7 Best Short-Term Rental Markets in Iowa for 2025

Iowa’s short-term rental market is steadily growing thanks to its scenic small towns, thriving college cities, and a rise in regional tourism. If you're searching for short-term rentals near me or considering investing in short-term apartment rentals near me, it’s important to understand where the strongest opportunities lie. By analyzing short-term rental data including occupancy rates, rental income potential, and local tourism trends, we've identified the 7 best short-term rental markets in Iowa for 2025. 

7 Best Short-term Rental Markets in Iowa for 2025 

1. Iowa City 

Home to the University of Iowa, Iowa City sees a constant flow of visitors for academic events, sports games, and conferences. Occupancy rates often stay above 80% during school months and major events, with nightly rates averaging $160–$220. Its walkable downtown and cultural scene make it ideal for short-term rental investors. 

2. Des Moines 

As the capital and largest city, Des Moines offers year-round rental demand from business travelers, convention-goers, and tourists. With strong occupancy rates around 78% and average nightly rates of $140–$200, it remains one of Iowa’s most dependable markets for short-term rentals. 

3. Dubuque 

Dubuque sits along the Mississippi River and draws travelers with its historic riverfront, museums, and outdoor recreation. Short-term rentals in this area enjoy summer occupancy peaks near 85% and average nightly rates of $170+. Its blend of charm and tourism appeal makes it a top pick for seasonal revenue. 

4. Cedar Rapids 

Iowa’s second-largest city is growing in popularity among short-term rental investors. Cedar Rapids sees steady demand from regional events, business travel, and family visits. Investors can expect average occupancy rates of 75–80% and nightly rates in the $130–$180 range. 

5. Okoboji 

The Iowa Great Lakes region, especially Okoboji, is a prime vacation destination during summer months. Known for water sports, festivals, and family travel, short-term rental properties here often exceed 90% occupancy in peak season, with average nightly rates surpassing $250. It's a seasonal but highly profitable market. 

6. Ames 

Home to Iowa State University, Ames benefits from constant foot traffic tied to academic calendars and events. Demand spikes during graduation, homecoming, and sports seasons. Nightly rental rates range from $120 to $180, with occupancy averaging 80%+ during peak academic months. 

7. Decorah 

This small town in northeast Iowa is gaining recognition for its scenic beauty, biking trails, and Norwegian heritage. Decorah’s growing tourism economy has fueled short-term rental demand, especially during festivals and summer weekends, with occupancy rates near 75% and average nightly rates around $150. 

Conclusion 

Iowa offers a diverse range of short-term rental investment opportunities, from college towns and cultural hubs to scenic vacation spots. By using short-term rental data to analyze trends, seasonality, and revenue potential, investors can make strategic decisions and tap into high-performing markets across the state. Whether you're exploring short-term rentals near me or using free short-term rental data to identify hotspots, these seven Iowa markets offer strong potential for 2025.