Is Urbandale, Iowa Good for Airbnb Investment?

To start an Airbnb in Urbandale, Iowa, begin by researching local zoning laws and regulations through the Urbandale Planning and Zoning Department, as the city requires short-term rental operators to obtain a business license and comply with residential zoning restrictions that may limit rentals to primary residences only. Contact the Urbandale City Clerk's office at 515-278-3900 to obtain the necessary business license (approximately $25-50 annually) and verify if your property location allows short-term rentals, as some residential areas may have restrictions. Find a suitable property by searching neighborhoods like Justin Trail, Walnut Creek, or areas near Living History Farms that attract visitors, ensuring the property meets safety requirements including smoke detectors, carbon monoxide detectors, and proper egress windows. Furnish the space with quality furniture, linens, and amenities from local stores like Furniture Row or online retailers, focusing on comfort and functionality while including essentials like WiFi, kitchen supplies, and local guidebooks featuring Des Moines attractions. Create your Airbnb listing with professional photos highlighting proximity to Des Moines (15 minutes), Jordan Creek Town Center, and local parks, setting competitive rates based on comparable properties in the $75-150 per night range. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guest inquiries, and ensuring compliance with Iowa state tax requirements by collecting and remitting the 7% state sales tax plus any applicable local hotel/motel taxes to the Iowa Department of Revenue.

To identify profitable short-term rental properties in Urbandale, Iowa, focus on locations within 10-15 minutes of downtown Des Moines, near Jordan Creek Town Center, or close to corporate headquarters like Hy-Vee and John Deere Financial given the business travel demand. Target 3-4 bedroom single-family homes or townhomes built after 1990 with modern amenities, full kitchens, dedicated workspaces, and parking, as these appeal to both leisure travelers visiting family and business travelers on extended stays. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds traditional rental income by 20-30%, typically ranging from $100-150 per night in Urbandale's market. Research competition by analyzing existing Airbnb and VRBO listings within a 3-mile radius, noting occupancy rates, pricing strategies, and guest reviews to identify gaps in amenities or service quality. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Realtor.com, while connecting with Des Moines area real estate agents familiar with investment properties and consulting Urbandale's zoning regulations since some residential areas may have HOA restrictions on short-term rentals.

To obtain an Airbnb/STR permit in Urbandale, Iowa, contact the Urbandale City Hall at 3600 70th Street or call (515) 278-3900 to begin the application process, as the city requires short-term rental operators to obtain a business license and comply with zoning regulations. Submit a completed business license application along with a zoning compliance certificate, 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. Pay the required fees which typically include a $50 business license fee and $25 zoning review fee, though these may vary. The application review process generally takes 2-3 weeks once all documents are submitted and any required inspections are completed. Urbandale requires STR properties to comply with residential zoning requirements, maintain adequate parking (typically 2 spaces per unit), limit occupancy to 2 people per bedroom plus 2 additional guests, display the business license number in all advertisements, maintain a guest registry, and ensure 24/7 contact availability for noise or disturbance complaints. Properties must also pass health and safety inspections and comply with all building codes before permits are issued.

Short-term rentals (STRs) are legal in Urbandale, Iowa, but operate under specific regulations established by the city. Urbandale requires STR operators to obtain a business license and comply with zoning restrictions that generally limit short-term rentals to certain residential districts while prohibiting them in some neighborhoods to preserve residential character. The city typically requires properties to meet safety standards, maintain adequate parking, and follow noise ordinances, with operators often needing to provide contact information for a local representative available 24/7 for any issues. Recent changes around 2020-2022 have included stricter enforcement of existing regulations and clearer definitions of what constitutes a short-term rental, with the city working to balance the growing STR market with neighborhood concerns about traffic, parking, and residential quality of life. Property owners must also comply with state tax requirements and may face additional restrictions if their property is located in homeowner association areas with their own covenants.

The most promising Airbnb investment areas in Urbandale, Iowa include the neighborhoods near Living History Farms, particularly along NW 111th Street and Hickman Road corridor, which attract families visiting this popular agricultural museum and educational center that draws over 200,000 visitors annually. The downtown Urbandale area around 86th Street and Douglas Avenue offers excellent potential due to its proximity to major corporate headquarters like Hy-Vee and EMC Insurance, generating consistent business traveler demand. The neighborhoods near Urbandale's extensive trail system, especially around Walker Johnston Park and along the Clive Greenbelt Trail, appeal to outdoor enthusiasts and families seeking recreational activities. Areas close to the Iowa Events Center and Wells Fargo Arena (within 15-20 minutes) benefit from major concerts, sporting events, and conventions throughout the year. The residential districts near Merle Hay Mall and along University Avenue provide good access to shopping, dining, and entertainment while maintaining lower property costs than downtown Des Moines, making them attractive for both leisure and business travelers seeking affordable accommodations with suburban comfort and easy highway access to the greater Des Moines metropolitan area.

In Urbandale, Iowa, Airbnb hosts are subject to Iowa state sales tax of 6% on lodging rentals, which applies to stays of less than 31 consecutive days, and this tax must be collected from guests and remitted monthly to the Iowa Department of Revenue by the 20th of the following month if monthly gross receipts exceed $200. Additionally, hosts may be subject to Polk County's local option sales tax of 1%, bringing the total tax rate to approximately 7% on short-term rental income. Urbandale itself does not impose a separate hotel/motel tax, but hosts must register for an Iowa sales tax permit before beginning operations and file returns even in months with no activity. The city requires short-term rental operators to obtain a business license and comply with zoning regulations, though there are no specific occupancy tax exemptions for Airbnb properties. Collection typically occurs through Airbnb's automated tax collection system for Iowa state taxes as of 2018, though hosts remain ultimately responsible for ensuring proper remittance and may need to manually collect and remit local taxes depending on the platform's coverage of Polk County obligations.

The total cost to start an Airbnb in Urbandale, Iowa would be approximately $285,000-$320,000. Property purchase costs around $250,000 based on Urbandale's median home price as of 2023. Furnishing a 3-bedroom property would cost $15,000-$25,000 including furniture, appliances, linens, and decor from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, and marketing materials would be $2,000-$3,000. Permits and fees including business license, short-term rental permit, and potential HOA approvals would cost $500-$1,500. Insurance including landlord and short-term rental coverage would be $2,000-$3,000 annually. Utilities including electricity, gas, water, internet, and cable would cost $300-$400 monthly. First six months operating costs including utilities ($2,400), cleaning services ($1,800), maintenance reserves ($1,500), property management software ($300), and miscellaneous expenses ($1,000) would total approximately $7,000. Additional considerations include potential property improvements ($3,000-$5,000) and working capital reserves for vacancy periods.

Airbnb properties in Urbandale, Iowa typically generate annual revenues between $18,000-$35,000 for entire home listings, with average daily rates ranging from $85-$140 depending on property size and amenities. Operating expenses generally consume 40-55% of gross revenue, including cleaning fees ($25-40 per turnover), property management (15-25% if outsourced), utilities ($150-250 monthly), insurance ($800-1,200 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins typically range from 25-40% for well-managed properties, with successful hosts in the Des Moines metro area achieving occupancy rates of 60-75% by targeting business travelers visiting nearby corporate offices and families attending Drake University events. Properties within 15 minutes of downtown Des Moines or near Jordan Creek Town Center command premium rates, while hosts offering unique amenities like hot tubs or game rooms report 15-20% higher revenues. The market benefits from steady demand due to Urbandale's proximity to major employers like Wells Fargo, Principal Financial Group, and Hy-Vee corporate headquarters, though seasonal fluctuations occur with lower winter occupancy rates of 45-55% compared to summer peaks of 75-85%.

Airbnb investments in Urbandale, Iowa typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in desirable neighborhoods near Jordan Creek Town Center and West Des Moines corporate areas can achieve occupancy rates of 65-75% annually, with average daily rates between $85-120 depending on property size and amenities. Initial profitability usually occurs within 12-18 months after accounting for startup costs, furniture, and marketing expenses. The Urbandale market benefits from business travelers visiting nearby companies like Wells Fargo, Principal Financial, and Hy-Vee headquarters, plus leisure guests attending events at nearby venues. Properties purchased in the $200,000-350,000 range typically generate $1,800-3,200 monthly gross revenue during peak months, with annual net cash flow of $8,000-18,000 after expenses including property management, cleaning, utilities, and maintenance, resulting in break-even timelines of 14-20 months for most investors.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Urbandale, Iowa. Local real estate agents specializing in investment properties include Keller Williams Des Moines, RE/MAX Concepts, and Coldwell Banker Mid-America Group, with agents like those at Iowa Realty Company having experience in the Greater Des Moines area rental market since the early 2010s. National services include Awning (formerly RedAwning) which launched around 2019 to help investors identify profitable short-term rental markets, Mashvisor for real estate investment analysis, and BiggerPockets for networking and deal sourcing. Local property management companies such as Vacasa and RedAwning provide turnkey Airbnb management services, while investment-focused firms like Roofstock and Fundrise offer remote real estate investment opportunities. Additionally, local mortgage brokers and lenders familiar with investment properties, such as Bankers Trust and Hills Bank, can facilitate financing for Airbnb investments in the Urbandale market, which has seen growth due to its proximity to Des Moines and local attractions.