Back in 2005 and 2006, I visited Pocatello for single-day business trips. At the time, apartment investments in Pocatello weren’t anywhere close to being on my radar. In fact, I didn’t see much more than the inside of a couple of strip mall offices and the main north-south business road, Yellowstone Avenue. While the surrounding hills caught my attention as visually pleasing, the older office buildings along the main highway left me less than impressed. Little did I know then that I would not only make Pocatello my home less than two decades later, but also come to believe that apartment investments in Pocatello could offer some amazing opportunities.
What makes apartment investments in Pocatello a smart choice for multifamily investors?
Apartment investments in Pocatello offer a unique combination of affordability, steady rental demand, and untapped growth potential. With a mix of property types, a strategic location, and a stable local economy, it presents strong opportunities for both seasoned and first-time investors looking to diversify their portfolios.
Fast forward to 2022, and now Pocatello is not just the place I live—it’s my hometown. What once felt like an afterthought has become a place I genuinely love. The natural beauty of the area is undeniable, with its proximity to some of the best outdoor destinations in the region, like Yellowstone, Island Park, and the mountains surrounding Salt Lake and Boise. But beyond the scenery, it’s the friendly neighbors and safe, tight-knit communities that have won me over. And are there opportunities for multifamily investing? You betcha!
Why Consider Apartment Investments in Pocatello?
Pocatello might not have the bustling vibe of Boise or the ski resorts of Sun Valley (although I believe Pebble Creek Ski Area is a treasure), but that’s part of its charm. It offers a slower pace of life, but that doesn’t mean it’s short on opportunity. Strategically located between major outdoor attractions and urban centers, Pocatello is becoming an appealing hub for investors looking for growth without the big-city price tags. It has the potential to be a hidden gem for real estate investment, especially for those looking to find apartment investments in Pocatello with room for appreciation, steady cash flow, and a strong rental market.
The city’s population of roughly 57,000 is anchored by Idaho State University, contributing to a steady stream of renters. Pocatello also has a higher-than-average percentage of renters—nearly 36.5% of households rent, which is nearly ten percentage points higher than the state average. The annual influx of fresh college recruits clearly has something to do with this Pocatello housing statistic. This renter base creates consistent demand for multifamily housing, particularly smaller units near the university and downtown areas. The median household income in Pocatello hovers around $50,000, with a relatively affordable cost of living, making it attractive to both investors and tenants.
Demographics Driving the Rental Market
Pocatello’s demographics are key to understanding its appeal as a multifamily investment location. The city is home to a younger population due to the influence of Idaho State University. Around 15% of residents are between the ages of 18 and 24, made up primarily of students looking for affordable rentals close to campus. In addition, about 25% of the population is under 18, creating a future pool of young renters and families. For those in their prime working years, roughly 30% of residents fall between 25 and 44, seeking rental properties that offer a mix of convenience and affordability.
The city’s growing diversity also adds to the demand for housing. About 11% of the population identifies as Hispanic or Latino, while 5% come from other racial or ethnic minorities. This growth brings additional needs in the rental market, particularly for family-oriented housing. Whether targeting young professionals, students, or families, investors will find a strong and steady demand for multifamily properties.
Pocatello’s relatively high percentage of renters—combined with affordable rental rates—makes the city an appealing option for real estate investors. The average rent for a two-bedroom apartment is approximately $900, providing an attractive balance for renters seeking affordable living and for investors looking for consistent cash flow. With the city’s median income of about $50,000 and a lower cost of living compared to larger cities, apartment investments in Pocatello offer strong potential for long-term returns.
Apartment Investments in Southeast Pocatello
Southeast Pocatello primarily consists of single-family homes, complemented by several large mobile home parks featuring residences from the 1970s, 1980s, and 1990s. This area also includes a few townhomes. While many of the single-family homes have been built since 2010, a significant number were constructed in the 1990s or earlier, and some may show signs of aging.
The Southeast Pocatello area lacks major retail stores and is characterized by its sparse commercial infrastructure, which includes a few offices, such as the county sheriff’s office and county jail, and only one gas station. The area is home to Constitution Park, a local recreational spot that adds to the neighborhood’s appeal.
Multifamily Investment Opportunities
For investors, the Southeast Pocatello area offers opportunities primarily in the realm of mobile home parks and communities and potentially in updating older single-family homes and townhomes. Additionally, there are already two new multifamily properties with multiple owners of individual townhomes in the area, providing further investment options in a market with growing demand. The limited commercial amenities can be seen as both a challenge and an opportunity, depending on your investment strategy. This area’s potential for development and renovation, coupled with the demand for affordable housing, makes it an intriguing option for those looking to explore investment opportunities in Pocatello.
Apartment Investments in South Pocatello
Crossing west under I-15, you’ll arrive in the South Pocatello neighborhood, especially between 2nd and 4th streets. These communities offer significant opportunities for multifamily property investors. This area is home to some of the city’s larger residential complexes, including a prominent 100+ unit property and several mobile home parks.
Bumping up against the south side of the Idaho State University campus, this area attracts many undergrad students, grad students, and professors. The presence of a substantial multifamily development indicates a robust rental market, with a steady demand for housing in this part of town. The large property and mobile home parks cater to a range of tenants, from low-income families to working professionals looking for affordable rental options. Investors can benefit from the established rental base and potential for value-add improvements in older or under-managed properties.
Multifamily Investment Opportunities
South Pocatello’s affordability and accessibility contribute to its attractiveness. With proximity to major roadways and essential amenities, including schools and shopping centers, the area remains a practical choice for renters seeking convenience and value. Investors will find that the combination of larger properties and mobile home parks provides diverse opportunities to meet varying market needs and capitalize on steady rental income.
Apartment Investments in the Historic University District
The Historic University District, spanning from south Pocatello up to the southern end of the Alameda neighborhoods, is one of Pocatello’s most distinct and vibrant areas. Anchored by Idaho State University, this area boasts a mix of older residential homes, student housing, and numerous duplexes and a few multi-plex buildings. As the heart of Pocatello’s academic and cultural scene, the Historic University area offers a unique appeal for multifamily investors looking to tap into a steady demand for rental properties while starting small.
This district features charming homes built as early as the 1920s alongside modern, remodeled units. Many multifamily properties here are smaller—typically in the range of 2 to 6 units with the notable exception of Pocatello Heights (116 units), usually catering to students and university staff. These conversions, along with the architectural diversity, make the area appealing to a wide range of renters, from students to young professionals.
Multifamily Investment Opportunities
Investing in apartments near ISU presents unique advantages. The university ensures a reliable tenant base, with a constant influx of students and staff needing housing close to campus. Additionally, the area is walkable, with access to parks, shops, restaurants, and cultural venues, making it an attractive option for renters seeking convenience. The proximity to amenities and the dynamic atmosphere contribute to the area’s long-term rental stability, making it a smart target for real estate investors.
Apartment Investments in Old Town Pocatello
Old Town Pocatello is a distinctive area known for its historic charm and central location. As one of the city’s oldest neighborhoods, it offers a mix of character-filled properties, including vintage apartment buildings and converted motels. This region provides a unique opportunity for investors interested in apartment investments in Pocatello, especially those with historical significance and potential for renovation.
The housing stock in Old Town includes smaller multifamily units, which are attractive to tenants who appreciate the area’s distinctive ambiance and proximity to downtown amenities. With its central location, Old Town is well-situated for those seeking easy access to local businesses, cultural sites, and community events. This centrality makes it a desirable area for renters who enjoy being close to the heart of the city.
Multifamily Investment Opportunities
Investors can explore opportunities in renovating and upgrading older buildings to meet modern standards while preserving their historic charm. The appeal of Old Town’s unique character, combined with its central location and established rental demand, makes it a promising area for multifamily investments.
Apartment Investments in the Alameda Area
Most people looking for apartment investments in Pocatello don’t know that the Alameda community used be its own city. In fact, most current Pocatello residents, unless they already in or approaching retirement age, aren’t aware of that either. The village of Alameda was created in 1924 with the merger of the villages of North Pocatello and Fairview. In 1962, its 10,000+ residents were merged into the city of Pocatello.
The Alameda area of Pocatello, clustered around the old Yellowstone Highway (now Yellowstone Avenue), presents a range of multifamily investment opportunities. This neighborhood is known for its diverse property types and steady rental demand, making it an attractive option for investors.
East Side of Yellowstone: Multifamily Properties on the Hill
On the east side of Yellowstone Avenue, particularly on the hill just west of I-15, investors will find a collection of multifamily properties, including smaller apartment buildings with 8-20 units. This section of the Alameda area offers a mix of older and updated properties from the 1950s through 1990s, catering to a variety of tenant needs. The elevated location provides scenic views and a quieter environment, which can be appealing to renters looking for a more serene living situation while remaining close to city amenities.
The properties in this area typically consist of well-maintained complexes that have been built or renovated in recent decades. Investors interested in the east side of the Alameda area can benefit from the steady demand for rental units in this desirable, elevated location. The combination of accessibility, scenic views, and a solid rental market makes this part of the Alameda area a promising investment opportunity.
West Side of Yellowstone: Duplexes, Fourplexes, and Larger Complexes
West of Yellowstone Avenue, the Alameda area features a different mix of properties, including duplexes, four-plexes, and a few larger apartment complexes, mostly built in the 1970s and 1980s. This section of the neighborhood offers a more varied portfolio of multifamily properties, with opportunities ranging from smaller units to larger developments.
Investors can explore both renovated and original-condition properties in this area. The established residential feel and proximity to major roadways make it an attractive location for renters who value convenience and community. Additionally, several mobile home parks, eh hum, I mean manufactured home communities, in this part of the Alameda area provide alternative investment opportunities, offering affordable housing options that can yield steady rental income.
The diverse property types and established rental demand in the west side of the Alameda area make it a compelling choice for multifamily investment, with potential for both immediate returns and long-term appreciation.
Apartment Investments in North Pocatello
North Pocatello offers a mix of residential and multifamily investment opportunities, characterized by its blend of older and newer properties. This area is known for its diverse housing options, including a variety of single family homes, duplexes, fourplexes, and manufactured home communities.
The northern part of Pocatello provides investors with a range of property types and potential investment scenarios. The area features several multifamily buildings and smaller complexes, catering to a mix of tenants from young professionals to families. The presence of manufactured home communities in North Pocatello adds another layer of investment potential, providing affordable housing options that appeal to budget-conscious renters.
Properties in North Pocatello often include newly built, renovated units, and those in need of updates. Investors can find opportunities to enhance and modernize older buildings, making them more attractive to today’s renters. Additionally, the area’s accessibility to both I-15 and I-86 and proximity to essential amenities like Costco and the Pine Ridge Mall enhances its appeal to potential tenants.
Overall, North Pocatello represents a stable and promising investment area with a solid rental market and opportunities for both value-add projects and cash flow income from existing properties. The mix of property types and the demand for affordable housing make it a noteworthy option for multifamily investors.
Apartment Investments in Chubbuck
Chubbuck, a neighboring city just north of Pocatello, offers a range of multifamily investment opportunities with its own unique characteristics. Known for its suburban feel and growing community, Chubbuck provides a compelling environment for real estate investors looking to expand their portfolios beyond Pocatello.
The area features a mix of single-family homes, multifamily properties (including duplexes, four-plexes, and larger apartment complexes) and manufactured home communities. Investors will find opportunities in both well-maintained properties and those in need of renovation. The rental market in Chubbuck benefits from the area’s family-friendly atmosphere, good schools, and access to local amenities, which attract a steady stream of renters.
Chubbuck’s location offers the advantage of a more suburban setting while still being close to Pocatello’s urban amenities. This makes it an attractive option for renters who prefer a quieter living environment with convenient access to nearby services and employment centers.
Properties tend to sell for less in Chubbuck than in Pocatello, but rent is also generally less.
Overall, Chubbuck presents a promising investment landscape with a variety of multifamily property options and a growing rental market. Its suburban charm and proximity to Pocatello make it a worthwhile consideration for investors looking to diversify their holdings.
Unlocking the Potential of Apartment Investments in Pocatello
Apartment investments in Pocatello offer a wealth of opportunities in a city that combines affordability with growth potential. From the historic charm of Old Town to the suburban appeal of Chubbuck, Pocatello provides an array of investment options that cater to various investor goals. The city’s strategic location, growing rental demand, and friendly atmosphere make it an ideal choice for multifamily investments.
With neighborhoods like Southeast Pocatello, South Pocatello, and the Alameda area showcasing unique investment opportunities, Pocatello stands out as a promising location for building a successful real estate portfolio. The stability of the rental market and the potential for both immediate returns and long-term appreciation highlight the city’s appeal as a hidden gem for real estate investors.
If you’re interested in exploring the investment potential of multifamily properties in Pocatello, I’d be happy to provide more information and insights tailored to your goals. Feel free to reach out to me to learn more about the opportunities available and how you can make the most of this vibrant market.
Related Questions
What makes Pocatello a good location for multifamily property investments?
Pocatello offers affordability, steady rental demand, and growth potential. Its strategic location near Idaho State University and outdoor attractions, combined with a higher-than-average renter base, makes it appealing for real estate investors.
How can investors fund apartment investments in Pocatello?
Investors can fund apartment deals using personal savings, self-directed IRAs, 1031 exchanges, or partnerships. These options allow flexibility while minimizing upfront capital requirements and maximizing long-term returns.
