Iowa City

As of May 2026, Iowa City, Cedar Rapids, Amana Colonies have 657 active Airbnb and VRBO listings. This represents a 15% decrease from the previous year.

The average Airbnb or VRBO in Iowa City generates $29K per year. High-performing properties earn $55K/year, while low-performing properties earn $11K/year. The substantial revenue gap indicates that market earnings are heavily skewed toward top-tier listings, suggesting a bifurcated performance environment where average properties struggle to capture significant demand despite a recent contraction in total inventory.

Average home prices in Iowa City vary by property size: 1-bedroom properties cost approximately $99K, 2-bedroom homes average $161K, 3-bedroom properties are around $233K, and 4+ bedroom homes average $312K. These prices reflect median home values across the Iowa City, Cedar Rapids, Amana Colonies area.

Airbnb and VRBO can be profitable in Iowa City, with an average gross yield of 12% across all properties. High-performing properties achieve yields up to 23%, which is considered top for short-term rental investment. This yield variance highlights that even with a recent decline in overall market revenue, top-performing assets maintain strong profitability, reflecting a high sensitivity to asset-specific appeal.

The average occupancy rate for Airbnbs and VRBOs in Iowa City is 40%. This occupancy level, combined with an average nightly rate of $191, results in a RevPAR (revenue per available room) of $50 per day.

4+ bedroom properties demonstrate the strongest performance in Iowa City, with an average gross yield of 17% and annual revenue of $54K. These properties balance purchase price ($312K), operating costs, and rental demand most effectively in the Iowa City market.

Short-term rental regulations vary by jurisdiction in the Iowa City area. Iowa City: Moderate. Business license required, zoning compliance, safety inspections. Moderate enforcement with complaint-based action. Cedar Rapids: Lenient. Business license and lodging tax registration required. Minimal enforcement, mostly complaint-driven. Amana Colonies: Lenient. No specific STR regulations beyond state lodging tax. Minimal oversight, operates like traditional tourist area. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Iowa City Airbnb and VRBO market is currently showing balanced conditions. Supply has declined 15% year-over-year, while RevPAR has decreased 16%. This indicates balanced supply-demand dynamics. The simultaneous contraction in both supply and revenue suggests that the market is recalibrating, as lower inventory levels have not yet tightened competition enough to offset the downward pressure on per-unit earnings.

Launch around August, 2-3 months before peak fall season (November peaks). This pre-peak timing lets you build reviews when competition is -14% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (December-January) when gaining traction is harder.

The most common amenities in Iowa City listings include: Air Conditioning (99%), Kitchen (96%), Tv (91%), Washing Machine (85%), Heating (79%). Amenities that boost revenue the most include Bbq, Washing Machine, Air Conditioning, with Bbq properties earning approximately 25% more ($46K/year vs $37K/year).

Monthly estimated revenue per listing in Iowa City over the last 12 months: May: $1K, June: $2K, July: $2K, August: $2K, September: $2K, October: $2K, November: $2K, December: $1K, January: $879, February: $856, March: $2K, April: $2K. These figures are based on RevPAR (revenue per available room) multiplied by the number of days in each month.

The overall average nightly rate in Iowa City is $191, up 24% year-over-year. By property size: 1-bedroom properties average $118/night, 2-bedroom properties average $157/night, 3-bedroom properties average $200/night, 4+ bedroom properties average $351/night. Rates peak in November and are lowest in January.

Guests in Iowa City book an average of 30 days in advance, down 23% from last year. By property size: 1-bedroom: 28 days, 2-bedroom: 29 days, 3-bedroom: 32 days, 4+ bedroom: 35 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Iowa City Airbnb and VRBO market has seen the following changes: supply declined 15%, revenue per listing decreased 16%, occupancy rose 1%, average nightly rates increased 24%, and lead time decreased 23%. These shifts reveal a market transitioning toward shorter booking windows and higher pricing, despite a broader decline in total revenue efficiency.

In Iowa City, Saturday sees the highest booking demand while Monday has the lowest. Nightly rates peak on Saturday and are lowest on Tuesday. Weekends show 40% higher occupancy than weekdays.