Coeur d'Alene Weighs New Tiny Home Zoning Rules
The city is evaluating code changes that could offer residents more affordable housing options in the local market.
Updated on Oct. 25, 2026 in Apartments
Live Poll
Do you believe local zoning changes are the best way to make housing affordable in your area?
Coeur d'Alene city officials are evaluating potential zoning changes to permit tiny homes as a strategy to address rising market costs. The city currently prohibits tiny homes unless they meet standard building codes and are attached to a permanent foundation.
Why it matters
Local officials are exploring these housing alternatives to help mitigate high residential market costs that challenge local affordability. The move follows similar policy updates in cities like Kalispell, Moscow, and Boise, which have already integrated tiny home neighborhoods into their local housing mix.
There are currently 279 accessory dwelling units in Coeur d'Alene, existing alongside a market where 60% to 75% of short-term rentals are held by out-of-state investors. Current MH-8 zoning restricts high-density development to eight units per gross acre.
The players
Coeur d'Alene City Council
The local governing body responsible for setting residential zoning laws and housing policy.
Kalispell City Council
A municipal government that recently updated its city code to officially allow for tiny home developments.
The details
Current municipal code requires dwellings to be connected to a foundation and adhere to full building codes, effectively barring most mobile tiny homes. Accessory dwelling units are currently limited to 800 to 1,000 square feet, or 75% of the primary dwelling size. Height restrictions are also strictly capped at 32 feet for units within a principal structure, 18 feet for detached units, and 24 feet if located above a detached garage.
Timeline
July 1 marked the effective date for state short-term-rental permit regulations.
October 2026 was the month city officials discussed potential tiny home zoning requirements.
Money Landscape
The push for tiny home zoning represents an effort to diversify housing options amidst a market dominated by outside investment. This follows the July 1 implementation of state-level short-term-rental permit regulations.
Prospective homeowners should monitor upcoming council meetings to understand how potential changes to foundation and size requirements might influence construction costs. Residents interested in adding an accessory unit should verify that their property plan aligns with existing height and size limits while the city reviews broader zoning rules.
The takeaway
Tiny homes may eventually provide a more accessible entry point into the Coeur d'Alene housing market, but current regulations remain restrictive. Consult with a local real estate professional or city planning official to review current land-use guidelines before planning any property improvements.
Further reading
For more information on local housing regulations, visit the Apartments section.
Source note: This article includes information reported by Coeur d'Alene Press.
Live Poll
Do you believe local zoning changes are the best way to make housing affordable in your area?
