Idaho Rental Laws: Short-Term Rentals, HB 583, and Landlord Rules

Idaho's rental regulatory environment changed fundamentally in 2026. The passage of House Bill 583 shifted the balance of power on short-term rental regulation statewide — and Boise followed by repealing its short-term rental licensing ordinance entirely. For investors, this represents one of the most favorable short-term rental environments in the American West.

But "favorable" doesn't mean "unregulated." Lodging taxes still apply, Ketchum still requires permits, and HOA covenants remain the primary barrier in many neighborhoods. Here's what Idaho's rental laws actually require in 2026.

House Bill 583: Statewide Short-Term Rental Preemption

Idaho HB 583 fundamentally restructured who controls short-term rental regulation in Idaho. The law significantly restricts what local governments can do, requiring that short-term rentals be treated much like any other residential use of property.

The tools that municipalities previously used to manage STR activity — permit caps, density limits, residency requirements, owner-occupancy mandates — are now off the table under state law. A city cannot ban short-term rentals in residential zones, require that only owner-occupants can operate them, or cap the number of STR licenses issued in a given area.

What local governments can still do: enforce noise ordinances, parking rules, occupancy limits, and nuisance codes as they apply to all residents. The state removed the ability to discriminate against STR use, but didn't remove the ability to enforce general community standards that apply equally to all properties.

The practical effect is significant for investors. Before HB 583, a new short-term rental ordinance in any Idaho city could effectively eliminate your STR income model with little notice. Post-HB 583, that risk is substantially reduced at the city level. The remaining risk — which HB 583 doesn't address — is private HOA covenants, which the state has no authority to override.

Boise: STR Licensing Repealed as of May 18, 2026

In direct response to HB 583, the Boise City Council voted to repeal the city's short-term rental licensing ordinance. Effective May 18, 2026, a City of Boise short-term rental license is no longer required for operation.

Existing licenses issued before that date remained valid only through May 18, 2026, and are not being renewed under the new framework.

The City of Boise continues to enforce other applicable rules consistent with state law and city code:

• Guests must use only on-site parking spaces
• Parking on landscaping is prohibited
• Trash containers cannot be stored in public view
• Quiet hours run from 10:00 p.m. to 8:00 a.m.
• Maximum occupancy limits remain enforceable

For investors targeting Boise Airbnb properties, the removal of the licensing requirement lowers the compliance barrier significantly. You're operating under general occupancy and noise rules — the same ones that apply to any residential property — rather than a separate permit system.

Ketchum and Sun Valley: Permit Still Required

Mountain resort communities are a different story. Ketchum (in Blaine County, near Sun Valley) still requires an annual Short-Term Rental Permit under its local ordinance. The city's framework focuses on building, fire, health, and safety compliance rather than restricting density.

Operating without a permit in Ketchum carries an infraction fine of $100 per day, plus a one-year waiting period before becoming eligible to apply. The safety requirements include:

• Bedroom windows must allow for emergency egress in accordance with building and fire codes
• Smoke alarms and carbon monoxide detectors required on each floor (if the unit contains a garage, solid fuel appliance, or gas appliance)
• At least one 2A:10BC fire extinguisher required on each floor
• Quiet hours from 10:00 p.m. to 8:00 a.m.
• In residential zones, minimum two-night stays required and one STR per parcel
• If the property owner lives more than 20 vehicular miles from Ketchum, they must designate a local representative who lives within 20 miles

The Ketchum permit framework is workable for investors — it's focused on safety rather than suppressing STR activity. But it requires active compliance management, especially for out-of-state owners who need a designated local contact.

Ketchum's STR market data tells the story: average nightly rates of $536, estimated monthly STR revenue of $3,291, but only 32.8% occupancy. The market performs well on revenue per night but runs at lower occupancy than urban markets due to its seasonal nature. The annual permit cost and local contact requirement are manageable overheads against this revenue profile.

Short-Term Rental Tax Obligations

Regardless of location, Idaho STR operators must collect and remit lodging taxes on stays of 30 continuous nights or less. Major platforms like Airbnb and Vrbo collect and remit these taxes automatically on behalf of hosts for bookings made through the platform. Direct bookings — where guests pay the owner directly — require the owner to manage tax collection and remittance manually.

The applicable taxes:

Idaho State Sales Tax: 6% of the listing price, including cleaning fees.

Idaho Travel and Convention Tax: 2% of the listing price.

Greater Boise Auditorium District Tax: An additional 5% tax applied if the property is located within the Auditorium District's geographic boundaries. This applies to many Boise-area properties and is the largest variable in the lodging tax stack.

For a property inside the Boise Auditorium District, the total lodging tax rate is 13% of the listing price. On a $200/night booking with a $50 cleaning fee, that's $32.50 in taxes per stay that must be collected and remitted correctly for direct bookings.

Long-Term Rental Rules: Key Provisions

For traditional rental properties, Idaho's framework gives landlords significant flexibility:

Rent increases: Under Idaho Code § 55-307(3), landlords must provide at least 30 days written notice before any rent increase takes effect. For month-to-month tenancies, lease terms can be changed with 15 days' notice before the month ends — but rent increases specifically require the 30-day minimum.

No rent control: Idaho Code § 55-307 expressly prohibits all municipalities from enacting rent control. House Bill 545 extended this prohibition to cover source-of-income protections, application fee caps, and late fee restrictions. Cities cannot require landlords to accept Section 8 vouchers.

Security deposits: No state maximum on deposit amounts. Individual landlords managing their own properties don't need a separate trust account (third-party managers do). Deposits must be returned within 21 days (or up to 30 days if the lease specifies a longer period). Violations expose landlords to treble damages and Consumer Protection Act liability.

Late fees: Idaho law does not cap late fees. Landlords may set them at any amount within the lease terms.

Manufactured home parks: A separate and stricter notice regime applies. Rent increases in manufactured home communities require 90 days written notice, and park rules cannot be amended more than once in any six-month period.

HOA Covenants: The Primary Risk Post-HB 583

HB 583 restricts government regulation of STRs. It doesn't touch private HOA covenants.

In many Idaho subdivisions — particularly newer developments in the Treasure Valley, mountain resort communities, and lake-access neighborhoods — HOA covenants explicitly prohibit or restrict short-term rentals. These restrictions are private contractual agreements between homeowners in the association and can be enforced by the HOA regardless of state STR law.

Before purchasing a property with STR intentions in any HOA community, review the CC&Rs and Declaration of Restrictions in full. Look specifically for language about:

• Minimum rental periods ("no leases shorter than 30 days," "no leases shorter than 6 months")
• Commercial use prohibitions
• Guest registration requirements
• Nuisance and noise provisions that might be enforced against STR guests

Some HOAs are actively enforcing STR bans with fines and injunctions. A property in a permissive city with a prohibitive HOA is effectively an STR that you can't operate as one.

The Idaho Investment Property Guide includes a detailed post-HB 583 STR compliance playbook, covering the HOA due diligence process, lodging tax registration, and market-by-market regulatory summaries. Access it at /us/idaho/investment-property/.

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