State Bill of the Month – July 2026: Idaho H.B. 583

Signed into law by Idaho Governor Brad Little (R), H.B. 583 protects the private property rights of Idaho homeowners by safeguarding rights to rent property short-term. The law, which took effect on July 1, prohibits local governments from regulating short-term rentals except in cases where public health and safety are in jeopardy.

To explore why this bill is necessary, it is critical to understand the wider economic context. Idaho has a year-round tourism economy with well-visited destinations such as Sun Valley, Sandpoint, and Coeur d’Alene. Tourism is currently Idaho’s third-largest industry and generates substantial revenue, with the Travel Alliance of Idaho estimating $5.83 billion, or $16 million per day, in direct spending in 2023.

Since the introduction of services like Airbnb and Vrbo, short-term rentals have skyrocketed. In 2023, Visit Idaho reported that $916 million was spent by visitors staying in short-term rentals—an increase of 6.5 percent since 2022—dwarfing the $164 million in spending from campground bookings.

Yet, local regulations and permitting requirements heavily restricted homeowners’ ability to list their homes for rent. Local jurisdictions used Idaho’s ready access to bonfires, lakefronts, and large group accommodations to justify regulation due to the ostensibly higher-risk nature of these outdoor amenities. Once regulations (e.g., additional homeowners insurance requirements) were enacted, the resulting costs made short-term renting nearly impossible in many areas of Idaho.

In response, H.B. 583 was enacted to roll back these heavy-handed regulations by localities. Not only did the legislation stop jurisdictions from banning short-term rentals, but it also reclassified them as “non-transient” residential uses. This places short-term and long-term rentals in the same category, meaning Airbnb and Vrbo rentals cannot be treated differently than long-term housing and are thus no longer targets for burdensome fines, fees, and arbitrary rules.

Prohibiting bans and penalties on short-term rentals will allow Idaho to build on its third-largest revenue source by allowing responsible homeowners the freedom to open their homes to visitors. This increased supply of rental space also bolsters competition in the tourism sector, which will drive down prices and result in more options for both domestic and international travelers.

It is for these reasons that TPA is pleased to make Idaho’s H.B. 583 its state Bill of the Month for July 2026.