Waterloo Airbnb Market Analysis 2025: Short Term Rental Data & Vacation Rental Statistics in Iowa, United States

Source: AirROI
Last updated: 2025-03-31

Is Airbnb profitable in Waterloo in 2025? Explore comprehensive Airbnb analytics for Waterloo, Iowa, United States to uncover income potential. This 2025 STR market report for Waterloo, based on AirROI data from April 2024 to March 2025, reveals key trends in the niche market of 67 active listings.

Whether you're considering an Airbnb investment in Waterloo, optimizing your existing vacation rental, or exploring rental arbitrage opportunities, understanding the Waterloo Airbnb data is crucial. Leveraging the low regulation environment is key to maximizing your short term rental income potential. Let's dive into the specifics.

Key Waterloo Airbnb Performance Metrics Overview

Avg. Daily Rate (ADR)(?)
$123
The average rental revenue earned for an occupied room per day in Waterloo.
Occupancy Rate(?)
42.7%
Moderate demand with booking opportunities.
Median Annual Revenue(?)
$16,208
Typical annual income for an Airbnb listing in Waterloo. Factors like property type, size, and location influence actual earnings.
Revenue Growth YoY(?)
-26.4%
Significant decrease (-26.4%) vs. last year.
Peak Revenue Month(?)
June
The month with the highest average earnings, indicating peak season in Waterloo.
Lowest Revenue Month(?)
March
The month with the lowest average earnings, indicating the low season in Waterloo.
STR Regulation Level(?)
Low
Fewer regulations, offering more operational flexibility.
Active Airbnb Listings(?)
67
Total number of active short-term rentals listed.

Monthly Airbnb Revenue Variations & Income Potential in Waterloo (2025)

Understanding the monthly revenue variations for Airbnb listings in Waterloo is key to maximizing your short term rental income potential. Seasonality significantly impacts earnings. Our analysis, based on data from the past 12 months, shows that the peak revenue month for STRs in Waterloo is typically June, while March often presents the lowest earnings, highlighting opportunities for strategic pricing adjustments during shoulder and low seasons. Explore the typical Airbnb income in Waterloo across different performance tiers:

  • Best-in-class properties (Top 10%) achieve $4,570+ monthly, often utilizing dynamic pricing and superior guest experiences.
  • Strong performing properties (Top 25%) earn $3,110 or more, indicating effective management and desirable locations/amenities.
  • Typical properties (Median) generate around $1,597 per month, representing the average market performance.
  • Entry-level properties (Bottom 25%) see earnings around $855, often with potential for optimization.

Average Monthly Airbnb Earnings Trend in Waterloo

Waterloo Airbnb Occupancy Rate Trends (2025)

Maximize your bookings by understanding the Waterloo STR occupancy trends. Seasonal demand shifts significantly influence how often properties are booked. Typically, Julysees the highest demand (peak season occupancy), while March experiences the lowest (low season). Effective strategies, like adjusting minimum stays or offering promotions, can boost occupancy during slower periods. Here's how different property tiers perform in Waterloo:

  • Best-in-class properties (Top 10%) achieve 80%+ occupancy, indicating high desirability and potentially optimized availability.
  • Strong performing properties (Top 25%) maintain 65% or higher occupancy, suggesting good market fit and guest satisfaction.
  • Typical properties (Median) have an occupancy rate around 44%.
  • Entry-level properties (Bottom 25%) average 26% occupancy, potentially facing higher vacancy.

Average Monthly Occupancy Rate Trend in Waterloo

Average Daily Rate (ADR) Airbnb Trends in Waterloo (2025)

Effective short term rental pricing strategy in Waterloo involves understanding monthly ADR fluctuations. The Average Daily Rate (ADR) for Airbnb in Waterloo typically peaks in November and dips lowest during April. Leveraging Airbnb dynamic pricing tools or strategies based on this seasonality can significantly boost revenue. Here's a look at the typical nightly rates achieved:

  • Best-in-class properties (Top 10%) command rates of $228+ per night, often due to premium features or locations.
  • Strong performing properties (Top 25%) achieve nightly rates of $154 or more.
  • Typical properties (Median) charge around $83 per night.
  • Entry-level properties (Bottom 25%) earn around $49 per night.

Average Daily Rate (ADR) Trend by Month in Waterloo

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Airbnb Seasonality Analysis & Trends in Waterloo (2025)

Peak Season (June, July, May)
  • Revenue averages $3,088 per month
  • Occupancy rates average 55.5%
  • Daily rates average $109
Shoulder Season
  • Revenue averages $2,101 per month
  • Occupancy maintains around 44.9%
  • Daily rates hold near $111
Low Season (January, February, March)
  • Revenue drops to average $1,333 per month
  • Occupancy decreases to average 38.9%
  • Daily rates adjust to average $117

Seasonality Insights for Waterloo

  • The Airbnb seasonality in Waterloo shows highly seasonal trends requiring careful strategy. While the sections above show seasonal averages, it's also insightful to look at the extremes:
  • During the high season, the absolute peak month showcases Waterloo's highest earning potential, with monthly revenues capable of climbing to $3,208, occupancy reaching a high of 60.6%, and ADRs peaking at $122.
  • Conversely, the slowest single month of the year, typically falling within the low season, marks the market's lowest point. In this month, revenue might dip to $1,192, occupancy could drop to 31.3%, and ADRs may adjust down to $106.
  • Understanding both the seasonal averages and these monthly peaks and troughs in revenue, occupancy, and ADR is crucial for maximizing your Airbnb profit potential in Waterloo.

Seasonal Strategies for Maximizing Profit

  • Peak Season: Maximize revenue through premium pricing and potentially longer minimum stays. Ensure high availability.
  • Low Season: Offer competitive pricing, special promotions (e.g., extended stay discounts), and flexible cancellation policies. Target off-season travelers like remote workers or budget-conscious guests.
  • Shoulder Seasons: Implement dynamic pricing that balances peak and low rates. Target weekend travelers or specific events. Offer slightly more flexible terms than peak season.
  • Regularly analyze your own performance against these Waterloo seasonality benchmarks and adjust your pricing and availability strategy accordingly.

Best Areas for Airbnb Investment in Waterloo (2025)

Exploring the top neighborhoods for short-term rentals in Waterloo? This section highlights key areas, outlining why they are attractive for hosts and guests, along with notable local attractions. Consider these locations based on your target guest profile and investment strategy.

Neighborhood / AreaWhy Host Here? (Target Guests & Appeal)Key Attractions & Landmarks
Cedar Falls
A neighboring city with a vibrant college town atmosphere, Cedar Falls is home to the University of Northern Iowa, attracting students and visitors year-round.
University of Northern Iowa, Cedar Falls Historic District, Cedar Falls Downtown, Hartman Reserve Nature Center, Ice House Museum
Waterloo Riverfront
The revitalized downtown area along the river provides scenic views and access to local events, making it popular among tourists and locals alike.
Waterloo River Loop, The RiverWalk, National Cattle Congress Grounds, Waterloo Center for the Arts, Pioneer Mobile Museum
Mark Twain Neighborhood
A historic neighborhood known for its charming older homes and proximity to cultural attractions, appealing to families and history buffs.
Mark Twain Elementary School, Phelps Youth Pavilion, Cedar Valley SportsPlex, Waterloo Community Playhouse, Our Lady of Peace Catholic Church
University District
Close to several educational institutions, this area attracts visiting families, students, and academics throughout the year.
Hawkeye Community College, Waterloo East High School, Waterloo Public Library, Waterloo War Memorial, Rodgers Park
East Waterloo
Featuring shopping centers and parks, East Waterloo serves as a convenient spot for families and those seeking leisure activities.
Crossroads Mall, Greenhill Park, Cedar Valley Trails, Waterloo Skatepark, Wildwood Park
Downtown Waterloo
The heart of the city with various dining, entertainment, and cultural offerings, making it ideal for short-term rentals.
Waterloo Convention Center, Theatre in the Park, Five Sullivan Brothers Convention Center, Local restaurants and bars, Black Hawk County Courthouse
South Waterloo
A developing area that offers affordable housing and family-friendly amenities, attracting a younger demographic.
South Hills Golf Course, Southeast Junior High School, Bishop's Buffet, Nearby parks, Cafes and local eateries
West Waterloo
Known for its suburban feel, West Waterloo appeals to families and offers a mix of residential comfort and local commerce.
Waterloo West High School, Scout Park, Twin Lakes Park, Local shopping areas, Accessibility to main thoroughfares

Understanding Airbnb License Requirements & STR Laws in Waterloo (2025)

While Waterloo, Iowa, United States currently shows low STR regulations, specific Airbnb license requirements might still exist or change. Always verify the latest short term rental regulations and Airbnb license requirements directly with local government authorities for Waterloo to ensure full compliance before hosting.

(Source: AirROI data, 2025, finding no licensed listings among those analyzed)

Top Performing Airbnb Properties in Waterloo (2025)

Benchmark your potential! Explore examples of top-performing Airbnb properties in Waterloobased on Trailing Twelve Month (TTM) revenue. Analyze their characteristics, revenue, occupancy rate, and ADR to understand what drives success in this market.

Luxury 5BR w/Pool & Hot Tub near Theme/Water Park

Luxury 5BR w/Pool & Hot Tub near Theme/Water Park

Entire Place • 5 bedrooms

$67,080
Revenue
50.4%
Occupancy
$349.83
Daily Rate
Dream retreat w/elevated comfort sleeps 12

Dream retreat w/elevated comfort sleeps 12

Entire Place • 4 bedrooms

$54,418
Revenue
46.7%
Occupancy
$244.47
Daily Rate
Legendary  Multilevel Movie Theatre/Game Room

Legendary Multilevel Movie Theatre/Game Room

Entire Place • 4 bedrooms

$50,073
Revenue
63.0%
Occupancy
$204.88
Daily Rate
Ultimate 4-Bedroom Getaway w/ Hot Tub & Pool Table

Ultimate 4-Bedroom Getaway w/ Hot Tub & Pool Table

Entire Place • 4 bedrooms

$47,529
Revenue
56.3%
Occupancy
$220.93
Daily Rate
Oasis Near Water/Theme Park

Oasis Near Water/Theme Park

Entire Place • 4 bedrooms

$47,060
Revenue
55.4%
Occupancy
$222.05
Daily Rate
Home away from Home

Home away from Home

Entire Place • 4 bedrooms

$46,766
Revenue
54.7%
Occupancy
$191.53
Daily Rate

Note: Performance varies based on location, size, amenities, seasonality, and management quality. Data reflects the past 12 months.

Top Performing Airbnb Hosts in Waterloo (2025)

Learn from the best! This table showcases top-performing Airbnb hosts in Waterloo based on the number of properties managed and estimated total revenue over the past year. Analyze their scale and performance metrics.

Host NamePropertiesGrossing RevenueStay ReviewsAvg Rating
Justin3$160,9061594.86/5.0
Judy3$68,880684.98/5.0
Jessica3$62,569464.87/5.0
Denice9$62,4231413.69/5.0
Evolve3$61,790644.74/5.0
Kade2$55,7872224.94/5.0
Sara1$54,418415.00/5.0
Austin1$50,0731404.85/5.0
Holly1$47,5291934.87/5.0
Stephanie1$44,257255.00/5.0

Analyzing the strategies of top hosts, such as their property selection, pricing, and guest communication, can offer valuable lessons for optimizing your own Airbnb operations in Waterloo.

Dive Deeper: Advanced Waterloo STR Market Data (2025)

Ready to unlock more insights? AirROI provides access to advanced metrics and comprehensive Airbnb data for Waterloo. Explore detailed analytics beyond this report to refine your investment strategy, optimize pricing, and maximize your vacation rental profits.

Explore Advanced Metrics

Waterloo Short-Term Rental Market Composition (2025): Property & Room Types

Room Type Distribution

Property Type Distribution

Market Composition Insights for Waterloo

  • The Waterloo Airbnb market composition is heavily skewed towards Entire Home/Apt listings, which make up 88.1% of the 67 active rentals. This indicates strong guest preference for privacy and space.
  • Looking at the property type distribution in Waterloo, House properties are the most common (46.3%), reflecting the local real estate landscape.
  • Houses represent a significant 46.3% portion, catering likely to families or larger groups.
  • The presence of 6% Hotel/Boutique listings indicates integration with traditional hospitality.
  • Smaller segments like others, outdoor/unique (combined 3.0%) offer potential for unique stay experiences.

Waterloo Airbnb Room Capacity Analysis (2025): Bedroom Distribution

Distribution of Listings by Number of Bedrooms

Room Capacity Insights for Waterloo

  • The dominant room capacity in Waterloo is 1 bedroom listings, making up 37.3% of the market. This suggests a strong demand for properties suitable for couples or solo travelers.
  • Together, 1 bedroom and 3 bedrooms properties represent 58.2% of the active Airbnb listings in Waterloo, indicating a high concentration in these sizes.
  • A significant 34.3% of listings offer 3+ bedrooms, catering to larger groups and families seeking more space in Waterloo.

Waterloo Vacation Rental Guest Capacity Trends (2025)

Distribution of Listings by Guest Capacity

Guest Capacity Insights for Waterloo

  • The most common guest capacity trend in Waterloo vacation rentals is listings accommodating 2 guests (38.8%). This suggests the primary traveler segment is likely couples or solo travelers.
  • Properties designed for 2 guests and 8+ guests dominate the Waterloo STR market, accounting for 61.2% of listings.
  • 31.4% of properties accommodate 6+ guests, serving the market segment for larger families or group travel in Waterloo.
  • On average, properties in Waterloo are equipped to host 4.1 guests.

Waterloo Airbnb Booking Patterns (2025): Available vs. Booked Days

Available Days Distribution

Booked Days Distribution

Booking Pattern Insights for Waterloo

  • The most common availability pattern in Waterloo falls within the 271-366 days range, representing 47.8% of listings. This suggests many properties have significant open periods on their calendars.
  • Approximately 71.7% of listings show high availability (181+ days open annually), indicating potential for increased bookings or specific owner usage patterns.
  • For booked days, the 31-90 days range is most frequent in Waterloo (34.3%), reflecting common guest stay durations or potential owner blocking patterns.
  • A notable 31.4% of properties secure long booking periods (181+ days booked per year), highlighting successful long-term rental strategies or significant owner usage.

Waterloo Airbnb Minimum Stay Requirements Analysis

Distribution of Listings by Minimum Night Requirement

1 Night (29%)

1 Night

18 listings

29% of total

2 Nights (35.5%)

2 Nights

22 listings

35.5% of total

3 Nights (1.6%)

3 Nights

1 listings

1.6% of total

7-29 Nights (3.2%)

7-29 Nights

2 listings

3.2% of total

30+ Nights (30.6%)

30+ Nights

19 listings

30.6% of total

Key Insights

  • The most prevalent minimum stay requirement in Waterloo is 2 Nights, adopted by 35.5% of listings. This highlights the market's preference for shorter, flexible bookings.
  • A strong majority (64.5%) of the Waterloo Airbnb data shows acceptance of very short stays (1-2 nights), indicating a dynamic, high-turnover market.
  • A significant segment (30.6%) caters to monthly stays (30+ nights) in Waterloo, pointing to opportunities in the extended-stay market.

Recommendations

  • Align with the market by considering a 2 Nights minimum stay, as 35.5% of Waterloo hosts use this setting.
  • If feasible, allowing 1-night stays, especially midweek or during low season, could capture last-minute bookings, as only 29% currently do.
  • Explore offering discounts for stays of 30+ nights to attract the 30.6% of the market seeking extended stays.
  • Adjust minimum nights based on seasonality – potentially shorter during low season and longer during peak demand periods in Waterloo.

Waterloo Airbnb Cancellation Policy Trends Analysis (2025)

Flexible (14%)

Flexible

6 listings

14% of total

Moderate (20.9%)

Moderate

9 listings

20.9% of total

Firm (27.9%)

Firm

12 listings

27.9% of total

Strict (37.2%)

Strict

16 listings

37.2% of total

Cancellation Policy Insights for Waterloo

  • The prevailing Airbnb cancellation policy trend in Waterloo is Strict, used by 37.2% of listings.
  • A majority (65.1%) of hosts in Waterloo utilize Firm or Strict policies, indicating a market where hosts prioritize booking security.

Recommendations for Hosts

  • Consider adopting a Strict policy to align with the 37.2% market standard in Waterloo.
  • With 37.2% using Strict terms, this is a viable option in Waterloo, particularly for high-value properties or during peak demand periods.
  • Regularly review your cancellation policy against competitors and market demand shifts in Waterloo.

Waterloo STR Booking Lead Time Analysis (2025)

Average Booking Lead Time by Month

Booking Lead Time Insights for Waterloo

  • The overall average booking lead time for vacation rentals in Waterloo is 36 days.
  • Guests book furthest in advance for stays during June (average 69 days), likely coinciding with peak travel demand or local events.
  • The shortest booking windows occur for stays in March (average 22 days), indicating more last-minute travel plans during this time.
  • Seasonally, Summer (64 days avg.) sees the longest lead times, while Fall (36 days avg.) has the shortest, reflecting typical travel planning cycles.

Recommendations for Hosts

  • Use the overall average lead time (36 days) as a baseline for your pricing and availability strategy in Waterloo.
  • For June stays, consider implementing length-of-stay discounts or slightly higher rates for bookings made less than 69 days out to capitalize on advance planning.
  • Target marketing efforts for the Summer season well in advance (at least 64 days) to capture early planners.
  • Monitor your own booking lead times against these Waterloo averages to identify opportunities for dynamic pricing adjustments.

Popular & Essential Airbnb Amenities in Waterloo (2025)

Amenity Prevalence

Amenity Insights for Waterloo

  • Essential amenities in Waterloo that guests expect include: Wifi, Free parking on premises, Air conditioning, Smoke alarm, TV, Hot water, Heating, Washer, Carbon monoxide alarm. Lacking these (any) could significantly impact bookings.
  • Popular amenities like Essentials are common but not universal. Offering these can provide a competitive edge.

Recommendations for Hosts

  • Ensure your listing includes all essential amenities for Waterloo: Wifi, Free parking on premises, Air conditioning, Smoke alarm, TV, Hot water, Heating, Washer, Carbon monoxide alarm.
  • Prioritize adding missing essentials: Smoke alarm, TV, Hot water, Heating, Washer, Carbon monoxide alarm.
  • Consider adding popular differentiators like Essentials to increase appeal.
  • Highlight unique or less common amenities you offer (e.g., hot tub, dedicated workspace, EV charger) in your listing description and photos.
  • Regularly check competitor amenities in Waterloo to stay competitive.

Waterloo Airbnb Guest Demographics & Profile Analysis (2025)

Guest Origin: Domestic vs. International
Top 5 Cities of Origin
Top 5 Countries of Origin
Top 5 Languages Spoken
Guest Age Distribution (Birth Decade)

Guest Profile Summary for Waterloo

  • The typical guest profile for Airbnb in Waterloo consists of primarily domestic travelers (97%), often arriving from nearby Denver, typically belonging to the Post-2000s (Gen Z/Alpha) group (50%), primarily speaking English or Spanish.
  • Domestic travelers account for 97.4% of guests.
  • Key international markets include United States (97.4%) and Canada (0.9%).
  • Top languages spoken are English (77.7%) followed by Spanish (11.3%).
  • A significant demographic segment is the Post-2000s (Gen Z/Alpha) group, representing 50% of guests.

Recommendations for Hosts

  • Target domestic marketing efforts towards travelers from Denver and Des Moines.
  • Tailor amenities and listing descriptions to appeal to the dominant Post-2000s (Gen Z/Alpha) demographic (e.g., highlight fast WiFi, smart home features, local guides).
  • Highlight unique local experiences or amenities relevant to the primary guest profile.
  • Consider seasonal promotions aligned with peak travel times for key origin markets.

Nearby Short-Term Rental Market Comparison

How does the Waterloo Airbnb market stack up against its neighbors? Compare key performance metrics like average monthly revenue, ADR, and occupancy rates in surrounding areas to understand the broader regional STR landscape.

MarketActive PropertiesMonthly RevenueDaily RateAvg. Occupancy
Town of Freeman16$3,514$220.6348%
University Heights14$3,510$315.7341%
Dorchester10$2,919$266.2542%
De Soto25$2,843$213.1540%
Urbandale25$2,721$254.4447%
Clear Lake120$2,590$247.6741%
Lanesboro34$2,572$265.0940%
Ames84$2,568$198.1546%
Iowa City129$2,554$224.5446%
Town of Campbell18$2,548$188.5151%

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