Idaho is one of the states that blocks cities and counties from banning short-term rentals. That has kept lake towns, ski areas and the routes to Yellowstone open to investors, with local health and safety rules on top.
In short: Yes. LendingStreet finances short-term rental DSCR loans on 1-8 unit investment properties in Idaho, and on some programs the loan qualifies on projected nightly-rental revenue instead of a long-term lease. There are no W-2s or tax returns, LLC borrowers are standard, the minimum credit score is 620 and loans start at $150,000. State law limits local bans, but resort cities add their own taxes, and wildfire and snow drive insurance costs.
Coeur d'Alene and Sandpoint in North Idaho are lake markets with summer boating, golf and Schweitzer Mountain skiing near Sandpoint. McCall, on Payette Lake, draws Boise families in summer and skiers to Brundage Mountain and Tamarack in winter.
Sun Valley and Ketchum are upscale ski and summer resort towns with high prices. Island Park and Ashton serve Yellowstone visitors, and Driggs and Victor in Teton Valley sit on the back side of Jackson Hole. Boise has steady business and sports travel, and Stanley and the Sawtooths are a small, seasonal market.
| Market | Who books | What to check |
|---|---|---|
| Coeur d'Alene and Sandpoint | Lake vacationers, skiers | City rules, shoreline, HOA |
| McCall | Boise families, skiers | City permit, snow access |
| Sun Valley and Ketchum | Skiers, summer visitors | Local option tax, HOA |
| Island Park and Teton Valley | Yellowstone and Teton visitors | County rules, well and septic |
Idaho law prohibits cities and counties from banning short-term rentals or regulating them as anything other than residential use, but it allows reasonable rules for health, safety and welfare. In practice, many resort cities require registration, emergency contacts, occupancy limits and parking rules.
HOAs are not covered by the state law in the same way, and some subdivision covenants restrict rentals. Recorded covenants generally control, so review them before you buy.
A DSCR loan compares the property's income with its monthly payment: principal, interest, property taxes, insurance and any HOA dues. On a short-term rental, some programs use a third-party revenue projection for the address, often with comparable listings nearby, instead of a signed long-term lease. Others use the property's own booking history when it has one.
The standard minimum ratio is 1.0x, with sub-1.0 programs for some files. Purchases go up to 80% LTV and cash-out refinances up to 75% LTV, though maximum leverage on short-term rentals and larger balances varies by program. Terms up to 30 years are available, and LLC borrowers are standard. Properties from one to eight units qualify, so a duplex or a small group of cabins on one parcel can work; nine or more units is a commercial loan.
Idaho applies sales tax and a travel and convention tax to stays of 30 days or less. Resort cities such as Ketchum, Sun Valley, McCall and Sandpoint levy their own local option taxes on lodging. Platforms collect many of these, but operators may still need to register.
Idaho's homeowner's exemption only applies to an owner's primary residence, so an investor's bill can be noticeably higher than a seller who lived in the home. Use the non-owner-occupied figure.
Wildfire risk shapes insurance in much of central and northern Idaho, and heavy snow loads matter in mountain towns. Rural cabins need year-round road access, a reliable well and septic, and enough comparable sales for the appraisal.
Prices in Sun Valley, Ketchum and parts of Coeur d'Alene are high relative to the nightly revenue they produce, so ratios there often run tighter than in McCall or Island Park. Larger balances may face lower maximum leverage, which varies by program, so plan on a bigger down payment for resort-town purchases.
This example is illustrative and not a quote. An investor buys a three-bedroom cabin a few minutes from Payette Lake in McCall for $595,000. A projection for comparable cabins shows $52,000 a year in gross revenue. At 75% LTV the loan is $446,250, and estimated principal and interest on a 30-year term is about $3,120 a month. Add $330 in taxes, $190 in insurance, and the payment is about $3,640. $4,333 of average monthly revenue divided by that payment gives a DSCR of about 1.19x.
At 70% LTV instead, the loan drops to $416,500, the payment falls to about $3,432 and the DSCR rises to about 1.26x, in exchange for $29,750 more cash at closing. McCall earns in two seasons, lake summers and ski winters, which helps the annual average. A cabin with only a summer season would need a stronger peak to match.
| Item | Amount |
|---|---|
| Purchase price | $595,000 |
| Loan amount at 75% LTV | $446,250 |
| Down payment | $148,750 |
| Projected annual revenue | $52,000 |
| Average monthly revenue | $4,333 |
| Estimated principal and interest (30-year) | $3,120 |
| Property taxes | $330 |
| Insurance | $190 |
| HOA dues | None |
| Total monthly payment | $3,640 |
| DSCR | About 1.19x |
North Idaho lake towns and McCall peak from late June through Labor Day, with ski-season weekends adding winter revenue. Sun Valley has strong winter and summer seasons. Yellowstone-area properties are mostly summer and early fall, with a smaller snowmobile season. Spring and late fall are slow nearly everywhere.
Having these on hand keeps underwriting and the appraisal moving:
Our investor loans are business-purpose loans on non-owner-occupied property. Tell us the address, purchase price, expected revenue and target loan amount. We test the ratio against the real tax and insurance figures, raise rule or HOA questions early and lay out options, including qualifying on long-term rent where that works better.
We lend in Kootenai, Bonner, Valley, Blaine, Fremont, Teton and Ada counties and the rest of Idaho. Use the form below or call (877) 298-1001.
No. Idaho law prohibits cities and counties from banning them, though they can adopt reasonable health and safety rules.
Often, yes, if the recorded covenants allow it. Review them before you buy.
Sales tax, the state travel and convention tax, and in resort cities a local option tax on lodging.
If it has year-round access, standard utilities and enough comparable sales, it may fit. Off-grid cabins generally do not.
On some programs, yes. A third-party revenue projection for the address can replace a long-term lease. If the projection comes in low, a larger down payment, a sub-1.0 program or long-term rent can still make the deal work.
No. The loan qualifies on the property's income. You need a 620 or higher credit score, reserves and entity documents if you buy in an LLC.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so a second home you use yourself is not a fit.
Plan for the down payment, closing costs and reserves. Short-term rental programs and larger loans can require more down than the 80% LTV maximum implies, so it varies by program.
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