Waterloo

As of June 2026, Waterloo, Cedar Falls, Cedar Rapids have 396 active Airbnb and VRBO listings. This represents a 4% decrease from the previous year.

The average Airbnb or VRBO in Waterloo generates $25K per year. High-performing properties earn $51K/year, while low-performing properties earn $12K/year. The wide revenue spread relative to stable supply indicates that property-specific appeal remains the primary driver of earnings despite a broader market-wide contraction in total revenue.

Average home prices in Waterloo vary by property size: 1-bedroom properties cost approximately $75K, 2-bedroom homes average $149K, 3-bedroom properties are around $208K, and 4+ bedroom homes average $253K. These prices reflect median home values across the Waterloo, Cedar Falls, Cedar Rapids area.

Airbnb and VRBO can be profitable in Waterloo, with an average gross yield of 12% across all properties. High-performing properties achieve yields up to 24%, which is considered top for short-term rental investment. The doubling of yields at the top end suggests that high-performing assets are effectively insulated from the recent 22% revenue decline.

The average occupancy rate for Airbnbs and VRBOs in Waterloo is 32%. This occupancy level, combined with an average nightly rate of $201, results in a RevPAR (revenue per available room) of $49 per day.

2-bedroom properties demonstrate the strongest performance in Waterloo, with an average gross yield of 16% and annual revenue of $25K. These properties balance purchase price ($149K), operating costs, and rental demand most effectively in the Waterloo market.

Short-term rental regulations vary by jurisdiction in the Waterloo area. Waterloo: Lenient. No specific STR regulations or permit requirements. Operates under general zoning and business license rules. Minimal enforcement. Cedar Falls: Lenient. No dedicated STR ordinance. Subject to standard zoning and possible business licensing. Light enforcement. Cedar Rapids: Moderate. Business license required, zoning compliance, safety inspections needed. Moderate enforcement with complaint-driven action. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Waterloo Airbnb and VRBO market is currently showing balanced conditions. Supply has declined 4% year-over-year, while RevPAR has decreased 22%. This indicates balanced supply-demand dynamics. The drop in RevPAR despite lower supply suggests that current demand levels are insufficient to maintain previous pricing power, signaling a softening in market absorption.

Launch around April, 2-3 months before peak fall season (July peaks). This pre-peak timing lets you build reviews when competition is 71% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (March-January) when gaining traction is harder.

The most common amenities in Waterloo listings include: Air Conditioning (98%), Tv (89%), Kitchen (88%), Heating (73%), Washing Machine (71%). Amenities that boost revenue the most include Ev Charger, Air Conditioning, Bbq, with Ev Charger properties earning approximately 46% more ($47K/year vs $32K/year).

Monthly estimated revenue per listing in Waterloo over the last 12 months: May: $1K, June: $2K, July: $2K, August: $2K, September: $2K, October: $2K, November: $2K, December: $1K, January: $920, February: $901, March: $1K, April: $1K. 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 Waterloo is $201, up 18% year-over-year. By property size: 1-bedroom properties average $137/night, 2-bedroom properties average $182/night, 3-bedroom properties average $215/night, 4+ bedroom properties average $308/night. Rates peak in September and are lowest in May.

Guests in Waterloo book an average of 34 days in advance, down 19% from last year. By property size: 1-bedroom: 31 days, 2-bedroom: 32 days, 3-bedroom: 32 days, 4+ bedroom: 42 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Waterloo Airbnb and VRBO market has seen the following changes: supply declined 4%, revenue per listing decreased 22%, occupancy fell 15%, average nightly rates increased 18%, and lead time decreased 19%. This divergence between rising rates and falling occupancy points to a market struggling to reconcile inflated pricing with diminished traveler demand.

In Waterloo, Saturday sees the highest booking demand while Monday has the lowest. Nightly rates peak on Saturday and are lowest on Tuesday. Weekends show 78% higher occupancy than weekdays.