Teton Valley Housing: Idaho's $51 Per Resident Funding Gap

DRIGGS — Idaho spends $51 per resident on state and federal housing programs, compared with $107 in Montana, $217 in Wyoming, and $1,150 in Colorado, Teton Valley Housing executive director Jared Pfeiffer told the Driggs City Council on Tuesday.

Median family income in Teton County reached $116,000 in 2025, enough to purchase a home costing about $350,000. The median sale price last month topped $1 million, per Redfin. A family earning the county median can afford less than a third of what the market demands.

"We're a little under three times the purchasing power to buy a house in Teton County, Idaho, for the median family," Pfeiffer said.

State preemptions make the problem harder to address locally. Idaho has blocked local governments from using inclusionary zoning, rent control, minimum wages, real estate transfer taxes, vacant-home taxes, and short-term rental regulations. HB 583, signed by Governor Little in March, preempts all local short-term rental regulation effective July 1.

"I often talk with people who say, 'Well, why don't we just do what Jackson's doing?'" Pfeiffer said. "The funding streams make a big difference. There's a lot of commas in the numbers to do housing stuff, and not having as much funding certainly impacts our ability."

A family at 100% of the area median income can afford about half of what it costs to build a home in Teton County. The market serves buyers at roughly 300% AMI. Federal programs like the low-income housing tax credit reach up to 60-80% AMI. No program covers the workers in between.

QUIP: Driggs's Answer to the Middle

Driggs approved the Qualified Workforce Housing Incentive Program in November 2025 to fill that gap. The program caps ownership units at 120% AMI ($353,000 for a two-bedroom) and rental units at 80% AMI ($1,953 per month for a two-bedroom). HUD updates those numbers each April.

Teton Valley Housing selects occupants through a weighted lottery: one entry for a Teton Valley worker, two for someone employed in Driggs, three for public service agency employees such as teachers, first responders, and city and county workers.

"The community saying, 'We want to start with teachers, city and county employees, law enforcement,' basically those who qualify for PERCY, is the most consistent theme that we hear," Pfeiffer said.

The program also addresses stewardship, a problem Pfeiffer said other communities have gotten wrong. Units produced through the QUIP carry permanent, price-capped deed restrictions administered by Teton Valley Housing. Without that administration, Pfeiffer said, affordable units "tend to get lost, tend to be occupied not as intended, and you tend to lose them as a community resource."

Teton Valley Housing is building the program in two phases. Phase 1, funded by Driggs, covers initial compliance at existing workforce units (including five sold units at the Flats at Teton Peaks), a stewardship tracking database, and an interest list. Phase 2, planned for fiscal year 2027, adds a weighted lottery management system, a public-facing website for listing available units, resale and transfer processes, and a grievance appeal board.

Projects in the Pipeline

Pfeiffer reported progress on two Driggs housing projects.

175 Front Street received $4 million from the Idaho Workforce Housing Fund and a 4% low-income housing tax credit. Northwest Real Estate Capital Corp will build 28 income-restricted rental units and three Teton County employee housing units in a four-story building on the former county road and bridge yard. Groundbreaking is planned for this spring.

The 175 Front Street units operate under federal LIHTC rules, not the QUIP. Mayor Christensen asked whether the federal program allows a local employment preference. Pfeiffer said developers have told him it does not, due to fair housing law constraints. But at 40% AMI income levels, he said, occupants are likely working in the community rather than commuting to neighboring counties.

Signal West, on the former Nature Conservancy parcel on Front Street, remains in the conceptual design phase. A community engagement process with 12 participants recommended a townhome direction focused on livability and retention. Teton Valley Housing has not secured funding and did not offer a timeline.

Pfeiffer said STOL is donating land east of town for future housing. He added that 38% of county residents commute to Teton County, Wyoming, while 25% of the local workforce commutes in from other counties.

Small Margin for Error

Pfeiffer said Teton Valley Housing cannot afford mistakes with public money. "We're dealing with public funds. We're dealing with public trust," he said. "I don't think we have a chance to say, 'Whoopsies, we'll try to do better next time.' We kind of need to nail it on each project."

He described pressure facing elected officials in some communities to block new housing. "Some places tend to be not very open to new people and new things in affordable housing," he said, "and some places tend to be more open to it."

Board chair Nan Pugh, one of two Driggs representatives on the Teton Valley Housing board, thanked the council for its leadership on workforce housing and said the authority would begin providing monthly written updates to council members.

What to watch: HUD income limits update in April, which will reset QUIP price caps. The 175 Front Street groundbreaking is expected this spring. The QUIP Phase 2 buildout is planned for fiscal year 2027. Signal West remains unfunded.

Sources: Teton Valley Housing presentation to Driggs City Council, April 7, 2026. Jared Pfeiffer, executive director. Redfin (median home price). HUD (income limits). Slide data shared by Ketchum Housing Authority and Leap Housing.