We Know Boise Real Estate

Boise Rental Market & Vacancy Rates

Overview

The average rent in Boise, ID, is $1,730 per month. Boise rents have decreased by 3.7% over the past year and increased by 16.9% over the past three years. The current vacancy rate for all residential rental properties in Boise is 1.81%, down from 2.94% one year ago.

Boise Rental Market 2024: Graph displaying the trend in average rent prices in Boise, Idaho, from 2020 to 2023.

Average Rents in Boise by Property Type

SINGLE-FAMILY

2 Bedroom

$1,425

3 Bedroom

$1,998

4 Bedroom

$2,238

5 Bedroom

$2,295

All Bedrooms

$1,887

MULTIFAMILY

1 Bedroom

$1,147

2 Bedroom

$1,431

3 Bedroom

$1,576

All Bedrooms

$1,385

As of the last quarter of 2023, the average rent in Boise, Idaho, for all property types, decreased to $1,730, a $67 drop from the $1,797 reported in the same quarter of the previous year.

The average rent for all single-family properties fell to $1,887, marking a $27 decline from the $1,914 seen in the fourth quarter of 2022. For two-bedroom houses, the average rent experienced a more significant decline to $1,425, falling by $225 when compared to the $1,650 rent of the year-ago quarter.

Three-bedroom single-family properties bucked the trend with rents rising to $1,998, which is $90 more than the $1,908 registered during the same period in 2022.

Rent for four-bedroom houses also increased, reaching $2,238, showing a $55 increase from $2,183 in the fourth quarter of the previous year. Rent for five-bedroom houses fell to $2,295, down $183 from the $2,478 of the last quarter in 2022.

Moving to multifamily units, the average apartment rent in Boise declined to $1,385, a decrease of $67 from the $1,452 reported in the fourth quarter of 2022.

For one-bedroom apartments, the rent modestly increased to $1,147, up by $13 from the prior year's rent of $1,134. Two-bedroom multifamily units saw a marginal decrease in rent to $1,431, which is $13 less than the $1,444 of the same quarter one year prior.

Lastly, three-bedroom apartments in Boise experienced the most substantial rent reduction among multifamily properties, with the average rent falling to $1,576, a significant decrease of $203 from the previous year's rent of $1,779.

Graph depicting the average vacancy rates for single-family homes and multifamily units in metro Boise, Idaho over the past decade.

Boise Rental Vacancy Rates

1.74%

Single-Family

1.88%

Multifamily

As of Q4 2023, the Boise rental market has corrected from the spike in vacancy rates experienced in Q3 2023. Single-family properties, which had peaked at a vacancy rate of 5.50% in the previous quarter, have settled at 1.74%, reflecting a substantial quarter-over-quarter decrease. Multifamily units also demonstrated a significant drop from 7.97% in Q3 to 1.88% in Q4. The average vacancy rate for all property types showed a marked improvement from Q4 2022, with single-family vacancies at 3.21% and multifamily vacancies at 2.75% a year prior.

This downward trend in vacancies aligns with falling rents. This may be aiding in the absorption of available units, leading to a more robust occupancy rate. Despite the previous quarter's anomaly, the current vacancy rates are well below the 5-6% that typically represents a healthy rental market, indicating a potential uptick in demand as the rental market moves into 2024.

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Sales Prices by Property Type

In the fourth quarter of 2023, the median home price in Boise, ID (metropolitan area) stood at $529,990 for single-family properties. The median sales price per unit for duplexes in the same quarter was $241,500, while the median sales price for fourplexes was $220,875. For apartment buildings, which are defined as having five or more units, the median sales price per unit was $256,640.

Income and Rental Affordability

In the Idaho rental market, verifiable monthly income is a key factor in determining tenant affordability and eligibility. Property management companies often require the tenant's monthly income to be at least two and a half to three times the rental amount. The federal government considers rents affordable when they amount to 30% or less of a household's income. According to U.S. Census data, the median household income in Ada County is $83,881, translating to a monthly rent of $2,097 at the 30% affordability threshold.


Boise Multifamily Market Report - Supply

While there are no signs of a drop in demand for multifamily units from potential renters, we continue to see a steady stream of new supply, albeit at higher monthly rents.

Estimated Apartment Projects Under Construction in 2023

  • Boise = 1,328 units
  • Meridian = 1,444 units
  • Eagle = 0 units
  • Garden City = 296 units
  • Nampa = 844 units
  • Kuna = 0 units
  • Star = 220 units
  • Caldwell = 399 units
  • Middleton = 0 units

Building Permits Issued for Multifamily Units by County

YearAdaCanyonTotal
2022 3,332 1,243 4,575
2021 3,324 291 3,615
2020 1,312 750 2,062
2019 2,468 807 3,275
2018 2,088 391 2,479
2017 1,621 310 1,931
2016 1,345 460 1,805
2015 1,194 26 1,220
2014 2,279 85 2,364
2013 680 100 780
2012 566 235 801
2011 290 147 437
2010 34 65 99

Boise Rental Units by Structure Type

Keep in mind that the Boise area still has fewer apartment buildings than a typical metro area this size. Single-unit properties, primarily houses, comprise more than half of the Boise rental market.

Boise ID Rental Units by Type of Structure


Boise Residential Income Property Capitalization Rates

The capitalization rate, also known as the "cap rate," is a good starting point for comparing Boise investment opportunities quickly. Many more factors need to be considered, such as the growth or decline of the potential income and the increase (appreciation) in the value of the property.

Capitalization Rate = Yearly Net Income/Total Value

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*This We Know Boise Rental Market Report is based on a survey of 3,922 rental units. It refers to the city of Boise and the surrounding areas of Meridian, Eagle, Kuna, Star, and Garden City. Select data obtained from the Intermountain MLS, Community Planning Association of Southwest Idaho, and the 2023 SW Idaho Vacancy Report Q4 from the Southwest Idaho Chapter of the National Association of Residential Property Managers.