Thinking about turning a Coeur d’Alene property into a short‑term rental? Summer weekends can book up fast, but off‑season lulls and real costs can surprise you. You deserve a clear, practical way to run the numbers before you buy or convert. In this guide, you’ll learn the local rules, cost factors, and a simple math framework with three scenarios using Coeur d’Alene benchmarks. Let’s dive in.
Coeur d’Alene STR market at a glance
AirDNA’s MarketMinder snapshot for Coeur d’Alene shows about 1,284 active listings, an average daily rate (ADR) near $324, occupancy around 56%, and a market median annual revenue near $27,600. Review the full context in the AirDNA MarketMinder overview.
Summer is the prime revenue season, with lake life and events driving demand. Shoulder seasons vary, so plan for wide swings in bookings. When you evaluate a specific property, pull comps at the neighborhood and bedroom level and confirm actual calendar availability before relying on any market average.
Rules, permits, and taxes you must know
The City of Coeur d’Alene requires a short‑term rental permit for stays of 1–29 nights. Permits are issued to owners, are not transferable, and require annual renewal. The city lists a first‑year fee of $285 and $180 for renewal, plus standards like a Good Neighbor Policy, 24/7 responsible‑party contact, permit number on ads, and a self‑inspection checklist. See the city’s requirements and fees on the City of Coeur d’Alene vacation rentals page.
If you are considering an ADU, the municipal code includes owner‑occupancy conditions that can affect whether an ADU may be used as an STR. Review the ADU provisions in the Coeur d’Alene municipal code.
Idaho imposes a state travel and convention tax of 2% on stays under 31 days. STR marketplaces may collect and remit some taxes on your behalf, but you are responsible for registration and confirming who remits what. Start with the Idaho State Tax Commission guide. Local lodging taxes may also apply, so verify before you launch.
Your cost stack and insurance
Plan for these recurring costs:
- Platform fees, cleaning and turnover, management, utilities and internet, supplies, maintenance, insurance, property taxes or HOA dues, and reserves for replacements.
- Total operating costs often land somewhere between 30–55% of gross revenue depending on management model and utilities, with broader industry ranges up to 30–70%. See background data in this operating cost analysis.
- Cleaning is usually a per‑stay fixed cost. Pricing your cleaning fee can influence booking behavior and overall profitability. For context on how turnovers affect bookings, review these vacation rental statistics.
Standard homeowners insurance frequently excludes business activity. Platform protections are helpful but limited. Talk with your insurer about a short‑term rental endorsement or a vacation‑rental policy that addresses property damage, liability, and loss of income. Get the basics from this overview on homeowners insurance and STRs.
Financing and tax treatment basics
Lenders and appraisers treat STR income more cautiously than long‑term rents. Appraisers are asked to value the real property, not the business or furnishings, and lenders vary in how they consider projected STR income. See the guidance in Fannie Mae’s Appraiser Update.
For federal income taxes, the IRS 14‑day rule may exclude income if you rent for fewer than 15 days per year. At 15 days or more, you must report rental income and allocate expenses between personal and rental use. Learn the details in IRS Publication 527.
The math you actually need
Collect these inputs for any property:
- Purchase price and closing costs
- Nights available, owner‑use blocks, minimum stays
- ADR and occupancy from direct comps
- City and state lodging taxes and who remits them
- Mortgage terms and estimated payment
- Operating costs: management, cleaning, utilities, HOA, insurance, supplies, reserves
Core formulas you can paste into a spreadsheet:
- Occupied nights = 365 × occupancy rate
- Gross revenue = ADR × occupied nights
- RevPAR = ADR × occupancy rate
- NOI = Gross revenue − operating expenses
- Cash flow before tax = NOI − annual mortgage principal and interest
- Cash‑on‑cash return = Annual cash flow ÷ Cash invested
- Cap rate = NOI ÷ Purchase price
Three Coeur d’Alene scenarios
Below are illustrative numbers using local benchmarks. Confirm every assumption for your specific address.
Scenario A: Conservative, median revenue
- Assumptions: Purchase price $575,000; 25% down; 30‑year fixed at 6.5%. Estimated annual P&I ≈ $32,688.
- Gross revenue: $27,600 (AirDNA market median)
- Operating expenses at 40%: $11,040
- NOI: $16,560
- Cash flow before tax: 16,560 − 32,688 = −$16,128
- Approximate cash invested: $160,000
- Cash‑on‑cash return: about −10.1%
Takeaway: At market‑median revenue, mortgage costs likely exceed NOI. Many owners reduce leverage, buy at lower price points, or reposition toward premium ADR and occupancy.
Scenario B: ADR × occupancy model
- Assumptions: ADR $324, occupancy 56% → about 204 nights
- Gross revenue: 324 × 204 ≈ $66,100
- Operating expenses at 35%: $23,135
- NOI: $42,965
- Cash flow before tax: 42,965 − 32,688 = $10,277
- Cash‑on‑cash return on $160,000 invested: about 6.4%
Takeaway: Hitting market ADR and occupancy can produce positive cash flow, but it usually requires a strong location, professional presentation, and active management.
Scenario C: Improve to premium
- Assumptions: ADR $375, occupancy 60% → about 219 nights
- Gross revenue: 375 × 219 ≈ $82,125
- Operating expenses at 40%: $32,850
- NOI: $49,275
- Cash flow before tax: 49,275 − 32,688 = $16,587
- Cash‑on‑cash return: about 10.4%
Takeaway: Upgrades, amenities, and pro management can lift returns, along with higher workload and capital needs.
Break‑even quick check
Use this simple equation to hit a target cash flow:
- ADR needed = [Mortgage + Target cash flow] ÷ [Occupied nights × (1 − Expense %)]
Example: If you expect 204 occupied nights, a 40% expense rate, and an annual mortgage of $32,688, then ADR to break even is roughly 32,688 ÷ [204 × 0.60] ≈ $267. Adjust any input to test sensitivity.
Build your CDA STR worksheet
- Pull 6–12 direct comps with the same bedroom count and amenities. Confirm minimum stays and recent calendar availability.
- Estimate ADR by season and apply realistic occupancy. Be conservative in shoulder seasons.
- Itemize every operating cost and set a reserve for furniture and replacements.
- Model both self‑management and third‑party management so you understand the tradeoffs.
- Check city permits, ADU rules, HOA/CCRs, and state lodging tax registration before you launch.
Thinking about an STR as part of your Coeur d’Alene purchase plan? Let’s map the numbers to your goals and find the right property fit. Reach out to Stacey Leech for local guidance, lender and insurance introductions, and a tailored game plan.
FAQs
Are short‑term rentals profitable in Coeur d’Alene?
- Profitability is property‑specific. AirDNA shows a market median around $27,600 per year, while average ADR and occupancy can support higher outcomes for premium units. Always run comps and full expenses using the AirDNA Coeur d’Alene overview.
Do I need a city permit to operate an STR in Coeur d’Alene?
- Yes. The city requires a permit for rentals of 1–29 nights, annual renewal, and compliance with operating standards and notices. Details and fees are on the city’s STR page.
How are Idaho lodging taxes handled for STRs?
- Idaho charges a 2% travel and convention tax on stays under 31 days. Marketplaces may remit for you, but you must register and confirm who files and pays. Start with the Idaho tax guide.
What insurance coverage should I consider for a vacation rental?
- Homeowners policies often exclude business use. Ask your insurer about a short‑term rental endorsement or a vacation‑rental policy. Platform protections are not a substitute. See this insurance overview.
Can STR income help me qualify for a mortgage?
- Possibly, but lenders treat STR income cautiously and appraisers focus on real property value. Review the considerations in Fannie Mae’s Appraiser Update and talk with your lender early.
How does the IRS treat income from a home I also use personally?
- If you rent it fewer than 15 days per year, rental income may be excluded. At 15 days or more, report all rental income and allocate expenses under IRS Publication 527.
