Boise Rental Market & Vacancy Rates

Overview

The average rent in Boise, ID, is $1,970 per month. Boise rents have increased by 0.9% over the past year and 25.8% over the past three years. The current vacancy rate for all residential rental properties in Boise is 1.82%, down from 2.85% one year ago.

Average Rents in Boise by Property Type

The average rent in Boise, Idaho, for all property types was $1,970 in Q1 2024. This represents a slight increase of $17, or approximately 0.9%, from Q1 2023 when the average rent was $1,953. This modest rise suggests a stable Boise rental market.

For single-family properties, the average rent rose from $2,160 in Q1 2023 to $2,184 in Q1 2024, marking a $24 increase, or about 1.1%. Specifically, the average rent for a two-bedroom house, which hit a record high of $1,906 in Q1 2023, decreased significantly to $1,654 in Q1 2024, a $252 reduction representing a decline of approximately 13.2%.

Three-bedroom single-family properties saw rents fall by $96, from $2,125 to $2,029, a 4.5% drop. Conversely, the average rent for four-bedroom single-family houses surged to a record high of $2,869 in Q1 2024, up by $421, or about 17.2%, from the previous year. Five-bedroom properties experienced a slight decrease in rent, dropping $20 from $2,893 in 2023 to $2,873 in Q1 2024, a decline of 0.7%.

In the multifamily sector, the average apartment rent in Boise increased from $1,433 in Q1 2023 to $1,455 in Q1 2024, a $22 rise, or about 1.5%.

One-bedroom multifamily units saw a notable increase, with rents climbing $145, or 12.5%, from $1,163 to $1,308. Two-bedroom units, on the other hand, experienced a rent decrease, falling $96, or about 6.6%, from $1,458 to $1,362.

The average rent for three-bedroom multifamily units showed a marginal rise of $18, increasing by 1.1% from $1,677 in the first quarter of 2023 to $1,695 in Q1 2024.

Boise Rental Vacancy Rates

Boise's average vacancy rate for all property types dropped from 2.85% in Q1 2023 to 1.82% in Q1 2024, indicating a tighter rental market.

The vacancy rate for single-family properties increased from 1.80% to 2.69%, indicating a slight increase in available rentals. In contrast, multifamily properties experienced a significant decrease in vacancy rates, dropping from 4.06% to 0.93%, signaling high demand and limited availability for apartment units in Boise in the first quarter.

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 first quarter of 2024, the median home price in Boise, ID (metropolitan area) stood at $530,000 for single-family properties. The median sales price per unit for duplexes in the same quarter was $237,450, while the median sales price for fourplexes was $149,750. For apartment buildings, which are defined as having five or more units, the median sales price per unit was $322,600.

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 4,099 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 2024 SW Idaho Vacancy Report Q1 from the Southwest Idaho Chapter of the National Association of Residential Property Managers.