Vacation Rental Market Trends in Boise Idaho

There is no place like Boise, Idaho, that represents as many profitable opportunities for vacation rental investors.

McCall, Coeur d’Alene, and Sun Valley might come first to mind when you think of Idaho vacation rentals. But growth in the Boise metro area is bringing both tourism and business.

If you are looking to improve your rental property portfolio, consider transforming a home or accessory dwelling unit in Boise into a vacation rental.

Below is an investigation of the short-term rental market and its potential for investors in the Treasure Valley area.

Rules May Change for Vacation Rentals

Former Mayor Dave Bieter, in September 2019, proposed an ordinance to regulate short-term rentals in Boise. The proposal would require property owners to live on the property, institute a registration process for short-term rentals, and limit short-term rentals to one per property.

Opposition to this proposal argued the restrictions would infringe on private property rights. Bieter then created an advisory group that was tasked with studying the issue further. However, he announced he would not pursue the changes just before his mayoral runoff loss to Mayor Lauren McLean.

McLean was to support the changes, but a year into her term she is yet to take action. But she recently announced that her administration was looking to institute an ordinance that requires short-term rentals to have licenses—so things could change.

Boise is Hot!

According to real estate market trends in Boise for 2020, it is one of the fastest-growing cities in the United States.

Short-term rentals have become more popular in the last few years as listings pop up across Boise and the surrounding cities. Options available range from cozy cottages in the East End to suites tucked behind homes, and entire homes on the West Boise side.

Boise provides guests with the perfect balance between urban feel and rural access. The U.S. News list of the best places to live favorably ranked the area.

A trendy cuisine scene, easy access to multiple museums, and many outdoor activities make Boise the perfect destination for a weekend getaway. Outside the urban center, you will find a rural paradise that offers direct access to mountains, rivers, deserts, and lakes and Handyman services Dubai.

A Resilient Real Estate Market

The demand for Boise homes has been on the increase despite the initial slowdown caused by the coronavirus in 2020. This is partly because mortgage rates were at almost historic lows. Plus, buyers were already preparing to enter the market before the pandemic struck, so plans for entry in spring were pushed to summer when much of the U.S. began opening back up.

A low housing inventory and a high demand create a hot seller’s market. This leads to an increase in Boise home prices with reports showing a 6 percent per year improvement.

Despite the growing house prices and homeowners and real estate investors enjoying appreciation, the affordable prices continue to make Boise an attractive addition to your rental property portfolio. 

The overall housing market forecast for Boise looks positive thanks to population growth and a resilient economy. Now is a good time to invest in Boise real estate and benefit from cash flow and appreciation.

The Hottest Areas to Invest In

While many investors are interested in purchasing properties in the city because of rising home values, a better real estate portfolio strategy would be to look for properties that offer cash flow while your asset appreciates.

This means you need to invest in rental properties that offer a high enough rental income to cover costs such as maintenance, rental property expenses, and mortgage and still have profit after these deductions. To find properties with a positive cash flow in Boise, start by researching neighborhoods with an above-average rental income.

The best neighborhoods to own a vacation property in the city, according to Mashvisor are:

• Harrison Blvd
• Downtown
• North End
• West Downtown
• South Boise Village

A short-term rental property earns a higher rental income compared to the traditional, long-term option. You also enjoy a good occupancy rate and a high daily rate on average.

The Return on Investment (RoI)

Knowing the top Boise neighborhoods offering high rental income is great for building a rental property portfolio – STS. However, you shouldn’t just focus on the income the property generates. You need to factor in other critical elements such as RoI.

The most important piece of owning a vacation rental is calculating ROI. Many failed operations point to poor financial projections as their undoing. Here are the most volatile industry trends you need to pay attention to while planning your investment in Boise:

• Finance options—Financing doesn’t fluctuate once you make payments, but consider the effects of different forms. For example, a buy-to-rent involves factoring mortgage payments into your costs. 
• Location—The location of the rental property for sale by owner determines whether your short-term rental business plan succeeds. With a vacation rental scheme, the value of the location depends on its most immediate surroundings and tourist traffic. 
• Expected occupancy—This is a crucial variable that’s tied to seasonal traffic. Handle this by finding out the lowest monthly occupancy rate. Doing this provides you with a goal to shoot for a realistic plan. Find out what to expect by doing competitor research. Rental channels such as Airbnb can help you find similar properties within your Boise neighborhood. You can then view their availability so you can make assumptions about your rental property. 

Is a Boise Vacation Rental an Excellent Addition to my Real Estate Portfolio?

The rise of the sharing economy and online marketplace development have reset the travel industry. Today, it is normal and desirable for guests to stay at other peoples’ homes. Investing in a vacation rental in Boise, ID offers you several benefits, including:

• Income generation
• Home appreciation
• Tax benefits
• Dual-use property
• Hands-off home ownership
• A recession-friendly investment option

To Invest or Not?

If you are searching for profitable investment opportunities to add to your rental property portfolio, find sleeper opportunities. These are areas where demand is increasing but is not hot enough to burn you when you purchase at the top of the market. One such sleeper investment opportunity is in Boise, ID!Are you looking for exceptional real estate investment opportunities in the United States? Mommies Reviews can help. Check out our real estate section for tips on minimizing risk and maximizing profitability.

Thank you,

Glenda, Charlie and David Cates