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

Waterloo Short-Term Rental Market Overview

Waterloo, IA stands out as an affordable entry point for short-term rental investors, with average home values around $240,437 and an above-average revenue-to-price ratio that helps offset the market's modest overall revenue figures. The market currently hosts just 27 active Airbnb listings, creating a low-competition environment where well-managed properties can capture outsized demand. With an average annual revenue of $20,718 and strong supply/demand fundamentals, Waterloo offers an intriguing opportunity for investors seeking yield in a smaller Midwestern market.

Key Market Statistics

According to Rabbu market data, the Waterloo 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 Waterloo

Waterloo's combination of low property costs, limited competition, and above-average revenue relative to home prices makes it an appealing market for investors seeking strong cash-on-cash returns in the Midwest.

Expert Market Assessment

"With an ROI score of 71 out of 100, Waterloo earns an "Attractive Opportunity" designation driven primarily by its above-average revenue-to-price ratio and favorable supply/demand balance. Revenue peaks in July at $2,399 per month and troughs in February near $1,080, creating a moderate seasonal spread that investors should factor into cash-flow planning. The small market size — just 27 listings across all bedroom counts — means individual property performance can vary meaningfully from the averages. Overall, this is a market where disciplined operators with well-positioned properties can achieve solid returns relative to their acquisition costs."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Waterloo

Average revenue by month in Waterloo

Revenue in Waterloo peaks in July at $2,399 and bottoms out in February at $1,080, creating a roughly 2.2x spread between the best and worst months. Summer (June–August) consistently outperforms, while January and February represent the softest periods — investors should budget for this seasonal swing in their cash-flow projections.

Active Airbnb listings by property size in Waterloo

Supply in Waterloo is fairly balanced, with 2-bedroom units slightly leading at 7 listings, followed by 3- and 4-bedroom properties at 6 each and 1-bedrooms at 5. The even distribution suggests no single property size dominates, leaving room for investors to target sizes that align with their budget and revenue goals.

Average daily rate (ADR) by property size in Waterloo

ADR scales steadily with property size, from $71 for 1-bedroom units to $214 for 4-bedroom properties — a 3x premium. The jump from 2-bedrooms ($110) to 3-bedrooms ($162) represents a strong rate increase that may offer the best ADR-to-acquisition-cost trade-off for investors looking to maximize nightly pricing without the overhead of a larger home.

Average RevPAN by property size in Waterloo

RevPAN tells a nuanced story: 4-bedroom listings lead at $35 per available night, closely followed by 1-bedrooms at $33, while 2-bedroom ($22) and 3-bedroom ($17) units lag behind. The strong 1-bedroom RevPAN reflects their higher occupancy (47%), making them an efficient revenue generator on a per-night basis despite lower nightly rates.

Average occupancy rates by property size in Waterloo

Occupancy varies dramatically by size — 1-bedroom listings fill at 47%, more than double the rate of any other category. Two-bedroom units manage 20%, while 4-bedrooms come in at 17% and 3-bedrooms trail at just 11%, suggesting that smaller, more affordable units see the steadiest booking demand in this market.

Average monthly revenue by property size in Waterloo

Monthly revenue rises with bedroom count, from $1,073 for 1-bedroom units to $2,367 for 4-bedroom properties. While 4-bedroom listings earn roughly 2.2x more than 1-bedrooms each month, the gap narrows when factoring in higher operating and acquisition costs for larger homes.

Average annual revenue by property size in Waterloo

Four-bedroom properties offer the highest annual revenue potential at $28,404, followed by 3-bedrooms at $20,373, 2-bedrooms at $13,904, and 1-bedrooms at $12,880. Paired with Waterloo's average home value of $240,437, the 4-bedroom tier appears particularly compelling for investors seeking the strongest absolute returns.

Most common amenities for Airbnb listings in Waterloo

Parking and laundry facilities (washer/dryer) are near-universal at 93–96% of listings, and a full kitchen is standard at 93% — signaling that guests in Waterloo expect a home-like, self-sufficient experience. Self check-in (85%) is also prevalent, while differentiators like hot tubs (11%), pools (7%), and EV chargers (11%) remain rare and could help a listing stand out.

Understanding Waterloo's ROI Score: 71/100

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

Waterloo's ROI score of 71 out of 100 places it in the "Attractive Opportunity" band, driven by an above-average revenue-to-price ratio and a favorable supply/demand balance that reflect the market's low entry costs relative to rental income. Occupancy stability and market growth trend both score in the average range, which is expected for a smaller Midwestern market still building its STR footprint. Investors should pair these metrics with local regulatory research and property-level underwriting to confirm that the market-level opportunity translates to their specific deal.

Short-Term Rental Regulations in Waterloo

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

Permit Requirements

Short-term rental operators in Waterloo, Iowa may need to obtain a local permit or business registration before listing their property. Investors should verify current requirements directly with the City of Waterloo and the State of Iowa, as regulations can change.

Key Restrictions

Common restrictions in markets like Waterloo can include occupancy limits, minimum stay requirements, noise ordinances, and parking regulations. HOA rules may also apply in certain neighborhoods, and some areas may impose caps on the number of permitted short-term rentals — always confirm specifics with local authorities before purchasing.

Tax Obligations

Iowa imposes state sales tax and local hotel/motel taxes that typically apply to short-term rental income. Many booking platforms collect and remit these taxes on behalf of hosts, but operators 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 Waterloo can provide current regulatory guidance.

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Waterloo's STR market is expected to continue its growth trajectory — active listings surged 143% year-over-year, signaling rising investor interest and expanding traveler demand. Seasonal patterns suggest ADR could firm up 2–4% during summer peak months (June through August), with occupancy likely settling in the 20–25% range on a market-wide basis. Growth in supply should be monitored closely, as the small listing base means even modest additions could shift the competitive landscape. Investors entering now benefit from favorable pricing, though they should plan for softer winter months when revenue can dip below $1,100."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Waterloo, IA

What is the average Airbnb occupancy rate in Waterloo?

The average occupancy rate for Airbnb listings in Waterloo is currently 21%, which sits below the Iowa state average of 33%. However, occupancy varies significantly by property size — 1-bedroom listings lead at 47%, while 3-bedroom units average just 11%. Investors targeting smaller units may find more consistent booking volume in this market.

How much do Airbnb hosts make in Waterloo?

Airbnb hosts in Waterloo earn an average of $1,726 per month, which works out to approximately $20,718 annually based on trailing 12-month performance. Larger properties command higher revenue: 4-bedroom listings average $2,367 per month ($28,404 annually), while 1-bedroom units bring in around $1,073 per month. Actual earnings depend on property quality, pricing strategy, and how effectively hosts manage their listings.

Is Waterloo a good market for Airbnb investment?

Waterloo scores 71 out of 100 on Rabbu's ROI Score, placing it in the "Attractive Opportunity" tier. The market's key strengths are its above-average revenue-to-price ratio and favorable supply/demand balance, meaning investors can acquire properties at relatively low cost while generating meaningful rental income. With only 27 active listings, competition remains limited. Investors should account for moderate seasonality and confirm local regulations before committing.

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

The average daily rate across all active Airbnb listings in Waterloo is $148, which is well below the Iowa state average of $265. ADR scales predictably with property size: 1-bedroom listings average $71, 2-bedrooms average $110, 3-bedrooms command $162, and 4-bedroom properties reach $214 per night. The lower-than-state-average ADR is consistent with Waterloo's more affordable market positioning.

Are short-term rentals legal in Waterloo?

Short-term rentals are generally permitted in Waterloo, Iowa, though operators may need to secure local permits or register their property with the city. Regulations can include zoning restrictions, occupancy limits, and tax collection requirements. We recommend checking directly with the City of Waterloo and the State of Iowa for the most current rules before listing a property.

When is peak season for Airbnb in Waterloo?

Peak season in Waterloo runs from June through August, with July being the highest-earning month at an average of $2,399 in revenue. The summer months benefit from warmer weather, regional events, and increased travel activity. The slowest period falls in January and February, when monthly revenue drops to around $1,080–$1,094. March also sees a notable bump to $1,931, suggesting spring events or early-season demand.

How many Airbnbs are there in Waterloo?

As of April 2026, there are 27 active Airbnb listings in Waterloo. The supply is relatively evenly distributed across property sizes, with 5 one-bedroom listings, 7 two-bedroom listings, 6 three-bedroom listings, and 6 four-bedroom listings. Year-over-year listing growth of 143% indicates the market is attracting new hosts and investors at a rapid pace.

How is Airbnb revenue calculated in Waterloo?

The annual and monthly revenue figures for Waterloo 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 data, the figures naturally reflect seasonal peaks and slower months. 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 and property size
• Average daily rates, occupancy rates, and revenue per available night across bedroom configurations
• Monthly and annual revenue trends based on trailing 12-month booking performance
• Home value benchmarks sourced from the Zillow Home Value Index (ZHVI)
• Amenity prevalence data across active listings to inform property setup decisions

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. Data reflects trailing 12-month historical averages and may not capture recent market shifts or one-time events. Local regulations, HOA rules, and tax obligations vary and should be independently verified before investing.