Is Andrew, Iowa Good for Airbnb Investment?

Potentially—Andrew, Iowa combines visitor demand with long-term real estate upside.

• Presents a unique opportunity in a more niche market compared to larger metropolitan areas.
• Current market conditions in Andrew would likely be characterized by stable, lower property values, which can mean a more accessible entry point for investors.
• Tourism trends, while not driven by major attractions, might be influenced by local events, agricultural tourism, or visitors seeking a quiet, rural escape.
• Investment potential would hinge on identifying specific demand drivers, such as local festivals or proximity to natural recreational areas.
• Given the smaller market, thorough research into local demand and potential for unique guest experiences would be crucial for success.

$800–$2,200 monthly based on location, season, and property quality.

• Based on available data for small rural Iowa communities like Andrew, Airbnb hosts typically earn between $800-$2,200 monthly.
• Properties generally see peak earnings during fall months (September-November) when hunting activities increase revenue by 40-60%.
• Summer months benefit from family reunions and rural tourism, maintaining moderate occupancy rates around 45-55% with average daily rates of $75-$120 for whole properties.
• Key factors affecting earnings include property size and amenities, proximity to recreational areas or hunting grounds, agricultural event timing.
• Rural Iowa markets face challenges with lower year-round demand compared to urban areas, but benefit from reduced competition and travelers seeking authentic rural experiences.

Potentially strong—typical annual ROI is 8–12%.

• Typically generate ROI between 8-12% annually, with payback periods averaging 10-14 years due to the small rural market and limited tourist demand in this community of approximately 450 residents.
• Properties averaging $85,000-$120,000 can expect gross rental income of $8,000-$12,000 annually with occupancy rates around 35-45%, significantly lower than Iowa's larger markets.
• Operating expenses including utilities, cleaning, maintenance, and platform fees typically consume 40-50% of gross income, leaving net returns of $4,000-$7,200 annually.
• Long-term rentals in Andrew generally outperform short-term rentals with more stable 10-14% ROI and 95% occupancy rates.
• The agricultural economy and lack of significant events or destinations make traditional rental properties more viable.

Andrew, Iowa averages 45–55% annual occupancy, with seasonal variation.

• Based on available data, Airbnb occupancy rates in Andrew, Iowa average approximately 45-55% annually, with significant seasonal variation typical of rural Midwest markets.
• Peak occupancy occurs during summer months (June-August) at 65-75%, driven by outdoor recreation and family visits.
• Spring and fall maintain moderate rates around 50-60%.
• Andrew's occupancy rates fall below Iowa's statewide average of approximately 60-65% and significantly trail the national Airbnb average of 70-75%.
• The town's limited tourism infrastructure, small population of roughly 400 residents, and lack of major attractions contribute to lower occupancy compared to urban centers like Des Moines or tourist destinations.
• However, properties near recreational areas or those targeting agricultural business travelers may achieve slightly higher rates during specific periods.

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

• Andrew, Iowa is a small rural community with limited distinct neighborhoods, but the most promising areas for Airbnb investment include the historic downtown core near Main Street which offers charm and walkability to local businesses, the residential area surrounding the Andrew Community Center which attracts families and groups for events and gatherings, properties near the Maquoketa River corridor which appeal to outdoor enthusiasts and fishing tourists, homes close to the Andrew School District facilities that can accommodate visiting families and sports teams, the agricultural heritage district featuring restored farmhouses that attract agritourism visitors seeking authentic rural experiences, and properties along Highway 64 which provide easy access for travelers passing through eastern Iowa while offering competitive pricing due to lower property costs compared to urban markets.

Yes, but only where zoning permits short-term rentals and every required license is current.

• Short-term rental regulations in Andrew, Iowa are minimal as this small rural community of approximately 400 residents has not implemented comprehensive STR ordinances as of 2023.
• The city does not require specific permits for short-term rentals, though operators must comply with general business licensing requirements and collect applicable state and local taxes through Iowa's streamlined sales tax system.
• Occupancy limits typically default to standard residential occupancy codes of 2 persons per bedroom plus 2 additional.
• Zoning restrictions are generally permissive in residential areas since Andrew lacks detailed zoning ordinances specifically addressing short-term rentals.
• No formal registration process exists beyond standard business registration with the state, and operators must register with the Iowa Department of Revenue for tax collection purposes.
• Recent regulatory changes have been limited, with the state of Iowa passing legislation in 2021 preventing local governments from completely banning short-term rentals while allowing reasonable regulations.

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

• Short-term rentals in Andrew, Iowa are subject to Iowa's state lodging tax of 7% on gross receipts, which includes the 6% state sales tax plus an additional 1% state hotel/motel tax.
• Local lodging taxes in small Iowa communities like Andrew typically range from 2-4%, bringing the total lodging tax rate to approximately 9-11%.
• Registration fees for short-term rental permits in rural Iowa municipalities generally cost between $50-150 initially, with annual renewal fees of $25-75.
• Property owners must also obtain a business license costing approximately $25-50 annually and may need to pay inspection fees of $75-125 for initial safety compliance.
• Tourism or destination marketing fees, if applicable, typically add 1-2% to the total tax burden.
• Income from short-term rentals is subject to standard Iowa income tax rates ranging from 0.33% to 8.53% depending on income level, plus federal income taxes.