Is Andrew, Iowa Good for Airbnb Investment?

To start an Airbnb in Andrew, Iowa, begin by researching local zoning laws and regulations through Jackson County's planning department, as Andrew typically falls under county jurisdiction for short-term rental regulations, though you should also check with the city clerk for any municipal ordinances that may require business licenses or special permits. Find a suitable property by searching local real estate listings through companies like Coldwell Banker or RE/MAX in the nearby Maquoketa area, focusing on properties with 2-3 bedrooms that can accommodate families visiting the rural area or workers in the agricultural sector. Once you secure a property, furnish it with essential amenities including reliable Wi-Fi, comfortable bedding, basic kitchen appliances, and consider adding local touches that reflect Iowa's agricultural heritage. Create your Airbnb listing with high-quality photos emphasizing the peaceful rural setting and proximity to outdoor activities like fishing or hunting, setting competitive rates around $75-120 per night based on comparable properties in eastern Iowa. For ongoing management, establish relationships with local cleaning services in Maquoketa or Preston, create a guidebook highlighting nearby attractions like Maquoketa Caves State Park, and maintain responsive communication with guests while ensuring compliance with Iowa's sales tax requirements by registering with the Iowa Department of Revenue and collecting the state's 6% sales tax plus any applicable local taxes.

To identify profitable short-term rental properties in Andrew, Iowa, focus on properties within 2-3 miles of recreational areas like lakes, parks, or hunting grounds since rural Iowa attracts outdoor enthusiasts, and prioritize homes near major highways like US-52 for easy access from Cedar Rapids or Dubuque markets approximately 45-60 minutes away. Target 3-4 bedroom properties with modern amenities, full kitchens, outdoor spaces, and parking since families and groups comprise the primary STR demographic in small Iowa towns, with optimal pricing ranging $80-150 per night based on seasonal demand peaking during hunting seasons (fall) and summer recreation periods. Research competition by analyzing existing Airbnb and VRBO listings within a 15-mile radius of Andrew, noting that limited inventory in rural markets often means less competition but requires capturing guests from larger nearby cities, and utilize tools like AirDNA for market analysis, STR Helper for revenue projections, and local Jackson County tourism data to understand visitor patterns. Consider properties near the Maquoketa River for fishing enthusiasts, ensure reliable internet for remote workers seeking rural retreats, and factor in Iowa's relatively landlord-friendly STR regulations while accounting for potential seasonal fluctuations where winter months may see 40-60% lower occupancy compared to peak outdoor activity seasons.

To obtain an Airbnb/STR permit in Andrew, Iowa, you'll need to contact the Andrew City Clerk's office or zoning department directly as this small community likely handles permits through their municipal office located at their city hall. Required documents typically include a completed short-term rental application, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, emergency contact information, and a signed affidavit of compliance with local regulations. The application fee is estimated at $50-150 annually, with potential additional inspection fees of $25-75. Submit your complete application package to the city clerk, who will review it for zoning compliance and may schedule a property inspection within 2-3 weeks. The approval timeline is typically 30-45 days from submission of a complete application. Andrew-specific requirements likely include maintaining the property's residential character, providing adequate parking spaces, ensuring proper waste disposal arrangements, displaying the permit number in rental listings, and maintaining a local contact person available 24/7 for any issues. You must also comply with Iowa state tax requirements by registering for sales tax collection and remittance, and ensure compliance with any county health department regulations for rental properties.

Short-term rentals (STRs) are generally legal in Andrew, Iowa, as the state of Iowa does not prohibit STRs at the state level, leaving regulation primarily to local municipalities. Andrew, being a small unincorporated community in Jackson County with a population under 500, likely operates under Jackson County's jurisdiction rather than having its own municipal STR ordinances. Jackson County does not appear to have specific STR restrictions as of 2023, meaning STRs would typically be permitted subject to standard zoning and property use regulations. However, operators should verify compliance with Iowa Department of Revenue requirements for collecting state and local taxes on rental income, and ensure any STR operation complies with residential zoning if applicable. There have been no recent significant legal changes specifically affecting Andrew, though Iowa has seen some municipalities like Des Moines and Iowa City implement registration requirements and occupancy limits in recent years. Property owners should confirm current county zoning regulations and tax obligations before operating an STR in Andrew.

The best Airbnb investment areas in Andrew, Iowa would be the historic downtown district near Main Street, which attracts visitors interested in small-town charm and local events like the annual Andrew Days festival. The residential neighborhoods within walking distance of Andrew Community Center and local parks offer appeal for family reunions and extended stays, while properties near the Andrew Golf Course attract recreational travelers during the golf season from April through October. Areas close to Highway 52 provide convenient access for business travelers visiting nearby agricultural facilities and manufacturing plants in the region, including those working with companies like Cargill and ADM that have operations in eastern Iowa. The neighborhoods near Andrew Elementary School and community gathering spaces are ideal for visitors attending local sporting events, graduations, and community celebrations throughout the year, particularly during harvest season when agricultural tourism peaks in September and October.

Airbnb properties in Andrew, Iowa are subject to Iowa's state lodging tax of 7% on gross receipts from rental accommodations, which applies to stays of less than 31 consecutive days. The state tax is typically collected by the host and remitted quarterly to the Iowa Department of Revenue using Form IA 1040, with payments due by the last day of the month following each quarter. Additionally, Jackson County (where Andrew is located) may impose a local hotel/motel tax of up to 7%, though the specific rate for Andrew area properties is estimated at 5%, bringing the total potential tax burden to approximately 12%. Local taxes are generally collected by the county treasurer's office and may have different remittance schedules, often monthly or quarterly depending on revenue volume. Exemptions typically include stays of 31 days or longer (considered long-term rentals), accommodations provided to permanent residents, and certain government or charitable organization bookings. Hosts earning over $1,000 annually in rental income are required to register with the Iowa Department of Revenue and obtain a sales tax permit, while local registration requirements may apply through Jackson County offices for properties generating significant rental activity.

To start an Airbnb in Andrew, Iowa, the total estimated costs would be approximately $185,000-$220,000. Property purchase costs around $120,000-$150,000 based on median home prices in rural Iowa communities. Furnishing a 2-3 bedroom property would cost $15,000-$25,000 including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs of $3,000-$5,000 cover professional photography, listing creation, welcome materials, and basic marketing. Permits and fees total approximately $500-$1,500 including business license, short-term rental permits, and potential zoning approvals from local authorities. Insurance costs $2,000-$3,000 annually for specialized short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits require $500-$1,000 for electricity, water, gas, internet, and cable services. First six months of operating costs including utilities, cleaning services, maintenance, supplies, platform fees, and marketing would total $8,000-$12,000. Additional considerations include potential property improvements or renovations that could add $10,000-$25,000 to create a competitive rental property in the Iowa market.

Airbnb properties in Andrew, Iowa face significant profitability challenges due to the town's small population of approximately 450 residents and limited tourist attractions, resulting in average annual revenues of $8,000-$15,000 for typical 2-3 bedroom properties with occupancy rates around 25-35%. Operating expenses typically include property taxes ($1,200-$2,500 annually), insurance ($800-$1,500), utilities ($1,800-$2,400), cleaning fees ($50-$75 per turnover), and maintenance costs ($1,000-$2,000 yearly), totaling approximately $5,000-$8,000 in annual expenses. This results in modest profit margins of 15-40% or net profits of $3,000-$7,000 annually, making properties viable primarily as supplemental income rather than primary investment vehicles. Success factors in Andrew include competitive pricing ($60-$90 per night), targeting hunters during deer season, marketing to families visiting nearby Maquoketa Caves State Park, and maintaining properties that appeal to guests seeking rural Iowa experiences. Properties with unique features like farm settings, outdoor amenities, or proximity to recreational areas tend to perform better, though the limited market size means most successful hosts manage expectations for moderate returns rather than high-yield investments typical of urban markets.

Airbnb investments in Andrew, Iowa typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on the rural Iowa market characteristics. Properties in Andrew, with average home values around $85,000-$120,000, can expect gross rental yields of 12-18% annually, though after expenses including property management, maintenance, insurance, and vacancy rates of 25-35% common in smaller Iowa markets, net returns settle in the 8-12% range. Initial investment recovery and profitability typically occurs within 18-24 months for well-positioned properties near recreational areas or along Highway 52 corridor. Cash-on-cash returns of 6-10% are achievable with 20-25% down payments, assuming average nightly rates of $75-$95 and occupancy rates of 45-55% annually, which reflects the seasonal tourism patterns and proximity to larger markets like Dubuque and Cedar Rapids that drive weekend and short-term visitor demand to this Jackson County location.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Andrew, Iowa and surrounding markets. Local real estate agents serving the Andrew area include Coldwell Banker Hedges Realty in nearby Cedar Falls, RE/MAX Concepts in Waterloo, and Berkshire Hathaway HomeServices Iowa Properties which has agents familiar with investment properties in Black Hawk County. National services that help investors find Airbnb properties include AirDNA for market analysis and data, Mashvisor for investment property analytics, BiggerPockets for networking and deal sourcing, and Roofstock which occasionally features short-term rental opportunities. Additional local services include Iowa Realty offices in Cedar Falls and Waterloo, with agents like those at Ruhl & Ruhl Realtors who understand the local rental market dynamics. Property management companies such as RedAwning and AvantStay also provide services for investors looking to optimize their Airbnb investments in smaller Iowa markets, while platforms like Furnished Finder and Corporate Housing by Owner can help identify properties with existing furnishing that could transition to short-term rentals in the Andrew area.