Thinking about buying in Coeur d'Alene and putting it on Airbnb or VRBO? You can — but there are rules you need to know before you buy. Here's the plain-English version.

Inside Coeur d'Alene city limits: you need a permit

Any rental of 1 to 29 nights inside city limits requires an annual city permit. 

Here's what that involves:

• First-year permit fee: $285. Annual renewal: $180.
• You'll need a parking plan, a floor-by-floor safety/escape plan, smoke and CO detectors, and fire extinguishers on each floor
• You must notify adjacent neighbors before applying
• Your permit number must appear on all listings (Airbnb, VRBO, etc.)
• An owner or responsible party must be reachable 24/7 while the unit is occupied

There's a limited exemption: you can rent up to 14 days per year without a permit, split into no more than two stays.

The permit doesn't transfer when you sell

This is the one that surprises buyers most. If you purchase an existing Airbnb, you are not buying the permit — you're buying the property. You'll need to apply for your own permit after closing. Don't model your income on the seller's booking history without accounting for this.

One unit per parcel

The city limits STRs to one unit per owner per parcel. So if you own a duplex, you can only rent one side as a short-term rental — not both. You can, however, own multiple permitted STRs across different parcels in the city.

Outside city limits: Kootenai County rules apply

If your property is in the county — which includes many waterfront and rural parcels — the city's rules don't apply. Kootenai County has its own regulations, and they've been evolving. Check directly with the Kootenai County Planning Department before assuming anything.

HOAs can override everything

A city permit does not override your HOA. Many newer developments and condo communities near the lake have CC&Rs that restrict or ban short-term rentals entirely. These rules are fully enforceable.

If STR income is part of your plan, get the full CC&Rs and confirm the HOA's position in writing before you make an offer — not after.

Idaho state law is on your side (mostly)

Idaho's Short-Term Rental and Vacation Rental Act (Idaho Code 63-1801) prevents local governments from effectively banning STRs altogether. In May 2025, the Idaho Supreme Court reinforced this by striking down a local ordinance that functioned as a ban in residential zones. Cities can regulate how you operate, but they can't shut the door entirely.

Don't forget taxes

Airbnb and VRBO collect and remit certain lodging taxes on your behalf in Idaho, but you're still responsible for registering properly and staying compliant. The relevant state rules are in Idaho Administrative Code 35.01.06.003.

Before you buy: a quick checklist

• Is the property inside city limits or in Kootenai County?
• Does the HOA allow short-term rentals? (Get it in writing)
• Is there a current STR permit — and do you understand it won't transfer to you?
• Does the property have enough parking to meet the city's requirements?
• Have you modeled income based on CDA's seasonal reality, not just summer peak rates?

The CDA short-term rental market is strong — but the details matter. If you're looking at a specific property and want to know whether it works for your goals, reach out and I'll walk through it with you.

Information current as of mid-2026. Always verify with the City of Coeur d'Alene Planning Department or Kootenai County before purchasing or listing.