Overview

Short-term rentals are explicitly allowed in both Bonner County (unincorporated areas) and Bonners Ferry, Idaho. However, there are important jurisdictional distinctions and regulatory requirements that investors must understand. Bonner County operates under state preemptive law that protects STR operators from discriminatory local restrictions, following the Idaho Supreme Court's 2025 ruling that cities cannot limit vacation rentals based on owner-occupancy requirements.

How to Start a Short-Term Rental Business

For Bonner County (Unincorporated Areas):

1. Determine Zoning Compliance: Verify that your property zoning allows vacation rentals by consulting Bonner County's zoning tables (BCRC Tables 12-332 through 12-336)
2. Obtain Vacation Rental Permit: Apply for the required vacation rental permit through the Bonner County Planning Department
3. Secure Building Permits: If constructing or renovating, obtain necessary Building Location Permits
4. Meet Additional Requirements: Comply with all applicable state and federal regulations including:
   • State electrical, plumbing, and mechanical permits through Idaho Division of Building Safety
   • GIS addressing assignments
   • Encroachment permits (Road Department, ITD, Highway District)
   • Panhandle Health District approvals
   • Local fire district approvals

For Bonners Ferry (Within City Limits):

Since Bonners Ferry has its own municipal ordinances separate from county regulations, investors must:

1. Contact City Directly: Reach out to Bonners Ferry Planning Department or City Clerk for specific city requirements
2. Obtain City Permits: Follow city-specific permitting processes that may differ from county requirements
3. Comply with Municipal Codes: Adhere to any city-specific zoning, safety, and operational standards

Required Documents, Permits, Licenses, and Guidelines

Essential Permits and Licenses:

• Vacation Rental Permit (Bonner County Planning Department)
• Building Location Permits (for structures over 400 square feet)
• Floodplain Development Permits (if in designated Special Flood Hazard Areas)
• Small Structure Permits (for detached accessory structures 401-1,080 sq ft)
• Home Occupation Permit (if operating as home-based business)

State-Level Requirements:

• Idaho Division of Building Safety permits for electrical, plumbing, mechanical, propane, and manufactured home placement
• Idaho Department of Water Resources approvals
• Idaho Division of Environmental Quality (DEQ) approvals

Documentation Requirements:

• Certificate of Compliance application for lot/parcel legality verification
• Site plans showing setbacks, easements, and development features
• Floodplain certifications if applicable
• Utility connections documentation
• Fire district approvals

Specific Regulations

State-Level Regulations (Idaho):

• Idaho Short-term Rental and Vacation Rental Act (2017): Preempts local governments from limiting STRs beyond reasonable health and safety regulations
• Supreme Court Ruling (2025): Cities cannot discriminate between owner-occupied and non-owner-occupied STRs; all three types (owner-occupied, non-owner-occupied, and those in condominiums/cooperatives/timeshares) must be treated equally
• Reasonable regulations only: Local governments may impose health and safety standards but cannot create practical prohibitions

Bonner County Regulations:

• Permit Requirements: All vacation rentals require permits regardless of size or frequency
• Setback Compliance: Must adhere to county setback requirements per BCRC Tables 12-411 and 12-412
• Floodplain Restrictions: Special permits and stricter standards apply in flood-prone areas
• Zoning Compliance: Vacation rentals must be permitted uses in the applicable zoning district
• No Building Codes: County has not adopted building codes since 1997, though location and use are still regulated

Potential Bonners Ferry Municipal Regulations:

Since the city operates under its own municipal code separate from county regulations, specific city requirements may include:

• Municipal business licenses
• City-specific zoning compliance
• Local fire safety codes
• Municipal utility connections
• City parking and noise ordinances

Contact Information

Bonner County Planning Department

• Address: 1500 Highway 2, Sandpoint, ID 83864
• Phone: (208) 255-3630
• Email: Contact through planning department
• Website: www.bonnercountyid.gov/departments/Planning
• Hours: Monday through Friday, 8:00 AM to 5:00 PM

Related State Agencies:

• Idaho Division of Building Safety: 1250 Ironwood Drive, Suite 220, Coeur d'Alene, ID 83814, Phone: (800) 955-3044, Website: www.dbs.idaho.gov
• Panhandle Health District: 2101 Pine St, Sandpoint, ID 83864, Phone: (208) 265-6384

For Bonners Ferry (City-Specific):

• Contact Required: Reach out to Bonners Ferry City Hall or Planning Department directly, as city operates independently from county regulations

Source Links

• Idaho Supreme Court Ruling on Vacation Rentals
• Bonner County Planning Department FAQ
• Bonner County Viewer 2.0 (GIS Maps)
• Bonner County Code - BCRC Tables 12-332 through 12-336
• Bonner County Subdivisions & Platting Information
• FEMA Flood Maps

Important Note: This guide provides county-level information for unincorporated Bonner County. For properties within Bonners Ferry city limits, investors must contact the city directly for specific municipal requirements, as cities within Bonner County maintain independent regulatory authority and may have ordinances that differ from county regulations.