Is West Des Moines, Iowa Good for Airbnb Investment?

To start an Airbnb in West Des Moines, Iowa, begin by researching local zoning laws and regulations through the West Des Moines Planning Department, as the city requires short-term rentals to comply with residential zoning restrictions and may require a business license from the City Clerk's office. Contact the Polk County Health Department to determine if health permits are needed for properties hosting guests, and ensure compliance with Iowa state tax requirements by registering with the Iowa Department of Revenue for sales tax collection on rental income. Find a suitable property in residential zones that allow short-term rentals, focusing on areas near Jordan Creek Town Center, Valley West Mall, or downtown West Des Moines for higher demand. Purchase essential furnishings including quality bedding, basic kitchen appliances, Wi-Fi equipment, and safety items like smoke detectors and fire extinguishers to meet both guest expectations and local safety codes. Create your Airbnb listing with professional photos, competitive pricing based on local market rates (typically $80-150 per night in West Des Moines), and detailed descriptions highlighting proximity to local attractions like the Raccoon River Park Trail and downtown Des Moines. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guest inquiries, and keeping detailed records for tax purposes while ensuring ongoing compliance with any city ordinance updates regarding short-term rentals in West Des Moines.

To identify profitable STR properties in West Des Moines, Iowa, focus on locations within 10-15 minutes of major business districts like Jordan Creek Town Center, Valley West Mall, and corporate headquarters such as Hy-Vee and EMC Insurance, as these areas generate consistent business traveler demand. Target properties near recreational amenities like Gray's Lake Park, Raccoon River Park, and the Clive Greenbelt Trail, which attract leisure guests year-round. Seek 2-4 bedroom single-family homes or townhomes built after 1990 with modern amenities, full kitchens, dedicated workspaces, fast WiFi, and parking, as West Des Moines attracts families and business travelers who prefer space over hotel rooms. Analyze pricing by researching comparable Airbnb listings in neighborhoods like Glen Oaks, Ashworth, and Westown, targeting properties that can achieve $80-150 per night with 65-75% occupancy rates to generate $1,500-3,500 monthly revenue. Study competition using AirDNA, Mashvisor, and STR analytics tools to identify undersupplied areas and optimal pricing strategies, while monitoring local hotels like Hampton Inn, Holiday Inn Express, and Marriott properties to ensure competitive positioning. Leverage resources such as the Greater Des Moines Partnership for market insights, West Des Moines Chamber of Commerce for local business travel patterns, and Iowa Realtors Association data for property acquisition guidance, while ensuring compliance with city zoning regulations and HOA restrictions that may limit short-term rental operations.

To obtain an Airbnb/STR permit in West Des Moines, Iowa, you must first contact the West Des Moines Community Development Department at City Hall located at 4200 Mills Civic Parkway to determine if short-term rentals are permitted in your specific zoning district, as the city has restrictions on STRs in certain residential areas. You'll need to submit a conditional use permit application if required, along with a completed STR registration form, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage naming the city as additional insured, floor plan showing maximum occupancy calculations, parking plan demonstrating adequate off-street parking, and contact information for a local responsible party available 24/7. The application fee is approximately $200-400 for the conditional use permit plus a $100 annual registration fee, though fees may vary. Required documents also include a state sales tax permit from Iowa Department of Revenue and compliance with all building, fire, and health codes including smoke detectors in all bedrooms and common areas, carbon monoxide detectors, fire extinguishers, and emergency exit plans posted in each unit. The approval process typically takes 4-6 weeks including staff review, potential Planning and Zoning Commission hearing, and final approval, with additional time needed if modifications are required. West Des Moines requires STR operators to maintain guest registries, limit occupancy to 2 people per bedroom plus 2 additional guests, provide adequate parking (typically 1 space per bedroom), ensure quiet hours from 10 PM to 7 AM, and renew permits annually while maintaining compliance with all city ordinances and state tax obligations.

Short-term rentals (STRs) are legal in West Des Moines, Iowa, but operate under specific regulations established by the city. West Des Moines 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 including smoke detectors, carbon monoxide detectors, and fire extinguishers, along with maintaining adequate parking and waste management. Operators must also comply with occupancy limits based on property size and may face restrictions on the number of guests and vehicles. Recent changes around 2020-2022 have included stricter enforcement of existing regulations and enhanced complaint procedures for neighbors, with the city requiring registration of all STR properties and implementing a system for tracking violations. Properties in certain historic districts or areas with homeowners association restrictions may face additional limitations, and the city maintains the authority to revoke licenses for repeated violations of noise ordinances, parking requirements, or other municipal codes.

The best areas for Airbnb investment in West Des Moines, Iowa include the Valley Junction Historic District, which attracts tourists year-round with its antique shops, farmers market, and annual events like the Valley Junction Fun Days festival. The Jordan Creek area near Jordan Creek Town Center offers excellent potential due to its proximity to Iowa's largest shopping destination, drawing visitors for retail therapy and dining experiences. The Raccoon River Park vicinity appeals to outdoor enthusiasts and families visiting the park's trails, beach, and recreational facilities. The downtown West Des Moines business district provides strong opportunities for corporate travelers, especially those visiting companies like Hy-Vee headquarters, Wells Fargo operations, and various financial services firms. Areas near the Historic Valley Junction Railroad Museum and close to Interstate 35 and 80 corridors offer convenience for travelers passing through or attending events at nearby venues, while properties within walking distance of local breweries, restaurants, and the Clive Greenbelt Trail system attract leisure visitors seeking authentic local experiences.

West Des Moines, Iowa imposes a 7% hotel/motel tax on short-term rental accommodations including Airbnb properties, which is collected by the city and applies to stays of less than 31 consecutive days. This tax is typically collected directly from guests at the time of booking through Airbnb's automated tax collection system, which remits payments quarterly to the city on behalf of hosts. Additionally, hosts must pay Iowa state sales tax of 6% on rental income, and Polk County may impose an additional 1-2% lodging tax, bringing the total occupancy tax burden to approximately 14-15%. Hosts are required to register with the Iowa Department of Revenue for sales tax purposes and file monthly or quarterly returns depending on their revenue volume. Properties rented for 31 days or longer are generally exempt from occupancy taxes, and certain properties used for medical treatment or emergency housing may qualify for exemptions. The city requires short-term rental operators to obtain a business license and comply with zoning regulations, with tax collection and remittance procedures managed through the city's finance department and coordinated with state tax authorities.

The total cost to start an Airbnb in West Des Moines, Iowa is approximately $285,000-$320,000. Property purchase costs around $250,000 based on the median home price in West Des Moines as of 2023. Furnishing a 3-bedroom property typically runs $15,000-$25,000 including beds, sofas, dining sets, appliances, linens, and decor from retailers like IKEA, Wayfair, and local furniture stores. Initial setup costs including professional photography, listing creation, smart locks, and welcome amenities total approximately $2,500-$3,500. Permits and fees vary but generally include a business license ($50-$100), short-term rental permit if required ($200-$500), and potential HOA approval fees. Insurance including landlord coverage and short-term rental protection through companies like Proper Insurance or CBIZ runs $2,000-$3,000 annually. Utility setup and deposits for electricity, gas, water, internet, and cable average $500-$800 initially. First six months of operating costs including utilities ($200/month), cleaning services ($75 per turnover), property management software like Airbnb or VRBO fees (3% of bookings), maintenance reserves, and marketing total approximately $8,000-$12,000 depending on occupancy rates and seasonal demand in the Des Moines metro area.

Airbnb properties in West Des Moines, Iowa typically generate annual revenues between $15,000-$35,000 for entire home listings, with average daily rates ranging from $85-$140 depending on property size and location proximity to downtown Des Moines or Jordan Creek Town Center. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 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). Net profit margins typically range from 15-25% for well-managed properties, with higher margins achieved by hosts who self-manage and maintain occupancy rates above 65%. Success factors include strategic location within 15 minutes of downtown Des Moines, professional photography, competitive pricing during peak periods like RAGBRAI cycling events or Iowa State Fair season, and maintaining superhost status through consistent 4.8+ ratings. Properties near Valley West Mall or with unique amenities like hot tubs or game rooms command premium rates, while basic suburban homes average $95-110 nightly with 55-70% occupancy rates, resulting in annual net profits of $8,000-$18,000 after all expenses for typical 3-bedroom properties.

Airbnb investments in West Des Moines, 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 Valley West Mall command nightly rates of $80-120, with occupancy rates averaging 65-75% annually. Initial investment costs for suitable 2-3 bedroom properties range from $180,000-280,000, with investors typically achieving profitability within 18-24 months after accounting for furnishing, marketing, and operational expenses. The market benefits from consistent demand from business travelers visiting Principal Financial Group, Hy-Vee corporate headquarters, and Wells Fargo operations, plus leisure visitors attending events at Wells Fargo Arena and exploring the greater Des Moines metro area. Cash-on-cash returns are optimized when investors put down 20-25% and leverage favorable interest rates, with gross rental yields typically falling between 10-14% before expenses, resulting in net yields of 8-12% after property management fees, utilities, maintenance, and vacancy allowances.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors in West Des Moines, Iowa. Local real estate agents like those at RE/MAX Concepts and Coldwell Banker Mid-America Group have experience helping investors find Airbnb properties in the Des Moines metro area. Mashvisor and AirDNA provide market analysis and property search tools specifically for short-term rental investments in Iowa markets. BiggerPockets connects investors with local professionals who understand the West Des Moines rental market dynamics. Local property management companies like RedAwning and Awning offer services to help investors identify and manage profitable Airbnb properties. Real estate investment firms such as Roofstock and Fundrise have expanded their services to include short-term rental property identification in secondary markets like West Des Moines. Local agents at Berkshire Hathaway HomeServices and Keller Williams Des Moines often work with investors seeking vacation rental properties. Companies like HostGPO and Hostfully provide comprehensive services from property identification through management for Airbnb investors in Iowa markets.