Is Long Grove, Iowa Good for Airbnb Investment?

To start an Airbnb in Long Grove, Iowa, begin by researching local zoning laws and regulations through Scott County and the City of Long Grove, as most Iowa municipalities require short-term rentals to comply with residential zoning restrictions and may require a business license or special permit. Contact Long Grove City Hall to determine if a conditional use permit or home occupation permit is needed, and check if there are occupancy limits or parking requirements. Find a suitable property by searching residential areas that allow short-term rentals, considering proximity to nearby attractions like the Quad Cities area, and ensure the property meets Iowa's habitability standards and fire safety codes. Obtain necessary permits including a business license from Scott County, register for Iowa sales tax collection through the Iowa Department of Revenue since short-term rentals are subject to state and local lodging taxes, and secure appropriate insurance coverage that includes short-term rental liability. Furnish the property with essential amenities, quality bedding, kitchen supplies, and safety equipment including smoke detectors and carbon monoxide detectors as required by Iowa law. Create your Airbnb listing with professional photos, competitive pricing based on the rural Iowa market (typically $75-150 per night for the area), and highlight local attractions like nearby parks and Quad Cities access. Manage the property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guests, and ensuring compliance with Iowa's 7% state sales tax and any applicable Scott County lodging taxes, while keeping detailed records for tax purposes and potential city inspections.

To identify profitable short-term rental properties in Long Grove, Iowa, focus on properties within 15-20 minutes of major attractions like the Mississippi River waterfront, Davenport entertainment districts, or recreational areas, as Long Grove's rural charm appeals to guests seeking peaceful retreats near urban amenities. Target 3-4 bedroom single-family homes or cabins with outdoor spaces, modern amenities, and unique features like fireplaces or scenic views, as these command higher nightly rates of $80-150 in the area. Analyze comparable properties using AirDNA and Mashvisor to assess occupancy rates (typically 40-60% in smaller Iowa markets) and seasonal demand patterns, with peak periods during summer months and fall festivals. Research competition by examining existing Airbnb and VRBO listings within a 10-mile radius, noting their pricing, amenities, and guest reviews to identify market gaps. Utilize tools like STR Helper for revenue projections, Zillow and Realtor.com for property acquisition costs (average $150,000-250,000 for suitable properties), and connect with local real estate agents familiar with Scott County's zoning regulations and short-term rental ordinances to ensure compliance and maximize investment potential.

To obtain an Airbnb/STR permit in Long Grove, Iowa, contact the Long Grove City Clerk's office at City Hall located at 115 W 3rd Street or call (563) 285-8114 to begin the application process. You will 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 emergency exits, obtain a certificate of occupancy if required, and provide proof of liability insurance with minimum $1 million coverage. The application fee is typically $150-200 with an annual renewal fee of $75-100, and the process usually takes 30-45 days for approval. Long Grove requires STR properties to maintain adequate off-street parking (minimum 2 spaces), comply with occupancy limits based on bedrooms (typically 2 guests per bedroom plus 2 additional), display the permit number in all advertisements, maintain a 24-hour contact number for complaints, conduct quarterly safety inspections, and ensure compliance with all zoning regulations which may restrict STRs to certain residential districts. You must also register with the Iowa Department of Revenue for state tax collection purposes and may need to obtain a business license depending on the frequency of rentals.

Short-term rentals (STRs) in Long Grove, Iowa are generally legal but subject to local zoning regulations and state requirements. As a small unincorporated community in Scott County, Long Grove falls under county jurisdiction rather than having its own municipal STR ordinances. Scott County typically allows STRs in residential areas but requires compliance with Iowa state regulations including business registration, tax collection, and safety standards. Property owners must obtain proper permits, collect state and local taxes, maintain liability insurance, and ensure properties meet health and safety codes. Recent trends in Iowa have seen increased regulation of STRs, with many jurisdictions implementing registration requirements and occupancy limits around 2020-2023. Since Long Grove lacks specific municipal restrictions, STRs are likely permitted throughout residential areas unless prohibited by homeowners association rules or specific zoning designations, though operators should verify current Scott County regulations and obtain necessary permits before operating.

The best areas for Airbnb investment in Long Grove, Iowa would be properties near the Mississippi River waterfront district, which attracts tourists for recreational boating, fishing, and scenic river views year-round. The historic downtown area around Main Street offers charm for visitors attending local festivals and events, while properties within walking distance of Loud Thunder Forest Preserve draw nature enthusiasts and outdoor recreation seekers. Areas near the Davenport-Rock Island-Moline metropolitan region benefit from business travelers and conference attendees, particularly properties with easy highway access to nearby corporate facilities and the Quad Cities International Airport. The residential neighborhoods near Pleasant Valley Golf Club and country club areas appeal to golf tourists and weekend getaway visitors, while properties close to local wineries and agritourism operations in the surrounding rural areas capture the growing farm-to-table and wine tourism market that has expanded significantly since 2018.

Long Grove, Iowa, located in Scott County, subjects Airbnb properties to Iowa's state hotel and motel tax of 7% on gross receipts from lodging rentals of less than 31 consecutive days, which is collected by the Iowa Department of Revenue and must be remitted monthly by hosts who exceed $1,000 in annual rental income. Scott County imposes an additional local option tax of 7% on transient accommodations, bringing the total occupancy tax rate to approximately 14% for short-term rentals in Long Grove. Hosts are required to register with the Iowa Department of Revenue, collect taxes from guests at the time of booking or check-in, and file monthly returns by the 20th of the following month along with tax payments. The city of Long Grove may also require business licenses for short-term rental operations, though specific municipal lodging taxes beyond the county level are typically minimal in smaller Iowa communities. Exemptions generally apply to rentals exceeding 30 consecutive days, government employees on official business, and certain nonprofit organization stays, while properties rented for fewer than 15 days per year may qualify for reduced reporting requirements under federal tax guidelines that often align with state collection thresholds.

The total cost to start an Airbnb in Long Grove, Iowa would be approximately $185,000-$220,000. Property purchase costs around $150,000-$180,000 based on median home prices in rural Iowa communities. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for beds, linens, kitchen essentials, living room furniture, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations total $2,000-$3,500. Permits and fees are minimal in small Iowa towns, typically $200-$500 for business licenses and short-term rental permits. Insurance including liability coverage and property protection adds $1,200-$1,800 annually. Utility setup and deposits for electricity, water, internet, and cable cost $500-$800. First six months of operating expenses including utilities ($600/month), cleaning supplies ($100/month), maintenance reserves ($200/month), marketing ($150/month), and platform fees (3% of bookings estimated at $300/month) total approximately $8,100. Additional working capital of $3,000-$5,000 is recommended for unexpected repairs, guest amenities, and initial vacancy periods while building reviews and bookings.

Airbnb properties in Long Grove, Iowa typically generate modest returns due to the small rural market, with average nightly rates ranging from $75-120 for entire homes and occupancy rates around 35-45% annually. A typical 3-bedroom property might gross $8,000-15,000 annually while facing expenses of $3,000-6,000 including utilities, cleaning, maintenance, insurance, and Airbnb fees, resulting in net profit margins of 40-60% for debt-free properties. Success factors in this market include proximity to recreational areas like the Mississippi River, competitive pricing below Cedar Rapids rates, exceptional hospitality, and targeting niche markets such as family reunions or corporate retreats. Properties within 30 minutes of larger cities like Davenport or Cedar Rapids perform better, with some hosts reporting annual profits of $10,000-12,000 on well-positioned homes, though the limited tourist infrastructure and seasonal demand fluctuations make Long Grove more suitable for supplemental income rather than primary investment strategies compared to larger Iowa markets.

Based on Long Grove, Iowa market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property acquisition costs and financing structure. Properties in this rural Iowa market generally reach profitability within 18-24 months, with average nightly rates of $85-120 for well-appointed properties. The limited competition in Long Grove creates opportunities for higher occupancy rates of 60-75% annually, though seasonal fluctuations impact winter months. Initial investment recovery typically occurs within 7-10 years, with properties requiring $15,000-25,000 in upfront renovations and furnishing costs. Market appreciation in Scott County averages 3-5% annually, contributing to overall investment returns when combined with rental income from travelers visiting the Quad Cities region and rural tourism attractions.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Long Grove, Iowa. Local real estate agents in the Cedar Rapids-Iowa City corridor such as Coldwell Banker Hedges Realty and RE/MAX Concepts have experience with investment properties in small Iowa communities like Long Grove. Mashvisor and AirDNA provide market analysis tools specifically for Airbnb investment properties in Iowa markets. RedAwning offers property management and acquisition services for short-term rentals in rural Iowa locations. Local property management companies like Iowa Property Management Group and Midwest Property Solutions can assist with both finding and managing Airbnb properties in the Long Grove area. BiggerPockets connects investors with local real estate professionals familiar with Scott County investment opportunities. Awning and AvantStay provide end-to-end services for Airbnb property acquisition and management in smaller Iowa markets, while local agents at Ruhl & Ruhl Realtors have knowledge of the Quad Cities region investment landscape that includes Long Grove.