Is Reasnor, Iowa Good for Airbnb Investment?

To start an Airbnb in Reasnor, Iowa, begin by researching local zoning laws and regulations through Jasper County and the City of Reasnor (if incorporated) as Iowa generally allows short-term rentals but local municipalities may have specific requirements. Contact Jasper County's planning and zoning department to determine if your property is zoned for short-term rentals and obtain any necessary permits, which typically cost $50-200 in rural Iowa counties. Find a suitable property in Reasnor by searching local real estate listings, considering proximity to attractions like nearby lakes or Des Moines (45 minutes away), and ensuring reliable internet and utilities. Furnish the space with essential amenities including comfortable bedding, kitchen supplies, Wi-Fi, heating/cooling, and local guidebooks, budgeting approximately $3,000-8,000 for a complete setup. Create your Airbnb listing with professional photos highlighting the rural Iowa charm, mention nearby attractions like Saylorville Lake or easy access to Des Moines, and set competitive pricing around $75-125 per night based on comparable rural Iowa properties. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guests, and considering hiring local cleaning services in nearby Newton or Colfax if needed, while ensuring compliance with Iowa state tax requirements for short-term rental income reporting.

To identify profitable short-term rental properties in Reasnor, Iowa, focus on properties within 15-20 minutes of major attractions like Prairie Meadows Racetrack and Casino in nearby Altoona or recreational areas around Saylorville Lake, as Reasnor's small size requires proximity to regional draws. Target 2-4 bedroom single-family homes or farmhouse-style properties with modern amenities, outdoor spaces, and parking, as guests often seek authentic rural Iowa experiences with contemporary comfort. Analyze pricing by researching comparable STRs within a 30-mile radius including Altoona, Ankeny, and Des Moines suburbs, aiming for nightly rates between $80-150 depending on property size and amenities, with potential for higher rates during Iowa State Fair, RAGBRAI, or casino events. Competition research should extend beyond Reasnor to include nearby communities since the local market is limited, using AirDNA and Mashvisor to analyze occupancy rates, seasonal trends, and revenue potential for similar properties in central Iowa. Utilize tools like Zillow and Realtor.com for property identification, STR Helper for market analysis, and connect with local real estate agents familiar with Jasper County who understand zoning regulations and can identify properties suitable for conversion to short-term rentals.

To obtain an Airbnb/STR permit in Reasnor, Iowa, you will need to contact the Reasnor City Hall or the Jasper County Planning and Zoning Department since Reasnor is a small incorporated city that may operate under county jurisdiction for certain permits. Begin by calling the city clerk at (515) 967-4538 to determine if local STR regulations exist or if you need to work with Jasper County. Required documents typically include a completed short-term rental application, 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 parking plan. You'll also need to provide a business license application and may require a conditional use permit if operating in residential zones. Fees generally range from $50-200 for the initial application plus $25-100 for annual renewals, with additional costs for inspections around $75-150. The approval timeline is typically 30-60 days depending on whether a public hearing is required for conditional use permits. Specific Reasnor requirements likely include compliance with Iowa fire safety codes, maximum occupancy limits based on square footage, designated parking spaces for guests, 24-hour local contact availability, and adherence to noise ordinances, though you should verify current regulations as small Iowa municipalities frequently update STR policies.

Short-term rentals (STRs) in Reasnor, Iowa are generally legal as the small unincorporated community in Jasper County operates under Iowa state law, which does not prohibit STRs at the state level. Since Reasnor lacks its own municipal government and zoning authority, STR regulations would fall under Jasper County's jurisdiction, which typically allows short-term rentals in residential areas with basic safety and tax compliance requirements. Property owners must collect and remit Iowa's 7% state sales tax and any applicable local hotel/motel taxes, obtain necessary permits, and ensure compliance with building and fire safety codes. There are no specific prohibited areas within Reasnor itself, though individual homeowners associations or deed restrictions might impose limitations. Recent changes in Iowa have focused on preventing local governments from overly restricting STRs, with legislation around 2021-2022 limiting municipalities' ability to ban short-term rentals outright, though this primarily affects incorporated cities rather than unincorporated areas like Reasnor.

Reasnor, Iowa is a very small unincorporated community in Jasper County with limited Airbnb investment opportunities due to its rural nature and minimal tourist infrastructure. The most viable area would be properties near the intersection of Highway 14 and local county roads, as this provides the best accessibility for travelers passing through central Iowa or visiting nearby Jasper County attractions. Investment potential is primarily driven by visitors to Prairie Meadows Racetrack and Casino in nearby Altoona (approximately 20 miles away), guests attending events at the Iowa State Fairgrounds in Des Moines, or business travelers working with local agricultural operations and wind energy projects in the region. Properties with rural charm, outdoor recreational access, or farm-stay experiences would appeal to urban visitors from Des Moines seeking weekend retreats, though demand would be seasonal and limited compared to larger Iowa markets like Des Moines, Iowa City, or Ames.

Airbnb properties in Reasnor, 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 host at the time of booking or payment and must be remitted monthly to the Iowa Department of Revenue by the 20th of the following month using Form IA 44-005. Additionally, Reasnor falls under Jasper County jurisdiction, which may impose a local hotel/motel tax of approximately 2-3%, though specific rates vary by municipality. Airbnb typically collects and remits these taxes automatically for hosts in Iowa through their platform since 2019, but hosts remain ultimately responsible for compliance. Properties rented for 31 days or longer are generally exempt from lodging taxes, and certain agricultural or educational accommodations may qualify for exemptions. Hosts should register with the Iowa Department of Revenue for a sales tax permit and maintain detailed records of all rental transactions and tax collections.

Starting an Airbnb in Reasnor, Iowa requires approximately $180,000-220,000 in total initial investment. Property purchase represents the largest expense at $150,000-180,000 based on median home prices in rural Iowa communities. Furnishing costs typically range $8,000-12,000 for a complete 2-3 bedroom setup 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 Iowa generally cost $300-800 covering business licenses, short-term rental permits, and tax registrations. Insurance premiums for short-term rental coverage run $1,200-2,000 annually, requiring specialized policies from companies like Proper Insurance or CBIZ. Utility deposits and connections for electricity, water, internet, and cable total approximately $500-800. First six months operating costs including cleaning services, supplies, maintenance, property management software subscriptions, and marketing average $3,000-5,000, assuming 40-60% occupancy rates typical for rural Iowa markets during the initial launch period.

Airbnb properties in Reasnor, Iowa face significant profitability challenges due to the town's small population of approximately 200 residents and limited tourist attractions, resulting in extremely low demand and occupancy rates typically below 15-20% annually. Properties in this rural market might generate only $2,000-4,000 in annual revenue compared to expenses of $8,000-12,000 including mortgage payments, utilities, insurance, cleaning, and maintenance, creating negative profit margins of -60% to -80%. The lack of major employers, universities, or recreational destinations means most potential guests would be visiting family or passing through on business, limiting the market to perhaps 10-15 bookings per year at rates of $60-80 per night. Success factors would require targeting the Des Moines metropolitan area visitors seeking rural retreats, offering unique farm experiences, or marketing to corporate travelers working with local agricultural businesses, but even optimized properties would struggle to achieve break-even due to the fundamental supply-demand imbalance in this micro-market where operating a traditional rental property would likely prove more profitable than short-term vacation rentals.

Airbnb investments in Reasnor, Iowa are expected to generate annual ROI of 8-12% with cash-on-cash returns of 6-10%, reaching profitability within 18-24 months based on the rural Iowa market dynamics. The small town location limits demand primarily to business travelers and visitors to nearby attractions, with average daily rates of $75-95 and occupancy rates of 35-45% annually. Initial investment costs are relatively low at $80,000-120,000 for suitable properties, but operating expenses including utilities, maintenance, and property management typically consume 40-50% of gross rental income. Market data from similar rural Iowa communities suggests break-even occurs around month 20-22, with positive cash flow accelerating thereafter as the property establishes reviews and repeat bookings, though seasonal fluctuations significantly impact performance with stronger returns during spring and summer months.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Reasnor, Iowa. AirDNA provides market data and analytics for Airbnb investments in Iowa markets, while Mashvisor offers property analysis tools for small Iowa towns. Roofstock specializes in turnkey rental properties and has expanded into short-term rental markets in the Midwest. Local Iowa real estate agents like Realty One Group Impact and RE/MAX Real Estate Center have experience with investment properties in Jasper County where Reasnor is located. BiggerPockets connects investors with local agents familiar with STR regulations in Iowa communities. RedAwning and Awning provide property management and investment guidance for short-term rentals in rural Iowa markets. Iowa Realty and Lepic-Kroeger Realtors have agents covering central Iowa investment opportunities. Vacasa and Evolve offer property management services that can help investors evaluate potential Airbnb properties in small Iowa towns like Reasnor, established around 2008-2015 for these services.