How's The Short-Term Rental Market In Des Moines, Iowa?

[Andy Algreen]

The facts below are being pulled directly from AirDNA...

Some current facts/data points about STR's in Des Moines

-There are currently 546 active short-term rentals in just the Des Moines area (see picture below)

-Average daily = $128

-Occupancy = 63%

-Monthly revenue = $1800

-86% of the 546 active STR's are entire homes

Are those numbers good or bad? In my opinion it's all perspective and what YOU are specifically trying to accomplish with your real estate investing goals. The average daily hotel rate sits around $125/day so you could potentially stay in the Des Moines area for about the same price, but be able to rent out an entire home. The occupancy rate of 63% makes sense because not a lot of people are traveling to Iowa during the winter months. So, we do see a drop off during winter, but it is to be expected. 

I have yet to have a conversation with an investor who owns or manages a STR that has done "bad" in the DSM area. Personally, I love STR's in this area and they are currently outperforming long-term rents.

One thing to keep in mind as well is the legal side of STR's in the DSM area. Some laws have been put in place, but overall STR's are not top of mind to the city (from what I have heard/read). If you are thinking about operating a STR in DSM, it is something that you should watch and pay closer attention to.