Boise, ID post-pandemic correction underway after explosive 2021-22 growth; fundamentals remain sound for long-term holds. This report covers current market conditions, the full investment arithmetic on a median-priced rental, and where Boise ranks against the 19 other metros tracked here.
Current Market Snapshot
Investment Analysis
With a gross yield of 4.6% and a median price of $445,000, Boise sits at the lower end of the yield spectrum. A typical 2-bedroom property rents for approximately $1,705/month based on HUD Fair Market Rent data.
The affordability index of 78 suggests housing costs exceed what the median household can comfortably afford — watch for affordability-driven demand moderation.
Market Temperature: Cool
With a median DOM of 45 days and approximately 2,400 active listings and a buyer-favourable environment, Boise's market is currently classified as cool. Rising inventory gives buyers negotiating leverage; sellers should price aggressively.
The Numbers on a Median-Priced Rental
Buying the median Boise home at $445,000 with 20% down takes $102,350 in cash — a $89,000 deposit plus roughly $13,350 in closing costs at 3% — and leaves a $356,000 loan. At 7.0% over 30 years that is $2,368/month in principal and interest.
On those assumptions the median Boise rental produces a 1.39% cap rate and falls roughly $1,853 a month short of covering debt service. Cash-on-cash return on the $102,350 invested is -21.72%, and the debt service coverage ratio is 0.22× — below 1.0×, meaning the property cannot service its own debt at 20% down — this is an appreciation play, not a cash flow one. On a rent basis, you need $3,894 a month to break even — 128% above the $1,705 HUD benchmark.
Rate and Rent Sensitivity
Financing cost dominates the outcome. One percentage point on the mortgage rate moves monthly cash flow by more than a 10% swing in rent does:
| Mortgage Rate | P+I Payment | Monthly Cash Flow |
|---|---|---|
| 6.0% | $2,134/mo | -$1,618/mo |
| 7.0% | $2,368/mo | -$1,852/mo |
| 8.0% | $2,612/mo | -$2,096/mo |
| Rent Scenario | Monthly Rent | Cap Rate | Monthly Cash Flow |
|---|---|---|---|
| HUD FMR − 10% | $1,534/mo | 1.0% | -$1,997/mo |
| HUD FMR | $1,705/mo | 1.39% | -$1,853/mo |
| HUD FMR + 10% | $1,875/mo | 1.78% | -$1,709/mo |
How Boise Ranks
Among the 20 metros covered here, Boise is 16th by gross rental yield and 6th most expensive. Its 4.6% yield sits below the 5.15% median of the set, and its $445,000 price sits above the $390,000 median. The price-to-rent ratio is 21.7× and the price-to-income ratio is 6.2× against a median household income of $72,000.
The metros closest to Boise on gross yield are Miami, FL (4.5%), Salt Lake City, UT (4.4%), Austin, TX (4.8%). If Boise is on your list, those are the markets whose numbers you should be holding it against — not the national average.
What Has to Be True for Boise to Work
A median-priced rental here consumes $22,236 a year in cash. That is not automatically a bad deal: the same loan repays $3,616 of principal in year one, so the true first-year drag is about $18,620. To break even on the cash line alone the property has to appreciate 5.0% a year, against the -2.5% the metro has actually posted over the past twelve months. Hold it five years and amortisation alone builds $20,892 of equity — the question is whether you can fund the shortfall for that long without selling at the wrong moment.
Key Data Points
| Metric | Value |
|---|---|
| Median Sale Price | $445,000 |
| YoY Price Change | -2.5% |
| Median Days on Market | 45 days |
| Active Listings | 2,400 |
| Est. 2BR Fair Market Rent | $1,705/mo |
| Gross Rental Yield | 4.6% |
| Median Household Income | $72,000 |
| Affordability Index | 78 |
| Price-to-Rent Ratio | 21.7× |
| Price-to-Income Ratio | 6.2× |
| Gross Rent Multiplier | 21.7 |
| Cap Rate (45% expense basis) | 1.39% |
| Cash Flow at 20% Down | -$1,853/mo |
| Cash-on-Cash Return | -21.72% |
| Break-Even Rent | $3,894/mo |
Getting Live Data via API
ZipMarketData provides live data for all ZIP codes within the Boise, ID metro. Use the /market-stats endpoint with any Boise ZIP code for the most current figures — or run the same analysis without writing code in the dashboard.