Investor commentary
Boise is an appreciation play that ran ahead of fundamentals. Buyers today should underwrite flat year-one rents and require strong reserves.
How to interpret Boise's rental yield
A 4.9% rental yield in Boise compares favorably to coastal gateway markets (typically 4–5%) and signals an appreciation-tilted market where cash flow requires careful operations. Always underwrite with the property's actual taxes and insurance — neither tracks national averages perfectly.
Recommended underwriting adjustments
- Reset property taxes to your purchase price, not the seller's basis.
- Add 7% vacancy as baseline; stress to 10% in worst case.
- Budget 8–10% management plus 8% maintenance + capex reserves.
- Verify insurance quotes from at least two carriers before closing.