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View PropertiesAs of Apr, 27 2026
Rabbu ROI Score
Pella presents a competitive opportunity: investor interest and demand are strong, but higher prices or tighter competition may require more selective deal sourcing.
Pella, Iowa is a small but distinctive STR market with just 24 active Airbnb listings and average annual revenue of $22,939 per property. The market's ADR of $179 sits well below Iowa's $265 state average, though the community's Dutch heritage, Tulip Time festival, and regional tourism create pockets of strong seasonal demand — particularly from May through August. With a 222% year-over-year increase in active listings, investor interest is clearly rising, but occupancy at 23% (versus 33% statewide) signals that demand hasn't yet caught up with the expanding supply.
According to Rabbu market data, the Pella short-term rental market shows:
| Metric | Context | Value |
|---|---|---|
| Active Airbnb Listings | As of Apr, 27 2026 | 24 |
| Average Daily Rate (ADR) | vs. $265 state avg. | $179 |
| Average Occupancy Rate | vs. 33% state avg. | 23% |
| RevPAN | ADR * Occupancy Rate | $41 |
| Average Monthly Revenue | Historical 12-month average | $1,911 |
| Average Annual Revenue | Historical 12-month average | $22,939 |
Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026.
Pella attracts investor attention due to its cultural tourism appeal, low listing count, and relatively affordable Iowa real estate, though selective deal sourcing is critical given current occupancy softness.
Key investment factors
"Pella represents a competitive but narrow opportunity for STR investors — the ROI score of 48 out of 100 reflects average revenue-to-price fundamentals paired with below-average occupancy stability and market growth trends. Seasonality is pronounced: revenue swings from a low of $456 in January to a high of $2,921 in July, meaning cash flow will be uneven throughout the year. Investors who time acquisitions well and target the right property size could carve out a niche, but the combination of $531,818 average home values and sub-$23K annual revenue demands disciplined deal selection and realistic return expectations."
— Rabbu Market Analysis Team
Pella's STR revenue follows a sharp seasonal curve, peaking in July at $2,921 and bottoming out in January at just $456 — a roughly 6:1 spread that underscores the importance of summer tourism and event-driven demand. A secondary uptick in October ($2,230) and November ($2,082) suggests fall visitors provide a welcome revenue boost before the winter lull.
| Month | Trend | Revenue |
|---|---|---|
| January |
|
$456 |
| February |
|
$894 |
| March |
|
$1,932 |
| April |
|
$1,575 |
| May |
|
$2,263 |
| June |
|
$2,242 |
| July |
|
$2,921 |
| August |
|
$2,822 |
| September |
|
$1,981 |
| October |
|
$2,230 |
| November |
|
$2,082 |
| December |
|
$1,536 |
Supply in Pella is split evenly between 2-bedroom and 3-bedroom properties, each with 6 active listings. The absence of reported 1-bedroom or 4+ bedroom inventory could represent either data limitations or a genuine gap — investors considering studio or larger family-sized properties may find less direct competition.
| Size | Trend | Value |
|---|---|---|
| 2 bedrooms |
|
6 |
| 3 bedrooms |
|
6 |
Three-bedroom listings command a substantial ADR premium at $260 per night compared to $168 for 2-bedroom units, a 55% increase that reflects higher guest willingness to pay for additional space. For investors, the jump in nightly rate from 2 to 3 bedrooms is significant, though it must be weighed against the lower occupancy that larger units tend to experience in this market.
| Size | Trend | Value |
|---|---|---|
| 2 bedrooms |
|
$168 |
| 3 bedrooms |
|
$260 |
Two-bedroom properties deliver slightly higher RevPAN at $45 compared to $39 for 3-bedroom units, driven by their meaningfully better occupancy rates. This suggests that despite lower nightly rates, smaller properties generate more consistent revenue per available night in Pella's demand environment.
| Size | Trend | Value |
|---|---|---|
| 2 bedrooms |
|
$45 |
| 3 bedrooms |
|
$39 |
Two-bedroom units achieve 27% occupancy versus just 15% for 3-bedroom properties, a notable gap that points to softer demand for larger accommodations. Investors targeting 3-bedroom listings should factor in the likelihood of more vacant nights and plan pricing strategies accordingly to maintain cash flow.
| Size | Trend | Value |
|---|---|---|
| 2 bedrooms |
|
27% |
| 3 bedrooms |
|
15% |
Despite lower occupancy, 3-bedroom properties earn more on a monthly basis at $2,215 compared to $1,651 for 2-bedroom units, thanks to their significantly higher ADR. The $564 monthly premium favors larger properties for investors focused on top-line revenue, though operating costs and vacancy risk should also be considered.
| Size | Trend | Value |
|---|---|---|
| 2 bedrooms |
|
$1,651 |
| 3 bedrooms |
|
$2,215 |
Three-bedroom listings generate approximately $26,591 in annual revenue versus $19,817 for 2-bedroom properties, a difference of nearly $6,800. For investors evaluating return potential against acquisition and operating costs, the 3-bedroom configuration offers more revenue headroom but requires tolerance for lower occupancy and seasonal variability.
| Size | Trend | Value |
|---|---|---|
| 2 bedrooms |
|
$19,817 |
| 3 bedrooms |
|
$26,591 |
Parking (96%) and kitchen access (92%) are near-universal among Pella's listings, reflecting guest expectations for a self-sufficient, car-friendly stay in a small Iowa community. Self check-in and laundry facilities (both 83%) are also standard, while outdoor amenities like backyards (54%) and BBQ grills (42%) differentiate listings — suggesting that investing in outdoor living spaces could help properties stand out.
| Amenity | Trend | Value |
|---|---|---|
| Parking |
|
96% |
| Kitchen |
|
92% |
| Self Check-in |
|
83% |
| Washer |
|
83% |
| Dryer |
|
71% |
| Backyard |
|
54% |
| Outdoor Furniture |
|
50% |
| BBQ Grill |
|
42% |
| Patio or Balcony |
|
42% |
| Workspace |
|
38% |
| Pets |
|
17% |
| Lake Access |
|
8% |
| Waterfront |
|
8% |
| EV Charger |
|
4% |
Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.
| Factor | Pella Performance | Weight |
|---|---|---|
| Revenue-to-Price Ratio | Average | 40% |
| Occupancy Stability | Below average | 30% |
| Market Growth Trend | Below average | 15% |
| Supply/Demand Balance | Average | 15% |
Pella's ROI Score of 48 out of 100 places it in the 'Competitive Opportunity' band, meaning the market has real potential but requires careful deal selection. The revenue-to-price ratio lands at average, while occupancy stability and market growth trend both score below average — reflecting the 23% occupancy rate and rapid supply expansion that could dilute per-listing performance. Investors should pair this data with thorough local regulatory research and conservative financial modeling to identify properties that can outperform market averages.
Understanding local STR regulations is essential before investing in Pella. Here's the current regulatory landscape:
Short-term rental operators in Pella, Iowa may need to obtain a local permit or register their property with the city before listing. Investors should verify current requirements directly with Pella's city offices and review any applicable Iowa state regulations.
Common STR restrictions in markets like Pella can include occupancy limits, noise ordinances, parking requirements, and minimum stay rules. HOA covenants may also impose additional limitations, so it's important to review any applicable deed restrictions before purchasing a property for short-term rental use.
Iowa requires collection of state sales tax and local hotel/motel taxes on short-term rental stays, though platforms like Airbnb often handle collection and remittance automatically. Investors should confirm their specific obligations with a tax professional familiar with Iowa's STR landscape.
Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Pella can provide current regulatory guidance.
Financing an Airbnb investment in Pella requires lenders who understand STR income. Rabbu partner lenders offer:
"Over the next 12–18 months, Pella's STR market is likely to face continued pressure on occupancy as new listings absorb into a still-maturing demand base. Seasonal peaks in summer months (July revenue averaging $2,921) should remain reliable, but winter softness — January dips to just $456 — will keep annual yields modest for most operators. ADR may see marginal increases of 1–3% as hosts refine pricing strategies, though investors should plan conservatively around occupancy in the 20–25% range until demand drivers strengthen or supply growth moderates."
— Rabbu Market Analysis Team
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.
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. Data reflects trailing 12-month historical averages and may not capture very recent market shifts. Local regulations, HOA rules, and tax obligations vary and should be independently verified before investing.
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