Bloomington, Idaho

Bloomington, Idaho, a small town in Bear Lake County, is characterized by its picturesque landscapes and close-knit community. The town, while not densely populated, has seen a steady uptick in tourism thanks to its outdoor recreational opportunities and seasonal attractions. This market analysis seeks to evaluate the potential of Bloomington's short-term rental market, examining key factors that influence its current and future performance.

As of the latest data, the average daily rate (ADR) for short-term rentals in Bloomington stands at $296.2. This figure serves as a primary metric for rental income potential. Other key performance indicators include:

• Occupancy Rate: The occupancy rate in Bloomington tends to fluctuate around the national average, which is currently approximately 65-70% in similar vacation markets.

• Revenue Per Available Room (RevPAR): With the current ADR, pending occupancy rates are projected to yield a RevPAR of around $205.34, indicating the potential revenue generated per available rental unit.

• Length of Stay: An average stay of 4 nights is common, showing that guests are not only visiting but are also inclined to experience the area.

To understand-short term rental viability in Bloomington, a look back at the past decade is necessary. Over the past ten years, there has been a gradual increase in short-term rental prices and occupancy rates, largely driven by increasing domestic tourism.

• Rental Growth: The average nightly rates have increased by approximately 30% in the last ten years, reflective of both inflation and increased interest in the destination.

• Tourism Trends: Visitor numbers have steadily climbed, with a notable surge during the summer months when outdoor activities such as fishing, boating, and hiking draw seasonal visitors.

As this trend continues, it appears that the Bloomington short-term rental market will sustain gradual growth, largely attributed to its appeal as a getaway spot.

Investing in short-term rentals in Bloomington offers a potential for strong returns, given the existing ADR and occupancy rates.

• Financial Projections: Assuming an average occupancy of 70%, an investment property priced at $400,000 could generate up to $75,000 in gross rental income annually. After accounting for expenses—including maintenance, management fees, and utilities—net returns could remain around 45%.

• Cost Considerations: Investors should also take into account initial purchase price fluctuations, emerging market trends, and property appreciation over time, which could enhance overall ROI.

Bloomington presents a balanced equation of attractive rental income potential and manageable investment risks for prospective short-term rental owners.

Understanding the seasonal dynamics is vital for investors in Bloomington. The market typically exhibits noticeable patterns throughout the year:

• Peak Season: The summer months (June to August) see the highest occupancy rates driven by outdoor recreationalists and families. Prices can peak in July, highlighting the demand.

• Shoulder Seasons: Fall and spring can also attract visitors interested in less crowded adventures like hiking or wildlife viewing, with occupancy dropping 10-15% from peak summer levels.

• Off-Season: Winters can be considered the slowest season; however, they provide opportunities for those targeting specific winter sports enthusiasts. The off-peak season positions itself for competitive pricing strategies.

Recognizing these trends can help investors plan marketing strategies and pricing adjustments that maximize revenue throughout the year.

An analysis of property types currently in operation reveals differing performance metrics:

• Single-Family Homes: These properties typically offer more space and amenities, appealing to families or larger groups. They generally yield the highest occupancy rates and ADR, particularly in summer.

• Condos and Townhomes: These often attract couples and smaller groups, showing consistent performance throughout the year, though less prominently during peak seasons.

• Unique Stays: Properties such as cabins may provide a novelty factor that attracts guests looking for unique experiences and might command a premium price during peak seasons.

Investors should conduct market research focusing on property types that align with local demand to maximize rental yield.

Research indicates that guests in Bloomington prioritize certain amenities when choosing accommodations:

• Wi-Fi: Consistent high-speed internet is often a requirement, especially for guests combining work and leisure.

• Outdoor Space: Properties featuring cedar decks, yards, or access to outdoor activities tend to attract significant interest.

• Kitchens: A fully-equipped kitchen is seen as a critical amenity as guests prefer self-catering options during their stay.

• Pet-Friendly Options: With many guests traveling with pets, including pet-friendly policies is becoming increasingly necessary to tap into that segment of the market.

Understanding and incorporating guest preferences can enhance property attractiveness, leading to better occupancy and return on investment.

The regulatory landscape for short-term rentals in Bloomington is comparatively lenient compared to larger metropolitan areas. Potential investors should be aware of the following considerations:

• Licensing Requirements: Currently, all short-term rentals are required to obtain a business license and are subject to local zoning regulations.

• Taxation: A 5% lodging tax applies to all short-term rentals, impacting net income, and should be factored into financial planning.

Engaging with local city council meetings and staying informed on regulatory changes can equip investors with foresight and adaptability in the changing landscape.

Bloomington consists of several neighborhoods that appeal to different demographics.

• Lakeside Areas: Proximity to Bear Lake tends to yield higher tourist interest. Rentals here often perform better during peak seasons and command higher rates.

• Downtown: Properties in the downtown area benefit from walkability but generally offer less outdoor appeal compared to lakeside options.

Investors may choose to diversify their portfolio by exploring properties in differing neighborhoods to mitigate risk and enhance overall profitability.

The outlook for short-term rentals in Bloomington remains positive. Several trends lend credence to sustained growth in the coming years:

• Increased Remote Work: With the rise of remote work culture, more individuals are seeking out short-term rentals as workspaces coupled with leisure time.

• Focus on Local Experiences: An increasing number of travelers are looking for immersive experiences that reflect local culture and community—an opportunity for property owners to tailor their offerings accordingly.

• Sustainability: As environmental awareness rises, properties that promote eco-conscious living may see increased demand, reflecting a broader trend within the tourism industry.

Investors should remain responsive to these trends in order to maximize their competitiveness within Bloomington’s evolving market.