Boise Rental Market & Vacancy Rates

Overview

The average rent in Boise, ID, is $1,900 per month. Boise rents have decreased by 3.9% over the past year and increased by 13.2% over the past three years. The current vacancy rate for all residential rental properties in Boise is 2.73%, down from 4.4% one year ago.

Average Rents in Boise by Property Type

In the second quarter of 2024, the average rent in Boise, Idaho, stands at $1,900 across all property types. This marks a $77 decrease, or approximately 3.9%, from the same period in 2023, when the average rent was $1,977. This decline suggests a slight easing in Boise's overall rental market over the past year.

Focusing on single-family properties, the average rent in Boise for houses has reached a new record high of $2,269 in Q2 2024, up by $176, or about 8.4%, from $2,093 in Q2 2023.

Examining rents by property size, the rent for two-bedroom single-family homes has increased by $140, or 8.6%, from $1,634 to $1,774. Meanwhile, rents for three-bedroom houses saw a significant rise of $235, or 11.1%, from $2,110 to $2,345, also reaching a record high. The rent for four-bedroom single-family properties increased by $157, or 6.2%, from $2,533 to $2,690. These figures indicate a robust demand for single-family rentals, contributing to Boise's higher average house rent.

In the multifamily sector, the average rent per unit has shown an upward trend, although more moderate compared to single-family properties.

The average rent for multifamily properties in Boise is now $1,531, up by $48, or 3.2%, from $1,483 in Q2 2023. However, the rent for one-bedroom units slightly decreased by $29, or about 2.3%, from $1,286 to $1,257. Conversely, the rent for two-bedroom apartments increased by $50, or 3.4%, from $1,466 to $1,516, reaching a record high for this category. The rent for three-bedroom multifamily units rose by $123, or 7.3%, from $1,696 to $1,819. These increases highlight the steady demand for multifamily housing, influencing the average apartment rent in Boise.

Boise Rental Vacancy Rates

The average vacancy rate for all property types has improved significantly, dropping to 2.73% in Q2 2024 from 4.40% in Q2 2023, a decrease of 1.67 percentage points. This decline in vacancies suggests a tighter rental market.

Specifically, single-family property vacancies have decreased from 4.60% to 2.38%, a reduction of 2.22 percentage points. Multifamily property vacancies have also declined, though more modestly, from 4.21% to 3.09%, a drop of 1.12 percentage points. These reductions in vacancy rates across both single-family and multifamily properties further underscore the robust demand in the Boise rental market.

Current vacancy rates are well below the typical healthy rental market threshold of 5-6%, suggesting a potential increase in demand in 2024.

Search All Boise Multifamily Investment Properties for Sale

Sales Prices by Property Type

In the second quarter of 2024, the median home price in Boise, ID (metropolitan area) stood at $559,900 for single-family properties. The median sales price per unit for duplexes in the same quarter was $288,750, while the median sales price for fourplexes was $237,000. For apartment buildings, which are defined as having five or more units, the median sales price per unit was $202,500.

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 typically require a tenant's monthly income to be at least two and a half to three times the rental amount.

The federal government defines affordable rents as those that do not exceed 30% of a household's income. According to U.S. Census data, the median household income in Ada County is $83,881, which translates to a monthly rent of $2,097 at the 30% affordability threshold.

It's also worth noting that Boise's strong local economy and job market contribute to both rising median household incomes and the stability of the rental market.

Boise Multifamily Market Report - Supply

In 2023, Ada County experienced a decline in the issuance of permits for new multifamily units despite continued strong demand from potential renters. The total number of permits dropped to 2,543 from 3,332 in the previous year. This decrease was primarily due to rising interest rates, which significantly hampered new construction activities.

Estimated Apartment Projects Under Construction in 2024

• Boise = 1,676 units
• Meridian = 794 units
• Eagle = 0 units
• Garden City = 24 units
• Nampa = 275 units
• Kuna = 49 units
• Star = 0 units
• Caldwell = 810 units
• Middleton = 0 units

Building Permits Issued for Multifamily Units by County

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 4,405 rental units. It covers the city of Boise and the surrounding areas of Meridian, Eagle, Kuna, Star, and Garden City. Select data were obtained from the Intermountain MLS, the Community Planning Association of Southwest Idaho, and the 2024 SW Idaho Vacancy Report Q2 from the Southwest Idaho Chapter of the National Association of Residential Property Managers.