Iowa City, Iowa Short-Term Rental Market
Iowa City STRs averaged $137/night at 51.4% occupancy in April 2026, with revenue up 8.5% year-over-year.
Quick Answer: Iowa City, Iowa is an active short-term rental market. average occupancy in the Iowa Area market area is 52%. average monthly revenue in the Iowa Area market area is $2,513. average daily rate in the Iowa Area market area is $177. the top operator in the Iowa Area market area is Evolve with 93 listings. market score is 76/100 (grade B).
Market data reflects the Iowa Area regional market, which includes Iowa City. Regulations, taxes, and permit details below are specific to Iowa City.
Market Score Breakdown
Five dimensions StaySTRA evaluates per market.
Market Overview
Iowa City, Iowa is a Big Ten university town anchored by the University of Iowa and its affiliated hospital system, the University of Iowa Hospitals and Clinics, creating persistent demand from students, parents, sports fans, medical travelers, and arts visitors. The short-term rental market comprises approximately 6,202 listings, with entire-place units dominating at 5,621 (91%), private rooms at 579, and shared rooms at just 2. Airbnb accounts for 3,641 listings exclusively, VRBO for 475, and 2,086 properties appear on both platforms.
The bedroom breakdown reflects the university market profile: 1-bedroom listings lead at 1,959, followed by 2-bedrooms (1,706), 3-bedrooms (1,427), 4-bedrooms (705), and 5-bedrooms (399). Larger properties cater to football-weekend groups and extended student-adjacent stays.
In April 2026, the market posted a 51.4% average occupancy rate and an average daily rate of $137. RevPAR came in at $70. Year-over-year growth is a positive signal: occupancy rose 7.1 percentage points, ADR increased 2.8%, and total revenue grew 8.5%. The market’s overall score is 76.2 out of 100, with investability at 84.4 and rental demand at 78.5.
Seasonal Patterns
| Month | Occupancy |
|---|---|
| Jan | 41% |
| Feb | 45% |
| Mar | 50% |
| Apr | 50% |
| May | 54% |
| Jun | 61% |
| Jul | 64% |
| Aug | 57% |
| Sep | 50% |
| Oct | 50% |
| Nov | 48% |
| Dec | 46% |
Month-by-month nightly rates and revenue figures for Iowa City are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Top Short-Term Rental Operators in Iowa Area market area
Ranked by total active listings. Useful for understanding the competitive landscape. Operator data is published for the Iowa Area market as a whole, which includes Iowa City, so these counts are not Iowa City-only figures.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Evolve | 93 | 2,760 | ★ 4.64 |
| 2 | Okoboji Vacation Co. | 59 | 975 | ★ 4.69 |
| 3 | 228 Spaces | 36 | 1,026 | ★ 4.76 |
| 4 | CR Short Stays | 30 | 2,429 | ★ 4.86 |
| 5 | Iowa Cabin Rentals | 23 | 378 | ★ 4.20 |
What Kind of STR Should I Buy in Iowa City?
Revenue and nightly-rate breakdowns by bedroom count, property tier, and dwelling type for Iowa City are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 58.7% |
| vrbo | 7.7% |
| both | 33.6% |
Home Value Trends (Iowa City)
Typical home values, median sale prices, and the 10-year price trend for Iowa City are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Booking Insights
Booking-window and length-of-stay analysis for Iowa City — how far ahead guests book and how to price around it — is available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Short-Term Rental Regulations
Iowa City is heavily preempted by Iowa Code 414.1, a 2020 state law that sharply limits local STR regulation. The statute requires short-term rentals to be treated as a residential land use, prohibits cities from adopting STR-specific ordinances or conditional-use-permit requirements, and bars cities from charging a permit or license fee for short-term rentals.
As a result, Iowa City cannot impose owner-occupancy or primary-residence requirements, annual night caps, or STR-specific zoning limits. STRs are folded into the city’s standard rental housing program: a rental permit through Housing Inspection Services is required, but no application or inspection fee may be charged for the STR permit. Units are inspected on a roughly two-year rental cycle (plus complaint-based inspections) for fire, life-safety, and maintenance standards.
On the tax side, guests pay a combined 12% lodging tax: the 5% Iowa state hotel and motel tax plus Iowa City’s 7% local hotel and motel tax (the statutory maximum). Airbnb collects the Iowa state tax directly; hosts are responsible for ensuring the local portion is remitted. Iowa City is a low-barrier STR market for operators, with obligations centered on rental registration and life-safety inspection compliance.
Market Comparison
Iowa City’s 51.4% occupancy in April 2026 sits near the national STR median of approximately 55%, within the range typical for a mid-size university market. ADR of $137 is below the national median of approximately $220, consistent with Iowa’s lower cost-of-living environment and the listing mix skewed toward smaller units. The 8.5% year-over-year revenue growth in April 2026 outpaces many mature markets, reflecting demand recovery rather than plateau.
The professional management landscape is thin relative to market size. Evolve leads with 93 listings and 2,760 reviews (rating 4.64), followed by Okoboji Vacation Co. (59 listings, rating 4.69), 228 Spaces (36 listings, rating 4.76), CR Short Stays (30 listings, rating 4.86), and Iowa Cabin Rentals (23 listings, rating 4.20). The top five operators manage just 241 listings combined, under 4% of the roughly 6,200-listing total market. The self-managed market overwhelmingly dominates, creating opportunity for professional operators and above-average returns for investors who bring higher-quality management.
Frequently Asked Questions About Iowa City, Iowa
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How much revenue can an STR owner expect in Iowa City?
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