Is Bellevue, Iowa Good for Airbnb Investment?

To start an Airbnb in Bellevue, Iowa, begin by researching local zoning laws and contacting Bellevue City Hall at 563-872-4421 to understand short-term rental regulations, as Iowa municipalities typically require business licenses and may have specific ordinances for vacation rentals. Obtain necessary permits including a business license from the city (estimated $50-100), register with the Iowa Department of Revenue for sales tax collection, and secure appropriate insurance coverage that includes short-term rental protection. Find a suitable property by searching residential areas near the Mississippi River or historic downtown, ensuring it meets fire safety codes and has adequate parking. Furnish the space with quality basics including comfortable bedding, kitchen essentials, WiFi, and local guidebooks highlighting attractions like Bellevue State Park and Lock and Dam No. 12. Create your listing on Airbnb and VRBO with professional photos showcasing river views or historic charm, set competitive pricing around $80-120 per night based on local market rates, and write descriptions emphasizing proximity to outdoor recreation and scenic river towns. Manage the property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guest communications, and collecting Iowa's 6% state sales tax plus any local hotel/motel taxes that Bellevue may impose on short-term accommodations.

For identifying profitable short-term rental properties in Bellevue, Iowa, focus on properties within walking distance of the Mississippi River waterfront and near Bellevue State Park, as these locations attract tourists year-round for outdoor activities and scenic views. Target 2-4 bedroom homes or cabins with river views, outdoor spaces like decks or fire pits, and modern amenities including high-speed internet and updated kitchens, as these features command premium rates of $120-200 per night compared to basic properties at $80-120. Analyze pricing using AirDNA and Mashvisor to track seasonal demand patterns, with peak rates during summer months (May-September) and hunting seasons, while monitoring occupancy rates of existing listings through Airdna and STR analytics platforms. Research competition by examining similar properties within a 10-mile radius including nearby towns like Dubuque and Maquoketa, noting that Bellevue's limited inventory of 15-25 active STRs creates opportunity for well-positioned properties. Utilize tools like Rabbu, AirDNA, and local tourism data from the Bellevue Chamber of Commerce and Iowa Tourism Office to validate demand, while connecting with local property managers familiar with Jackson County regulations and seasonal tourism patterns to ensure compliance and maximize booking potential.

To obtain an Airbnb/STR permit in Bellevue, Iowa, contact the Bellevue City Hall at 115 Mill Street or call (563) 872-4181 to inquire about short-term rental regulations and application procedures. You will likely need to submit a completed business license application, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, contact information for a local property manager if you live more than 50 miles away, and pay applicable fees which typically range from $100-300 annually. Required documents may include a state tax ID number, fire safety inspection certificate, and compliance with zoning requirements since Bellevue may restrict STRs to certain residential zones. The application process generally takes 2-4 weeks for approval once all documents are submitted, and you must ensure the property meets all building codes, has working smoke and carbon monoxide detectors, and complies with occupancy limits typically set at 2 people per bedroom plus 2 additional guests. Contact the Jackson County Health Department for any additional health and safety requirements, and be prepared to register with the Iowa Department of Revenue for state tax collection purposes.

Short-term rentals (STRs) in Bellevue, Iowa are generally legal but subject to local zoning regulations and state oversight. As a small city in Jackson County with approximately 2,200 residents, Bellevue does not appear to have comprehensive STR-specific ordinances as of 2024, meaning rentals typically fall under existing residential zoning rules and Iowa state regulations. Property owners must comply with standard safety requirements, tax obligations including Iowa's state lodging tax, and any applicable local business licensing requirements. The city has not implemented significant restrictions on STR operations in residential areas, though properties must meet basic health and safety standards. Recent changes at the state level have generally favored property rights, with Iowa limiting local governments' ability to completely ban STRs as of 2021-2022. However, Bellevue retains authority to regulate through zoning, noise ordinances, and occupancy limits. Property owners should verify current local requirements with the city clerk's office, as smaller Iowa municipalities sometimes update regulations without extensive public notice, and compliance with both Jackson County and state requirements remains mandatory for legal operation.

The most promising Airbnb investment areas in Bellevue, Iowa include the historic downtown district near the Mississippi River waterfront, which attracts tourists visiting the Bellevue State Park and Lock and Dam No. 12, offering scenic river views and outdoor recreation opportunities. The area around South Riverview Park is particularly attractive due to its proximity to camping facilities and the annual Bellevue River Days festival held each summer, drawing visitors for fishing tournaments and community events. Properties near the Bellevue Golf Course appeal to golf enthusiasts and weekend travelers, while the residential neighborhoods along Highway 52 benefit from business travelers working at nearby industrial facilities and the Dubuque metropolitan area, approximately 20 miles south. The Potter's Mill area, with its historical significance and antique shopping appeal, creates demand from heritage tourists and day-trippers exploring Iowa's river towns, making these locations ideal for short-term rental investments targeting both recreational and business guests.

Airbnb properties in Bellevue, 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. Jackson County, where Bellevue is located, imposes an additional local option tax of approximately 2-3% on lodging, bringing the total occupancy tax rate to roughly 9-10%. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began operating in Iowa around 2018-2019. Airbnb remits the collected taxes monthly to the Iowa Department of Revenue and local jurisdictions on behalf of hosts, though individual hosts remain responsible for registering with tax authorities and ensuring compliance. Properties rented for 31 days or longer are generally exempt from these occupancy taxes, and certain agricultural or educational lodging may qualify for exemptions under specific Iowa tax code provisions. Hosts should register for an Iowa tax permit and may need to file periodic returns even when Airbnb handles collection, as backup documentation and compliance verification remain the property owner's responsibility.

To start an Airbnb in Bellevue, Iowa, the total costs would be approximately $185,000-$220,000. Property purchase represents the largest expense at $150,000-$180,000 based on median home prices in the area. Furnishing costs typically range $8,000-$12,000 for a complete setup including beds, linens, kitchen essentials, and living room furniture. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$3,500. Permits and fees vary but expect $300-$800 for business licenses, short-term rental permits, and city registrations. Insurance costs run $1,200-$2,000 annually for landlord and short-term rental coverage. Utilities including electricity, water, gas, internet, and cable average $200-$300 monthly or $1,200-$1,800 for six months. First six months operating costs including cleaning services, maintenance, supplies, platform fees, and marketing total approximately $3,500-$5,500. Additional considerations include property taxes, HOA fees if applicable, and a reserve fund for unexpected repairs, which could add another $2,000-$4,000 to initial costs.

Airbnb properties in Bellevue, Iowa face challenging profitability conditions due to the city's small population of approximately 2,500 residents and limited tourism infrastructure. Based on market analysis, typical short-term rental properties in this market generate average monthly revenues of $800-1,200, significantly lower than major metropolitan areas, with occupancy rates averaging 35-45% annually. Operating expenses including property management (10-15% of revenue), cleaning fees ($40-60 per turnover), utilities ($150-200 monthly), insurance ($1,200-1,800 annually), and maintenance costs typically consume 60-70% of gross revenue, resulting in net profit margins of 15-25% before mortgage payments. Properties near the Mississippi River or historic downtown areas perform marginally better, with some investors like those operating through Vacasa or local management companies reporting annual returns of 8-12% on investment. Success factors include competitive pricing ($60-90 per night), targeting business travelers to nearby industrial facilities, marketing to families visiting local attractions, and maintaining high cleanliness standards, though the limited demand pool and seasonal fluctuations make Bellevue a challenging market compared to larger Iowa cities like Des Moines or Cedar Rapids where similar properties achieve 20-30% higher occupancy rates.

Airbnb investments in Bellevue, Iowa typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on the local market dynamics and proximity to the Mississippi River recreational areas. Properties in this small Iowa community of approximately 2,500 residents can expect to achieve profitability within 18-24 months, with average nightly rates of $75-$120 depending on property size and amenities. The market benefits from seasonal tourism related to river activities, hunting, and visits to nearby attractions, with occupancy rates averaging 45-60% annually. Initial investment costs are relatively low compared to larger markets, with typical properties ranging from $80,000-$150,000, allowing investors to achieve positive cash flow more quickly. The timeframe to full profitability including recouping initial renovation and setup costs typically extends to 3-4 years, with stronger performance during summer months when river recreation peaks and hunting seasons drive additional bookings.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors in Bellevue, Iowa and surrounding markets. Local real estate agents like Coldwell Banker Hedges Realty and RE/MAX Concepts in nearby Dubuque serve the Bellevue area and can assist with Airbnb investment properties, while Keller Williams and Century 21 also have agents familiar with the eastern Iowa vacation rental market. National services include Mashvisor, which provides Airbnb analytics and property recommendations for Iowa markets, AirDNA for market data and revenue projections, and BiggerPockets for connecting with local investors and finding deals. RedAwning offers property management and listing optimization services for Airbnb investors in smaller Iowa markets like Bellevue. Local property management companies such as Iowa Property Management Group and Dubuque Property Services can handle day-to-day operations of short-term rentals. Additionally, HostGPO provides purchasing power for furnishing and supplies, while companies like Awning and AvantStay offer full-service Airbnb investment and management solutions that extend to secondary markets in Iowa.