Short-Term Rental (Airbnb) Investment in Idaho: What the Math Actually Shows
The honest financial model for Airbnb investment in Idaho — gross revenue, occupancy, expenses, and what net operating income actually looks like after the platform cuts.
Are short-term rentals (Airbnb) profitable in Idaho in 2026?
In the right locations with strong management, yes. For example, Boise proper, Nampa near the Ford Idaho Center, and properties near outdoor recreation areas can produce gross annual revenue of $35,000-$65,000+ on a well-managed STR. However, after Airbnb’s host-only service fee (15.5% for US hosts since September 2026), cleaning costs, PM fees (20-30% if managed), property tax, insurance, and maintenance, net operating income often comes in at roughly 20-45% of gross revenue — the low end with a property manager, the high end if self-managed. As a result, at current purchase prices, the NOI needs to support the debt service plus produce a meaningful return. Still, in strong STR locations, the math works better than long-term rental at the same purchase price — but only with honest management assumptions and regulatory clarity.
Dennis Fomin — Founder, Fomin & Company | Active Airbnb Investor in the Treasure Valley. In fact, I own short-term rental properties in Idaho. So the math below is the actual model I run — not the projected revenue from an AirDNA estimate that assumes 90% occupancy year-round.
The STR Financial Model — Realistic Assumptions
Gross revenue — honest occupancy assumption
Generally, a well-managed Boise STR in 2026 produces 60-70% annual occupancy at an average daily rate of $140-$180. At 65% occupancy and $155 ADR: 237 nights × $155 = $36,735 gross revenue. However, AirDNA market projections often show 75-80% occupancy — this is the ceiling, not the base case.Platform fees
Airbnb moved US hosts to a single host-only service fee of 15.5% of the booking subtotal (guests no longer pay a separate fee), with the rollout completed by September 15, 2026. For example, on $36,735 gross: ~$5,694 in platform fees. Net of platform: ~$31,041.Cleaning revenue vs. cleaning cost
Cleaning fees collected from guests: average $85/booking at 237 nights = $7,140 gross cleaning collected. However, actual cleaning cost at a typical Boise STR: $100-$130/clean. Net cleaning P&L: often slightly negative or break-even.Property management
If self-managed: your time, but no PM fee. If professionally managed: 20-30% of gross revenue = $7,347-$11,020. Also, self-management is common for local investors with one property.Operating expenses
Property tax, insurance (STR-specific policy: $2,500-$4,500/yr), utilities (owner-paid for STR: $300-$500/mo), supplies ($200/mo), maintenance reserve (10% of gross): ~$3,670. Total annual operating expenses excluding PM: ~$12,000-$15,000.Net operating income
Gross $36,735 minus platform fees ($5,694) minus operating expenses ($13,500) minus PM ($9,180 at 25%) = NOI of approximately $8,360/year or $697/month.Debt service comparison
$420K purchase, 25% down, 7.25% investor rate = $2,149/month P&I. Also, property tax and insurance are already counted in the operating expenses above. NOI of $697 vs. debt service of $2,149 = negative $1,452/month — worse cash flow than LTR, but total gross revenue and appreciation potential can still produce positive total return in strong STR locations.Where STR Math Works Better in Idaho
Boise core and near BSU — strong event and tourism demand
For example, year-round bookings from Boise State football, concerts, business travel, and tourism. ADR also rises on event weekends. Regulatory environment: under Idaho Code § 67-6539, Boise cannot prohibit STRs or require an STR license or permit — general noise, parking, and nuisance rules still apply, and HOA CC&Rs can still restrict them.Near McCall and outdoor recreation
Properties near Payette Lake, Brundage Mountain, and Cascade Reservoir produce strong seasonal revenue. Moreover, summer and winter seasons both drive occupancy. As a result, ADR is higher than Boise for lakefront and ski-area properties.Properties with unique features — pool, hot tub, mountain views
In particular, premium amenities drive ADR premiums of 15-30% above standard comparables. For example, the ROI on a hot tub addition to a Treasure Valley STR is typically 6-12 months at current ADR premiums.Garden City, Nampa, Caldwell — thinner STR demand
Because they sit further from Boise core attractions, these markets produce lower occupancy and ADR. STR may outperform LTR here but by a smaller margin. Therefore, verify ADR and occupancy with actual comparable listings before modeling.STR vs. LTR — Honest Comparison at the Same Property
STR gross revenue
$36,735/year in a good Boise STR location at honest assumptionsLTR gross revenue
$2,150/month × 12 = $25,800/year in the same Meridian propertySTR operating expenses (including PM and platform fee)
~$28,400/year — significantly higher than LTRLTR operating expenses (including PM at 10%)
$5,800/yearSTR NOI: ~$8,360 vs. LTR NOI: ~$20,000
In this comparison, LTR produces higher NOI — which is often the case unless the STR has significantly stronger gross revenue than a typical Boise property produces at honest occupancy assumptions.STR regulation risk changes the calculus permanently
Idaho state law currently bars cities from banning STRs or imposing owner-occupancy rules — but that law has been amended several times (2018 and 2026) and could change again, and an HOA can prohibit STRs in its CC&Rs at any time. By contrast, LTR is far less exposed to this risk.Frequently Asked Questions
Evaluating an Idaho Short-Term Rental Investment?
Dennis Fomin — Founder, Fomin & Company. Associate Broker, GRI, RSPS. Active Treasure Valley investor. Free 2026 This Is Boise Area Guide.
- —STR financial model for any property — honest occupancy and expense assumptions
- —STR rule verification — state law, HOA CC&Rs, and lodging tax setup for your target property
- —STR vs. LTR comparison at your target property and price point
- —Dennis owns Airbnb properties in the Treasure Valley — this is firsthand experience
Serving Boise, Meridian, Eagle, Nampa, Caldwell & the Treasure Valley.
Summary
Short-term rental investment in Idaho produces strong gross revenue in the right locations — and requires rigorous expense modeling to understand whether that revenue translates into meaningful net returns. Above all, the investors who get burned by STR are the ones who modeled AirDNA’s projected occupancy without applying a realistic expense structure. So model NOI carefully, verify the regulatory environment before you close, and compare STR vs. LTR at your specific property before committing to either strategy.
STR gross revenue is not STR profit. First, model NOI. Second, verify regulations. Third, compare to LTR. Then decide.
Dennis Fomin
Founder, Fomin & Company · Associate Broker, GRI, RSPS · Equity Northwest Real Estate208-371-9099 · dennis@dennisfomin.com · Meet Dennis →
903 N Main Street, Meridian, ID 83642
📘 Free Guide: 2026 This Is Boise Life in Idaho Area Guide