Is Ankeny, Iowa Good for Airbnb Investment?

To start an Airbnb in Ankeny, Iowa, begin by researching local regulations through the City of Ankeny Planning and Zoning Department, as the city requires short-term rental operators to obtain a business license and comply with zoning ordinances that typically restrict rentals to residential zones with potential occupancy limits of 2-4 guests per bedroom. Contact Ankeny City Hall at 220 West 1st Street to obtain the necessary permits, which may include a business license ($50-100 annually), zoning compliance certificate, and potentially a special use permit depending on your property's location and local ordinances. Find a suitable property in residential areas like Prairie Trail, Uptown, or established neighborhoods near downtown Ankeny, ensuring it meets city fire safety codes and has adequate parking as required by municipal regulations. Furnish the space with quality amenities including Wi-Fi, kitchen essentials, linens, and safety equipment like smoke detectors and fire extinguishers to meet Iowa fire safety standards. List your property on Airbnb, VRBO, and other platforms with competitive pricing around $80-150 per night based on Ankeny's market rates, highlighting proximity to Des Moines (15 minutes), local attractions like Firetrucker Brewery, and the High Trestle Trail. Manage your rental by establishing check-in procedures, maintaining Iowa sales tax compliance (6% state plus local taxes), responding promptly to guests, coordinating cleaning between stays, and ensuring ongoing compliance with Ankeny's short-term rental regulations which may require annual renewals and periodic inspections.

To identify profitable short-term rental properties in Ankeny, Iowa, focus on locations within 10-15 minutes of major employers like John Deere Financial, Casey's General Stores headquarters, and Des Moines metro attractions, particularly near the DMACC campus and Prairie Trail areas which attract business travelers and families visiting students. Target 3-4 bedroom single-family homes or townhomes built after 2000 with modern amenities, full kitchens, parking, and outdoor spaces, as Ankeny's suburban family-oriented market values space and comfort over urban luxury. Analyze comparable properties using AirDNA and Mashvisor to benchmark against the $80-120 nightly rate range typical for the market, ensuring your acquisition costs allow for 15-20% annual returns after expenses. Research competition by studying existing STRs within 5 miles, noting their occupancy rates, pricing strategies, and guest reviews to identify gaps in amenities or service quality. Utilize Zillow and Realtor.com for property searches, connect with local real estate agents familiar with investment properties, monitor the Ankeny Economic Development Corporation for business growth trends, and leverage STR-specific tools like Rabbu or Awning for market analysis while staying informed about Ankeny's zoning regulations and any STR licensing requirements through the city's planning department.

To obtain an Airbnb/STR permit in Ankeny, Iowa, you must first contact the Ankeny Community Development Department at City Hall located at 410 West First Street to determine current zoning compliance and obtain a Conditional Use Permit application, as short-term rentals typically require special approval in residential zones. Submit the completed application along with a site plan showing the property layout, proof of property ownership or lease agreement, a business license application, certificate of insurance with minimum $1 million liability coverage, and a detailed operational plan describing guest management and parking arrangements. The application fee is estimated at $200-400 for the Conditional Use Permit plus approximately $50-100 for the business license, and you may need to pay additional fees for public notices if a hearing is required. The process typically takes 4-6 weeks and includes a staff review period, potential Planning and Zoning Commission hearing, and final approval by the City Council. Ankeny requires STR operators to maintain current contact information with the city, respond to complaints within 2 hours, provide adequate off-street parking for guests, ensure compliance with fire safety codes including smoke detectors and fire extinguishers, limit occupancy based on bedroom count, and register annually while maintaining all required insurance and licensing throughout the permit period.

Short-term rentals (STRs) are generally legal in Ankeny, Iowa, but operate under the city's zoning regulations and business licensing requirements. As of recent years, Ankeny has not implemented specific STR ordinances like some larger Iowa cities, meaning they typically fall under existing residential use regulations and require standard business licenses. Properties must comply with residential zoning restrictions, which may limit STRs in certain residential districts, and operators must obtain proper business licenses and potentially special use permits depending on the zoning classification. The city has been monitoring STR activity and may require compliance with fire safety codes, occupancy limits, and noise ordinances. Unlike cities such as Des Moines or Iowa City which have enacted more restrictive STR regulations around 2020-2022, Ankeny has maintained a relatively permissive approach while ensuring compliance with existing municipal codes, though property owners should verify current zoning compliance and licensing requirements with the city's planning and zoning department before operating an STR.

The best areas for Airbnb investment in Ankeny, Iowa include the downtown district near the Ankeny Market & Pavilion and Prairie Trail, which attracts visitors for community events, farmers markets, and recreational activities throughout the year. The neighborhoods around Firetrucker Brewery and the historic downtown core benefit from local tourism and dining traffic. Areas near the DMACC Ankeny campus are ideal for accommodating visiting families, prospective students, and academic conference attendees. The Prairie Ridge and Briarwood neighborhoods offer upscale residential settings that appeal to business travelers visiting nearby corporate offices and Des Moines metro area companies. Properties near Otter Creek Golf Course and the High Trestle Trail attract recreational tourists and cycling enthusiasts, while locations close to the Ankeny Regional Airport and major highways like I-35 and I-80 provide convenient access for business travelers heading to Des Moines or other Iowa destinations.

In Ankeny, Iowa, Airbnb hosts are subject to Iowa state sales tax of 6% on lodging rentals, which applies to stays of less than 31 consecutive days. Additionally, hosts must collect the state hotel and motel tax of 7%, bringing the total state-imposed tax rate to 13% on short-term rental income. Polk County, where Ankeny is located, imposes a local option sales tax of 1%, making the combined tax rate approximately 14%. These taxes are typically collected from guests at the time of booking through Airbnb's automated tax collection system, which remits payments directly to the Iowa Department of Revenue on behalf of hosts for properties in participating jurisdictions. Hosts who are not covered by Airbnb's automatic collection must register with the Iowa Department of Revenue, collect taxes manually, and file monthly returns by the 20th of the following month. Exemptions generally apply to stays of 31 days or longer, which are considered long-term rentals rather than transient lodging, and certain government or charitable organization bookings may also be exempt from taxation.

To start an Airbnb in Ankeny, Iowa, the total costs would be approximately $285,000-$320,000. Property purchase represents the largest expense at $250,000-$275,000 based on median home prices in the area. Furnishing costs typically range $15,000-$25,000 for a complete 3-bedroom setup including furniture, appliances, linens, and decor. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees in Ankeny include business license ($100-$200), short-term rental permit ($200-$500), and potential HOA approval costs totaling $500-$1,000. Insurance premiums for short-term rental coverage run $2,000-$3,000 annually. Utility deposits and setup fees for electricity, gas, water, internet, and cable total approximately $1,000-$1,500. First six months of operating costs including utilities ($800/month), cleaning services ($150 per turnover), maintenance reserves ($200/month), platform fees (3% of bookings), and marketing expenses average $8,000-$12,000 assuming 60-70% occupancy rates and $120-$150 nightly rates typical for the Ankeny market.

Airbnb properties in Ankeny, Iowa typically generate annual revenues between $15,000-$35,000 for entire homes, with average daily rates ranging from $75-$120 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-40 per turnover), utilities ($150-250 monthly), property management (10-20% of revenue), insurance ($800-1,200 annually), and maintenance costs ($2,000-4,000 yearly). Profit margins for successful properties average 25-40%, with higher-end homes near Ankeny's corporate centers and recreational areas like Otter Creek Golf Course achieving better performance. Success factors include proximity to Des Moines metro employment hubs, competitive pricing against hotels ($90-130 nightly in the area), professional photography, consistent 4.8+ star ratings, and targeting business travelers visiting companies like Casey's General Stores headquarters or John Deere facilities. Properties within 10 minutes of Interstate 35 and downtown Ankeny typically outperform rural listings by 20-30% in occupancy rates, which average 45-65% annually for well-managed properties. The market benefits from limited hotel inventory in Ankeny itself, creating opportunities for hosts who maintain high standards and responsive communication, though seasonal fluctuations affect winter bookings by approximately 25-35% compared to peak summer months.

Based on Ankeny, Iowa market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the city. Properties near Iowa State University events or downtown Des Moines corridor tend to perform at the higher end, achieving 10-12% annual returns, while suburban residential properties average 8-9% ROI. Initial profitability usually occurs within 12-18 months after accounting for setup costs, furnishing, and marketing expenses. Three-bedroom homes purchased around $200,000-250,000 can generate $2,500-3,500 monthly gross revenue during peak seasons, with occupancy rates averaging 65-75% annually. Cash-on-cash returns of 8-10% are achievable with 20-25% down payments, factoring in mortgage payments, property management fees of 10-15%, cleaning costs, and maintenance expenses typical for the central Iowa market.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Ankeny, Iowa. Local real estate agents like those at RE/MAX Real Estate Concepts and Coldwell Banker Mid-America Group have experience with investment properties in the Ankeny market and understand local zoning regulations for short-term rentals. Mashvisor and AirDNA provide market analysis and investment property identification services that cover the Ankeny area, while BiggerPockets connects investors with local professionals and resources. Iowa Realty and Berkshire Hathaway HomeServices Iowa Properties have agents familiar with investment opportunities in Ankeny's growing market. National services like Awning and RedAwning offer property management and investment guidance for Airbnb properties, while local property management companies such as Iowa Property Management Group can assist with ongoing operations. Real estate investment firms like Roofstock occasionally feature properties in the Des Moines metro area including Ankeny, and platforms like Rentometer and RentBerry provide rental market analysis to help investors evaluate potential returns in this suburban Des Moines market.