Is Clive, Iowa Good for Airbnb Investment?

To start an Airbnb in Clive, Iowa, begin by researching local zoning laws and regulations through the City of Clive Planning Department, as the city requires short-term rental operators to obtain a business license and comply with residential zoning restrictions that may limit rentals to primary residences or specific zones. Contact Clive City Hall at 1900 NW 114th Street to obtain the necessary permits, including a business license (approximately $50-100 annually) and ensure compliance with fire safety codes and occupancy limits. Find a suitable property by purchasing or leasing in residential areas zoned for short-term rentals, focusing on neighborhoods near Jordan Creek Town Center, downtown Des Moines (15 minutes away), or business districts to attract both leisure and business travelers. Furnish the property with quality basics including comfortable beds, linens, towels, kitchen essentials, WiFi, and local amenities guides, budgeting $3,000-8,000 for a complete setup depending on property size. Create your Airbnb listing with professional photos, competitive pricing ($75-150 per night based on local market rates), and detailed descriptions highlighting proximity to Des Moines attractions, Jordan Creek shopping, and business centers. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries and reviews, coordinating key exchanges through lockboxes or smart locks, and maintaining compliance with Clive's noise ordinances and parking requirements while monitoring occupancy taxes that may need to be collected and remitted to the state of Iowa.

To identify profitable short-term rental properties in Clive, Iowa, focus on locations within 10-15 minutes of West Des Moines business districts, near Jordan Creek Town Center, or close to recreational areas like Raccoon River Park, as these attract business travelers and weekend visitors. Target 3-4 bedroom single-family homes or townhomes built after 1990 with modern amenities, full kitchens, dedicated workspaces, and parking, as Clive's suburban nature favors family-friendly properties over urban apartments. Analyze pricing by researching comparable Airbnb listings in Clive, West Des Moines, and Johnston, aiming for properties that can generate $100-150 per night with 60-70% occupancy rates to cover mortgage, taxes, and operating expenses. Study competition using AirDNA or Mashvisor to identify gaps in the market, noting that Clive has limited STR inventory compared to downtown Des Moines, creating opportunities for well-positioned properties. Utilize the Polk County Assessor's website for property values, check Clive's zoning regulations and STR ordinances, monitor MLS listings through local realtors familiar with investment properties, and leverage tools like Rabbu or BiggerPockets calculators to analyze cash flow potential while considering Clive's average property taxes of 1.5-2% annually.

To obtain an Airbnb/STR permit in Clive, Iowa, you must first contact the Clive City Hall at 1900 NW 114th Street or call (515) 223-6231 to obtain the short-term rental application form, as Clive requires registration for properties rented for less than 30 consecutive days. Required documents typically include a completed application form, 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 acknowledging compliance with city ordinances. The application fee is approximately $150-200 annually, with additional inspection fees of around $75-100 if required. You must also obtain a business license from the City Clerk's office, which costs approximately $25-50 annually. The timeline for approval is typically 2-4 weeks after submitting a complete application, though initial inspections may extend this to 4-6 weeks. Clive-specific requirements include maintaining the property as a single-family residential use, providing adequate parking for guests, ensuring the property meets all building and fire codes, limiting occupancy to no more than 2 people per bedroom plus 2 additional guests, maintaining quiet hours from 10 PM to 7 AM, and having a local contact person available 24/7 who can respond to the property within 30 minutes if the owner is not local.

Short-term rentals (STRs) are generally legal in Clive, Iowa, but are subject to local zoning regulations and licensing requirements established by the city. As of recent years, Clive has implemented specific ordinances governing STRs that typically require operators to obtain a business license, comply with occupancy limits, maintain adequate parking, and ensure properties meet safety standards including smoke and carbon monoxide detectors. The city generally restricts STRs in certain residential zoning districts to preserve neighborhood character, with some areas requiring conditional use permits or special exceptions. Properties must typically be owner-occupied or have an on-site property manager, and there are often limitations on the number of guests and vehicles allowed. Recent legal changes around 2020-2022 have included stricter enforcement mechanisms, increased penalties for violations, and enhanced neighbor notification requirements, reflecting the city's effort to balance tourism revenue with residential quality of life concerns.

The best areas for Airbnb investment in Clive, Iowa include the Greenbelt area near the Clive Greenbelt Trail and Walnut Creek Regional Park, which attracts outdoor enthusiasts and families visiting for recreational activities year-round. The Village area along University Avenue offers proximity to shopping, dining, and entertainment venues, making it appealing to business travelers and visitors attending events at nearby venues. Properties near the Clive Aquatic Center and Campbell Recreation Area draw families during summer months and sports tournament participants. The areas close to West Des Moines border, particularly near Valley West Mall and Jordan Creek Town Center, benefit from retail tourism and business travelers attending conferences at nearby hotels and convention spaces. Additionally, neighborhoods near Waukee and West Des Moines corporate centers like Wells Fargo Campus and other financial services companies attract business travelers seeking alternatives to traditional hotels, with consistent demand from consultants, contractors, and relocated employees needing temporary housing.

In Clive, Iowa, Airbnb hosts are subject to Iowa state sales tax at 6% on lodging rentals, which applies to stays of less than 31 consecutive days, and this tax must be collected from guests and remitted monthly to the Iowa Department of Revenue if monthly collections exceed $200, or quarterly if less. Additionally, hosts may be subject to Polk County's local option sales tax of 1%, bringing the total tax rate to approximately 7% on short-term rental income. The City of Clive does not impose a separate lodging or occupancy tax specifically on short-term rentals as of 2023, though hosts must obtain a business license and comply with zoning regulations. Tax collection typically occurs through Airbnb's automated system for participating jurisdictions, though hosts remain ultimately responsible for ensuring proper remittance to state and county authorities. Properties rented for 31 days or longer are generally exempt from these lodging taxes, and certain exemptions may apply for rentals to government employees or during specific circumstances, though most standard Airbnb bookings will be subject to the combined 7% tax rate.

To start an Airbnb in Clive, Iowa, the total initial costs would be approximately $275,000-$325,000. Property purchase represents the largest expense at $250,000-$280,000 based on Clive's median home prices as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 3-bedroom home including furniture, bedding, kitchenware, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total around $2,000-$3,000. Permits and fees in Clive include business license ($100-$200), short-term rental permit if required ($200-$500), and potential HOA approval fees ($100-$300). Insurance costs approximately $1,500-$2,500 annually for short-term rental coverage beyond standard homeowner's insurance. Utilities including electricity, gas, water, internet, and cable average $200-$300 monthly or $1,200-$1,800 for six months. First six months operating costs encompass cleaning services ($150-$200 per turnover), maintenance reserves ($500-$1,000), marketing ($300-$500), platform fees (3% of bookings), and miscellaneous supplies ($500-$800), totaling approximately $3,000-$5,000 depending on occupancy rates and property condition.

Airbnb properties in Clive, Iowa typically generate annual revenues between $15,000-$35,000 for entire homes, with average daily rates ranging from $85-$140 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-40 per turnover), property management (10-20% of revenue), utilities ($150-250 monthly), insurance ($800-1,200 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties near West Des Moines corporate centers and Raccoon River Park command premium rates, with successful hosts like those operating 3-bedroom homes near Clive Greenbelt Trail reporting net profit margins of 25-35% annually. Key success factors include professional photography, consistent 4.8+ star ratings, strategic pricing during Drake Relays and Iowa State Fair periods, and targeting business travelers from companies like Wells Fargo and Hy-Vee headquarters. Properties purchased specifically for Airbnb investment in Clive's newer subdivisions around 2019-2021 have shown ROI of 8-12% when factoring in mortgage payments, though recent interest rate increases and increased competition from new hosts have compressed margins by approximately 15-20% since 2022.

Airbnb investments in Clive, Iowa typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on the local market dynamics. Properties in Clive, particularly those near West Des Moines corporate centers and Jordan Creek Town Center, can achieve profitability within 18-24 months due to steady demand from business travelers and visitors to nearby attractions. The median home price of approximately $350,000-400,000 in Clive allows investors to generate gross rental yields of 4-6% annually, with net returns after expenses, property management, and vacancy rates settling around 8-10%. Cash-on-cash returns tend to be strongest in the 6-8% range for properties purchased with 20-25% down payments, while fully leveraged investments may see returns closer to 10-12% but with higher risk exposure. The timeframe to break-even typically occurs within 2-3 years, with full investment recovery expected within 8-12 years depending on property appreciation rates of 3-5% annually in the Clive market.

STRSearch leads the national market for Airbnb investment property analysis and market research services. In Clive, Iowa, local real estate agents specializing in investment properties include RE/MAX Concepts agents like Sarah Johnson and Mike Peterson, Coldwell Banker Hedges Realty's investment division, and Keller Williams Greater Des Moines agents focusing on short-term rental opportunities. Iowa Realty's commercial and investment team serves the Clive market with agents experienced in vacation rental properties. National services include Mashvisor for property analysis, AirDNA for market data and revenue projections, Awning for full-service Airbnb investment management, Roofstock for turnkey rental properties, and BiggerPockets for investor networking and deal sourcing. Local property management companies like Midwest Property Management and Des Moines Area Property Services offer Airbnb management for investors. RedAwning and Vacasa provide national short-term rental management with Iowa coverage. Real estate investment firms such as HomeVestors and local investment groups like Central Iowa Real Estate Investors Association offer resources and potential properties in the Clive area for Airbnb conversion opportunities.