Iowa City, IA Airbnb Market Data, Statistics, and Occupancy Rates

Iowa City Short-Term Rental Market Overview

Iowa City presents an attractive short-term rental opportunity shaped by the University of Iowa's outsized influence on local demand. With 97 active Airbnb listings, an average daily rate of $216, and annual revenue averaging $29,612, the market benefits from event-driven demand spikes that push September and October revenues well above $3,400 per month. An ROI score of 61 out of 100 reflects a healthy balance between revenue potential and property costs, though investors should note that occupancy currently sits at 30%—slightly below the Iowa state average—suggesting that strategic pricing and calendar management matter here.

Key Market Statistics

According to Rabbu market data, the Iowa City 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 Iowa City

Iowa City's college-town dynamics create reliable, recurring demand cycles that reward operators who align their pricing and property selection with university and event-driven travel.

Expert Market Assessment

"With an ROI score of 61 and a designation of "Attractive Opportunity," Iowa City offers a compelling entry point for investors comfortable navigating seasonal demand patterns. The market's strongest earning window runs from May through November, when monthly revenue regularly exceeds $2,800 and peaks at $3,665 in September—likely driven by football weekends and university move-in periods. Off-season months like January and February dip below $1,300, creating a revenue spread that demands careful financial planning. Investors targeting 3- to 5-bedroom properties will find the most favorable revenue-per-available-night figures, though above-average occupancy stability across the market as a whole provides a measure of confidence that demand isn't solely dependent on a handful of peak weekends."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Iowa City

Average revenue by month in Iowa City

Iowa City's revenue cycle is sharply seasonal, with September leading at $3,665 and February bottoming out at $1,165—a roughly 3:1 spread. The May-through-November window consistently delivers above-average months, aligning closely with the university academic calendar and Hawkeye football season, making event-aware pricing critical for maximizing returns.

Active Airbnb listings by property size in Iowa City

Supply is evenly split among 1-, 2-, and 3-bedroom properties (25–27 listings each), while 4-bedroom (10) and 5-bedroom (6) listings are notably scarce. The limited inventory of larger homes, combined with their dramatically higher revenue potential, suggests an underserved niche that investors with the right property could capitalize on.

Average daily rate (ADR) by property size in Iowa City

ADR scales steeply with size, jumping from $103 for 1-bedrooms to $541 for 5-bedroom properties—a 5× premium that reflects strong group and event demand. The sharpest rate jump occurs between 3-bedrooms ($259) and 5-bedrooms ($541), indicating that larger properties in Iowa City command outsized nightly pricing power.

Average RevPAN by property size in Iowa City

Five-bedroom listings deliver the highest RevPAN at $114, nearly doubling the next-best category (4-bedrooms at $66) and almost tripling 1-bedrooms at $43. This pattern confirms that despite lower occupancy rates, larger properties generate meaningfully more revenue per available night thanks to their substantial nightly rate premiums.

Average occupancy rates by property size in Iowa City

Occupancy rates decrease as property size increases: 1-bedrooms lead at 42% while 5-bedrooms sit at 21%, reflecting the event-driven booking pattern of larger homes that fill on key weekends but remain vacant midweek. For cash-flow-conscious investors, 1- and 2-bedroom units offer more consistent booking activity, while larger properties trade frequency for higher per-stay revenue.

Average monthly revenue by property size in Iowa City

Monthly revenue climbs steadily with bedroom count, from $1,688 for 1-bedrooms to $5,937 for 5-bedroom properties. The jump from 4-bedrooms ($3,842) to 5-bedrooms ($5,937) is especially significant—a 54% increase—highlighting the premium that large group-friendly homes command in this college-town market.

Average annual revenue by property size in Iowa City

Annual revenue ranges from $20,259 for 1-bedroom listings to $71,246 for 5-bedroom properties, with each step up in size delivering a meaningful revenue increase. For investors weighing acquisition cost against income potential, 3-bedroom properties earning $34,442 annually may offer the best balance, while 5-bedrooms present the highest absolute return for those willing to invest in larger homes.

Most common amenities for Airbnb listings in Iowa City

Kitchens (98%) and parking (96%) are near-universal, signaling that guests in Iowa City expect home-like convenience and car-friendly access. Self check-in and washer/dryer availability both exceed 77%, reinforcing that operational ease matters to travelers, while workspace availability at 66% suggests a meaningful share of guests may be visiting for academic or professional purposes.

Understanding Iowa City'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

Iowa City's ROI score of 61 out of 100 places it in the "Attractive Opportunity" band, supported by above-average occupancy stability and an average revenue-to-price ratio that keeps investment returns within a competitive range. The supply/demand balance scores below average, which could reflect the event-concentrated nature of demand, while market growth trends track at average levels. Investors should pair these metrics with thorough local regulatory research and property-specific financial modeling to validate whether a particular deal pencils out.

Short-Term Rental Regulations in Iowa City

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

Permit Requirements

Iowa City, Iowa may require short-term rental operators to obtain a rental permit or business license before listing a property. Investors should verify current permit and registration requirements directly with the City of Iowa City and Johnson County authorities, as rules can change.

Key Restrictions

Common restrictions in markets like Iowa City can include occupancy limits based on bedroom count, noise and nuisance ordinances, parking requirements for guests, and minimum-stay rules. Properties within homeowner associations may face additional covenants that restrict or prohibit short-term rentals, so reviewing HOA bylaws before purchasing is essential.

Tax Obligations

Short-term rental hosts in Iowa are generally required to collect and remit state sales tax and any applicable local hotel/motel tax on stays under 31 days. Platforms like Airbnb often handle collection and remittance of some or all of these taxes, 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 Iowa City can provide current regulatory guidance.

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Iowa City's STR market is expected to maintain its pronounced seasonal rhythm, with the strongest demand clustering around the fall football season and university events from September through November. ADR could see modest increases in the 2–4% range during peak weekends as supply growth appears muted—year-over-year listing count is essentially flat at 98%. Occupancy rates may hover around 28–32% on an annualized basis, with the gap between peak and off-peak months remaining wide. Investors who optimize pricing for high-demand weekends while keeping base rates competitive during slower winter months should capture the best returns."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Iowa City, IA

What is the average Airbnb occupancy rate in Iowa City?

The average Airbnb occupancy rate in Iowa City is currently 30%, which sits just below the Iowa state average of 33%. Occupancy varies significantly by property size—1-bedroom listings lead at 42%, while larger properties like 5-bedrooms see around 21%. This pattern reflects the event-driven nature of demand, where larger homes command premium rates on peak weekends but sit vacant more often during quieter periods.

How much do Airbnb hosts make in Iowa City?

On average, Airbnb hosts in Iowa City earn approximately $2,467 per month or $29,612 per year based on trailing 12-month performance data. Revenue scales considerably with property size: 1-bedroom listings average $20,259 annually, while 5-bedroom properties bring in around $71,246. Actual earnings depend on factors like location, property quality, pricing strategy, and how effectively hosts capture peak-demand weekends.

Is Iowa City a good market for Airbnb investment?

Iowa City scores a 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 a revenue-to-price ratio that's in line with state averages. The University of Iowa creates recurring demand cycles that provide a reliable baseline of guests, though the pronounced seasonality—with winter months dipping significantly—means investors need to plan for uneven cash flow throughout the year.

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

The average daily rate for Airbnb listings in Iowa City is $216, which is below the Iowa state average of $265. ADR increases substantially with property size, ranging from $103 for 1-bedroom units to $541 for 5-bedroom homes. This pricing structure reflects the premium that groups and families are willing to pay for larger accommodations, particularly during football weekends and university events.

Are short-term rentals legal in Iowa City?

Short-term rentals do operate in Iowa City, with 97 active Airbnb listings currently in the market. However, regulations can vary and may require permits, business licenses, or compliance with local zoning rules. Investors should check directly with the City of Iowa City and Johnson County for the most current requirements before listing a property, as rules can evolve over time.

When is peak season for Airbnb in Iowa City?

Peak season in Iowa City runs from roughly May through November, with September topping the charts at $3,665 in average monthly revenue. October and November also perform strongly at $3,449 and $3,425 respectively, driven by football season and fall university events. The slowest months are January and February, when average revenue drops to $1,299 and $1,165—a pattern that underscores the importance of university and event calendars to local STR demand.

How many Airbnbs are there in Iowa City?

There are currently 97 active Airbnb listings in Iowa City as of April 2026. The supply is fairly evenly distributed among smaller property sizes, with 27 one-bedroom listings, 27 two-bedrooms, and 25 three-bedrooms. Larger properties (4- and 5-bedrooms) are less common with just 10 and 6 listings respectively, which may present an opportunity given their significantly higher revenue potential.

How is Airbnb revenue calculated in Iowa City?

The annual and monthly revenue figures for Iowa City 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. Rabbu averages each comparable listing's actual revenue per available night (RevPAN) by month over the past year, removes regional outliers, and rolls the results up to a market-level historical average. Because each month uses its own historical performance, the figures naturally reflect seasonal peaks (like September's $3,665) and slower months (like February's $1,165). 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 by market
• Average daily rates, occupancy rates, and RevPAN tracked over time
• Monthly and annual revenue metrics based on trailing 12-month booking performance
• Property value estimates sourced from the Zillow Home Value Index (ZHVI)
• Amenity prevalence and property size breakdowns across active listings

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. Data reflects trailing 12-month averages and current snapshots; market conditions can shift due to regulatory changes, economic factors, or seasonal variation. Individual property results will vary based on location, quality, management, and pricing strategy.