Is Solon, Iowa Good for Airbnb Investment?

To start an Airbnb in Solon, Iowa, begin by researching local zoning laws and regulations through the City of Solon planning department, as many Iowa municipalities require short-term rental permits or business licenses, with Solon likely requiring registration and compliance with residential zoning restrictions. Obtain necessary permits including a business license from Johnson County, sales tax permit from Iowa Department of Revenue, and potentially a short-term rental permit from Solon city hall, which may cost $50-200 annually. Find a suitable property by purchasing or leasing a home in residential areas that allow short-term rentals, focusing on properties near Iowa City (15 minutes away) or along Highway 1 for accessibility, with average home prices in Solon ranging $200,000-400,000. Furnish the property with essential amenities including Wi-Fi, cable TV, full kitchen appliances, quality bedding, towels, and basic toiletries, budgeting approximately $5,000-15,000 for complete furnishing depending on property size. List your property on Airbnb and VRBO platforms with professional photos, competitive pricing around $80-150 per night based on local market rates, and detailed descriptions highlighting proximity to Iowa City and Coralville attractions. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating check-ins/check-outs, maintaining the property regularly, and ensuring compliance with Iowa's 7% state sales tax and Johnson County's additional lodging taxes while keeping detailed records for tax purposes.

To identify profitable short-term rental properties in Solon, Iowa, focus on locations within walking distance of Lake Macbride State Park and near the University of Iowa campus (approximately 15 minutes away), as these areas attract outdoor enthusiasts and visiting families. Target 3-4 bedroom single-family homes or lakefront cabins built after 1990 with modern amenities, full kitchens, outdoor spaces, and parking for multiple vehicles. Conduct pricing analysis by researching comparable Airbnb listings in nearby Iowa City, Coralville, and North Liberty, aiming for nightly rates between $120-200 depending on property size and amenities. Research competition using AirDNA and Mashvisor to analyze occupancy rates and revenue potential, noting that Solon has limited STR inventory creating opportunity for new entrants. Utilize tools like Zillow and Realtor.com for property searches, STR Helper for market analysis, and connect with local real estate agents familiar with Johnson County investment properties, while ensuring compliance with Solon's zoning regulations and any HOA restrictions that may limit short-term rentals.

To obtain an Airbnb/STR permit in Solon, Iowa, you must first contact the Solon City Hall at 101 West Main Street or call (319) 624-2500 to inquire about their short-term rental ordinance and application process. Required documents typically include a completed STR permit application, proof of property ownership or lease agreement with landlord consent, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, emergency contact information for a local representative within 30 miles, and proof of compliance with fire safety codes including smoke and carbon monoxide detectors. The application fee is estimated at $150-300 annually with possible additional inspection fees of $50-100. You must also register with the Iowa Department of Revenue for state sales tax collection and remit the 7% state lodging tax plus any applicable local hotel/motel taxes. The approval timeline is typically 30-60 days after submitting a complete application, pending city council review and any required inspections. Solon-specific requirements likely include occupancy limits based on bedrooms and square footage, designated parking spaces, quiet hours enforcement between 10 PM and 7 AM, maximum rental period restrictions, and compliance with residential zoning regulations. Properties must maintain current building permits and pass annual safety inspections, with permits requiring renewal each calendar year.

Short-term rentals (STRs) are generally legal in Solon, Iowa, as the city has not enacted specific prohibitions against them, though they must comply with existing zoning regulations and business licensing requirements. Solon operates under Iowa state law which allows municipalities to regulate STRs, and the city requires STR operators to obtain proper business licenses and comply with residential zoning restrictions that may limit commercial activities in certain neighborhoods. Properties must meet standard safety and occupancy requirements, and operators typically need to register with the city and potentially collect local hotel/motel taxes. Recent trends in Iowa municipalities around 2022-2023 have seen increased regulation of STRs due to housing concerns, though Solon has maintained a relatively permissive approach compared to larger cities like Iowa City or Des Moines which have implemented stricter licensing and operational requirements. The city may restrict STRs in certain residential zones or require conditional use permits depending on the specific zoning district and duration of rentals.

The best areas for Airbnb investment in Solon, Iowa include the historic downtown district near Main Street, which attracts visitors interested in the town's heritage and local events like the Beef Days festival, and neighborhoods close to Lake Macbride State Park (approximately 10 miles away) which draw outdoor enthusiasts year-round for camping, fishing, and hiking activities. The residential areas near the Solon Community School District are attractive for families visiting prospective students or attending school events, while properties along Highway 1 corridor benefit from business travelers and visitors to nearby Iowa City and the University of Iowa (about 15 miles away). The newer subdivisions on the town's east side offer modern amenities that appeal to guests seeking comfortable accommodations while exploring eastern Iowa's recreational opportunities, and the areas near Solon's community center and parks provide easy access to local amenities and seasonal events that drive tourism demand.

In Solon, Iowa, Airbnb hosts are subject to Iowa state hotel and motel tax at a rate of 7% on gross receipts from lodging rentals, which applies to stays of 31 days or less. The state tax is typically collected by Airbnb directly from guests and remitted to the Iowa Department of Revenue on behalf of hosts through their automated collection system implemented around 2018. Additionally, Johnson County may impose a local hotel/motel tax of up to 7%, though the specific rate varies by municipality within the county. Hosts must register with the Iowa Department of Revenue and obtain a sales tax permit, filing monthly returns by the 20th of the following month if they collect taxes independently rather than through Airbnb's system. The City of Solon may also require business licenses for short-term rental operations and could impose additional local occupancy taxes, though small municipalities often rely primarily on state and county collections. Exemptions typically include stays exceeding 31 consecutive days, which are considered long-term rentals rather than transient lodging, and rentals to permanent residents. Hosts should verify current local ordinances with Solon city offices and Johnson County as tax rates and collection procedures can change, and some jurisdictions have implemented additional regulations on short-term rentals since 2020.

To start an Airbnb in Solon, Iowa, the total costs would be approximately $285,000-$320,000. Property purchase represents the largest expense at $250,000-$280,000 based on median home prices in the area. Furnishing costs for a complete 2-3 bedroom property would run $15,000-$20,000 including furniture, bedding, kitchen essentials, and décor. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations would be $3,000-$5,000. Permits and fees including business license, short-term rental permit, and inspection fees would cost approximately $500-$1,000. Insurance for short-term rental coverage would be $1,200-$2,000 annually, with the first year paid upfront. Utilities setup and deposits for electricity, gas, water, internet, and cable would be $500-$800. First six months operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance reserves ($200/month), platform fees (3% of estimated $2,000 monthly revenue), and marketing would total approximately $8,000-$12,000. Property taxes and HOA fees if applicable would add another $2,000-$4,000 for the initial period.

Airbnb properties in Solon, Iowa, typically generate modest profitability with average nightly rates ranging from $75-120 for entire homes, translating to monthly revenues of $1,800-3,600 for properties with 60-70% occupancy rates. Operating expenses generally consume 40-50% of gross revenue, including cleaning fees ($30-50 per turnover), utilities ($150-250 monthly), property management (10-15% of revenue), insurance ($100-200 monthly), and maintenance costs ($200-400 monthly). Properties near the Lake Macbride area and those offering unique amenities like hot tubs or fire pits achieve higher occupancy rates and can command premium pricing, with some hosts reporting annual profits of $8,000-15,000 after expenses. Success factors in this market include proximity to Iowa City (15 minutes away), competitive pricing against Cedar Rapids hotels, professional photography, and catering to visiting families of University of Iowa students or outdoor enthusiasts visiting nearby state parks. The relatively low property acquisition costs in Solon (median home prices around $200,000-300,000) can yield cash-on-cash returns of 8-12% for dedicated Airbnb investments, though seasonal fluctuations significantly impact winter months when occupancy can drop to 30-40%.

Based on Solon, Iowa market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the city. Properties near Lake MacBride State Park and downtown Solon command higher nightly rates of $85-120, while standard residential properties average $65-95 per night with 60-75% occupancy rates during peak seasons. Initial investment recovery and profitability typically occurs within 18-24 months for well-positioned properties, with startup costs including furnishing and marketing averaging $15,000-25,000 for a 2-3 bedroom home. The proximity to Iowa City and Cedar Rapids provides steady demand from university visitors, business travelers, and outdoor recreation enthusiasts, supporting consistent bookings throughout the year with seasonal peaks during University of Iowa events and summer months.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Solon, Iowa. In the local market, Coldwell Banker Hedges Realty and RE/MAX Real Estate Center have agents experienced with investment properties who understand the Solon area's rental potential near the Lake Macbride State Park and Iowa City corridor. Keller Williams Legacy Group also serves the Cedar Rapids-Iowa City region with investment-focused agents. National services include Awning, which provides end-to-end Airbnb investment services including property identification and management, and Mashvisor, an analytics platform for rental property investment research. RedAwning offers vacation rental investment consulting, while BiggerPockets connects investors with local professionals in Iowa markets. Roofstock, though primarily focused on traditional rentals, occasionally features short-term rental opportunities in Iowa markets. Local property management companies like Iowa City Property Management and Corridor Property Management can provide insights into profitable Airbnb locations, while real estate investors should also consider consulting with Berkshire Hathaway HomeServices and Century 21 agents who specialize in the greater Cedar Rapids-Iowa City area where Solon is located.