Overview — Are short-term rentals allowed in Island Park, ID?

• Yes. Short-term rentals (rents of fewer than 30 days) are allowed in Island Park and unincorporated Fremont County. A Transient Lodging Permit from Fremont County is required to operate. Compliance is strong but enforcement is primarily complaint-driven and education-focused.

State-level backdrop — Idaho protections for STRs

• Idaho House Bill 216 (2017) prevents local governments from banning short-term rentals and requires any new local restrictions to be narrowly tailored to health, safety, and neighborhood integrity. The state allows third‑party platforms (Airbnb/VRBO) to collect state lodging taxes on hosts’ behalf. County and city rules in Island Park and Fremont County therefore focus on permitting, safety, and basic conduct standards, not outright prohibition.

How to start an STR business in Island Park (step-by-step)

1. Choose and prepare the property

• Confirm the site is served by a permitted well and approved septic (county requirements for all lodging).
• Ensure basic safety systems: smoke detectors, CO detectors (where fuel-burning appliances exist), fire extinguishers, and posted emergency/contact information.

2. Obtain required permits and registrations

• Fremont County Transient Lodging Permit (see “Permits, licenses, and documents”). Contact Fremont County Planning & Building.
• Idaho business registrations: Idaho Business Registration and Sales Tax account; register to collect and remit Idaho lodging taxes if you take direct bookings (platforms often collect and remit state taxes automatically).

3. Book inspections

• Septic system inspection (every 2 years).
• Well water inspection (every 2 years).
• County verifies building code compliance; address any corrections promptly.

4. Taxes

• Idaho Sales Tax (6%) and Travel & Convention Tax (2%) for lodging = 8% total.
• Use Airbnb/VRBO or file monthly with Idaho Tax Commission if taking direct bookings.

5. Insurance and operations

• Obtain liability coverage appropriate for lodging.
• Establish local management/emergency contact and guest communications.

6. Launch and compliance

• Post house rules (quiet hours, occupancy, parking, wildlife/fire restrictions).
• Maintain permits, inspection certificates, and registrations current; renew annually.

Permits, licenses, documents, and guidelines

• Fremont County Transient Lodging Permit (under 30‑day stays)
  • Classifications based on guest capacity:
    • Class 1 Permit: up to 15 guests; annual fee: $200
    • Class 2 Permit: 16–30 guests; annual fee: $500
  • Renewal: annual
  • Inspections:
    • Septic system inspection every 2 years
    • Well water inspection every 2 years
    • Building code compliance verification
• Idaho Business Registration (business.idaho.gov): recommended for lodging businesses
• Idaho Sales Tax Permit (tax.idaho.gov): required if you collect/ remit taxes directly (platforms often collect state taxes for hosts)
• Safety and equipment: smoke/CO detectors, fire extinguishers, posted emergency numbers and local contact; extreme weather and wildlife safety information recommended for guests
• Guest rules and notices: quiet hours (commonly 10 p.m.–7 a.m.), occupancy limits, parking, wildlife/fire restrictions, and emergency procedures
• Insurance: liability coverage advisable
• HOA/POA: follow subdivision rules if applicable; proof of permits may be required

Regulations by jurisdiction

• State of Idaho
  • HB 216 (2017): STRs cannot be banned; local rules must address health, safety, and welfare; platforms may collect/remit state lodging taxes.
  • Lodging taxes: 6% sales tax + 2% travel & convention tax = 8% total. Many platforms collect automatically.
• Fremont County (county-level rules apply to Island Park and the broader area)
  • Transient Lodging Permit required for <30‑day stays; two classes based on guest capacity (Class 1: $200 ≤15 guests; Class 2: $500 ≤30 guests).
  • Inspections: septic and well every two years; building code compliance verification.
  • Noise, occupancy, and conduct: local standards enforced primarily through complaints; county emphasizes education and compliance.
• City of Island Park (within city limits)
  • The City’s Development Code establishes base residential (R1, R2) and commercial zoning, plus Airport Overlay and a PUD overlay. City-level STR‑specific licensing was not identified in the provided sources. Within the City, most residential and commercial properties can host lodging if they meet county permit and safety requirements. Confirm any city home‑occupation requirements with the Building Department.

Taxes and fees

• State lodging taxes: 8% total (6% Idaho sales tax + 2% travel & convention tax).
• Local option lodging taxes: None identified for Fremont County or City of Island Park.
• Auditorium district taxes: None; Island Park is not in an auditorium district.
• Collection/remittance:
  • Airbnb and VRBO typically collect and remit Idaho sales tax and travel/convention tax on behalf of hosts.
  • Direct bookings: You are responsible for monthly filing and remittance via the Idaho Tax Commission.
• Annual county permit fees: $200 (Class 1) or $500 (Class 2).

Safety and inspection requirements

• Required safety equipment
  • Smoke detectors in sleeping areas and common spaces
  • Carbon monoxide detectors (where fuel-burning appliances exist)
  • Fire extinguishers on each level
  • Posted emergency contact numbers and local emergency information
• Mountain/wildland specifics
  • Wildlife safety (bears, small mammals), fire restrictions, and emergency supply guidance recommended for guests
  • Winter readiness: backup heating, snow removal plan, and emergency procedures
• Inspections and certifications
  • Septic system inspection every 2 years
  • Well water inspection every 2 years
  • Building code compliance verification by county
  • Self‑checks recommended periodically for safety equipment and systems

Enforcement and compliance realities

• Limited county enforcement resources: The Planning & Building Department is small; enforcement is largely complaint-driven and emphasizes education and compliance over penalties.
• Estimated compliance: Officials estimate roughly 60% of short‑term rentals are permitted (nearly 600 permitted cabin rentals), with possibly up to 1,000 active rentals identified on platforms.
• Approach: The county contacts unpermitted operators; most obtain permits voluntarily. Fines and citations are rarely used.
• Common issues: Unpermitted operations, occupancy/conduct concerns in residential areas, parking/traffic during peak seasons.

Contact information for local authorities

• Fremont County Planning & Zoning (permits and inspections)
  • Website: Fremont County Planning & Zoning (co.fremont.id.us)
  • Purpose: Transient Lodging Permit, inspections (septic, well, compliance)
• City of Island Park (city-level planning/building)
  • Building Department: villageofislandpark.com/building-department/
  • City Clerk (per City of Island Park content): Reeca Marotz
    • Phone: (208) 558‑7687
    • Email: cityip@myidahomail.com
    • Address: 3753 N. Highway 20, Island Park, ID 83429
• Idaho State Tax Commission (lodging tax registration)
  • Website: tax.idaho.gov
  • Phone: (208) 334‑7660
• Idaho Business Registration
  • Website: business.idaho.gov

Links to source pages

• Short‑Term Rental Regulation in Island Park, ID — Chalet: www.getchalet.com/rental-regulations/island-park-id
• Navigating STR Property Zoning Laws in Island Park — High Mountain Property Management: www.highmtnpm.com/post/short-term-rental-property-zoning-laws-in-island-park
• Island Park ID Short Term Rental Regulations — The Offer Sheet: local.theoffersheet.com/legal/island-park-id
• Short‑term rental issues plague Island Park, near Yellowstone — Daily Montanan: dailymontanan.com/2021/06/26/short-term-rental-issues-plague-island-park-near-yellowstone/
• City of Island Park Development Code 2021 (PDF): islandparkid.govoffice2.com/vertical/sites/%7B64CAC5EE-008E-4847-97A6-BB3F3BDE8645%7D/uploads/Develpmnet_Code.pdf
• Island Park Area of City Impact Official Zoning Map (PDF): islandparkid.govoffice2.com/vertical/sites/%7B64CAC5EE-008E-4847-97A6-BB3F3BDE8645%7D/uploads/Island_Park__AOI_Zoning.pdf
• Preferred Land Use — Island Park Planning Area Map (Fremont County, PDF): www.fremontcountyid.gov/DocumentCenter/View/680/Preferred-Land-Use-Island-Park-Area-Map-PDF
• Island Park Subdivision Inventory Map (Fremont County, PDF): www.fremontcountyid.gov/DocumentCenter/View/686/Island-Park-Subdivision-Inventory-Map-PDF
• Building Department of the Village of Island Park: villageofislandpark.com/building-department/
• Planning & Zoning Commission of Fremont County: www.co.fremont.id.us/256/Planning-Zoning
• Idaho House Bill 216 (2017) — Short‑Term Rental law: legislature.idaho.gov/sessioninfo/2017/legislation/h0216/
• Airbnb Help: Occupancy Tax Collection and Remittance: www.airbnb.com/help/article/1036/how-does-occupancy-tax-collection-and-remittance-by-airbnb-work

Investor notes and practical takeaways

• Market strength: Island Park’s gateway location to Yellowstone drives year‑round tourism (summer recreation and winter snowmobiling), supporting premium pricing in peak seasons.
• Regulatory climate: State law protects STRs; county rules are permitting‑ and safety‑focused; city zoning accommodates lodging uses in residential and commercial areas, with city‑specific STR licensing not identified in current sources.
• Compliance strategy: Secure the Fremont County Transient Lodging Permit, maintain septic/well inspections, collect/remit lodging taxes (or leverage platform collection), and implement clear guest rules for quiet hours, occupancy, parking, and safety.
• Risk management: Given limited enforcement resources and wilderness conditions, invest in backup heating, snow removal arrangements, wildlife/fire guidance for guests, and robust property management coverage.

Notes

• Information reflects publicly available sources cited above. Local rules can evolve; confirm current requirements with the City of Island Park Building Department and Fremont County Planning & Zoning before investing or opening an STR.