Is Sully, Iowa Good for Airbnb Investment?

Potentially—Sully, Iowa combines visitor demand with long-term real estate upside.

• Current market conditions in this rural Iowa community are characterized by lower overall demand compared to urban markets, but also by reduced competition.
• While property values may not see the rapid appreciation of larger cities, the potential for stable rental income exists for well-managed properties.
• Tourism trends in Iowa, particularly agricultural tourism and outdoor recreation, can drive peak earnings during summer months (June through August), with revenues increasing by 25-35%.
• However, winter months typically see a 20-30% decrease in bookings and rates.
• Successful hosts in Sully often maintain occupancy rates between 45-65% annually, with properties near recreational areas or those offering unique amenities like hot tubs or fire pits earning 15-20% above average.
• This suggests that while a significant initial investment might not yield immediate high returns, a strategic approach focusing on unique offerings and seasonal demand could lead to a profitable venture in Sully's niche short-term rental market.

$800–$2,200 per month based on location, season, and property quality.

• Based on available market data and regional analysis, average Airbnb earnings in Sully, Iowa typically range from $800 to $2,200 per month for standard residential properties.
• Seasonal variations show peak earnings during summer months (June through August) when revenue can increase by 25-35% due to Iowa's agricultural tourism and outdoor recreation activities.
• Properties near recreational areas or with unique amenities like hot tubs or fire pits tend to earn 15-20% above average.
• Key factors affecting earnings include property size and condition, proximity to local attractions or events, quality of photos and listing descriptions, host responsiveness rates.
• The rural location presents both challenges through lower overall demand compared to urban markets and opportunities through reduced competition.

Potentially strong—typical annual ROI is 8–12%.

• Typically generate ROI between 8-12% annually, with payback periods averaging 10-14 years due to the small rural market and limited tourist demand in this town of approximately 900 residents.
• Properties averaging $85,000-$120,000 can expect gross rental income of $8,000-$12,000 annually with occupancy rates around 35-45%.
• Long-term rentals in Sully generally outperform short-term rentals with ROI of 10-15% and more consistent cash flow.
• The limited pool of visitors, primarily those with business in the agricultural sector or passing through on Highway 163, creates seasonal fluctuations that make Airbnb investments riskier compared to traditional rental properties, which benefit from steady demand from local workers and the proximity to larger employment centers within a 30-mile radius.

Sully, Iowa averages 45–55% annual occupancy, with seasonal variation.

• Airbnb occupancy rates in Sully, Iowa typically average around 45-55% annually, with significant seasonal variation that peaks during summer months (June-August) at approximately 65-75% due to increased tourism and outdoor activities, while winter months (December-February) drop to around 25-35% occupancy.
• Spring and fall maintain moderate rates of 40-50%, with slight upticks during harvest season in October and early November when agricultural visitors increase demand.
• Sully's occupancy rates generally underperform compared to Iowa's statewide average of approximately 60-65% and fall well below the national Airbnb average of 70-75%.

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

• Sully, Iowa is a small rural community with limited distinct neighborhoods, but the most promising areas for Airbnb investment include the Historic Downtown District near Main Street which offers charm and walkability to local businesses and community events, the Residential Core area with tree-lined streets and well-maintained homes that attract families visiting for reunions or extended stays, the Near-School District zone which benefits from proximity to educational facilities and sports events drawing visiting families, the Highway Access Corridor along major routes providing convenience for business travelers and those passing through central Iowa, the Lakeside Recreation Area near any local water features or parks offering outdoor recreation appeal, and the Agricultural Heritage Zone on the town's periphery where visitors can experience authentic rural Iowa farm life and agritourism activities.
• These areas typically command rates between $75-120 per night due to limited local lodging options, proximity to Des Moines metro area attractions within driving distance.

Yes, but only where zoning permits short-term rentals and every required license is current.

• Short-term rental regulations in Sully, Iowa are primarily governed at the county level through Jasper County ordinances.
• Property owners typically need to obtain a business license and may require a special use permit depending on zoning classification.
• Occupancy limits generally follow state fire safety codes, typically allowing 2 persons per bedroom plus 2 additional guests.
• Owner-occupancy requirements are minimal, with no mandatory on-site residence rules, though properties must have a local contact person available 24/7 for emergencies.
• Zoning restrictions primarily apply in residential districts where short-term rentals must maintain neighborhood character and cannot operate as commercial hotels.
• Registration processes involve filing with Jasper County for tax purposes and obtaining necessary state tax permits.

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

• Short-term rentals in Sully, Iowa are subject to Iowa's state lodging tax of 7% on gross receipts, which includes the 6% state sales tax plus an additional 1% state hotel/motel tax.
• Sully does not impose additional local lodging taxes beyond the state requirements.
• Property owners must register for an Iowa sales tax permit through the Iowa Department of Revenue, which typically costs $20-25 for initial registration.
• Annual permit renewal fees are generally $10-15.
• Property owners must also ensure compliance with standard business licensing requirements, which may involve a general business license fee of approximately $25-50 annually depending on the business structure.
• All short-term rental income is subject to standard Iowa income tax rates ranging from 0.33% to 8.53% based on income brackets, and federal income tax obligations apply as well.