Investing in a short-term rental can be highly stable and profitable. It’s stable because housing has been one of the most stable asset classes. Also, when you can’t do an Airbnb anymore, you can still rent it out to a long-term tenant with a lower yield. It is highly profitable because the monthly cash flow from short-term rentals typically is double the amount of traditional rentals. The true profit from home investing comes from capital appreciation and cash flow from your rental. Between 1850 and 2015, globally, the average home value appreciated at 5.5% annually. If your short-term rental yields 3% of your total initial investment, your investment’s annual return is 8.5% before taxes are considered. Without further ado, let’s see if Clear Lake, Iowa is good for Airbnb.
Yes, it’s profitable to Airbnb because the average net rental yield for a one-bedroom property is 12.1%.
The national median net short-term rental yield is 5.4% in the USA. For more context, a traditional rental can typically yield 2-4% if you don’t have to pay a mortgage interest. A typical 1 bedroom listing in Clear Lake, Iowa is booked for 219 nights a year, with a median occupancy rate of 60% and an average daily rate of $150. In Clear Lake, Iowa, A typical host income (annual revenue) was $32,646 in 2023.
Best Areas in Clear Lake for Airbnb
Are you wondering where to invest in Clear Lake? Look no further! Here are 10 areas travelers often search for. You can find the short-term rental statistics of all of these neighborhoods from Airbtics! Check out which neighborhood has the highest rental demand. 🚀
Clear Lake State Park
Surf Ballroom and Museum
City Park
Clear Lake Arts Center
PM Park
Central Gardens of North Iowa
Buddy Holly Crash Site
Lady of the Lake
Clear Lake Fire Museum
The Other Place
Okay, you might wonder about more specific data. For example, how much can an average listing with 2 bedrooms and a pool make? Or, what is the seasonality in booking? When is the peak month?
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