1031 Exchange in Idaho Falls MSA
The Idaho Falls MSA offers premium 1031 exchange opportunities with moderate cap rates, stable rental demand driven by nuclear energy and engineering sectors, and competitive property taxes in Idaho's nuclear research hub.
Population
171,233
Key Industries
Nuclear Energy (INL), Engineering, Healthcare
Table of Contents
Information is for educational purposes only. Consult qualified professionals for specific advice.
Local Tax Considerations
Property taxes, transfer taxes, and local incentives
Property Tax Rates
Average Rate
0.49% - 0.59%
Assessment Method
Assessed Value (Idaho Property Tax Code)
MSA rate (0.54%) vs State average (0.63%)
-14% below state average
Transfer Taxes & Fees
Transfer Tax Rate
No state transfer tax
Local recording fees and title insurance costs apply
Local Tax Incentives
Idaho Economic Development Incentives
Various state incentives for business development and job creation
Eligibility: Qualifying commercial and industrial developments
Idaho National Laboratory Partnership Programs
Research and technology transfer incentives
Eligibility: Companies partnering with INL research programs
Opportunity Zones
Number of Zones
1
Key Locations
- Downtown Idaho Falls
Opportunity Zones offer significant tax benefits for long-term investments, including deferral and potential elimination of capital gains taxes.
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Market Profile Dashboard
Economic indicators and market trends
Population
171,233
Growth: +2.19% annually
Median Income
$71,458
Unemployment
2.8%
Job Growth
+2.8% annually
Economic Drivers
Market Trends
Median Home Price
$365,000 - $425,000
Average Rent
$1,485/mo
Cap Rates
6.5% - 8.2%
Demographics
Median Age
35.8 years
Bachelor's Degree+
32.5%
Owner Occupied
74.2%
Property Type Analysis
Investment opportunities by asset class
Multifamily
Strong demand driven by INL engineers, healthcare workers, and university students with stable high-income tenant base.
Market Metrics
- Cap Rates: 7.2%
- Vacancy Trends: Low vacancy at 4.5% due to INL employment and population growth
- Demand Forecast: Continued strong demand from INL expansion and nuclear energy growth
Risk Factors
- Dependence on federal nuclear energy funding
- Higher property values affecting affordability
Opportunities
- High-income INL employee tenant base
- Growing nuclear energy sector
Single-Family Rental
Popular with INL scientists and engineers seeking quality housing near outdoor recreation.
Market Metrics
- Cap Rates: 8.0%
- Vacancy Trends: Very low vacancy at 3.8% with excellent tenant retention
- Demand Forecast: Strong fundamentals with INL growth and outdoor recreation appeal
Risk Factors
- Higher acquisition costs in premium areas
- Seasonal tourism affecting some markets
Opportunities
- Premium rental rates from high-income tenants
- Outdoor recreation lifestyle appeal
Neighborhood Spotlights
Up-and-coming areas and investment hotspots
Downtown Idaho Falls
Historic downtown core with Snake River amenities and ongoing revitalization
Investment Thesis
Opportunity zone benefits, urban lifestyle appeal, and potential for appreciation as downtown continues to develop with river amenities.
Median Price
$325,000
Price Growth
+9.5% YoY
Rental Yield
7.2%
Days on Market
32 days
Key Highlights
Development Pipeline
Downtown revitalization and riverfront development projects
Ammon
Affluent suburban community with excellent schools and family amenities
Investment Thesis
Premium family rental market, excellent schools attracting INL families, and strong property value stability.
Median Price
$485,000
Price Growth
+7.8% YoY
Rental Yield
5.8%
Days on Market
25 days
Key Highlights
Development Pipeline
Continued upscale residential development
East Idaho Falls
Established residential area with mix of housing types and good INL access
Investment Thesis
Balanced rental market serving INL workers, affordable entry points relative to market, and steady appreciation potential.
Median Price
$385,000
Price Growth
+8.8% YoY
Rental Yield
6.8%
Days on Market
28 days
Key Highlights
Development Pipeline
Infill development and neighborhood improvements
Rexburg Area
University town with Brigham Young University-Idaho and student housing demand
Investment Thesis
Student housing market, university employment stability, and affordable entry points for specialized rental strategies.
Median Price
$295,000
Price Growth
+6.2% YoY
Rental Yield
8.5%
Days on Market
35 days
Key Highlights
Development Pipeline
Student housing and university-related development
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Frequently Asked Questions
Common questions about Idaho Falls 1031 exchanges
Idaho Falls offers balanced cap rates (6.5-8.2%), strong job growth (2.8%) in nuclear energy and engineering, high median household income ($71,458), low unemployment (2.8%), and competitive property taxes (0.49-0.59%) in Idaho's nuclear research hub.
INL generates $4.29B in statewide economic impact with 5,000+ direct employees earning premium wages. Nuclear engineers average $56.60/hour, creating strong demand for quality rental housing and supporting premium rental rates.
Yes, Idaho Falls has a designated Opportunity Zone in the downtown area, offering potential tax benefits for qualifying investments including deferral and possible exclusion of capital gains.
The economy is anchored by Idaho National Laboratory ($4.29B impact), nuclear energy research, engineering services, healthcare systems, agriculture, and outdoor recreation tourism serving as gateway to Yellowstone.
Idaho offers competitive property taxes (0.49-0.59% vs. 1.02% national), no state transfer tax, and business-friendly policies. The state's nuclear energy leadership and outdoor recreation appeal support continued economic growth.