Barndominiums have surged in popularity across Idaho, offering real estate investors a unique, affordable, and high-return alternative to traditional housing. With lower construction costs, increasing demand for vacation rentals, and a strong local housing market, Garden City, Idaho, stands out as a prime location for barndominium investment. In this guide, we dive into the full financial picture, covering costs, rental income, tax advantages, appreciation, and more—all while keeping SEO and real estate profitability in focus.
Why Garden City, Idaho Is a Hotspot for Barndominium Investment
Located just outside Boise, Garden City is growing fast due to its thriving tourism, real estate, and cultural appeal. This growth has made it an ideal market for short-term vacation rentals and long-term residential investments.
Key Market Drivers:
- Tourism Growth: Garden City is close to the Boise River Greenbelt, art districts, wineries, and breweries, attracting thousands of visitors annually.
- Affordability: Rising home prices make barndominiums a more budget-friendly alternative with strong rental appeal.
- Flexibility: Use barndominiums as Airbnb rentals, long-term housing, or dual-use spaces.
- Low Taxes: Idaho boasts low property taxes and business-friendly regulations for investors.
How Much Does It Cost to Build a Barndominium in Garden City?
Cascade Custom Construction offers turnkey barndominiums starting at $185 per square foot. Here’s what that looks like in real numbers:
| Size | Estimated Build Cost |
|---|---|
| 1,500 sq. ft. | $277,500 |
| 2,500 sq. ft. | $462,500 |
| Luxury Upgrades | $500,000+ |
Additional Costs:
- Land Acquisition: $785,000+ per 0.34 acres, depending on location
- Utility Hookups: $10,000 – $50,000 (water, sewer, electrical)
- Interior Finishing: $30,000 – $75,000
Rental Income: Short-Term vs. Long-Term
Short-Term Rentals (Airbnb/VRBO)
Garden City’s unique culture and location drive high vacation rental demand.
- Average Nightly Rate: $189
- Occupancy Rate: 57%
- Monthly Revenue: $3,300
- Annual Revenue: $39,600
Long-Term Rentals
- Average Monthly Rent: $2,032
- Annual Revenue: $24,384
Short-Term Pros:
- Higher nightly income
- Tax write-offs for short-term rental operations
Long-Term Pros:
- Steady monthly cash flow
- Lower management burden
Property Appreciation
Garden City’s housing market has appreciated by 10.83% annually over the past decade.
Example:
- Property Value: $500,000
- Annual Appreciation: $54,150
This appreciation alone can rival or exceed yearly rental income, significantly boosting overall ROI.
Tax Advantages
Investors in Idaho enjoy several favorable tax policies:
- Low Property Taxes: 0.69% of assessed value
- Depreciation: Deduct building depreciation to reduce taxable income
- 1031 Exchange: Defer capital gains taxes by reinvesting
Diversified Use Potential
Barndominiums are highly versatile. Here are common investor strategies:
- Owner-Occupied + Airbnb: Live in one unit, rent the rest
- Event Rentals: Lease the space for weddings, retreats, or corporate events
- Commercial Use: Rent out portions as studio or office space
Equity Growth
Thanks to their affordability and high market value, barndominiums offer substantial equity growth:
- Build Cost: $185/sq. ft.
- Market Value (Garden City): Median price $858,999
Equity Example:
- Build: $462,500 for 2,500 sq. ft.
- Market Value: $650,000 – $850,000
- Immediate Equity Potential: $187,500+
Total Potential Profit: Annual Returns
| Rental Type | Average Rate | Occupancy / Monthly Rent | Annual Revenue |
|---|---|---|---|
| Short-Term | $189/night | 57% / $3,300 | $39,600 |
| Long-Term | N/A | $2,032 | $24,384 |
Financing Your Investment
While some lenders hesitate with barndominiums, many financing options are available:
- Construction Loans: Convert to mortgage after build
- Barndominium-Specific Loans: Offered by some Idaho lenders
- FHA/VA Loans: For qualifying owner-occupants
- HELOCs: Leverage equity from existing properties
Partnering with a knowledgeable lender can simplify the process.
Why Choose Cascade Custom Construction?
Barndominiums in Garden City offer high rental yields, strong appreciation, tax benefits, and incredible flexibility. Cascade Custom Construction specializes in turnkey builds that maximize investor ROI.
Ready to maximize your ROI with a barndominium in Garden City? Contact Cascade Custom Construction today at 877-208-8843 for a personalized quote and expert guidance.