Is Quad Cities, Iowa Good for Airbnb Investment?

To start an Airbnb in Quad Cities, Iowa, begin by researching local regulations as Davenport requires short-term rental permits and business licenses, while Bettendorf has zoning restrictions limiting rentals to certain districts. Contact the Davenport Planning and Development Department to obtain a Short-Term Rental Permit ($150-200 annually) and business license ($50-75), ensuring compliance with fire safety codes and occupancy limits of typically 2 guests per bedroom plus 2 additional. Find a suitable property in permitted zones, focusing on downtown Davenport near the riverfront or areas close to the TaxSlayer Center and Figge Art Museum, with average property costs ranging $80,000-150,000 for condos or $120,000-250,000 for single-family homes. Furnish the space with quality basics including comfortable beds, full kitchen amenities, high-speed internet, and local artwork, budgeting $8,000-15,000 for a complete setup. Create your Airbnb listing with professional photos highlighting river views or proximity to attractions like Modern Woodmen Park, setting competitive rates of $75-125 per night based on local market analysis. Implement management systems including automated messaging, professional cleaning services ($40-60 per turnover), and 24/7 guest support, while maintaining required insurance coverage and keeping detailed records for Iowa tax reporting, as short-term rental income is subject to state income tax and local hotel/motel taxes of 7-8%.

To identify profitable short-term rental properties in Quad Cities, Iowa, focus on locations near the Mississippi River waterfront, downtown Davenport and Rock Island entertainment districts, and proximity to major employers like Deere & Company and Genesis Health System. Target 2-4 bedroom properties built after 1950 with updated kitchens, multiple bathrooms, parking availability, and unique features like river views or historic charm that photograph well for listings. Conduct pricing analysis using AirDNA and Mashvisor to benchmark nightly rates ($80-150 typical range), occupancy rates (45-65% average), and seasonal demand patterns, particularly during summer months and John Deere Classic golf tournament periods. Research competition by analyzing existing Airbnb and VRBO listings within 3-mile radius, identifying gaps in amenities or underserved neighborhoods, and monitoring review patterns to understand guest preferences. Utilize tools like Rabbu for market analysis, STR Helper for revenue projections, and local resources including Quad Cities Convention & Visitors Bureau data, Scott County and Rock Island County property records, and networking with local real estate agents familiar with investment properties to identify emerging neighborhoods and understand local regulations affecting short-term rentals.

To obtain an Airbnb/STR permit in Quad Cities, Iowa, you must first contact the Davenport Planning and Development Department since most Iowa-side Quad Cities STR regulations fall under Davenport's jurisdiction. Begin by submitting an application through the city's online portal or in-person at City Hall located at 226 W 4th Street, providing required documents including property deed or lease agreement, floor plans, proof of insurance with minimum $1 million liability coverage, fire safety inspection certificate, and completed zoning compliance form. The application fee is approximately $150-200 with an additional $75 annual renewal fee, and you must also obtain a business license for around $50. Schedule required inspections with the Fire Marshal and Building Inspector, which typically cost $100-150 combined. Davenport requires STRs to be owner-occupied or have a local property manager within 30 miles, maintain guest parking, post maximum occupancy limits, and provide 24/7 contact information to neighbors. The approval process typically takes 4-6 weeks from complete application submission, and you must renew annually by December 31st. Some properties may require additional zoning variances if located in restricted residential areas, which can add 2-3 weeks to the timeline and cost an additional $200-300 in fees.

Short-term rentals (STRs) in the Quad Cities, Iowa are generally legal but subject to varying local regulations across different municipalities. In Davenport, STRs are permitted with proper licensing and registration requirements, including obtaining a business license and meeting safety standards, though some residential zoning areas have restrictions on the number of STRs allowed per block. Bettendorf allows STRs with similar licensing requirements and has implemented occupancy limits and parking regulations. Both cities require hosts to collect and remit local hotel/motel taxes, typically around 7-8%. Recent changes in 2022-2023 have included stricter enforcement of noise ordinances and enhanced inspection requirements following complaints from residential neighborhoods. Properties in certain historic districts and some single-family residential zones face additional restrictions or outright prohibitions. The cities have also implemented complaint-based enforcement systems and require 24/7 contact information for property managers, with violations potentially resulting in license revocation and fines ranging from $500-2,500.

The best Airbnb investment areas in the Quad Cities, Iowa include the Village of East Davenport, which attracts tourists with its historic charm, antique shops, and proximity to the Mississippi River waterfront, generating strong weekend and leisure travel demand. Downtown Davenport near the River Music Experience and Figge Art Museum offers excellent potential due to business travelers visiting companies like Genesis Health System and Deere & Company, plus tourists attending events at the Adler Theatre and TaxSlayer Center. The areas around the University of Iowa Quad Cities campus in Moline provide consistent demand from visiting families, prospective students, and academic conferences. Bettendorf's Pleasant Valley area appeals to upscale business travelers and families visiting the Family Museum or attending youth sports tournaments at the sports complexes. The historic districts near Hauberg Estate and Black Hawk State Historic Site attract heritage tourists and outdoor enthusiasts exploring the Mississippi River trails, while areas close to the Davenport Skybridge and Modern Woodmen Park benefit from baseball fans attending Quad Cities River Bandits games and riverfront festival attendees throughout the summer months.

In the Quad Cities area of Iowa, Airbnb properties are subject to state hotel and motel tax of 7% on gross receipts, which is collected by the Iowa Department of Revenue, plus local lodging taxes that vary by municipality - Davenport imposes a 7% hotel/motel tax while Bettendorf charges 5%, both collected locally through their respective city clerk offices. Property owners must register with the Iowa Department of Revenue and obtain a sales tax permit, then file monthly returns by the 20th of the following month for state taxes, while local taxes typically require quarterly filings with city offices. Airbnb began collecting and remitting Iowa state taxes automatically in 2018, but hosts remain responsible for local municipal taxes in most cases. Exemptions generally apply to stays exceeding 31 consecutive days, rentals to permanent residents, and properties rented for less than 15 days per year where the owner also uses it as a residence, though specific exemption criteria may vary between Davenport, Bettendorf, and other Quad Cities municipalities, with some offering reduced rates for extended stays or different treatment for owner-occupied versus investment properties.

The total cost to start an Airbnb in Quad Cities, Iowa is approximately $185,000-$225,000. Property purchase costs around $140,000-$170,000 based on median home prices in the Davenport-Bettendorf area. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for quality furniture, bedding, kitchen essentials, and decor. Initial setup costs including professional photography, listing creation, and marketing materials total $1,500-$2,500. Permits and fees including business license, short-term rental permit, and inspection fees range from $500-$1,200 depending on local municipality requirements. Insurance for short-term rental coverage adds $1,200-$2,000 annually. Utility setup and deposits for electricity, gas, water, internet, and cable cost approximately $800-$1,200. First six months operating costs including utilities ($600/month), cleaning services ($100 per turnover), supplies and maintenance ($200/month), platform fees (3% of bookings), and property management software total $6,000-$9,000, assuming 60-70% occupancy rates typical for the Quad Cities market.

Airbnb properties in the Quad Cities, Iowa typically generate annual revenues between $15,000-$35,000 for well-positioned units, with average daily rates ranging from $75-$120 depending on location and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-40 per turnover), utilities ($150-250 monthly), insurance ($800-1,200 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties near the Mississippi River waterfront or downtown Davenport command premium rates and achieve 65-75% occupancy, while suburban locations typically see 45-60% occupancy with lower nightly rates. Net profit margins for successful operators range from 15-25% after accounting for mortgage payments, with break-even typically occurring within 18-24 months for properties purchased specifically for short-term rental. Success factors include proximity to attractions like the Figge Art Museum, TaxSlayer Center events, and business districts in Davenport and Bettendorf, professional photography, responsive guest communication, and maintaining consistent 4.8+ star ratings. Properties targeting corporate travelers and event attendees generally outperform those relying solely on leisure tourism, with some hosts reporting monthly net profits of $800-1,500 on well-optimized 2-3 bedroom units purchased in the $120,000-180,000 range.

Airbnb investments in Quad Cities, Iowa typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in downtown Davenport and Rock Island command higher nightly rates of $80-120, while suburban locations average $60-90 per night with occupancy rates of 65-75% annually. Initial investment recovery generally occurs within 7-10 years, with monthly gross rental income of $1,200-2,000 for well-positioned 2-3 bedroom properties. The market benefits from steady demand from John Deere corporate visitors, medical professionals at Genesis Health System and UnityPoint Health, and tourists visiting the Mississippi River attractions, with peak seasons during summer months and fall generating 15-20% higher rates than winter periods.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties across markets including the Quad Cities area. Local real estate agents like those at Ruhl & Ruhl Realtors, Mel Foster Co., and Century 21 Affiliated have experience with investment properties in Davenport, Bettendorf, and surrounding areas. National services include Awning (formerly RedAwning) which provides Airbnb property management and acquisition services, Mashvisor for rental property analytics, and AirDNA for short-term rental market data analysis. Local property management companies such as Iowa Realty and Lepic-Kroeger Realtors often work with investors seeking vacation rental properties. BiggerPockets marketplace and Roofstock also list investment properties in the Quad Cities market, while companies like Vacasa and RedAwning offer full-service property management for short-term rentals. Local investors often work with Quad Cities-based agents who understand zoning regulations and neighborhood dynamics for successful Airbnb investments in this Mississippi River market spanning Iowa and Illinois.