Cedar Falls, IA Airbnb Market Data, Statistics, and Occupancy Rates

Cedar Falls Short-Term Rental Market Overview

Cedar Falls, IA presents an accessible entry point for short-term rental investors, with average home values around $419,947 and an ROI score of 56 out of 100 — placing it in the "Attractive Opportunity" tier. The market's 71 active Airbnb listings generate an average annual revenue of $14,591, and the average daily rate of $119 sits well below Iowa's $265 state average, reflecting the market's college-town and regional-visitor character. Supply grew 58% year-over-year, signaling rising investor interest, though occupancy at 21% trails the 33% state average and warrants careful property-type selection.

Key Market Statistics

According to Rabbu market data, the Cedar Falls short-term rental market shows:

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026.

Why Investors Consider Cedar Falls

Investors are drawn to Cedar Falls for its relatively low property costs paired with revenue potential that rewards well-positioned, larger properties in a market still early in its STR growth cycle.

Expert Market Assessment

"Cedar Falls represents a moderate-opportunity market best suited for investors willing to target the right property size and manage through pronounced seasonal swings. Revenue peaks in summer — July tops $1,690 per month — while January and February dip below $800, creating a roughly 2:1 spread that demands disciplined cash-flow planning. Larger properties (2+ bedrooms) significantly outperform studios and one-bedrooms on both occupancy and revenue, suggesting group and family travelers are the core demand segment. With an average RevPAN of $25 and below-average occupancy stability, success here hinges on choosing a well-configured property and pricing strategically rather than relying on market-wide tailwinds."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Cedar Falls

Average revenue by month in Cedar Falls

Revenue in Cedar Falls peaks in July at $1,690 and bottoms out in February at $760, reflecting a pronounced summer-heavy seasonality pattern. March ($1,360) and November ($1,334) offer notable secondary peaks, likely tied to university events, providing some mid-season revenue boosts beyond the core summer window.

Active Airbnb listings by property size in Cedar Falls

Studios dominate the Cedar Falls supply with 28 of 71 total listings, yet they deliver the lowest revenue and occupancy of any size category. The relative scarcity of 4-bedroom homes (just 6 listings) combined with their top-tier revenue suggests an undersupplied niche worth exploring for investors seeking less competition.

Average daily rate (ADR) by property size in Cedar Falls

ADR scales consistently from $58 for studios up to $224 for 4-bedroom properties, nearly a 4x premium. The jump from 3-bedroom ($159) to 4-bedroom ($224) is the steepest increment, indicating strong pricing power for larger homes that can accommodate groups or families visiting Cedar Falls.

Average RevPAN by property size in Cedar Falls

Two-bedroom properties deliver the highest RevPAN at $39, edging out 3-bedrooms ($37) and 4-bedrooms ($35), which suggests that 2-bedroom units strike the best balance of nightly rate and occupancy. Studios lag far behind at just $7 RevPAN, making them a difficult proposition for investors focused on per-night yield.

Average occupancy rates by property size in Cedar Falls

One-bedroom listings lead occupancy at 33%, matching the state average, while studios trail at just 14% — a gap that underscores how poorly the most common listing type performs in Cedar Falls. Occupancy declines as properties get larger beyond one bedroom (29% for 2BR, 23% for 3BR, 16% for 4BR), though higher nightly rates more than compensate on a revenue basis.

Average monthly revenue by property size in Cedar Falls

Monthly revenue climbs steadily with size, from $472 for studios to $2,750 for 4-bedroom homes — a nearly 6x difference that makes property size the single most important revenue lever in this market. Even the jump from 2-bedroom ($1,583) to 3-bedroom ($1,858) adds roughly $275/month, rewarding investors who can acquire larger properties.

Average annual revenue by property size in Cedar Falls

Four-bedroom properties top the annual revenue chart at $33,009, more than double the market-wide $14,591 average and nearly six times what studios earn ($5,667). For investors evaluating return potential, 3-bedroom ($22,305) and 4-bedroom configurations offer the strongest gross revenue, though acquisition and operating costs should be weighed accordingly.

Most common amenities for Airbnb listings in Cedar Falls

Parking (97%) and laundry (washer 97%, dryer 94%) are near-universal in Cedar Falls listings, establishing a high baseline that guests clearly expect. Pet-friendliness at 85% is notably high, suggesting a market where allowing pets is practically required to remain competitive, while premium differentiators like hot tubs (3%) and waterfront access (1%) remain rare opportunities to stand out.

Understanding Cedar Falls's ROI Score: 56/100

Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.

How the ROI Score is Calculated

What This Means for Investors

Cedar Falls earns an ROI score of 56 out of 100, placing it in the "Attractive Opportunity" band where healthy demand and reasonable property values create a viable but not effortless investment landscape. The revenue-to-price ratio and market growth trend both rate as average, while occupancy stability comes in below average — a factor investors can mitigate by targeting higher-performing property sizes like 2- or 3-bedrooms. Pairing this data with thorough local regulatory research and a realistic seasonal budget will help determine whether a specific Cedar Falls property pencils out.

Short-Term Rental Regulations in Cedar Falls

Understanding local STR regulations is essential before investing in Cedar Falls. Here's the current regulatory landscape:

Permit Requirements

Cedar Falls, Iowa may require short-term rental operators to obtain a local permit or register their property with the city before listing on platforms like Airbnb. Investors should verify current requirements directly with the City of Cedar Falls and Black Hawk County before purchasing or operating an STR.

Key Restrictions

Common restrictions in Iowa markets can include occupancy limits based on bedroom count, minimum-stay requirements, noise and nuisance ordinances, and designated parking mandates. HOA covenants may further limit or prohibit short-term rentals in certain neighborhoods, so reviewing any applicable association rules is essential before committing to a property.

Tax Obligations

Short-term rental operators in Iowa are generally subject to state sales tax and local hotel/motel taxes on stays of less than 31 consecutive days. Many booking platforms collect and remit these taxes on behalf of hosts, but operators should confirm their specific obligations with the Iowa Department of Revenue.

Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Cedar Falls can provide current regulatory guidance.

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Cedar Falls is likely to see continued listing growth as investors respond to favorable property prices, but occupancy rates may remain in the 20–25% range unless demand drivers strengthen. Seasonality data points to July as the revenue peak at $1,690 per month, with winter months dipping below $800 — investors should budget for meaningful off-season softness. ADR could see modest 1–3% upward movement if operators differentiate with larger properties and premium amenities, though the rapid 58% supply increase may keep pricing pressure in check. Targeting multi-bedroom homes that consistently outperform on RevPAN will be key to staying ahead of the growing competition."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Cedar Falls, IA

What is the average Airbnb occupancy rate in Cedar Falls?

The average occupancy rate for Airbnb listings in Cedar Falls is currently 21%, which falls below the Iowa state average of 33%. Occupancy varies significantly by property size — one-bedroom units lead at 33%, while studios average just 14%. Investors targeting higher occupancy should focus on 1- to 2-bedroom configurations that appeal to the market's most active booking segments.

How much do Airbnb hosts make in Cedar Falls?

On average, Airbnb hosts in Cedar Falls earn approximately $1,215 per month or $14,591 per year based on trailing 12-month data. However, revenue varies widely by property size: studios bring in about $472/month while 4-bedroom properties average $2,750/month. Choosing a larger, well-equipped property is one of the most impactful levers for maximizing earnings in this market.

Is Cedar Falls a good market for Airbnb investment?

Cedar Falls earns an ROI score of 56 out of 100, placing it in the "Attractive Opportunity" category. The market benefits from an average revenue-to-price ratio and steady market growth, though occupancy stability is below average. Investors who select multi-bedroom properties and manage seasonality effectively can find worthwhile returns, especially given the relatively accessible home values near $420,000.

What is the average daily rate (ADR) for Airbnb in Cedar Falls?

The average daily rate across all Cedar Falls Airbnb listings is $119, well below the Iowa state average of $265. ADR scales meaningfully with property size — studios average $58 per night while 4-bedroom homes command $224. This pricing structure reflects a market oriented more toward practical stays than luxury travel, with larger homes capturing the best per-night rates.

Are short-term rentals legal in Cedar Falls?

Short-term rentals do operate in Cedar Falls, with 71 active Airbnb listings currently on the market. However, local permit or registration requirements may apply, and operators should verify compliance with the City of Cedar Falls and any applicable HOA rules before listing a property. Iowa state tax obligations, including sales and lodging taxes, also apply to short-term stays.

When is peak season for Airbnb in Cedar Falls?

Peak season in Cedar Falls runs through the summer months, with July topping the charts at $1,690 in average monthly revenue. June and August also perform well at $1,454 and $1,436 respectively. The slowest months are January ($773) and February ($760), creating a seasonal spread that investors should factor into their cash-flow projections.

How many Airbnbs are there in Cedar Falls?

As of April 2026, there are 71 active Airbnb listings in Cedar Falls. Studios make up the largest share with 28 listings, followed by 2-bedroom (16), 3-bedroom (12), 1-bedroom (7), and 4-bedroom (6) properties. The market saw 58% year-over-year growth in active listings, indicating increasing investor and host interest.

How is Airbnb revenue calculated in Cedar Falls?

The annual and monthly revenue figures shown for Cedar Falls are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — they are not forward-looking projections. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, remove regional outliers, and roll the results up to a market-level historical average. Because each month uses its own historical performance, the figures naturally capture seasonal peaks and slower periods. Individual results can vary based on property quality, pricing strategy, and operational management.

About Rabbu Market Data

Rabbu provides Airbnb and short-term rental market data and statistics across the United States. Our mission is to empower investors with accurate insights and easy-to-use tools, so they can confidently identify and act on the best opportunities in the Airbnb market.

What this data includes

• Regularly updated active Airbnb and STR listing counts for the Cedar Falls market
• Average daily rate, occupancy, and RevPAN metrics based on current and trailing 12-month data
• Revenue estimates by property size derived from historical booking performance
• Supply distribution and year-over-year growth trends for active listings
• Property value benchmarks sourced from the Zillow Home Value Index (ZHVI)

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Local regulations, permit requirements, and tax obligations may change; always verify current rules with municipal authorities before investing. Individual property results will vary based on location, condition, pricing strategy, and management quality.