Idaho Falls is in Bonneville County, and outside of Boise, it’s the largest city in the state. The population of Idaho Falls in 2021 was 66,898, which is a pretty huge jump over the last decade. People are moving into the area for the low cost of living, high quality of life, gorgeous natural surroundings, and opportunities for work, recreation, and culture. As remote work becomes more of a norm than a trend, people are realizing they can live anywhere. Idaho Falls is high on the list of where people are willing to relocate.
Investing here makes sense. You can access a well-qualified tenant pool, find great and diverse opportunities throughout the region, and enjoy rising rental values while your investment appreciates.
But, where to buy?
Let’s take a look at the 5 best neighborhoods in Idaho Falls if you want to purchase a rental property.
Downtown Idaho Falls
Let’s start downtown. There’s been a lot of growth and development in downtown Idaho Falls, but the city still manages to retain its historic charm and its neighborly vibe. There’s a lot to do, residents can walk to restaurants and coffee and shopping and nightlife, and it’s easy to find a local farmer’s market in the seasonal months.
In the last few years the downtown area has seen a larger than normal population of tenants interested in living in the heart of the city. There has been some new construction lately, and as those projects are completed, investors can still find some existing buildings and units that are available and excellent options for rentals.
Many older buildings have been renovated into lofts, townhomes, and apartments. There’s a healthy mix of long term residential units as well as short term Airbnb-type homes. Apartments can be found on top of restaurants and cafés. Hotels have been converted into studio apartments and lofts, too, and these properties, compared to other markets, are still relatively affordable.
The downtown area makes a great neighborhood for real estate investors because it attracts tenants of all demographics. Every age group can be found looking at rental homes. There are retirees as well as recent college graduates. We see professionals and families. People love the idea of living in a well-managed building where they don’t have to worry about snow shoveling or landscaping, and they can head out the door to Riverwalk and all of its connected paths.
The Bonneville Hotel is transitioning into apartments, and they’re being snatched up as soon as they’re listed. More and more tenants are attracted to living in a mixed residential/commercial space, and downtown Idaho Falls provides exactly that opportunity. If you’re an investor looking for a multi-family rental property that will earn you money and attract residents easily, head downtown.
On the west end of Idaho Falls and surrounded by the Sage Lake Golf Course, there is a gorgeous community called Fairway Estates. This neighborhood offers luxury living, with beautifully landscaped lawns, comfortable homes, and an active HOA. Investors will be impressed by the earning opportunities in this neighborhood. Whether single-family homes or townhouses, these units are on the larger side, they were constructed in the last two or three years, and they come with all of the design elements and amenities that tenants are looking for.
When you’re not interested in older rental homes that need a lot of cosmetic updates in order to be ready for the rental market, buying investment property in Fairway Estates can give you exactly what you need. You can buy a move-in ready property or invest in lots and begin your own construction.
We recommend you buy a townhouse if you’re interested in investing at Fairway Estates. The HOA takes care of all exterior maintenance, including landscaping and snow removal.
South Idaho Falls
South Idaho Falls has some of the highest home values you’ll find. When you’re looking for an investment that promises to continue appreciating in value over time, this is the neighborhood where you want to look.
You’ll find housing developments such as Comore Loma, where there are huge lot sizes, million-dollar homes, but also enough diversity that investors can find something within their budget and ideal to turn into a rental property.
Head to the western part of Idaho Falls, and you’ll find a charming neighborhood that’s diverse, energetic, and an equal blend of renters and homeowners. Investors will find opportunities to buy single-family homes, condos and apartments, as well as townhomes.
This community is close to a number of parks. It’s clean, residential, and safe. Good schools can be found in the area, and plenty of recreation and entertainment.
Investors will find spacious, well-maintained homes that don’t cost too much but can be guaranteed to bring in high rental amounts.
Snake River Landing
A master-planned community that’s home to single-family homes, apartments, retail shops, restaurants, and businesses, Snake River Landing would be a great investment opportunity for anyone looking to buy in such a neighborhood. It’s located between Interstate 15 and the Snake River, covering 450 acres. It’s close to downtown and South Idaho Falls.
If new construction is what you’re looking for, this is perhaps the best you’ll find in Idaho Falls. Tenants will flock to the rental homes here because of the great schools, the ongoing community events, and the special amenities that come with living in a master planned community.
Idaho Falls Rental Market: Opportunities for Investors
Now that we’ve listed a handful of great neighborhoods to invest in, we’ll also give you this advice:
Follow your own investment goals.
The right neighborhood for one investor may not work for another. You need to know what you’re looking for and why. You need to wait for the right opportunity and not try too hard to make the wrong opportunity fit.
Whether you are investing in Idaho Falls real estate for the first time or you’ve been growing a portfolio in this market for years, you may have noticed that you’re not alone.
The strength and potential of Idaho Falls for real estate investors is no longer a secret. Many individual investors and institutional investors are buying up any available properties here and turning them into profitable rentals. Which is to say, there’s a lot of competition.
Here’s why we’re seeing so many investors (local and out-of-state) take a strong interest in Idaho Falls:
- Large tenant pool. No one wants to invest in an area that doesn’t have a lot of tenants. In Idaho Falls, according to the latest statistics, about 60 percent of people own their homes and 40 percent of people rent. There may be more tenants than expected, however, since the price of buying a home has put a lot of first time homebuyers off. Mortgage rates are higher thanks to rising interest rates, and tenants are staying in their rental units for a little bit longer. This creates a lot of demand. There’s a good mix of single-family and multi-family properties, and a reliable population of tenants who want to rent both kinds of homes.
- Rents and occupancy are high. Idaho Falls rental property owners are earning more on their properties than they have over the previous years. This is due to inflation as well as demand. The increase in rental values has not driven people out of their rental homes. You can comfortably raise your rent, even at renewal time when you’re trying to convince your existing tenants to stay in place. It’s a comfortable place to be for landlords right now.
- Lots of new construction is bringing additional properties onto the market, especially in many of the neighborhoods we discussed.
- The local Idaho Falls economy is strong and growing. Unemployment rates are low and the fact that Idaho is generally considered to be a business-friendly state.
Talk to Idaho Falls Property Managers
All of these are neighborhoods that are growing in popularity, but the right place for your investment property will depend on what you’re spending, what you expect to earn, and how long you want to stay in the Idaho Falls market.
Talking to Idaho Falls property managers before you begin your search for an investment property can help you be more successful. While a good real estate agent will help you identify potential properties and negotiate a deal, your property manager can also provide value. When you’re considering an investment property, a good management partner can:
- Estimate how much rent you’ll earn on that property.
- Talk about some of the improvements that may be necessary before it’s ready for the market.
- Give you some idea of how much maintenance will cost annually or in the long term.
- Tell you about what tenants are looking for and whether your property will be attractive to them.
Don’t wait to work with a property manager after you’ve made your purchase. Talk with property managers before you invest. We can help you find the right neighborhood and the best property. Please contact us at Jacob Grant Property Management, and we’d be happy to show you the best investments.