Idaho Falls and Pocatello Short-Term Rental Rules for 2026: What Idaho Law Requires of Airbnb and Vrbo Hosts

If you’re thinking of turning a house in Idaho Falls or Pocatello into an Airbnb or Vrbo, 2026 brought a real change. A new state law took effect July 1 that bars cities and counties from requiring any short-term rental license or permit, and both cities have adjusted their codes. That doesn’t mean there are no rules. Idaho Falls and Pocatello short-term rental rules now come mostly from state law, the Idaho State Tax Commission, and your HOA. Here’s what applies, what it costs to set up, and where the limits are.

Idaho’s short-term rental law got stricter on cities in 2026

The core statute is Idaho Code 67-6539. It says no city or county may enact or enforce an ordinance that has “the express or practical effect of prohibiting any type of short-term rentals.” For zoning and building code purposes, a short-term rental is treated as a non-transient residential use, the same category as a regular home.

House Bill 583, signed March 16, 2026 and effective July 1, 2026, rewrote the section. Cities can still adopt reasonable health and safety rules, but only if those rules don’t treat short-term rentals differently from single-family homes that aren’t rented nightly. The law lists 17 things that count as “different restrictions.” Among them:

• Requiring the owner to live on site for any amount of time
• Requiring professional management, extra insurance, inspections, or notices to neighbors
• Capping rental nights, or requiring extra parking or a conditional use permit in a residential zone
• Limiting how many rentals a city allows or how close they can be

The biggest change is a new subsection: “No county or city shall require a license, fee, permit, certification, or registration to operate a short-term rental.”

The safety items a city can still require

Under the statute, a city or county may require only these items by ordinance:

• Working smoke alarms in all sleeping areas
• A working fire extinguisher and a carbon monoxide detector on each floor
• Removable escape ladders in upper-floor sleeping areas with a window
• Occupancy limits no stricter than the state-adopted building code limits for regular homes
• An easy-to-find handout showing exits, fire extinguishers, any first aid kits, and an emergency phone number for the owner or manager

The trade-off is that short-term rentals, their owners, and their guests stay subject to every ordinance that applies to other homes, including “noise, parking, nuisance, curfew, and traffic regulations.”

Idaho Falls short-term rental rules

Idaho Falls handles short-term rentals in its zoning code, Section 11-2-6(AA). As of the city’s June 2026 staff report, the code allows short-term rentals “in all zones where residential uses are also allowed.” They aren’t allowed in accessory structures not designed for habitation, or in RVs outside an approved travel trailer court. The city defines a short-term rental as a dwelling offered for a fee for 30 days or less.

The code also used to limit a short-term rental to one guest party at a time. To comply with HB 583, the city council unanimously approved Ordinance 3664 on June 25, 2026. According to the meeting minutes, the ordinance struck the city’s limits on the number of occupants and on rental duration.

The city’s short-term rental FAQ says the city doesn’t require an operator to submit an application, because the use is permitted wherever homes are. The FAQ we reviewed still mentions the one-guest-party rule, so it appears to predate Ordinance 3664. Don’t rely on that line.

Pocatello short-term rental rules

Pocatello’s zoning code defines a short-term rental as renting a dwelling unit, or part of one, for no more than 30 days. The definition points directly to Idaho Code 67-6539 (Pocatello City Code 17.01.150). Under the district use table in Section 17.03.500:

• Short-term rentals are a permitted use in the RE, RL, RMS, RMM, RH, and RCP districts.
• In the CG and CC commercial districts, they’re a restricted use. Note 6 of the table allows residential uses there when the building keeps ground-floor commercial storefronts facing the street.
• They aren’t permitted in the OP (Office Park) district.

As for licensing, the Pocatello Police Department’s business license page says “no general business license is required.” A license is needed only for specific business types. We didn’t find a short-term rental license or registration ordinance in the Pocatello code, and the state law now forbids one. Confirm zoning with Pocatello Planning and Development Services before you buy.

Ammon, Chubbuck, and county areas

The same state law covers Ammon, Chubbuck, and unincorporated Bonneville and Bannock counties. We didn’t review those local codes, so check zoning for the specific address.

State tax permits and lodging taxes

A city permit isn’t required, but the state still treats short-term rentals as taxable lodging. According to the Idaho State Tax Commission, a residence rented for 30 days or less is a rental of lodging. Three state-administered taxes can apply:

• Idaho sales tax of 6%, set by Idaho Code 63-3619. The Tax Commission lists short-term accommodations of 30 days or less as a taxable sale.
• Travel and convention tax of 2%, charged on stays of 30 days or less, including vacation-home rentals (Tax Commission).
• Auditorium district tax, which applies only to lodging inside a district’s boundaries. The Tax Commission administers it for both the Idaho Falls Auditorium District and the Pocatello-Chubbuck Auditorium District.

Under the Tax Commission’s return instructions, the Idaho Falls district covers all the area within the city of Idaho Falls. The Pocatello-Chubbuck district covers all the area within Pocatello and Chubbuck. Both districts’ rate is 5%, according to the Idaho Falls Auditorium District, the Pocatello-Chubbuck Auditorium District, and Airbnb’s Idaho tax page. Inside either city, that comes to about 13% on a taxable stay (our math).

Neither city has its own lodging tax that we could find. Under Idaho Code 50-1044, local option taxes are limited to resort cities of 10,000 people or fewer. The Tax Commission’s list of cities with their own sales tax doesn’t include Idaho Falls or Pocatello. Nearby Lava Hot Springs and Swan Valley are on it.

Do you need a seller’s permit if you only use Airbnb?

Usually not. Under Idaho Code 63-1804, short-term rental marketplaces must register with the Tax Commission and collect these taxes. The Tax Commission’s seller’s permit guidance says you don’t need permits if you rent only through marketplaces that collect and send in all taxes due on all your sales. You’ll just need to verify they’re reporting your sales.

If you take any direct bookings, by phone or email or through your own website, you need three permits: a regular seller’s permit, a travel and convention tax permit, and an auditorium district permit. You also need them if you charge fees the platform doesn’t tax. You can’t use a temporary seller’s permit for short-term lodging. You apply for all three through Idaho Business Registration, and applying is free. Returns are due by the 20th of the month after the reporting period, even when you owe nothing. Late returns can bring penalties of 5% of the tax per month, up to 25%, plus 6% annual interest, per the 2026 return instructions.

HOAs have less power than you might think

Idaho limits HOAs more than most states. Idaho Code 55-3211 says no homeowner’s association may add, amend, or enforce a covenant that limits or prohibits rentals “for any amount of time” unless the owner of the affected property expressly agreed in writing when the restriction was added. A restriction that validly attached to the property, such as one an earlier owner agreed to in writing, still runs with the land.

The Idaho Supreme Court applied this close to home in North Henry’s Lake HOA v. Norton (January 6, 2026), a Fremont County case. An HOA added a short-term rental ban in 2016. The owner at the time voted against it and never signed consent. The court held that the ban never attached to that property, so the HOA couldn’t enforce it against later buyers either. Before you buy, read the CC&Rs, find out when any rental restriction was recorded, and ask the HOA whether the property’s owner at that time consented in writing.

Frequently asked questions

Do I need a permit to run an Airbnb in Idaho Falls or Pocatello?

Not from the city. Since July 1, 2026, Idaho Code 67-6539(5) bars cities and counties from requiring one. You may still need state tax permits if you take any bookings outside a platform that collects all the taxes.

Is a short-term rental a better investment than a long-term lease here?

It depends on the property and how often it would actually book. Compare the numbers to a long-term lease using our fall 2026 Pocatello and Idaho Falls rent update.

Weighing a short-term rental in Southeastern Idaho?

Axiom Properties works with owners and investors across Idaho Falls, Pocatello, and the surrounding area. If you’d like help figuring out whether a property makes more sense as a nightly rental or a long-term lease, get in touch with Axiom Properties.

This article is general information, not legal or tax advice. Statutes, city codes, and tax rates change. Before you buy or list a property, confirm current requirements with the City of Idaho Falls or City of Pocatello planning departments, the Idaho State Tax Commission, your HOA, and a licensed attorney or tax professional.