Overview: Are short‑term rentals allowed in Malad City, ID?

Short‑term rentals appear to be permissible in Malad City, Idaho, under the City’s Zoning Ordinance No. 474, but only in specific use categories and zoning districts, and likely only with prior approvals and permits. Specifically:

• Bed and Breakfast Facility (B&B): Allowed in “R” Residential zones (city code defines B&B as a dwelling with 1 to 5 overnight guest rooms for compensation, breakfast only, retaining a residential appearance).
• Tourist Home: Allowed in “C” Commercial zones (permitted use under the Commercial “C” zone list).
• Hotel/Motel: Allowed in “C” Commercial zones.

The City is currently revising its zoning ordinance (ordinance updates occur on a five‑year cycle), and the Planning & Zoning Commission has stated that short‑term rentals, twin homes, and accessory dwelling units (ADUs) are being addressed in the update process as of March 2025. The draft updates have not yet been adopted; therefore, investors should rely on the current Zoning Ordinance No. 474 and seek written confirmation from the Planning & Zoning Commission (P&Z) for how an STR will be classified and approved.

Bottom line: STRs are allowed, but the pathway depends on the zoning of your property and the use category under which the City will approve your operation. Expect to use the B&B pathway in “R” zones and the Tourist Home pathway in “C” zones. Hotel/Motel permitting applies only to larger, conventional lodging properties in commercial zones.

References:

• Malad City Zoning Ordinance No. 474 (2023), Articles II (Definitions) and IV (Use provisions for “R” and “C” zones).
• Malad City Newsletter (March 2025) on ongoing zoning ordinance updates, including STRs.

How to start a short‑term rental business in Malad City

1. Confirm zoning and permissible STR pathway:

   • “R” Residential Zone (B&B Facility pathway)
   • “C” Commercial Zone (Tourist Home or Hotel/Motel pathway)
   • Obtain written confirmation from the Planning & Zoning Commission regarding classification and permitted uses.

2. Secure building and safety compliance:

   • Building permit(s) as applicable for interior/exterior work.
   • Certificate of Occupancy (CO) as required by Malad City enforcement provisions.

3. Obtain local approvals and permits:

   • Business license/registration if applicable (confirm with City Clerk).
   • Sales tax registration and remittance through the Idaho State Tax Commission (transaction‑privilege tax). Idaho does not impose a state‑level occupancy tax.
   • Any local transient lodging taxes if enacted by the City (none identified in current materials; confirm with City).

4. Property standards and operations:

   • Bed and Breakfast (Residential zone): 1 to 5 guest rooms; breakfast service only; retain residential appearance; ensure compliance with residential dimensional standards (setbacks, height, lot area).
   • Tourist Home/Hotel/Motel (Commercial zone): ensure compliance with Commercial “C” zone yard/area standards and applicable use requirements.
   • Off‑street parking: satisfy Article XI (Off‑Street Parking and Loading Facilities) standards appropriate to the use (residential vs. commercial lodging).
   • Safety: Install/maintain required smoke/CO detectors; confirm fire exits and egress; follow building code life safety requirements.

5. Engage with neighbors and the approval process:

   • For uses requiring special permits (e.g., Churches/Schools in “R” zones, certain Commercial uses), the P&Z Commission and City Council may be involved. Confirm whether B&B or Tourist Home operations require special permits in your case.
   • Note that Malad City’s permitting emphasizes public notice, hearings (Article IX), and variance processes (Article XIII). Expect to adhere to these procedures if your project triggers a special use or zoning interpretation.

Required documents, permits, licenses, and guidelines

• Building Permit Application(s):
  • Required for construction, alteration, or structural changes.
  • Content and approval processes defined in Article XIV (Enforcement).
• Certificate of Occupancy (CO):
  • Required prior to occupancy/use as per Article XIV.
  • A temporary CO may be available; see Article XIV.
• Business License/Registration:
  • Confirm with the City Clerk whether a local business license is required for STR operations.
  • City “Licenses and Permits” page should list current business licensing requirements.
• Idaho State Tax Registration:
  • Register for transaction‑privilege (sales) tax through the Idaho State Tax Commission if you sell lodging services.
  • Idaho does not require an occupancy tax remittance at the state level.
• Zoning Documentation:
  • Written confirmation from the Malad City P&Z Commission regarding permitted use classification (B&B vs. Tourist Home vs. Hotel/Motel) and any special permit or interpretation required.
• Safety and Life Safety Compliance:
  • Compliance with the Uniform Building Code and Malad City CO requirements.
  • Provision of adequate off‑street parking per Article XI.
• Ownership/Property Records:
  • Proof of ownership and legal description of the property.
• Public Notice and Hearing Materials (if triggered):
  • Prepared in accordance with Article IX (Public Hearing Procedure).
• Variances (if necessary):
  • If property constraints cannot meet dimensional standards, a variance application may be required under Article XIII.

Specific regulations for short‑term rentals (city, county, and state)

Malad City Zoning (Ordinance No. 474)

• Allowed STR‑related use pathways:
  • Bed and Breakfast Facility: “R” Residential zone, defined as a dwelling with 1 to 5 overnight guestrooms for compensation; breakfast only to lodging guests; must retain residential appearance in the neighborhood.
  • Tourist Home: “C” Commercial zone permitted use; lodging for transient guests.
  • Hotel/Motel: “C” Commercial zone permitted use; conventional lodging operations.
• Dimensional standards (Residential “R” zone):
  • Setbacks: 30 feet front; 8 feet side; 20 feet rear (or alignment with existing buildings).
  • Lot area: minimum 8,000 sq ft; minimum lot width 70 feet at the minimum building setback line.
  • Height: max 2 stories; 30 feet height limit.
  • Accessory building limitations and privacy/fence requirements for flag lots (if applicable).
• Dimensional standards (Commercial “C” zone):
  • Setbacks: front minimum 20 feet; side minimum 10 feet adjacent to residential district boundary (corner lot street‑facing side 20 feet); rear minimum 15 feet; minimum lot width 60 feet.
• Off‑Street Parking and Loading (Article XI):
  • Parking design, dimensions, access, lighting, screening/landscaping, drainage, and joint use requirements apply.
  • Parking counts vary by use; ensure compliance with the “Parking Space Requirements” table (residential vs. commercial lodging).
• Administration and Permitting (Articles XIV and XVI):
  • Building permits and COs are mandatory before use/occupancy.
  • Enforcement includes penalties and fee schedules for violations.
  • City officials involved: City Clerk (licensing and record‑keeping), Building Inspector (permits and COs), Planning & Zoning Commission (zoning determinations and recommendations), City Council (final actions).
• Public Hearings and Variances (Articles IX and XIII):
  • If an STR requires special permits or relief from dimensional standards, expect public notice and hearings before the P&Z Commission and City Council.
• Amendments and Updates:
  • The City Council may amend the ordinance (Article XV).
  • Annexation zoning defaults to “Residence R” until otherwise zoned.

Oneida County (context only)

• No county‑specific STR regulations were identified in the provided materials. County resources include the County Library and Oneida County Hospital, but no ordinances or licensing relevant to STRs were cited. The City’s zoning and permitting framework governs within city limits.

State of Idaho (context only)

• Idaho does not have state‑level short‑term rental licensing statutes. State sales/transaction‑privilege tax requirements apply to lodging businesses; register and remit through the Idaho State Tax Commission.
• State‑level planning and zoning authority is set in Idaho Code Title 50, Chapter 13 and Title 67, Chapter 65, which authorize local zoning and enforcement, as cited in Ordinance No. 474 (Article I, Section 5).

Contact information for the local authority in charge of STRs

• Planning & Zoning Commission (Administrator and Chairman): Shelly Williams
  • Email: maladcitypz@gmail.com
• City Clerk’s Office:
  • Location (from Zoning Map references): 59 Bannock Street, Malad City, ID
  • Licensing, permits, and records administration.
  • Website: see City “Licenses and Permits” page (City site: maladidaho.org).
• Malad City Website:
  • City Government: maladidaho.org/city-government/
  • Minutes & Agendas: maladidaho.org/minutes-agendas-2/
  • Documents & Forms (Ordinances): maladidaho.org/documents-forms/
  • Licenses and Permits: maladidaho.org/licenses-and-permits/
  • Contact Us: maladidaho.org/contact-us/
• City Council:
  • Contact through the City’s website (Council Calendar, Contact Us pages).
• Economic Development (for business inquiries):
  • Malad City Economic Development, including 4‑CASI and REDI links listed on the City’s website (Contact Us section).

Links to source pages

• Malad City Zoning Ordinance No. 474 (PDF): maladidaho.org/wp-content/uploads/2023/08/zoning_ordinance_474.pdf
• Malad City – March 2025 Newsletter (Zoning update including STRs): www.maladidaho.org/march-2025-newsletter/
• Malad City – Licenses and Permits: www.maladidaho.org/licenses-and-permits/
• Malad City – Ordinances (Documents & Forms): www.maladidaho.org/documents-forms/
• Malad City – City Government: www.maladidaho.org/city-government/
• Malad City – Contact Us: www.maladidaho.org/contact-us/
• City Council Calendar: www.maladidaho.org/city-council-calendar/
• Minutes & Agendas: www.maladidaho.org/minutes-agendas-2/
• Idaho State Tax Commission (sales/transaction‑privilege tax registration): tax.idaho.gov/

Notes for investors

• Classification matters: Your STR must be approved under the correct use (B&B in “R”; Tourist Home or Hotel/Motel in “C”). Misclassification risks enforcement.
• Permits first: Do not advertise or operate until you have building permits, CO, and any required business licenses or special permits.
• Parking and neighborhood compatibility: The City emphasizes parking, residential character (for B&B), and minimizing neighborhood impacts.
• Evolving regulations: STRs are part of the City’s ongoing ordinance revision. Confirm any pending updates with P&Z before investing or renovating.
• Process timing: Public hearings, administrative reviews, and potential variances can extend timelines. Incorporate approval lead times into your acquisition and renovation plans.