Did you know that the Boise real estate market was forecast to be one of the hottest housing markets for 2020? Now that we are in Q3, it seems that these forecasts have come to fruition.
A Quick Overview of the Boise Real Estate Market 2020
Despite the initial slowdown earlier this year caused by the coronavirus, demand for Boise homes for sale quickly climbed back up in June 2020. This was likely due to the fact that mortgage rates were near historic lows. In addition to this, buyers were already geared up to enter the hot Boise real estate market before COVID-19 hit. So their plans to enter the market in early spring were simply pushed to the summer when much of the US began to open back up after coronavirus lockdowns.
At the same time, the housing inventory in Boise is low. These two Boise real estate market trends (high demand and low supply) created a very hot seller’s market. Naturally, this kind of demand caused a rise in Boise home prices, despite COVID-19. Realtor.com reports that house prices rose 6% year-over-year in June. Although house prices continue to grow and Boise real estate investors and homeowners enjoy appreciation, it’s the affordable prices that continue to make Boise an attractive location for buyers. Currently, the median list price is $397,000.
While the Boise housing market forecast 2020 and 2021 still looks positive thanks to a resilient economy and population growth, COVID-19 cases are back on the rise in the city. Although now is a good time to invest in Boise real estate to benefit from appreciation and cash flow, it’s important to keep an eye on the developing situation with the pandemic.
Where to Invest in the Boise Real Estate Market for High Rental Income
Although many real estate investors are interested in buying an investment property in the city due to the rising Boise home values, a better investment would be to look for a property that can provide cash flow while the asset appreciates. In other words, you want to find a Boise rental property that provides a high rental income – high enough to cover costs (mortgage, rental property expenses, maintenance, etc.) and still leave over a profit for you. To find these positive cash flow properties in the Boise real estate market, it’s best to start by looking in neighborhoods where the average rental income is high.
Related: Cash Flow vs Appreciation: What Should Drive Your Real Estate Investment Decision?
We looked at the Boise real estate market data in Mashvisor’s database and pulled up the best neighborhoods in the city for high rental income. Because Airbnb Boise rental properties are not yet regulated and Idaho law forbids cities from banning them, we’ve listed the best neighborhoods for both traditional and Airbnb Boise properties.
Note: In September 2019, the Mayor of Boise proposed some regulations for short-term rental properties. As of now, however, there are no regulations in place. Additionally, it seems that, if passed, the ordinance would not affect Airbnbs that are already operating in the Boise housing market. Click here to learn more.
Best Neighborhoods in Boise for High Traditional Rental Income
#1. Highlands
Traditional Rental Income: $1,975
- Median Property Price: $739,829
- Price per Square Foot: $287
- Price to Rent Ratio: 31
#2. Maple Grove – Franklin
Traditional Rental Income: $1,929
- Median Property Price: $333,338
- Price per Square Foot: $111
- Price to Rent Ratio: 14
#3. West Downtown
Traditional Rental Income: $1,510
- Median Property Price: $549,900
- Price per Square Foot: $261
- Price to Rent Ratio: 30
#4. Southwest Ada County Alliance
Traditional Rental Income: $1,414
- Median Property Price: $365,106
- Price per Square Foot: $210
- Price to Rent Ratio: 22
#5. Harrison Blvd
Traditional Rental Income: $1,396
- Median Property Price: $756,760
- Price per Square Foot: $276
- Price to Rent Ratio: 45
Best Neighborhoods in Boise for High Airbnb Rental Income
#1. Glenwood Rim
Airbnb Rental Income: $4,910
- Median Property Price: $365,000
- Price per Square Foot: $216
- Average Airbnb Daily Rate: $96
- Airbnb Occupancy Rate: 58%
#2. Central Foothills
Airbnb Rental Income: $4,754
- Median Property Price: $529,933
- Price per Square Foot: $231
- Average Airbnb Daily Rate: $111
- Airbnb Occupancy Rate: 66%
#3. Highlands
Airbnb Rental Income: $3,570
- Median Property Price: $739,829
- Price per Square Foot: $287
- Average Airbnb Daily Rate: $105
- Airbnb Occupancy Rate: 59%
#4. Harrison Blvd
Airbnb Rental Income: $3,179
- Median Property Price: $756,760
- Price per Square Foot: $276
- Average Airbnb Daily Rate: $105
- Airbnb Occupancy Rate: 60%
#5. West Downtown
Airbnb Rental Income: $2,955
- Median Property Price: $549,900
- Price per Square Foot: $261
- Average Airbnb Daily Rate: $110
- Airbnb Occupancy Rate: 58%
Generally, an Airbnb Boise rental property can earn a higher rental income than a traditional, long-term rental property. You will also enjoy a good Airbnb occupancy rate in the Boise real estate market and a high daily rate, on average.
Related: 50 Best Cities for Airbnb Rental Income in 2020
What About Return on Investment in the Boise Real Estate Market?
Knowing the best Boise neighborhoods for high rental income is a great way to start your investment property search. Of course, you can’t just focus on how much income a Boise rental property will generate. You need to look at other elements like the return on investment.
To get this kind of data on neighborhoods in the Boise real estate market, you can visit their Neighborhood Analytics page on Mashvisor. This is an in-depth real estate market report on a neighborhood where you get data on the average cash on cash return, Walk Score, historical rental income of local properties, real estate comps, and more.
For example, perhaps you want to conduct a more thorough neighborhood analysis of Harrison Blvd. Check out its Neighborhood Analytics page:
Mashvisor’s Neighborhood Analytics
With this neighborhood data, you can easily find a high return neighborhood where a Boise real estate investment will be cash-flow positive.
You can also just dive right into your property search directly and look for high return Boise investment properties for sale using another Mashvisor tool – the Rental Property Finder. Check out the top-performing traditional and Airbnb Boise income properties we pulled up using this tool:
Mashvisor’s Rental Property Finder – Traditional Investment Properties for Sale in Boise
Mashvisor’s Rental Property Finder – Airbnb Investment Properties for Sale in Boise
Related: Rental Property Finder: A Revolutionary Tool for Investing in Real Estate
Start Your Boise Property Search Now
The Boise ID real estate market is a hot market for investment in 2020. And now you have a list of promising neighborhoods where you can start your search for rental properties that will generate a high rental income and help you achieve positive cash flow. Just remember, rental income cannot be the only number you look at when conducting a neighborhood analysis or even a rental property analysis. You need the complete picture and Mashvisor can provide that. Click here to start analyzing neighborhoods and searching for the best investment properties for sale in the Boise housing market today.
2 Comments
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