16 Idaho cities ranked by estimated cap rate. The average cap rate across Idaho markets is 2.6%, with median home prices averaging $475K and rents averaging $1,604/mo. Mountain Home leads with a 4.2% cap rate at a $350K median price. Idaho's low average property tax rate of 0.64% gives investors a significant cash flow advantage.
Idaho offers 16 investable rental markets tracked by CapRateCity. The state average cap rate of 2.6% is near the 3.81% national average. No cities pass the 1% rule at median prices, so value-add strategies are essential.
Prices and rents: Idaho home prices average $475K, which is 42% above the national average of $333K. Rents average $1,604/mo. The most affordable entry point is Burley at $330K, while Mountain Home offers the highest cap rate at 4.2%.
Taxes and costs: Property taxes average 0.64% across Idaho, below the 1.08% national average — a meaningful cash flow advantage that adds roughly $2,090 per year to NOI on an average-priced property. Meridian has the lowest rate at 0.62%.Vacancy averages 4.2%, tighter than the national average — favorable for landlords.
Growth outlook: Population growth across Idaho averages 2.59% per year, led by Meridian at 3.8%. Home values are appreciating at 2.4% annually on average. Strong population growth is driving housing demand and supporting both rent increases and price appreciation across the state.
Bottom line: Idaho is primarily an appreciation market. Cash flow investing requires below-median purchases or value-add strategies. Consider whether the growth and appreciation potential justifies tighter margins.