Sun Valley & McCall Resort DSCR Loans: Financing Idaho's Vacation-Rental Markets
Program and regulatory figures verified July 24, 2026. Details change; confirm your scenario with us.
Idaho's resort towns are its purest short-term-rental play, and 2026 handed investors a gift: statewide preemption means no local STR license, while the revenue data still favors Sun Valley by a wide margin.
What are the best short-term rental markets in Idaho for 2026?
By the platform data, Sun Valley shows the strongest per-listing economics in the state: about $48,800 in average host revenue over the trailing twelve months to May 2026, on a $635 average daily rate and 47% occupancy (AirDNA). McCall performs well but at a different tier: roughly $32,092 average host revenue, a $356 ADR, and 34.2% occupancy across 533 active listings (AirROI, same window). The contrast is the story: Sun Valley is destination-resort demand with premium nightly rates, while McCall blends resort and family-vacation demand at a lower ADR and more listings. Both are legitimate; they reward different underwriting.
Do Sun Valley and McCall charge extra tax on STR income?
Yes. Idaho resort cities can add a voter-approved local-option tax on top of the state rate, and short-term-rental gross income is taxable under it. That means Idaho's 6% state sales tax plus each resort city's local-option tax: Sun Valley's total reaches 9% (6% state plus 3% city) and McCall's 7% (6% state plus 1% city). Ketchum layers its own local-option permit on top as well. For your loan, none of this reduces qualifying revenue (underwriting uses gross rent before these taxes), but all of it belongs in your operating model. Sun Valley's own figures are published on its option-tax page.
Do resort cities still license short-term rentals?
Not after HB 583. Ketchum was the only Blaine County city with an STR-specific license (an annual fee of $504 plus its local-option permit), and it was moving to repeal that ordinance to match state law. As of July 2026, HB 583 supersedes local STR licensing regardless of where a city sits in its own repeal process, so the state law is what controls. If Ketchum's ordinance text still reads as if a license is required, treat the statute as the governing rule and confirm the current posture before you list. McCall's prior occupancy-and-inspection regime is likewise preempted. Details: HB 583 explained.
The Teton County loan-limit quirk
Here's a genuinely counterintuitive, checkable fact for resort buyers. Despite Sun Valley and Ketchum price levels, Blaine County is not a high-cost conforming county: it sits at the 2026 baseline of $832,750. Teton County is Idaho's only high-cost conforming county for 2026, at $1,249,125. If your resort purchase runs above the baseline, the financing path (conforming, high-balance, or a jumbo/DSCR structure) depends on the county and the price, and we map it before you offer. FHA county limits can differ from the conforming list, so for any Blaine-County FHA scenario we confirm the specific figure with HUD rather than assuming the conforming number. Financing lanes for STR income: short-term rental loans.
No pressure, no obligation, and no salesy follow-up: a 20-minute call with our team, real numbers, and a straight answer on whether the deal pencils.
Frequently asked questions
What are the best short-term rental markets in Idaho for 2026?
On platform data, Sun Valley leads: about $48,800 average host revenue, a $635 ADR, and 47% occupancy over the trailing year to May 2026 (AirDNA). McCall follows at roughly $32,092 revenue, a $356 ADR, and 34.2% occupancy across 533 listings (AirROI). Sun Valley is premium destination demand; McCall blends resort and family-vacation demand at a lower rate.
Are short-term rentals legal in Sun Valley, Ketchum, or Hailey?
Yes. Idaho Code §67-6539 bars STR bans, and HB 583 (effective July 1, 2026) bars local STR licensing. Ketchum was the only Blaine County city with an STR-specific license ($504 a year plus a local-option permit) and is aligning with state law; Hailey has no STR-specific ordinance. Confirm the current posture, since a city page may lag the statute.
Do Sun Valley and McCall charge extra tax on short-term rental income?
Yes. Idaho's 6% state sales tax applies, plus each resort city's local-option tax on STR gross income: Sun Valley's total reaches 9% (6% state plus 3% city) and McCall's 7% (6% state plus 1% city). Underwriting uses gross rent before these taxes, but your operating model should carry them in full.
Is Sun Valley a high-cost county for loan limits?
No. Despite its prices, Blaine County (Sun Valley and Ketchum) sits at the 2026 conforming baseline of $832,750. Teton County is Idaho's only 2026 high-cost conforming county, at $1,249,125. Above the baseline, the path depends on county and price; FHA limits can differ, so we confirm any Blaine-County FHA figure with HUD.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content, not a loan commitment and not legal or tax advice. Short-term-rental law, tax figures, and fees change; verify current requirements with the city or county, your CPA, or an Idaho real estate attorney before you buy. Loans are subject to buyer and property qualification.