
Source: AirDNA, past 12 months through September 2026. Scores and figures reflect each market or submarket as defined by AirDNA and may not correspond 1:1 with city or county boundaries. As of October 2026
A few patterns stand out. The two resort markets earn the most per listing, about $45,600 in Coeur d'Alene and $63,600 in Island Park against $29,000 to $35,500 in the four valley cities, but the valley cities score higher with AirDNA, because they book steadily all year at 63% to 69% occupancy while the resorts depend on summer and, in Island Park's case, snowmobile season. Nightly rates tell the same story, i.e. resort STRs earn on rate while the valley cities earn on volume. Additionally, every market except Boise and Twin Falls added listings this year, and Island Park added the most by far, so the newest competition is landing in the highest-revenue market.
Idaho's real estate landscape offers a strategy for nearly every type of investor:
Market-level data is a starting point, not a substitute for underwriting the specific property, neighborhood and rental strategy in front of you. Idaho's new law means no city or county can require an STR permit or cap the number of rentals, but HOA covenants can still restrict them, local lodging and auditorium district taxes vary by address, and at least one state senator has said the issue will return to the Legislature next year (Valley Lookout), so investors should confirm the covenants and tax setup at a specific address before they close.
If you are ready to invest in one of these markets, start with our Idaho DSCR loans page.
Sources: Redfin housing market data, BiggerPockets Market Finder, Zillow Home Value Index, AirDNA market and submarket data (airdna.co), Idaho Code 67-6539, House Bill 583, the Idaho State Tax Commission and the U.S. Census Bureau. Data collected as of October 2026, ahead of the 2027 investing season.
Not from a city or county. Since July 1, 2026, Idaho Code 67-6539 bars every Idaho city and county from requiring a license, fee, permit, certification or registration to operate a short-term rental, and from imposing owner-occupancy rules, caps or limits on rental days. Hosts still owe the state's 6% sales tax and 2% travel and convention tax on stays of 30 days or less, which platforms like Airbnb and Vrbo collect, and hosts who book guests directly must register with the Idaho State Tax Commission to collect them.
Yes, in many cases. The new law limits what cities and counties can do and is silent on private HOA covenants, so a neighborhood's existing CC&Rs can still restrict or prohibit nightly rentals. However, under Idaho Code 55-3211 an HOA generally cannot add or amend covenants to limit rentals for an owner who did not agree in writing at the time. Investors planning an STR should read the covenants for a specific property before making an offer, especially in lake and resort communities.
No. Out-of-state and first-time investors can buy investment property in Idaho without any license. A DSCR loan qualifies you primarily based on the property itself rather than your personal income or professional credentials, which is part of why it's such a common financing tool for out-of-state buyers.
A DSCR (Debt Service Coverage Ratio) loan qualifies a property primarily based on the property (its value, value and location) relative to its mortgage payment, rather than the borrower's personal income or tax returns. If the property's projected or actual rent covers the mortgage payment (a DSCR of 1.00x or higher), it's generally easier to qualify, and Harpoon Capital also offers options for deals below 1.00x.
Harpoon Capital's DSCR loan program allows as little as 15% down on qualifying purchases, up to 85% LTV, with cash-out refinances available up to 80% LTV. Exact terms depend on the property, credit profile, and DSCR ratio. Fill out our DSCR Loan Application to see specific numbers for your deal.
Ready to Run the Numbers on an Idaho Deal?
Whether you're eyeing a long-term rental in Caldwell or a vacation rental near Yellowstone in Island Park, get a same-day rate and terms with our two-minute DSCR quote form, or explore the full Idaho DSCR Loans Program to see how we qualify the property, not just the borrower.
This article is for informational purposes only and does not constitute investment, legal, or financial advice. Harpoon Capital encourages investors to conduct independent due diligence before making any real estate investment decision.
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