Where to Find the Best Real Estate Investments in Idaho
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Emma Woodward, Contributing AuthorClose
Emma Woodward Contributing AuthorEmma Woodward is a freelance writer who loves writing to demystify real estate and finance topics. She is always looking for tactics to connect with readers in a non-stuffy way. When she's not writing about budgeting or mortgages, Emma also writes about food and fashion. She has written for companies and publications like Finch, Toast, Bankrate, and The Financial Diet.
Based in the Seattle area, Emma enjoys discovering new hiking trails and outdoor wonderlands when she's not working. You might also find her reading a good book, searching out a tasty bake shop or wandering through her neighborhood.
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Sam Dadofalza, Associate EditorClose
Sam Dadofalza Associate EditorSam Dadofalza is an associate editor at HomeLight, where she crafts insightful stories to guide homebuyers and sellers through the intricacies of real estate transactions. She has previously contributed to digital marketing firms and online business publications, honing her skills in creating engaging and informative content.
Idaho has become a hot spot for real estate investors looking for great returns. The state’s property values have seen impressive growth, with a 4.21% increase from the third quarter of 2023 to the fourth quarter of 2024. Over the last five years, property values have appreciated by a whopping 73.59%, so it’s no wonder many look for the best real estate investments in Idaho.
With its strong economy, outdoor lifestyle, and growing population, the state offers a lot of potential for both long-term assets and quick flips. If you’re considering real estate here, now might be the perfect time to dive in.
In this article, we outlined the top cities offering the best real estate investments in Idaho and provided tips on how to find a good investment property, along with where to look for them in Idaho.
Looking to Get In On Idaho's Thriving Real Estate Market?
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How do you choose a real estate investment property?
Find a property you can afford. Buy it. Rent it out or flip it, and voila. Sounds easy enough, right? Wrong. While real estate investment is simple, it’s not always that simple.
Expert investors know how to look at the housing market and a specific property to decide if a property is worth their time. They also have preferences for what type of investment fits their lifestyle and needs best. A collection of factors make a property right or wrong for an investment. Here’s what you need to consider:
Your budget
There are many different ways to invest in real estate. Depending on your investment method, you may be able to finance your purchase, meaning you can invest as little as 20% of the purchase price, in some cases.
Other investments require that you make a full cash offer, as certain sellers prefer cash, and some lenders might not lend on a home in need of extensive repairs. Even if paying with cash isn’t required, it can give you an advantage over other offers on the property.
Your budget determines the type of property you can look at and which areas will have the most options for you. Think about whether you want to pay for the property with cash or finance your investment. Make sure you know exactly how much money you are working with and communicate with your agent and lender about this amount.
Desirable area
For an investment to make sense, you need to buy real estate in an area where people want to live. This predicts property value appreciation as well as demand for rentals.
The specific area and neighborhood you choose also determines the options you have for renters. A college town would provide a consistent influx of students. Meanwhile, a property in a tourist town might make your property a better candidate for short-term rentals.
A growing economy and job market
Buying real estate in a town with diminishing job prospects might be cheap, but that doesn’t mean it’s a good investment. While the general real estate market seems to be headed up in value, that doesn’t mean values are increasing everywhere. Do your research on the area you plan to invest in to find projections for job and economic growth.
Population growth
More people moving in means a higher demand for real estate. A city’s population size and projected growth over the next ten years can help you estimate the future demand for real estate, whether you plan to rent out your property or sell it a few years later.
Type of investment property
Real estate investors have the opportunity to invest in all kinds of different ways, from long-term rentals and vacation rentals to fix-and-flip properties. You want to look for an area rich in the type of real estate you want to invest in.
If you are on the lookout for a multi-family unit in an area that is made up of single-family homes, you may have some trouble. Look for a growing area that offers multiple options for the type of property you want.
Cost of renovations
Not every investment involves renovations, but many do. Especially if you are looking to flip properties, calculate the estimated cost of renovations, including materials and labor. Make sure the estimated cost lines up with your budget. It would be a bummer to grab a great property, only to find out you can’t afford the needed renovations to make it livable.
Average rental rates
Planning to rent out your investment property? Knowing how much rental income you might be able to receive is an important consideration. Look at similar properties nearby to get an idea of how much rent you could make on your property.
You also want to make sure there is continued demand for rental properties in the chosen area. Locations where rental properties often sit vacant for multiple months probably aren’t the best place for you to invest.
As the big cities are getting bigger and more developed, the outskirts to big cities are becoming a little bit more popular to develop and live in.
Best cities in Idaho to invest in real estate
Now that we’ve reviewed what to look for to find the best real estate investments in Idaho, let’s talk about where to look. After scouring the listings and reviewing some expert advice, we found these cities to be top places to look for investment properties.
Blackfoot, ID
A smaller town just north of Pocatello, Blackfoot boasts a quiet community that’s great for raising a family. The Blackfoot housing market experienced growth over the past few years, but prices are still much more affordable than in some other parts of the state.
“As the big cities are getting bigger and more developed, the outskirts to big cities are becoming a little bit more popular to develop and live in,” notes Elias Trejo, a Blackfoot, ID agent with 12 years of experience. The big cities aren’t the only places to find good investments, so looking in a rural area, like Blackfoot, can offer a great investment location with more affordable price options.
Median home sales price: $365,420
Average rental rate: $985/month
Population size: 13,189
Boise, ID
The time to snatch up killer properties at a stellar price has come and gone, but that doesn’t mean the Boise market no longer has space for real estate investors. This popular Idaho city is known for its thriving urban scene and strong growing economy. The unemployment rate, which was 3.4% in December 2024, was lower than the national average of 4.1%.
This area’s prices have skyrocketed over the last few years, but that doesn’t mean there’s no opportunity for investors. Trejo advises investors to look for Boise properties with price reductions from new agents who may be inexperienced with market shifts.
Median home sales price: $447,500
Average rental rate: $1,495/month
Population size: 235,216
Burley, ID
Burley is a small city known for its sparse suburban feel and easy access to the outdoors. The construction of multiple places of worship in the area also means growth is expected in Burley, according to Trejo. The majority of residents here own their homes, so buying properties to flip could be a great way to make money as an investor.
Median home sales price: $335,696
Average rental rate: $995/month
Population size: 12,275
Coeur D’Alene, ID
Working families, professionals, and retirees all find Coeur D’Alene to be a top place to live. Plus, it’s an exciting vacation destination, so real estate investment opportunities of all kinds flourish in the area. While home prices are higher here than in other areas in Idaho, investors with a high enough budget can find great options here.
Median home sales price: $474,950
Average rental rate: $1,825/month
Population size: 56,894
Eagle, ID
Looking to cash in on the Boise housing market growth in a lesser-known area? Look no further than Eagle. This rapidly growing city is right outside Boise, so it’s close to ample employment opportunities and urban life without being right in the middle of it all.
Eagle saw a stable appreciation of property values over the years, but prices tend to be on the higher end. Investors with the right budget can find an opportunity here.
Median home sales price: $685,292
Average rental rate: $2,350/month
Population size: 32,802
Idaho Falls, ID
The third largest city in Idaho, Idaho Falls offers a more affordable housing market than some of the other big cities in the state. With a cost of living lower than the national average and close proximity to Yellowstone National Park and the Grand Tetons, this property hotspot offers investment opportunities for both short-term and long-term rentals.
Median home sales price: $375,738
Average rental rate: $1,380/month
Population size: 68,699
Meridian, ID
Investors hoping to find the next big thing in Idaho real estate investments can look to Meridian. Great schools, low crime rates, and a strong job market are just a few of the things that make this city popular. The population is growing at an annual rate of 3.8%, driving strong demand for real estate.
Median home sales price: $532,593
Average rental rate: $1,899/month
Population size: 139,920
Pocatello, ID
Known as “The Gate City,” Pocatello is the first major city north of the Utah border. It houses Idaho State University, so investors can look for real estate opportunities that cater to transient college students. The city’s steady student population creates a consistent demand for rental properties. Additionally, Pocatello’s affordable housing market makes it an attractive option for both first-time investors and seasoned buyers.
Median home sales price: $314,871
Average rental rate: $1,000/month
Population size: 58,606
Rexburg, ID
One of Trejo’s recommendations for expected property value appreciation? Rexburg. This small city shouldn’t be underestimated. Its proximity to outdoor attractions draws many tourists. Also, as home to Brigham Young University – Idaho, Rexburg sees a lot of students come and go. All of this adds up to a high probability of consistent rental property return on investment (ROI).
Median home sales price: $287,741
Average rental rate: $1,065/month
Population size: 40,159
Twin Falls, ID
A growing smaller city, Twin Falls may soon become a mid-size city due to its growth. The city boasts outdoor activities and a low cost of living. These features attract residents from higher-cost cities, meaning great property investment opportunities if you are looking for long-term renters.
Median home sales price: $330,343
Average rental rate: $1,351/month
Population size: 55,896
Tips for finding a great investment property in Idaho
Making the move on your first investment property is a big deal, and you will surely make mistakes along the way. But finding helpful advice on how to get started in real estate investment will help you avoid some of the bigger mistakes.
Partner with an expert real estate agent
Finding the right real estate agent is key to becoming a pro real estate investor. Many agents, however, don’t know as much about real estate investment on a larger scale — find an agent who does. Interview multiple agents to find someone who has a lot of relevant knowledge and experience.
HomeLight’s Agent Match tool can connect you with expert agents in your area. Start by finding a few who have real estate investment experience and go from there.
Learn to say no
“The best advice I ever got was that it’s ok to say no to the majority of opportunities you get into,” says Trejo. Real estate investment takes a solid plan and lots of patience. Know what you are looking for and be willing to say no until you find it. It can be exciting to make a purchase, but if you take your time finding the right property, you will be much better off in the long run.
Understand your local landlord-tenant laws
Tenant laws vary by city, county, and state. Check with your local government to get educated on the laws where you plan to buy a property. Trejo notes that the laws in Idaho are generally clear and easy to understand.
Hiring a real estate attorney can also provide the help you need to follow every law. The last thing you want is to buy a property only to find out you can’t rent it out the way you planned. Know the laws before you buy so you can make the best plan for purchasing a property.
Leave room in your budget for maintenance
Buying real estate means taking responsibility for everything on a property, including maintenance. These costs can add up quickly. The average yearly maintenance cost for homes is $2,458.
Plan your budget with the expectation of paying some maintenance expenses. Make sure you have a good estimate of how much you may have to spend on repairs and regular maintenance on the property, and account for these as you calculate your yearly ROI. Knowing every cost ahead of time will help you become a successful real estate investor.
Editor’s note: This post is for education only, not legal or financial advice. Always research before investing in Idaho real estate.
Header Image Source: (Perry Kibler / Unsplash)
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