Idaho Falls, Idaho

Idaho Falls, located in the eastern part of the state, has garnered attention from short-term rental investors and travelers alike. With its proximity to the scenic beauty of Yellowstone National Park, the town acts as a convenient base for outdoor adventures. The city's population has been steadily growing, and its status as a regional hub for business and leisure contributes to a steady influx of visitors. The quality of life in Idaho Falls, combined with a comparatively low cost of living, makes it an attractive destination for potential guests.

As of now, the average daily rate (ADR) for short-term rentals in Idaho Falls stands at approximately $140.75. This price point, combined with the growing tourism market, places Idaho Falls in a favorable position for investors.

Understanding key performance indicators (KPIs) is essential for evaluating the health of the short-term rental market. For Idaho Falls, several important KPIs include:

• Average Daily Rate (ADR): Currently $140.75
• Occupancy Rate: Approximately 60-70%, depending on the season
• Revenue Per Available Room (RevPAR): Estimated at $86.45, calculated using the formula: ADR x Occupancy Rate
• Length of Stay: Average stay is around 2-3 nights, attracting both short-term and longer-term guests

These metrics suggest that the rental market is performing reasonably well, with opportunities for investors to capitalize on high occupancy during peak seasons.

Over the last decade, Idaho Falls has witnessed significant changes in its demographic and economic landscape, contributing to a more favorable environment for short-term rentals. The population has grown by about 15% since 2010, with many new residents attracted by job opportunities in healthcare, education, and technology.

Additionally, tourism has also experienced growth, particularly in areas like outdoor recreation, with increased interest in national parks and nearby natural wonders. Data from the local tourism bureau indicates that visitor numbers have increased from approximately 450,000 in 2010 to more than 675,000 in 2023, marking a notable growth trend.

This upward trajectory has implications for short-term rental investments, fostering a more sustainable demand for accommodations.

Given the current ADR of $140.75 and average annual occupancy rates, potential investors can estimate their return on investment (ROI). Calculating ROI in short-term rentals involves several variables, including acquisition costs, operating expenses, and projected rental income.

Typical properties in Idaho Falls are priced between $200,000 and $300,000. Consider a hypothetical scenario:

• Property Purchase Price: $250,000
• Monthly Operating Expenses: $1,200 (including utilities, maintenance, and management)
• Projected Annual Revenue: $50,000 (based on ADR, occupancy, and length of stay)

Using these figures, the annual ROI can be calculated as follows:

1. Annual Revenue: $50,000
2. Annual Operating Expenses: $14,400 (monthly expenses x 12)
3. Net Profit: $35,600 (annual revenue – annual operating expenses)

Calculating ROI:

[ \text{ROI} = \frac{\text{Net Profit}}{\text{Total Investment}} \times 100 ]

[ \text{ROI} = \frac{35,600}{250,000} \times 100 = 14.24% ]

This provides an attractive return, exceeding the average ROI for conventional real estate investments.

Idaho Falls demonstrates clear seasonal patterns that investors should consider. The peak tourist season generally runs from May to September, aligning with favorable weather and outdoor activities. During this period, occupancy rates can reach up to 80%, driven by visitors looking to explore nearby national parks and recreational areas such as the Snake River, which offers fishing, whitewater rafting, and hiking.

Conversely, the off-peak season, particularly from late autumn to early spring, sees a significant drop in occupancy, dropping to around 50%. This period is characterized by fewer tourists, and some property owners may choose to minimize their rental activities during the winter months.

Being aware of and planning for these seasonal variations is critical for short-term rental investors.

Short-term rental performance can vary significantly based on property type. In Idaho Falls, the most commonly listed property types are:

• Single-Family Homes: Typically perform well, often attracting families or groups seeking extra space and amenities.
• Condos and Apartments: They tend to appeal to couples or solo travelers looking for economical and centrally located options, offering lower nightly rates compared to homes.
• Cabins and Cottages: These properties do well during the summer and fall, appealing to those seeking a rustic getaway near outdoor attractions.

In evaluating which property types perform best, it's essential to analyze the listings on various platforms such as Airbnb and Vrbo. Properties that offer additional amenities—such as full kitchens, outdoor spaces, and proximity to attractions—tend to receive better reviews and hence higher occupancy rates.

Understanding guest preferences is crucial for optimizing short-term rental performance. In Idaho Falls, travelers commonly seek certain amenities and features:

1. Full Kitchen: Many guests prefer the ability to prepare meals, especially during extended stays.
2. Outdoor Spaces: Patios, decks, and yard spaces are popular among families and groups who value relaxation options.
3. Wi-Fi Access: Given the rise of remote work, high-speed internet has become a critical amenity.
4. Pet-Friendly Options: This category is increasingly important as more guests seek to travel with their pets.
5. Proximity to Attractions: Properties offering easy access to tourist hotspots draw more bookings.

Investors aiming to cater to these preferences often find themselves in a better position to attract repeat guests and positive reviews, directly impacting their bottom line.

The regulatory landscape for short-term rentals in Idaho Falls has undergone significant adjustments in recent years. The local government has established specific regulations aiming to balance the interests of property owners and the broader community. Key points include:

• Licensing Requirements: Property owners must obtain a short-term rental license and register their rental with the city.
• Zoning Laws: Certain zones restrict or prohibit short-term rentals, and potential investors should familiarize themselves with local zoning regulations before committing to a property.
• Tax Obligations: Operators are required to collect and remit Transient Room Taxes (TRT), which can impact profitability.

Investors should stay updated on regulatory changes to ensure compliance and avoid potential fines or operational restrictions. Consulting with a legal expert familiar with local laws can provide additional clarity.

Understanding neighborhood dynamics is crucial for short-term rental success in Idaho Falls. Some of the standout neighborhoods include:

• Downtown Idaho Falls: Known for its restaurants and cultural attractions, this area attracts both business and leisure travelers, making it a prime location for short-term rentals.
• Westside: This residential neighborhood features parks and amenities, appealing to families visiting the area.
• South Idaho Falls: As a more suburban area, it offers quieter accommodations and is ideal for families or larger groups.

Deciding on the best neighborhood will depend on the target demographic, property type, and the amenities investors are willing to provide.

The short-term rental market in Idaho Falls is poised for steady growth. As more people continue to explore the area for its natural attractions and relatively affordable housing market compared to larger metropolitan areas, the demand for short-term accommodations will likely remain high.

Key trends to watch include:

• Increased Focus on Unique Stays: With travelers seeking more unique experiences, properties that offer distinct characteristics or local flavor may attract increased attention.
• Demand for Sustainability: Eco-friendly amenities and practices will become more important, appealing to environmentally-conscious travelers.
• Integration of Technology: Investors who adopt smart home technologies and efficient booking platforms may enjoy a competitive advantage.

1. What is the average occupancy rate for short-term rentals in Idaho Falls?

   • The average occupancy rate generally falls between 60-70%, peaking during the summer months.

2. What are the typical property prices for short-term rentals?

   • Property prices typically range from $200,000 to $300,000, though prime locations may command higher prices.

3. Are there any specific regulations for short-term rentals in Idaho Falls?

   • Yes, short-term rentals require licensing and adherence to local zoning laws. Operators must also collect Transient Room Taxes.

4. What types of properties perform best for short-term rentals?

   • Single-family homes, condos, and cabins tend to perform well, depending on the target market.

5. How has the market evolved over the last decade?

   • The market has seen a population growth of about 15% since 2010, with tourism increasing from around 450,000 visitors annually to over 675,000 in 2023.

In conclusion, Idaho Falls presents a balanced opportunity for short-term rental investors. With a growing population, consistent visitor influx, and favorable property metrics, it offers the potential for attractive returns. Investors are encouraged to engage in thorough research, monitor market trends, and consider local regulations while tailoring their offerings to meet guest preferences.