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 Urbandale City Hall at 3600 70th Street to obtain the necessary permits, including a business license (approximately $25-50 annually) and ensure compliance with fire safety codes and occupancy limits. Find a suitable property in residential zones like Walnut Creek or Justin Trail neighborhoods, ensuring it meets the city's requirements for off-street parking and noise ordinances. Furnish the space with quality basics including comfortable bedding, kitchen essentials, Wi-Fi, and safety equipment like smoke detectors and fire extinguishers, budgeting around $3,000-8,000 for a complete setup. List your property on Airbnb and VRBO platforms with professional photos highlighting proximity to Living History Farms and downtown Des Moines (15 minutes away), setting competitive rates around $75-120 per night based on local market analysis. Manage your listing by maintaining 24/7 guest communication, coordinating cleaning services between stays, collecting Iowa state sales tax (6%) plus Polk County tax (1%), and ensuring compliance with Urbandale's noise ordinances and parking requirements while building positive reviews to increase bookings in this suburban Des Moines market.

To identify profitable short-term rental properties in Urbandale, Iowa, focus on locations within 15-20 minutes of downtown Des Moines, near major employers like Principal Financial Group and Wells Fargo, and close to attractions such as Living History Farms and Adventureland Park in nearby Altoona. Target 3-4 bedroom single-family homes or townhomes built after 1990 with modern amenities, full kitchens, parking, and outdoor spaces, as these appeal to business travelers and families visiting the metro area. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue (typically $80-150/night in Urbandale) exceeds long-term rental income by 40-60%, while keeping acquisition costs under $250,000 for optimal ROI. Research competition on Airbnb and VRBO within a 3-mile radius, looking for gaps in availability or amenities, and analyze occupancy rates which typically range 60-75% in the Des Moines metro area. Utilize tools like Rabbu, BiggerPockets market analysis, and local MLS data through Iowa Realty or RE/MAX, while consulting Urbandale's zoning regulations and HOA restrictions, as some neighborhoods may prohibit short-term rentals, and consider proximity to Jordan Creek Town Center and major highways like I-35 and I-80 for guest convenience.

To obtain an Airbnb/STR permit in Urbandale, Iowa, you must first contact the Urbandale City Hall at 3600 86th Street or call (515) 278-3900 to inquire about their short-term rental registration process, as the city implemented STR regulations around 2019-2020. You'll need to submit a completed short-term rental application form along with required documents including proof of property ownership or lease agreement, a site plan showing parking areas, proof of liability insurance (typically $1 million minimum), a floor plan of the rental unit, and contact information for a local responsible party available 24/7. The application fee is estimated at $150-200 annually, with additional inspection fees of approximately $75-100. Required documents also include a business license from the state of Iowa and compliance with all building, fire, and zoning codes. The timeline for approval typically takes 30-45 days after submitting a complete application, during which the city will conduct a safety inspection to ensure smoke detectors, carbon monoxide detectors, and proper egress windows are installed. Specific Urbandale requirements include maintaining off-street parking for guests, limiting occupancy to no more than 2 people per bedroom plus 2 additional guests, keeping a guest registry, and ensuring the property manager or owner can respond to complaints within 30 minutes during overnight hours, with properties required to be owner-occupied or have a designated local contact person residing within 10 miles of the rental property.

Short-term rentals (STRs) in Urbandale, Iowa are generally legal but subject to local regulations and zoning restrictions. The city requires STR operators to obtain proper business licenses and comply with residential zoning requirements, which typically limit rentals to owner-occupied properties or specific zoning districts. Urbandale prohibits STRs in certain residential neighborhoods to preserve community character and has implemented occupancy limits, parking requirements, and noise ordinances that operators must follow. Recent changes around 2022-2023 have included stricter enforcement of existing regulations and enhanced complaint procedures for neighbors, though the city has not implemented an outright ban like some other Iowa municipalities. Property owners must register their rentals with the city, maintain liability insurance, and ensure compliance with building and fire codes, while violations can result in fines or license revocation.

The best areas for Airbnb investment in Urbandale, Iowa include the Living History Farms vicinity along Hickman Road, which attracts families and educational tourists year-round to this major historical attraction. The downtown Urbandale area near 86th Street and Douglas Avenue offers proximity to local businesses, restaurants, and easy highway access for business travelers visiting nearby corporate offices and the greater Des Moines metro. The neighborhoods around Walker Johnston Park provide a quiet residential setting that appeals to families attending youth sports tournaments and events at the park's facilities. Areas near Urbandale High School and middle schools can capitalize on visiting families for school events, graduations, and sports competitions. The Walnut Creek corridor offers scenic appeal and attracts visitors to the trail system and outdoor recreation activities. Properties near the intersection of 100th Street and University Avenue benefit from proximity to shopping centers and restaurants while maintaining easy access to downtown Des Moines, making them attractive to both leisure and business travelers who prefer suburban accommodations over downtown hotels.

In Urbandale, Iowa, Airbnb hosts are subject to Iowa state sales tax at 6% on lodging rentals, plus Polk County's local option sales tax of 1%, totaling 7% on gross rental receipts. Additionally, there is a state lodging tax of 7% that applies to transient accommodations under 31 days. Airbnb typically collects and remits these taxes automatically for hosts through their platform since 2018, but hosts should verify this coverage and may need to register with the Iowa Department of Revenue if collecting taxes independently. The city of Urbandale does not impose additional local lodging taxes beyond the county rate. Hosts must remit collected taxes monthly if gross receipts exceed $1,000 or quarterly if under that threshold, with payments due by the 20th of the following month. Exemptions may apply for stays exceeding 30 consecutive days, certain government employees, and nonprofit organizations with proper documentation, though hosts should require valid exemption certificates before waiving taxes.

To start an Airbnb in Urbandale, Iowa, expect total costs around $275,000-$325,000. Property purchase represents the largest expense at approximately $250,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 3-bedroom setup including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees in Urbandale include business license ($50-$100), short-term rental permit ($200-$500), and potential HOA approval costs totaling around $500-$1,000. Insurance premiums for short-term rental coverage run $1,500-$2,500 annually, with first-year payment required upfront. Utility setup and deposits for electricity, gas, water, internet, and cable services cost approximately $500-$800 initially. First six months of operating costs including utilities ($200/month), cleaning services ($100-$150 per turnover), maintenance reserves ($200/month), property management software ($50/month), and marketing expenses total roughly $3,000-$4,500, assuming 60-70% occupancy rates typical for the Des Moines metro area market.

Airbnb properties in Urbandale, Iowa typically generate annual revenues between $15,000-$35,000 for entire homes, with average daily rates ranging from $85-$140 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-40 per turnover), utilities ($150-250 monthly), property management (10-20% of revenue), insurance ($800-1,200 annually), and maintenance costs ($2,000-4,000 yearly). Profit margins for successful properties average 25-40%, with higher-end homes near Urbandale's business districts and those serving Des Moines metro visitors achieving better performance. Key success factors include proximity to Jordan Creek Town Center, competitive pricing against hotels in nearby West Des Moines, professional photography, and maintaining 4.8+ star ratings. Properties targeting business travelers and families visiting local attractions like Living History Farms perform particularly well, with occupancy rates of 65-75% being achievable for well-managed listings. The market benefits from Urbandale's suburban appeal and lower competition compared to downtown Des Moines, though seasonal fluctuations occur with peak demand during spring and fall months.

Based on Urbandale, 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 market. Single-family homes near major employers like Principal Financial Group and Hy-Vee corporate headquarters tend to perform better, achieving the higher end of these ranges. Initial profitability usually occurs within 12-18 months after accounting for startup costs, furnishing, and marketing expenses. Properties in established neighborhoods close to Jordan Creek Town Center and West Des Moines business district command premium nightly rates of $85-130, supporting gross rental yields of 10-14% annually. The market benefits from consistent business travel demand and weekend leisure visitors, with occupancy rates typically maintaining 65-75% throughout the year, making break-even achievable within the first year of operation for well-positioned properties with initial investments of $200,000-350,000.

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 and RE/MAX Concepts, with agents like those at Coldwell Banker Mid-America Group who understand the Greater Des Moines market dynamics. National services include Awning (formerly RedAwning) which offers full-service Airbnb property management and investment guidance, Mashvisor for property analysis and market research, and AirDNA for short-term rental data analytics. Local property management companies such as Iowa Realty and Berkshire Hathaway HomeServices Iowa Properties often work with investors seeking rental properties in the Urbandale area. Additional national platforms like Roofstock, which specializes in single-family rental investments, and BiggerPockets' marketplace connect investors with properties and local experts. Local mortgage brokers and investment-focused lenders in the Des Moines metropolitan area, including Great Western Bank and Bankers Trust, provide financing specifically for investment properties that can be converted to short-term rentals.