Is Le Claire, Iowa Good for Airbnb Investment?

To start an Airbnb in Le Claire, Iowa, begin by researching local zoning laws and regulations through the Le Claire City Hall, as the city may require short-term rental permits and compliance with residential zoning restrictions. Contact the Scott County Health Department to understand any health and safety requirements, and check if you need a business license from the city clerk's office. Find a suitable property by searching local real estate listings or consider converting your existing home, ensuring it meets Iowa's habitability standards and has adequate parking. Furnish the space with essential amenities including comfortable bedding, kitchen supplies, Wi-Fi, and safety equipment like smoke detectors and fire extinguishers as required by Iowa fire codes. Create your Airbnb listing with high-quality photos highlighting Le Claire's proximity to the Mississippi River and local attractions like the Buffalo Bill Museum, setting competitive rates based on similar properties in the Quad Cities area (typically $80-150 per night). For ongoing management, establish a cleaning routine between guests, respond promptly to inquiries, maintain the property according to Iowa landlord-tenant laws, collect and remit Iowa state sales tax (currently 6% plus local taxes), and consider hiring a local property management company if you live far from Le Claire. Ensure you have proper insurance coverage, as standard homeowner's policies may not cover short-term rentals, and maintain detailed records for tax purposes including income reporting to the IRS and Iowa Department of Revenue.

To identify profitable short-term rental properties in Le Claire, Iowa, focus on locations within walking distance of the Mississippi River waterfront, near the Buffalo Bill Museum, and close to downtown antique shops and restaurants, as these areas attract the most tourists visiting this historic riverfront community. Target 2-4 bedroom single-family homes or condos built after 1990 with modern amenities, full kitchens, parking, and outdoor spaces like decks or patios that can accommodate families and groups exploring the Great River Road. Analyze pricing by researching comparable Airbnb and VRBO listings in Le Claire and nearby Davenport, aiming for nightly rates between $120-200 depending on size and amenities, while calculating potential annual revenue against purchase prices under $200,000 to achieve 8-12% returns. Research competition using AirDNA and STR analytics tools to identify gaps in the market, noting that Le Claire has limited hotel options which creates opportunity for STRs, and monitor seasonal demand patterns tied to river activities and antique shopping peaks. Utilize resources like the Scott County Assessor's office for property values, the Le Claire Tourism Bureau for visitor data, local real estate agents familiar with investment properties, and STR management companies like Vacasa or local property managers who understand Iowa's short-term rental regulations and Le Claire's specific zoning requirements.

To obtain an Airbnb/STR permit in Le Claire, Iowa, contact the Le Claire City Hall at 448 Cody Road or call (563) 289-4242 to begin the application process. You'll need to submit a completed short-term rental application form, provide proof of property ownership or lease agreement, submit a site plan showing parking areas and property layout, obtain a certificate of occupancy if required, and provide proof of liability insurance with minimum $1 million coverage. Required documents include a valid Iowa driver's license or state ID, property tax records, floor plans indicating maximum occupancy, emergency contact information, and a signed affidavit agreeing to comply with city ordinances. The application fee is typically around $100-150 with an annual renewal fee of approximately $75-100. The approval timeline is generally 30-45 days from submission of a complete application. Le Claire specific requirements include limiting occupancy to two guests per bedroom plus two additional guests, maintaining adequate off-street parking (typically one space per bedroom), ensuring compliance with residential zoning restrictions, posting the permit number visibly on the property, maintaining a 24-hour contact number for complaints, and adhering to quiet hours typically from 10 PM to 7 AM. Properties must also meet fire safety codes and may require periodic inspections.

Short-term rentals (STRs) are legal in Le Claire, Iowa, but operate under specific municipal regulations that require property owners to obtain proper permits and comply with zoning restrictions. The city typically requires STR operators to register their properties, maintain liability insurance, and ensure compliance with fire safety codes and occupancy limits. Le Claire generally restricts STRs to certain residential zones while prohibiting them in areas zoned exclusively for single-family residential use, and the city has implemented noise ordinances and parking requirements to address neighbor concerns. Recent changes around 2022-2023 have included stricter enforcement of existing regulations and enhanced permit application processes, with the city requiring annual renewals and periodic inspections. Property owners must also collect and remit local hotel/motel taxes, and violations can result in fines or permit revocation, making compliance essential for legal operation within Le Claire's jurisdiction.

The most promising areas for Airbnb investment in Le Claire, Iowa are the Historic Downtown District along the Mississippi River waterfront, particularly properties within walking distance of the Buffalo Bill Museum and Antique Archaeology (featured on American Pickers since 2010), which attracts thousands of tourists annually. The Riverfront Park vicinity offers excellent potential due to its proximity to the Mississippi River Trail, paddlewheeler cruises, and seasonal festivals like Tug Fest that draw visitors from across the Midwest. Properties near the Le Claire Corporate Center and adjacent to Interstate 80 provide strong business traveler demand from companies like Genesis Health System and regional logistics firms. The residential areas surrounding Glynns Creek Golf Course appeal to golf tourism and corporate retreats, while neighborhoods close to the Davenport-Bettendorf metropolitan area benefit from overflow demand during major events at the TaxSlayer Center and Rhythm City Casino. The Canal Shore Drive area is particularly attractive due to its scenic river views and proximity to both recreational activities and the antique shopping district that has made Le Claire a regional destination since the early 2000s.

Le Claire, Iowa imposes a 7% hotel/motel tax on short-term rental accommodations including Airbnb properties, which is collected by the city and applies to stays of less than 31 consecutive days. This local lodging tax is in addition to Iowa's state sales tax of 6% and any applicable local option sales tax, bringing the total tax burden to approximately 13-14% for most Airbnb stays in Le Claire. The taxes are typically collected by Airbnb directly from guests at the time of booking and remitted to the appropriate tax authorities on behalf of hosts, though individual hosts may need to register with the Iowa Department of Revenue and Le Claire city offices if they handle their own tax collection. Remittance is generally required monthly or quarterly depending on the volume of bookings, with returns due by the 20th of the following month. Exemptions may apply for stays exceeding 30 days, certain government or non-profit travelers, and in some cases for properties rented fewer than a specified number of days per year, though hosts should verify current exemption criteria with Le Claire's city clerk office as regulations have evolved since 2018-2020 when many Iowa municipalities began implementing short-term rental tax frameworks.

To start an Airbnb in Le Claire, Iowa, the total initial 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 this Mississippi River town. Furnishing costs typically range $8,000-$12,000 for a complete 2-3 bedroom property including beds, linens, kitchen essentials, and living room furniture from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$3,000. Permits and fees in Scott County include business license ($50-$100), potential zoning permits ($200-$500), and any required inspections totaling approximately $500-$1,000. Insurance costs run $1,200-$2,000 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utility setup and deposits for electricity, gas, water, internet, and cable average $500-$800 initially. First six months operating costs including utilities ($200/month), cleaning supplies ($100/month), maintenance reserves ($150/month), platform fees to Airbnb and VRBO (3% of bookings), and marketing expenses total approximately $3,500-$5,000, assuming moderate occupancy rates of 50-60% typical for Iowa river towns.

Airbnb properties in Le Claire, Iowa, typically generate annual revenues of $15,000-$35,000 for well-positioned properties, with average daily rates ranging from $85-$150 depending on proximity to the Mississippi River and seasonal demand from tourists visiting the American Pickers headquarters and riverfront attractions. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-40 per turnover), utilities ($150-250 monthly), property management (15-25% if outsourced), insurance ($800-1,200 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties within walking distance of downtown Le Claire or offering river views command premium rates and achieve 65-75% occupancy during peak season (May-October), while standard residential properties typically see 45-55% annual occupancy. Net profit margins for successful operators range from 25-40%, with properties like renovated historic homes near Antique Archaeology generating $25,000+ annually on $180,000 property values, while suburban properties further from attractions may only yield 10-20% returns. Success factors include professional photography, responsive guest communication, strategic pricing during Tugfest and other local events, and maintaining high cleanliness standards, as Le Claire's small market size means reputation spreads quickly among the tight-knit tourism community.

Based on Le Claire, Iowa market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%. Properties near the Mississippi River and downtown area command premium rates of $120-180 per night during peak season (April-October) and $80-120 during off-season. With average occupancy rates of 65-75% annually, investors can expect gross rental yields of 15-22% before expenses. After accounting for property management (10-15%), maintenance, utilities, and local taxes, net returns stabilize around 10-16%. Initial profitability typically occurs within 8-14 months for well-positioned properties under $200,000, while higher-end riverfront properties may require 12-18 months to reach positive cash flow. The market benefits from tourism to Buffalo Bill Museum, Antique Archaeology, and river activities, with strongest performance from properties within 0.5 miles of downtown attractions.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Le Claire, Iowa. Local real estate agents in the Quad Cities area such as Ruhl & Ruhl Realtors, Mel Foster Co., and Keller Williams Quad Cities have experience with investment properties along the Mississippi River corridor where Le Claire is located. National services like Awning, RedAwning, and AirDNA provide market analysis and property management specifically for Airbnb investments. BiggerPockets marketplace and Roofstock also list investment properties suitable for short-term rentals in Iowa markets. Local property management companies such as Iowa Property Management Group and Quad Cities Property Management can assist with Airbnb operations, while national firms like Vacasa and AvantStay specialize in short-term rental management. Real estate investment groups like Iowa Real Estate Investors Association provide networking and deal flow opportunities for the Le Claire market.