Is Runnells, Iowa Good for Airbnb Investment?

To start an Airbnb in Runnells, Iowa, begin by researching local zoning laws and regulations through Polk County and the City of Runnells, as most Iowa municipalities require short-term rental permits and compliance with residential zoning restrictions. Contact Runnells City Hall to obtain necessary business licenses and short-term rental permits, which typically cost $50-200 annually and may require safety inspections. Find a suitable property by purchasing or leasing a home in residential areas that allow short-term rentals, focusing on properties near Des Moines metro area attractions since Runnells is a small suburb. Furnish the property with essential amenities including quality bedding, kitchen supplies, Wi-Fi, and safety equipment like smoke detectors and fire extinguishers to meet Iowa fire safety codes. Create your Airbnb listing with professional photos, competitive pricing around $75-125 per night based on Des Moines area rates, and highlight proximity to downtown Des Moines (20 minutes) and local attractions. Manage your property by establishing cleaning protocols between guests, maintaining responsive communication, coordinating key exchanges or installing smart locks, and ensuring compliance with Iowa tax requirements including collecting and remitting state sales tax (6%) and any local lodging taxes to the Iowa Department of Revenue.

To identify profitable short-term rental properties in Runnells, Iowa, focus on properties within 2-3 miles of major attractions like Saylorville Lake and recreational areas, as well as proximity to Des Moines (approximately 20 minutes away) for business travelers. Target 3-4 bedroom single-family homes built after 1990 with modern amenities, full kitchens, outdoor spaces, and parking, as these appeal to families visiting the lake or groups attending events in nearby Des Moines. Conduct pricing analysis by researching comparable Airbnb and VRBO listings within a 10-mile radius, aiming for properties that can generate $80-120 per night during peak summer months and $50-80 during off-season, with occupancy rates of 60-70% being realistic for this market. Research competition by analyzing existing STR listings in Polk County, particularly around Saylorville Lake and Ankeny, noting their amenities, pricing, and guest reviews to identify gaps in the market. Utilize tools like AirDNA for market data, Mashvisor for investment analysis, and local resources such as Polk County property records, Des Moines Area Association of Realtors MLS data, and Iowa tourism statistics to validate demand patterns, with particular attention to seasonal fluctuations driven by lake activities, Iowa State Fair attendance, and Des Moines business travel.

To obtain an Airbnb/STR permit in Runnells, Iowa, contact the Runnells City Hall at 515-966-2235 or visit their office at 106 SE Trilein Drive to inquire about short-term rental regulations and application procedures. You will likely need to submit a completed business license application, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental property, and contact information for a local property manager if you live more than 50 miles away. The application fee is estimated at $100-200 annually, with additional inspection fees of approximately $75-150. Required documents should include a completed STR permit application, zoning compliance verification, fire safety inspection certificate, and signed affidavit acknowledging compliance with noise ordinances and occupancy limits. The approval timeline typically takes 30-60 days from submission of complete application materials. Runnells likely requires STR properties to maintain maximum occupancy of 2 people per bedroom plus 2 additional guests, provide adequate parking spaces, display permit numbers in rental listings, maintain 24/7 local contact information for guests, and comply with residential zoning restrictions that may limit rentals to owner-occupied properties or specific zoning districts.

Short-term rentals (STRs) in Runnells, Iowa are generally legal but subject to state and local regulations. As a small city in Polk County with approximately 500 residents, Runnells likely follows Iowa's state framework which allows STRs while permitting local municipalities to impose additional restrictions. The city may require business licenses, compliance with zoning ordinances that typically limit STRs to certain residential zones, and adherence to health and safety codes including smoke detectors and occupancy limits. Property owners must collect and remit Iowa's state sales tax and local option taxes on rental income. Recent trends in Iowa since 2020-2022 have seen increased regulation at the municipal level due to housing concerns, with some cities implementing registration requirements, limiting the number of STR permits, or restricting operations in certain neighborhoods to preserve residential character. Runnells likely requires STR operators to maintain liability insurance, ensure adequate parking, and may have noise ordinances or guest limits in place, though specific restrictions would be detailed in the city's municipal code and zoning regulations.

The best areas for Airbnb investment in Runnells, Iowa would be properties near the downtown core along Highway 5/Main Street corridor, which offers convenient access to Des Moines (approximately 20 miles east) making it attractive for business travelers seeking affordable alternatives to city hotels, and the residential neighborhoods near Runnells Elementary School and the community center where families visiting for youth sports tournaments and school events would prefer home-like accommodations. The area around the Runnells City Park and near the intersection of NE 78th Avenue would be ideal due to proximity to recreational facilities that draw visitors for local events, family gatherings, and outdoor activities. Properties within walking distance of Casey's General Store and other local amenities along the main commercial strip would appeal to travelers who want convenience while staying in a quieter, small-town setting compared to urban Des Moines, particularly those visiting for agricultural business, family reunions, or seeking a peaceful retreat while maintaining easy highway access to the greater Des Moines metropolitan area for work or entertainment.

Airbnbs in Runnells, Iowa are subject to Iowa's state lodging tax of 7% on gross receipts from rental accommodations, which applies to stays of 31 days or less. This tax is collected by the host from guests and must be remitted monthly to the Iowa Department of Revenue by the 20th of the following month using Form IA 44-005. Polk County, where Runnells is located, imposes an additional 7% local option tax on lodging, bringing the total occupancy tax rate to approximately 14%. The county tax is also collected by hosts and remitted to the Iowa Department of Revenue, which then distributes it to the appropriate local jurisdiction. Runnells itself does not appear to impose a separate municipal lodging tax as of 2023. Exemptions typically include stays of 32 days or longer, which are considered long-term rentals rather than transient accommodations, and rentals to permanent residents of Iowa for stays exceeding 30 consecutive days. Hosts must register with the Iowa Department of Revenue to obtain a sales tax permit before collecting these taxes, and failure to properly collect and remit can result in penalties and interest charges.

To start an Airbnb in Runnells, Iowa, the total estimated 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 rural Iowa communities near Des Moines. Furnishing costs typically range $8,000-$12,000 for a complete 2-3 bedroom home including furniture, bedding, kitchenware, and décor to create an attractive rental space. Initial setup costs of $1,500-$2,500 cover professional photography, listing creation, welcome materials, and basic technology like smart locks and WiFi equipment. Permits and fees in Iowa generally total $300-$800 including business registration, potential short-term rental permits, and tax registration. Insurance costs approximately $1,200-$2,000 annually for landlord and short-term rental coverage. Utility setup and deposits range $500-$800 for electricity, gas, water, internet, and cable services. First six months operating costs including utilities, cleaning supplies, maintenance, platform fees, and marketing typically total $3,500-$5,500, assuming moderate occupancy rates during the initial launch period.

Airbnb properties in Runnells, Iowa, face challenging profitability conditions due to the small market size and limited tourist demand in this rural community of approximately 500 residents located 20 miles southeast of Des Moines. Average nightly rates typically range from $75-$120, with occupancy rates averaging 35-45% annually, generating estimated gross revenues of $8,000-$15,000 per year for typical 2-3 bedroom properties. Operating expenses including mortgage payments, utilities, cleaning fees, insurance, and maintenance typically consume 65-75% of gross revenue, leaving net profit margins of 25-35% or roughly $2,000-$5,000 annually. Success factors include proximity to Des Moines for business travelers, competitive pricing below urban alternatives, and targeting niche markets like family reunions or rural retreats. Properties near recreational areas like Saylorville Lake or those offering unique rural experiences tend to perform better, though the limited population base and lack of major attractions constrain overall demand. Most successful operators in similar Iowa rural markets focus on cost minimization, self-management to avoid property management fees, and marketing to Des Moines metro area residents seeking weekend getaways, though profitability remains modest compared to urban markets.

Airbnb investments in Runnells, Iowa typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, based on the small rural market dynamics and limited tourism infrastructure in this community of approximately 500 residents located 20 miles southeast of Des Moines. Properties in Runnells, primarily single-family homes valued between $150,000-$250,000, can expect nightly rates of $75-$120 during peak seasons, with occupancy rates averaging 35-45% annually due to the town's proximity to Des Moines and occasional visitors to nearby recreational areas. Initial profitability typically occurs within 18-24 months, assuming property acquisition costs of $180,000-$220,000 with renovation investments of $15,000-$25,000, generating monthly gross revenues of $800-$1,400 during active months. The market benefits from lower competition compared to Des Moines proper, though seasonal fluctuations significantly impact performance, with summer months (May-September) driving 60-70% of annual bookings, while winter occupancy drops to 15-25%, making break-even analysis heavily dependent on effective marketing to Des Moines metro area visitors and strategic pricing during peak demand periods.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking to enter the Airbnb market in Runnells, Iowa. Local real estate agents serving the Runnells area include Realty One Group Impact based in nearby Des Moines, Coldwell Banker Mid-America Group, and RE/MAX Concepts agents who understand the central Iowa vacation rental market. National services like AirDNA provide market analytics and revenue projections for Runnells properties, while Mashvisor offers investment property analysis tools for the Des Moines metropolitan area. RedAwning and AvantStay focus on short-term rental property acquisition and management services that extend to smaller Iowa markets. Local property management companies such as Iowa Property Management Group and Meridian Property Management can assist with ongoing operations, while national platforms like Awning and RedAwning Property Management provide turnkey Airbnb investment solutions. Real estate investment firms like BiggerPockets connect investors with local agents familiar with Runnells' rental regulations, and companies like Roofstock and Arrived Homes occasionally feature Iowa investment properties suitable for short-term rentals.