Short-term rentals across Idaho's lake and mountain towns

Beyond Boise, Coeur d'Alene, the Wood River Valley and the Idaho Falls corridor, much of Idaho's rental demand is spread across smaller lake and mountain towns: McCall on Payette Lake, Sandpoint on Lake Pend Oreille with Schweitzer on the ridge above, Driggs and the Teton Valley on the quiet side of the Tetons, and hot springs towns such as Lava Hot Springs. Seasons are pronounced: summer on the water, winter where there is skiing or snowmobiling, quieter months between. Cabins, lake homes and condos near the ski hills make up most of the stock.

One rule for the whole state

Since July 1, 2026, House Bill 583 has rewritten Idaho Code 67-6539. No city or county may ban short-term rentals, require a license, permit, registration or fee specific to them, cap their number, or impose owner-occupancy, minimum stays, separation distances or rules that differ from those for other single-family homes. For this market the change matters more than anywhere: several small resort communities had built their own permit programs, and those requirements can no longer be imposed. Local governments keep general zoning, noise, parking and nuisance ordinances, and may require the safety items the statute lists: smoke alarms in sleeping areas, a fire extinguisher and carbon monoxide detector on each floor, escape ladders where windows are high, occupancy consistent with building codes and an emergency information sheet for guests.

Taxes stay

Stays of 30 days or less carry Idaho sales tax and the travel and convention tax, plus an auditorium district tax where one exists. Resort cities may levy a local option tax, which HB 583 leaves in place. Platforms collect state taxes on their bookings; register with the State Tax Commission for any direct bookings.

What still limits you

• Covenants: lake and resort subdivisions often restrict rentals, and the new law does not override private agreements.
• Septic and wells: rural systems are sized for a household, not for a full house every weekend.
• Access: private roads, snow removal and long distances to repair services.
• Wildfire: insurance cost and summer smoke can hit bookings.

Our advice

Resort towns fought HB 583 on housing grounds, and a future legislature could revisit parts of it. The best protection for owners is a well-run house: quiet, safe and respectful of the neighbors. Buy with the covenants in hand, fit every listed safety device and line up a local responder before the first winter. We study every request and tell you honestly whether and how we can help.