Decorah, IA Airbnb Market Data, Statistics, and Occupancy Rates

Decorah Short-Term Rental Market Overview

Decorah, a small-market gem in northeast Iowa, offers an intriguing opportunity for short-term rental investors willing to work with a seasonal rhythm. With an average annual revenue of $31,065 across 85 active listings and above-average occupancy stability, the market rewards operators who can capture summer and fall demand driven by the area's outdoor recreation and cultural appeal. An ROI score of 61 out of 100 reflects a balanced opportunity where healthy revenue-to-price dynamics and steady growth trends offset a tighter supply/demand picture.

Key Market Statistics

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

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026.

Why Investors Consider Decorah

Decorah draws investor attention thanks to its blend of affordable property values, above-average occupancy stability, and a seasonal demand curve anchored by outdoor tourism and cultural events.

Expert Market Assessment

"Decorah presents an attractive but seasonal investment profile. Revenue swings meaningfully between a winter low of roughly $1,179 in February and a summer peak of $4,032 in August — a spread that investors need to plan around when modeling cash flow. The market's strength lies in its above-average occupancy stability and positive growth trend, which help offset a supply/demand balance that currently leans toward saturation as new listings enter the market. Investors who target larger properties (especially 4-bedroom homes) and price strategically through shoulder months stand to outperform the market average significantly."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Decorah

Average revenue by month in Decorah

Decorah shows pronounced seasonality, with August peaking at $4,032 in average monthly revenue and February bottoming out at $1,179 — a roughly 3.4x spread. The strongest earning window stretches from June through October, making it essential for investors to maximize bookings during this five-month corridor to hit annual revenue targets.

Active Airbnb listings by property size in Decorah

One- and 2-bedroom properties dominate Decorah's supply with 26 and 27 listings respectively, while studios (5), 3-bedroom (12), and 4-bedroom (12) homes are less represented. The relatively thin supply of larger properties, combined with their significantly higher revenue potential, may signal an opportunity for investors targeting the 4-bedroom segment.

Average daily rate (ADR) by property size in Decorah

ADR climbs steadily from $123 for studios to $318 for 4-bedroom properties, with the sharpest jump occurring between 3-bedroom ($216) and 4-bedroom units. This premium-tier pricing for 4-bedroom homes — nearly 2.6x the studio rate — suggests strong guest willingness to pay for larger group-friendly accommodations in this market.

Average RevPAN by property size in Decorah

Four-bedroom properties deliver standout RevPAN at $95, more than double the $40 earned by 2- and 3-bedroom units and roughly triple the $31–$32 range for studios and 1-bedrooms. This gap underscores that larger properties not only charge more per night but also maintain higher occupancy, creating a compounding revenue advantage.

Average occupancy rates by property size in Decorah

Occupancy rates cluster in a narrow 19–30% band across property sizes, with 4-bedroom homes leading at 30% and 3-bedroom units trailing at 19%. The relative consistency for studios, 1-bedrooms, and 2-bedrooms (23–25%) suggests steady baseline demand across most configurations, while the 4-bedroom advantage points to stronger group-travel demand.

Average monthly revenue by property size in Decorah

Four-bedroom properties generate $5,106 per month on average — nearly double the $2,738 earned by 2-bedroom units and roughly triple the $1,761 from 1-bedroom listings. Studios and 1-bedrooms sit at the lower end at $1,525 and $1,761 respectively, making them better suited as supplemental income plays rather than primary investment vehicles.

Average annual revenue by property size in Decorah

Annual revenue ranges from $18,311 for studios to $61,279 for 4-bedroom properties, with the jump from 3-bedroom ($30,956) to 4-bedroom representing nearly a $30,000 premium. Investors targeting the highest return potential should focus on 4-bedroom configurations, which earn roughly twice the market average of $31,065.

Most common amenities for Airbnb listings in Decorah

Parking dominates at 98% penetration — a near-requirement in this car-dependent rural market — followed by kitchen access (89%) and self check-in (82%). Outdoor amenities like backyards (54%), patios (53%), and BBQ grills (40%) are well-represented, signaling that guests expect a nature-forward experience, while hot tubs (2%) and EV chargers (5%) remain rare differentiators that could help a listing stand out.

Understanding Decorah's ROI Score: 61/100

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

Decorah's ROI score of 61 out of 100 places it in the 'Attractive Opportunity' band, reflecting a market where average revenue-to-price ratios combine with above-average occupancy stability and positive growth trends to create a viable investment case. The supply/demand balance scores below average — likely a function of the 67% year-over-year listing growth outpacing demand absorption — which warrants monitoring over the coming year. Pairing this score with thorough local regulatory research and a property-specific financial model will help investors determine whether Decorah's seasonal rhythm fits their return requirements.

Short-Term Rental Regulations in Decorah

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

Permit Requirements

Short-term rental operators in Decorah, Iowa may need to obtain a local rental permit or register their property with the city. Investors should verify current requirements directly with the City of Decorah and Winneshiek County before listing a property.

Key Restrictions

Common STR restrictions in Iowa communities can include occupancy limits, minimum stay requirements, noise and nuisance ordinances, parking regulations, and potential HOA covenants that restrict or prohibit short-term rentals. Decorah's zoning code may also impose specific conditions on where STRs are permitted, so checking with local planning officials is advisable.

Tax Obligations

Iowa requires short-term rental operators to collect and remit state sales tax and local hotel/motel tax on stays of fewer than 31 consecutive days. Many booking platforms handle tax collection automatically, but hosts should confirm their obligations with the Iowa Department of Revenue to ensure full compliance.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Decorah's STR market is expected to continue its upward trajectory — active listings grew 67% year-over-year, signaling strong investor interest and rising traveler demand. Seasonal revenue patterns suggest ADR could tick up 2–4% during peak months (June through October), with annual occupancy likely settling in the 22–26% range as new supply absorbs into the market. Above-average market growth trends provide a favorable backdrop, though investors should monitor whether the rapid supply increase begins to compress per-listing revenue."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Decorah, IA

What is the average Airbnb occupancy rate in Decorah?

The average occupancy rate for Airbnb listings in Decorah is currently 24%, which sits below the Iowa state average of 33%. Occupancy varies by property size, with 4-bedroom properties achieving the highest rate at 30% and 3-bedroom units trailing at 19%. The market's seasonal nature — peaking in summer and fall — means annual averages can understate how busy properties get during high-demand months.

How much do Airbnb hosts make in Decorah?

Airbnb hosts in Decorah earn an average of $2,588 per month, translating to approximately $31,065 per year based on trailing 12-month booking data. Earnings vary substantially by property size: studios average around $18,311 annually, while 4-bedroom properties lead the market at $61,279 per year. Peak months like August can generate over $4,000 in revenue, while winter months may dip below $1,200.

Is Decorah a good market for Airbnb investment?

Decorah scores 61 out of 100 on Rabbu's ROI Score, placing it in the 'Attractive Opportunity' category. The market benefits from above-average occupancy stability and positive growth trends, though its supply/demand balance is tighter due to rapid listing growth (67% year-over-year). Investors who target larger properties and optimize pricing for the strong summer-fall season are best positioned to generate solid returns.

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

The average daily rate in Decorah is $200, coming in below the Iowa state average of $265. ADR scales significantly with property size — studios average $123 per night, while 4-bedroom homes command $318. This pricing structure rewards investors who can acquire and manage larger properties, where the per-night premium substantially boosts overall revenue.

Are short-term rentals legal in Decorah?

Short-term rentals operate in Decorah, Iowa, with 85 active Airbnb listings currently on the market. However, local permit requirements and zoning regulations may apply. Investors should verify current rules with the City of Decorah and review any applicable HOA restrictions before purchasing or listing a property. Iowa also requires collection of state sales tax and local hotel/motel tax on short-term stays.

When is peak season for Airbnb in Decorah?

Peak season in Decorah runs from June through October, with August generating the highest average monthly revenue at $4,032. September and October remain strong at $3,277 and $3,317 respectively, likely driven by fall foliage tourism and local events. The slowest months are January and February, when revenue drops to the $1,179–$1,258 range, creating a meaningful seasonal spread that investors should factor into their financial planning.

How many Airbnbs are there in Decorah?

There are currently 85 active Airbnb listings in Decorah as of April 2026. The market has seen significant growth, with active listings increasing 67% year-over-year. Supply is concentrated in 1-bedroom (26 listings) and 2-bedroom (27 listings) properties, while larger 3- and 4-bedroom homes (12 each) represent a smaller but higher-earning segment of the market.

How is Airbnb revenue calculated in Decorah?

The annual and monthly revenue figures for Decorah 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 aggregate the results into a market-level historical average. Because each month uses its own historical performance data, the figures naturally reflect seasonal peaks and slower periods. Individual results can vary based on property quality, pricing strategy, location within the market, 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 Decorah and surrounding areas
• Average daily rates, occupancy rates, and RevPAN trends by property size and month
• Monthly and annual revenue estimates based on trailing 12-month booking performance
• Property value benchmarks sourced from the Zillow Home Value Index (ZHVI)
• Data aggregated from multiple providers and proprietary Rabbu analytics for consistency

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Local regulations, permit requirements, and tax obligations may change; investors should verify current rules with municipal and state authorities before purchasing. Individual property results will vary based on location, condition, amenities, pricing strategy, and management quality.