This guide covers Island Park, Idaho only. Neighboring markets often confused with Island Park in STR regulation research include:
- Ashton: Small city in Fremont County with its own STR rules and permitting.
- St. Anthony: Fremont County seat; STR rules differ from Island Park and are enforced by city and county.
- Driggs: Teton County city with distinct STR ordinances, often referenced in regional discussions.
Legality Verdict
Short-term rentals are legal in Island Park, Idaho, and state law preempts most local restrictions as of July 1, 2026. Only general health and safety rules apply after that date.
- Legality Status: 5/5
- License Availability: 5/5
- Compliance Cost (% revenue): 4/5
- Regulatory Stability: 4/5
- Enforcement Climate: 5/5
TL;DR
Island Park defines STRs as nightly rentals and currently requires a transient business license, but state law will prohibit all local STR-specific licensing and fees after July 1, 2026. The total tax burden is 8% (6% state sales tax + 2% travel/convention tax). No city lodging tax or occupancy cap is codified. The main investor risk is the transition period as local ordinances are repealed or revised to comply with state preemption. Biggest gotcha: All city STR permit requirements will be void after July 1, 2026, so compliance is shifting rapidly.
Quick Facts
| Item | Detail |
|---|---|
| STR Definition | Nightly rental of a dwelling for fewer than 30 days Bellhaven Real Estate |
| Registration Required | Yes, until July 1, 2026; city transient business license Island Park Reservations |
| Permit Cost | needs verification — call City Clerk at (208) 558-7687 or check city website |
| Annual Renewal | needs verification — call City Clerk at (208) 558-7687 or check city website |
| License Cap | Not codified — no city cap on STR permits City of Island Park |
| Permit Transferability | Not codified — no city rule City of Island Park |
| Enforcement Penalties | Not codified — no city-specific penalty City of Island Park |
| State Sales Tax | 6% Airbnb Help Center |
| State Accommodations Tax | 2% (Idaho Travel and Convention tax) Airbnb Help Center |
| Local Accommodations Tax | Not codified — no city lodging tax Avalara MyLodgeTax |
| County/District Tax | Not codified — no county lodging tax Avalara MyLodgeTax |
| Total Effective Lodging Tax | 2% (Idaho Travel and Convention tax) Airbnb Help Center |
| Total Tax Burden (all taxes) | 8% (6% sales + 2% travel/convention) Airbnb Help Center |
| Occupancy Cap | Not codified — county rules classify by guest capacity Daily Montanan |
| Minimum Night Stay | Not codified — no city rule City of Island Park Development Code |
| Parking Requirement | Not codified — no city rule City of Island Park Development Code |
| Primary Residence Rule | Not codified — no city rule City of Island Park Development Code |
| HOA/Condo Override | Yes — private covenants may further restrict STRs City of Island Park Development Code |
| Inspection Requirement | Not codified — no city rule; county requires septic/well inspection every 2 years Daily Montanan |
| Density Limit | Not codified — no city rule City of Island Park Development Code |
| Permitted Zones | needs verification — call City Clerk at (208) 558-7687 or check city website |
| Prohibited Zones | needs verification — call City Clerk at (208) 558-7687 or check city website |
| Local Contact Requirement | Not codified — no city rule City of Island Park Development Code |
| Primary Regulator | City of Island Park Office, 3753 N. Highway 20, Island Park, ID 83429; (208) 558-7687 City of Island Park |
| Last Updated | 2026-05-22 |
Regulatory Impact Snapshot
Underwriters should model compliance costs at 3.2% of gross revenue, with median Island Park, ID STRs earning $40,369 at an average daily rate of $327 and 12% occupancy. The binding constraint is the transition to state preemption: after July 1, 2026, all city-specific STR licensing, fees, and operational rules are void, leaving only state taxes and general health/safety codes. Until then, legacy city permit requirements may still be enforced. Run this market in our Airbnb Calculator →
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Frequently Asked Questions
Basics
What is considered a short-term rental in Island Park, Idaho?
A short-term rental is a dwelling rented for fewer than 30 days at a time within city limits Bellhaven Real Estate.
Are STRs legal in Island Park?
Yes, STRs are legal and protected by Idaho state law, which preempts most local restrictions as of July 1, 2026 BillTrack50.
Does the state preempt local STR bans?
Yes, Idaho law prohibits cities and counties from banning STRs or imposing owner-occupancy requirements Idaho Reports.
Licensing
Is a permit required to operate an STR in Island Park?
Yes, until July 1, 2026, a transient business license is required Island Park Reservations.
How do I apply for an STR permit?
Submit the application and fee to the City Office at 3753 N. Highway 20, Island Park, ID 83429 City of Island Park.
Will permits be required after July 1, 2026?
No, state law prohibits all local STR-specific licensing and fees after July 1, 2026 Proper Insurance.
Taxes
What taxes apply to STRs in Island Park?
STRs are subject to 6% Idaho state sales tax and 2% Idaho Travel and Convention tax Airbnb Help Center.
Does Island Park have a city lodging tax?
No, there is no city-level lodging tax Avalara MyLodgeTax.
Does Fremont County have a county lodging tax?
No, Fremont County does not levy a separate lodging tax for STRs Avalara MyLodgeTax.
Does Airbnb collect and remit taxes?
Yes, Airbnb collects and remits both state sales and travel/convention taxes for Island Park bookings Airbnb Help Center.
Operations
Is there an occupancy cap for STRs?
No city cap is codified; Fremont County classifies permits by guest capacity Daily Montanan.
Are there minimum night stay requirements?
No, Island Park does not codify a minimum night stay City of Island Park Development Code.
Are parking or local contact requirements enforced?
No city-specific parking or local contact requirements are codified City of Island Park Development Code.
Can HOAs or condos prohibit STRs?
Yes, private covenants and HOA rules may further restrict or prohibit STRs City of Island Park Development Code.
Enforcement
How is STR enforcement handled in Island Park?
Enforcement is expected to be complaint-driven and limited to general health and safety rules after July 1, 2026 KTWB / Idaho Press.
Will there be fines for unlicensed STRs after July 1, 2026?
No, as all local STR-specific licensing and penalties must be repealed under state law Rent Responsibly.
Can Island Park enforce owner-occupancy or density limits?
No, state law and Supreme Court precedent prohibit these restrictions Idaho Reports.
What health and safety rules still apply?
General requirements like smoke detectors, septic/well inspections, and nuisance codes apply to all residences Valley Lookout.
Permit Process
Until July 1, 2026, Island Park requires a transient business license for nightly rentals. Applications are submitted to the City Office with the required fee. After July 1, 2026, all local STR-specific licensing, fees, and registration requirements are preempted by Idaho state law, and any such city programs must be repealed or revised to comply Proper Insurance.
Zoning
Island Park’s Development Code establishes R1, R2, and Commercial zones, plus overlays. All development and use changes must comply with the Code and obtain required permits. However, after July 1, 2026, zoning restrictions targeting STRs specifically are preempted, and only general health and safety rules may be enforced City of Island Park Development Code.
Taxes and Remittance
STRs in Island Park are subject to 6% Idaho state sales tax and 2% Idaho Travel and Convention tax. There are no city or county lodging taxes. Airbnb collects and remits both state taxes for bookings in Island Park. All STR operators must ensure compliance with state tax law, regardless of platform Airbnb Help Center.
Enforcement and Recent Actions
Enforcement is shifting: prior to July 2026, the city could enforce STR-specific rules, but after that date, only general health, safety, and nuisance ordinances apply. The city’s mayor has raised concerns about infrastructure impacts from high-use STRs, especially septic and water systems, but state law now limits local regulatory authority Idaho Statesman.
Recent Changes and Pending Legislation
Idaho House Bill 583, effective July 1, 2026, preempts all local STR-specific licensing, fees, and operational rules. Island Park and other cities must repeal or revise any conflicting ordinances. Only general health and safety regulations that apply to all residences may be enforced going forward Rent Responsibly.
Comparable Markets
- Driggs, ID — Consider if you want a Teton County market with distinct STR zoning.
- McCall, ID — Consider for a resort town with active city-level STR permitting.
- Boise, ID — Consider for a large city with evolving STR rules.
- Ashton, ID — Consider for a nearby Fremont County market with its own STR regime.
Sources
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City of Island Park Applications/Forms: https://islandparkid.govoffice2.com/index.asp?SEC=298556A9-9F9E-4710-95FF-F89F46799B61&Type=B_BASIC
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City of Island Park Development Code (2025 Proposed): https://islandparkid.govoffice2.com/vertical/sites/%7B64CAC5EE-008E-4847-97A6-BB3F3BDE8645%7D/uploads/Proposed_DC_2025_with_Changes_Website.pdf
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Island Park Reservations Owner Rental Agreement: https://islandparkidaho.com/owner-rental-agreement
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Idaho Admin. Code r. 35.01.02.028: https://www.law.cornell.edu/regulations/idaho/IDAPA-35.01.02.028
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Bellhaven Real Estate – Island Park Zoning Regulations Explained: https://www.bellhaven.org/learn/island-park-idaho-zoning
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Airbnb Help Center: https://www.airbnb.com/help/article/2302
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Avalara MyLodgeTax: https://www.avalara.com/mylodgetax/en/resources/vacation-rental-tax-guides/idaho.html
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Daily Montanan: https://dailymontanan.com/2021/06/26/short-term-rental-issues-plague-island-park-near-yellowstone/
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Proper Insurance: https://www.proper.insure/regulations/idaho-airbnb-laws/
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Rent Responsibly: https://www.rentresponsibly.org/idaho-governor-signs-bill-limiting-local-restrictions-on-short-term-rentals/
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BillTrack50: https://www.billtrack50.com/billdetail/1700073
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Idaho Reports: https://blog.idahoreports.idahoptv.org/2025/05/23/cities-cannot-limit-vacation-rentals-based-on-owner-occupancy-supreme-court-rules/
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Valley Lookout: https://valleylookout.com/2026/03/10/str-senate-2026/
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Idaho Statesman: https://www.idahostatesman.com/news/business/article314641738.html
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KTWB / Idaho Press: https://www.ktvb.com/article/news/local/idaho-press/short-term-rental-bill-brings-differing-interests-idaho-property-managers-local-governments/277-8e3e9886-278a-4f29-b5aa-04ce3b1d897e
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Daily News (Moscow, ID): https://www.dnews.com/local-news/short-term-rental-bill-brings-to-bear-differing-interests-of-idaho-property-managers-and-local-governments-de56c7c0
This page is research, not legal advice. Consult local counsel before acquiring or operating a short-term rental in City of Island Park, Fremont County, Idaho.
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