Boise Rental Market & Vacancy Rates

Overview

The average rent in Boise, ID, is $1,947 per month. Boise rents have increased by 0.15% over the past year and 18.9% over the past three years. The current vacancy rate for all residential rental properties in Boise is 2.79%, down from 6.87% one year ago.

Average Rents in Boise by Property Type

In Q3 2024, the average rent in Boise, Idaho, across all property types reached $1,947, representing a slight increase of just $3 from Q3 2023's $1,944. This stable average rent serves as an important indicator of a maturing Boise rental market, which shifted from a relatively weak position last year to a more balanced stance this quarter.

In Q2 2024, Boise saw record high rents for single-family investment properties, highlighting sustained demand. The high cost of buying a home in Boise continues to drive more residents to the rental market, which has kept prices stable and occupancy high.

Focusing on single-family homes, the average house rent rose to $2,220, up $211 or 10.5% from Q3 2023's $2,009. Drilling down further, the rent for two-bedroom single-family homes saw a robust increase, rising to $1,873 in Q3 2024 from $1,634 in the same period last year—a jump of $239 or 14.6%.

Three-bedroom houses experienced a modest decline, with the average rent at $1,962, down $28 or 1.4% from $1,990 in Q3 2023. Notably, four-bedroom single-family homes saw an impressive increase, with the average rent reaching $2,827, up $424 or 17.6% from last year, bringing it close to a record high. Meanwhile, five-bedroom properties, which peaked last year, dropped significantly this quarter to $2,495, down $931 or 27.2% from Q3 2023's $3,426.

The multifamily market, or average apartment rent in Boise, saw across-the-board increases. One-bedroom units now average $1,272, a rise of $150 or 13.4% from Q3 2023's $1,122. Two-bedroom apartments experienced a smaller increase, reaching $1,426, up $47 or 3.4% from the prior year.

The three-bedroom average rent climbed to $1,773, a $119 or 7.2% increase from $1,654 last year. Overall, the average apartment rent for all multifamily property types rose to $1,492, up $107 or 7.7% compared to Q3 2023's $1,385.

Boise Rental Vacancy Rates

Vacancy rates reveal a dramatic shift in the Boise rental market's landscape. The average vacancy rate for all property types dropped sharply to 2.79% in Q3 2024 from a decade-high of 6.87% in the same quarter last year.

Single-family property vacancies saw a similar drop to 2.79% from 5.50% in Q3 2023, while multifamily income property vacancies declined to 2.82% from 7.97%. This steep reduction in vacancies indicates a higher demand for rental units, aligning with the high home prices that are encouraging more people to rent rather than buy.

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 third quarter of 2024, the median home price in Boise, ID (metropolitan area) stood at $540,000 for single-family properties. The median per-unit sales price for duplexes during this period was $290,000, and for fourplexes, it was $226,125. For apartment buildings with five or more units, the median per-unit sales price was $191,420.

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 4,144 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 Q3 from the Southwest Idaho Chapter of the National Association of Residential Property Managers.