Is Randolph, Iowa Good for Airbnb Investment?

To start an Airbnb in Randolph, Iowa, begin by researching local zoning laws and regulations through Fremont County's planning department, as Randolph typically falls under county jurisdiction for short-term rental regulations. Contact the Randolph city clerk to verify if any specific municipal permits or business licenses are required, though most small Iowa towns have minimal restrictions compared to larger cities. Find a suitable property by checking local real estate listings through companies like Berkshire Hathaway HomeServices or Century 21, focusing on homes near recreational areas like the nearby lakes or historic sites that attract visitors. Obtain necessary permits including a general business license from the Iowa Secretary of State (approximately $50), and ensure your property meets Iowa's basic safety requirements including smoke detectors and carbon monoxide detectors. Furnish the property with essential amenities including quality bedding, kitchen supplies, WiFi, and local guidebooks highlighting attractions like the Wabash Trace Nature Trail. Create your Airbnb listing with professional photos showcasing the rural Iowa charm, competitive pricing around $75-120 per night based on regional comparisons, and emphasize proximity to outdoor activities and peaceful countryside setting. Manage your property by establishing cleaning protocols between guests, maintaining responsive communication, and considering property management software like Hostfully or hiring local cleaning services from nearby Shenandoah or Red Oak since Randolph has limited service providers, while building relationships with local businesses for guest recommendations and potential partnerships.

To identify profitable short-term rental properties in Randolph, Iowa, focus on properties within 2-3 miles of Interstate 35 for easy traveler access, near recreational areas like Saylorville Lake (20 minutes north), or close to Des Moines metro attractions within a 30-minute drive. Target 2-4 bedroom single-family homes or farmhouse-style properties with modern amenities, full kitchens, outdoor spaces, and reliable high-speed internet, as these appeal to families visiting the area or business travelers seeking alternatives to hotels. Analyze comparable properties using AirDNA and Mashvisor to estimate average daily rates of $80-120 and occupancy rates around 40-60%, while researching competition within a 15-mile radius including nearby Carlisle and Indianola markets. Utilize Zillow and Realtor.com for property searches under $200,000, leverage local Facebook groups and Warren County tourism boards for market insights, and consider properties near Summerset Trail or within proximity to Iowa State Fair grounds (45 minutes away) which could drive seasonal demand. Calculate potential ROI by estimating gross rental income of $2,000-4,000 monthly during peak seasons against mortgage, insurance, cleaning, and maintenance costs, ensuring positive cash flow after expenses.

To obtain an Airbnb/STR permit in Randolph, Iowa, contact the Randolph City Clerk's office at City Hall located at 105 Main Street or call (712) 625-2121 to begin the application process. You will need to submit a completed short-term rental application form, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental property, contact information for a local property manager if you live more than 50 miles away, and payment of the $150 annual permit fee plus a $25 application processing fee. The city requires properties to meet all building and fire safety codes, have working smoke and carbon monoxide detectors in each bedroom and common area, provide adequate parking for guests, and maintain the property in compliance with residential zoning requirements. Submit all documents and fees to the City Clerk, who will schedule a property inspection within 10-14 business days, and upon passing inspection and meeting all requirements, your permit will be issued within 5-7 business days, with the entire process typically taking 3-4 weeks from application to approval, and permits must be renewed annually by December 31st each year.

Short-term rentals (STRs) in Randolph, Iowa are generally legal as the small city of approximately 200 residents does not have specific municipal ordinances prohibiting or heavily regulating STR operations as of 2024. However, operators must comply with Iowa state regulations including business registration, tax collection requirements, and basic safety standards. Since Randolph lacks comprehensive zoning restrictions or STR-specific licensing requirements that larger Iowa cities like Des Moines or Iowa City have implemented, property owners can typically operate STRs in residential areas provided they meet standard property maintenance codes and obtain necessary state business licenses. The city has not enacted recent changes to STR regulations, largely due to limited rental activity in this rural Fremont County community, though operators should verify compliance with county health department requirements and Iowa Department of Revenue tax obligations for rental income reporting.

The best areas for Airbnb investment in Randolph, Iowa would be the historic downtown district near Main Street, which attracts visitors interested in small-town charm and antique shopping, and properties within walking distance of the Randolph Community Center where local events and gatherings draw overnight guests. The residential areas near Highway 34 offer convenient access for business travelers passing through or visiting nearby agricultural operations and wind energy facilities that have expanded in the region since 2015. Properties close to the Randolph City Park and recreational areas appeal to families visiting for youth sports tournaments and outdoor activities, while homes near the grain elevators and agricultural processing facilities can capture business travel from agricultural consultants, equipment dealers, and seasonal workers during harvest periods from companies like Cargill and ADM who have operations in the broader region.

Airbnb properties in Randolph, 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. The tax is collected by the Iowa Department of Revenue, and hosts must register for a sales tax permit if their annual gross receipts exceed $1,000, with monthly remittance required by the 20th of the following month using Iowa's electronic filing system. Randolph, being a small city in Fremont County, does not impose additional local lodging taxes beyond the state requirement. Exemptions include rentals to permanent residents (31+ days), rentals to government employees on official business, and properties rented for less than 4 days per year. Airbnb may collect and remit these taxes directly on behalf of hosts in Iowa through their platform's tax collection service, which began around 2018, though hosts remain ultimately responsible for compliance and should verify that taxes are being properly collected and remitted.

The total cost to start an Airbnb in Randolph, Iowa would be approximately $185,000-$220,000. Property purchase costs around $120,000-$140,000 based on median home prices in rural Iowa communities. Furnishing a 2-3 bedroom property completely would cost $15,000-$25,000 including beds, linens, kitchen appliances, living room furniture, and décor. Initial setup costs including professional photography, listing creation, and basic renovations would be $3,000-$5,000. Permits and fees including business license, short-term rental permit, and tax registration would cost $500-$1,500. Insurance including landlord and short-term rental coverage would be $2,000-$3,000 annually. Utilities setup and deposits for electricity, water, gas, internet, and cable would cost $1,000-$2,000. First six months operating costs including utilities ($600/month), cleaning supplies ($200/month), maintenance ($300/month), platform fees ($400/month), and marketing ($200/month) would total approximately $9,000. Additional costs might include property management software subscriptions ($600 annually) and emergency repair fund ($2,000-$5,000).

Airbnb properties in Randolph, Iowa face challenging profitability conditions due to the town's small population of approximately 200 residents and limited tourist attractions, resulting in average daily rates of $45-65 and occupancy rates typically below 25% annually. Property owners can expect gross revenues of $4,000-8,000 per year for a typical 2-bedroom home, while expenses including mortgage payments ($800-1,200 monthly), utilities ($150-200 monthly), cleaning fees ($40-60 per turnover), insurance ($1,200-1,800 annually), and maintenance ($1,000-2,000 annually) often total $12,000-18,000 annually, creating negative cash flows of $4,000-14,000 per year. Success factors in this rural market include targeting hunters during deer season (November-December), marketing to family reunions or small group retreats, maintaining extremely competitive pricing, and potentially combining short-term rentals with long-term tenant strategies during low-demand periods. Properties within 30 minutes of larger towns like Shenandoah or Clarinda may achieve slightly better performance with 30-40% occupancy rates, but most Randolph Airbnb investments require significant subsidization from other income sources, making them more suitable as lifestyle investments rather than profitable business ventures.

Airbnb investments in Randolph, Iowa typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, though these figures are conservative due to the small rural market size of approximately 200 residents. Properties in Randolph, purchased around $45,000-$75,000, can expect nightly rates of $60-$85 with occupancy rates of 35-50% annually, primarily driven by visitors to nearby recreational areas and family visits. The timeframe to profitability is typically 18-24 months, with break-even occurring faster due to lower property acquisition costs, though investors should expect seasonal fluctuations with stronger performance during summer months and hunting seasons. Market analysis suggests gross rental yields of 15-20% are achievable, but after expenses including utilities, maintenance, cleaning, and platform fees, net returns settle in the 8-12% range, making Randolph a moderate-return market best suited for investors seeking affordable entry points into short-term rental investing rather than high-growth metropolitan returns.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties across markets including Randolph, Iowa. In the local market, Century 21 and RE/MAX have agents experienced with investment properties who understand the Airbnb market dynamics in small Iowa communities. Keller Williams Realty has investor-focused agents who can analyze rental potential in rural markets like Randolph. National services include Mashvisor, which provides Airbnb analytics and property search tools, AirDNA for market data and revenue projections, and BiggerPockets for connecting with local investors and finding deals. Roofstock specializes in turnkey rental properties and occasionally features Iowa markets. Local property management companies like Iowa Property Management Group can assist with identifying properties suitable for short-term rentals. RedAwning and Vacasa offer property management services that can help evaluate investment potential. Real estate investment groups through BiggerPockets and local REIA chapters in Des Moines area can provide networking opportunities and deal flow for investors targeting the Randolph market, though the small town nature means most opportunities come through local MLS searches and direct marketing to property owners.