Overview: Are short-term rentals allowed in Preston, ID?

Yes. Short‑term rentals (also called vacation rentals) are allowed in Preston, Idaho. State law prevents cities and counties from prohibiting STRs, and the city’s planning documents confirm STRs are an authorized use under local zoning. Preston’s current rules differentiate between commercial/downtown zones (where non-owner-occupied STRs are allowed) and residential zones (where STRs are limited to owner‑occupied use). In practice, this means you can launch an STR in commercial or downtown areas without owner residency; in residential zones you must live on the property while hosting.

Source: Idaho State Law 67-6539 (HB506, 2024) [link]; Preston P&Z Meeting Minutes (Jan 24, 2024) [link].

Start-up checklist: How to launch an STR in Preston

1. Confirm zoning and allowed use at your parcel

• STRs are permitted in General Commercial and Downtown zones without owner occupancy.
• STRs are permitted in residential zones but must be owner‑occupied.
• STRs are not permitted within multi‑family dwellings.
• Only one STR structure per parcel is allowed.

Source: Preston P&Z Meeting Minutes (Jan 24, 2024) [link].

2. Complete the city’s business licensing process (if required)

• Preston may require a business license to operate an STR. If required, city licensing must not impose “greater restrictions or obligations” than those applied to other residential uses (e.g., owner‑occupancy mandates in commercial/downtown zones are prohibited under state law). Revocation can only occur after three or more ordinance violations at the property within 12 months.

Source: Idaho State Law 67-6539 (HB506, 2024) [link].

3. Meet state-mandated safety disclosures Prior to renting, disclose to prospective guests if the STR does not include:

• Smoke detectors
• Carbon monoxide detectors
• Fire extinguishers
• A first‑aid kit

Source: Idaho State Law 67-6539 (HB506, 2024) [link].

4. Comply with state HOA protections

• HOAs generally cannot prohibit short‑term rentals, subject to Idaho Code 55‑3211. “No renting” rules are restricted unless explicitly agreed to in writing by the affected owner at the time of amendment.

Source: Idaho State Law 55‑3211 (HOA) [link].

5. Setup and hosting strategy

• List on platforms (Airbnb, VRBO), set pricing and minimum stays aligned with local demand and seasonality.
• Align occupancy, parking, and noise rules with both city standards and state limits on discriminatory rules.
• Be ready to remit lodging taxes and any required state/local taxes (see Taxes section below).

6. Post‑launch compliance and renewals

• Maintain good standing with city business licensing (if required).
• Track and address any complaints promptly to avoid enforcement thresholds.
• Monitor for updates to municipal code (PMC 17.62) or statewide rules.

Note: Some city rules (e.g., owner‑occupancy in residential zones) may be preempted by state law (HB506). Verify the current code directly with the City before finalizing your plan.

Documents, permits, licenses, and guidelines

Business licensing

• Preston may require a business license to operate an STR; qualifications must be limited to a reasonable annual fee and a statement of no recent violations. A license can be revoked only after three or more convictions for violations at the property within 12 months.

Source: Idaho State Law 67-6539 (HB506, 2024) [link].

Occupancy and capacity

• City rules set maximum occupancy limits for STRs. Confirm current limits with the City. In general, capacity must reflect life‑safety standards applicable to similar residential uses.

Source: Preston P&Z Meeting Minutes (Jan 24, 2024) [link].

Zoning and structural rules

• STRs are allowed in General Commercial and Downtown zones without owner occupancy.
• STRs in residential zones must be owner‑occupied.
• STRs are not allowed in multi‑family dwellings.
• Only one STR structure per parcel is allowed.

Source: Preston P&Z Meeting Minutes (Jan 24, 2024) [link].

State-required safety and disclosures

• Operators must disclose absence of smoke detectors, carbon monoxide detectors, fire extinguishers, and a first‑aid kit.
• Properties must meet platform safety requirements (e.g., fire safety standards) as applicable.

Source: Idaho State Law 67-6539 (HB506, 2024) [link].

HOA and community rules

• HOAs cannot prohibit STRs or add new restrictions that limit renting without the affected owner’s written consent at the time of amendment. Pre‑existing CC&Rs still apply.

Source: Idaho State Law 55‑3211 [link].

Taxation (platform collection model)

• Idaho law enables STR marketplaces to assume collection/remittance responsibilities for taxes. Hosts must still account for income and comply with all applicable tax obligations.

Source: Idaho State Law 67-6539 (HB506, 2024) [link].

Regulations by jurisdiction

State of Idaho (Idaho Code 67‑6539; HB506, 2024)

• STRs cannot be prohibited by cities or counties.
• Local rules cannot impose “greater restrictions or obligations” on STRs than on similar residential uses. This list of prohibited local restrictions includes, without limitation:
  • Requiring owner occupation
  • Additional insurance requirements
  • Professional management requirements
  • Reporting or use statistics
  • Additional fire protection or sprinkler mandates beyond other residences
  • Additional or improved ingress/egress requirements
  • Additional off‑street parking requirements
  • Physical structure modifications
  • Inspections (beyond those required for any residence)
  • Signage/notices/diagrams
  • Caps on the number of STRs
  • Proximity limits to other STRs
  • Rental-day limits
  • Neighbor notification requirements
  • Conditional use permits in residential zones
  • Increased sewer/utility capacity mandates
  • Building code conformance beyond what is required of any residence
• STRs must be treated as a residential land use for zoning, fire, and building code purposes.
• Cities/counties cannot regulate the operation of STR marketplaces.
• A business license is allowed if it does not impose prohibited requirements; revocation only after three or more convictions for violations at the property within 12 months.
• Pre‑rental safety disclosures (smoke/CO detectors, extinguishers, first‑aid kit).
• Properties must meet applicable marketplace safety requirements.

Source: Idaho State Law 67‑6539 (HB506, 2024) [link]; Idaho State Law 67‑6539 (existing statute) [link]; HB506 full bill text [link].

Franklin County (county seat: Preston)

• No county‑specific STR licensing or additional requirements were identified in the provided sources.
• State law applies uniformly: counties may not prohibit STRs and may only implement reasonable regulations consistent with Idaho Code 67‑6539.

City of Preston (Municipal Code context: PMC 17.62)

• Allowed zones: General Commercial and Downtown zones permit STRs without owner occupancy; residential zones allow STRs only if owner‑occupied.
• Multi‑family dwellings: STRs not allowed.
• One STR per parcel only.
• Occupancy limits: City rules establish maximum occupancy limits for STRs.

Note: Some provisions above may be preempted by HB506 (e.g., owner‑occupancy mandates). Check current city code or confirm with city staff before proceeding.

Source: Preston P&Z Meeting Minutes (Jan 24, 2024) [link].

Local authority contacts (Preston)

• City of Preston (general)

  • Address: 70 West Oneida Street, Preston, ID 83263
  • Phone: (208) 852‑1100
  • Website: prestonidaho.gov

• Planning & Zoning (zoning/permits)

  • Community Development Director: Shawn Oliverson
  • City Engineer: Tyrell Simpson
  • Note: Emails not provided in the source materials; contact City Hall to be routed to the appropriate department.

Sources: Preston P&Z Meeting Minutes (Jan 24, 2024) [link]; City website [link].

Source links (as provided)

• Preston P&Z Meeting Minutes (Jan 24, 2024) — STR rules and zoning discussion: cms3.revize.com/revize/prestonid/Documents/Government/Planning%20&%20Zoning%20Agenda%20&%20Minutes/2024/Minutes/1.24.2024%20minutes.pdf
• Idaho State Law 67‑6539 (existing statute): legislature.idaho.gov/statutesrules/idstat/title67/t67ch65/sect67-6539/
• Idaho State Law 55‑3211 (HOA restrictions): legislature.idaho.gov/statutesrules/idstat/Title55/T55CH32/SECT55-3211/
• HB506 (2024) — Amendments to 67‑6539 and platform tax collection: legislature.idaho.gov/wp-content/uploads/sessioninfo/2024/legislation/H0506.pdf
• City of Preston official website (contact reference): prestonidaho.gov
• Preston STR market performance and regulation overview (context only): www.airroi.com/report/world/united-states/idaho/preston
• High Mountain Property Management — general Idaho STR overview (context only): www.highmtnpm.com/post/new-idaho-law-allows-anybody-to-short-term-rent-their-property

Important notes and caveats

• Municipal code updates: Confirm the current language of Preston Municipal Code 17.62 (STRs) and any implementing ordinances before launch, especially regarding occupancy limits and zoning allowances.
• State preemption: Some local restrictions (e.g., owner‑occupancy mandates in certain zones) may be preempted by HB506. Contact the City to reconcile requirements and align your license/permit strategy accordingly.
• Taxes: Confirm whether a city lodging tax applies and whether platforms will remit state/local taxes on your behalf. You remain responsible for proper income reporting.