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.
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.
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.
Search All Boise Multifamily Investment Properties for Sale
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
Year | Ada | Canyon | Total |
---|---|---|---|
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 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.