Davenport's short-term rental demand is driven less by tourism and more by the river, the hospitals, the Arsenal and a summer calendar of races, fairs and golf. That mix makes a Quad Cities STR a different underwriting story than a lake cabin or a beach condo.
In short: LendingStreet finances short-term rentals in Davenport, Bettendorf and the surrounding Scott County towns with DSCR loans that qualify on the property, not your W-2s or tax returns. On some programs the loan can be sized on projected nightly revenue from a third-party projection instead of a 12-month lease. Before you buy, confirm that the address can legally operate as a short-term rental under Davenport or the suburb's rental permit and zoning rules, and that no HOA covenant blocks stays under 30 days.
Most nights in the Iowa Quad Cities are booked by people who are in town for a reason: traveling nurses and families visiting patients at the Genesis and UnityPoint campuses, contractors and visitors tied to the Rock Island Arsenal and the Deere offices across the river, parents in town for Palmer College of Chiropractic and St. Ambrose University, and wedding and reunion groups who want a house instead of hotel rooms.
Leisure demand stacks on top of that in summer. The Bix 7 road race in July, the Mississippi Valley Fair in August, River Bandits games at Modern Woodmen Park and the John Deere Classic at TPC Deere Run in nearby Silvis all push weekend rates up. Riverfront walkability matters, so homes near the Village of East Davenport, downtown and the Bettendorf riverfront tend to book better than homes far out on the north side.
Davenport runs a rental housing program with registration and inspections for rental property. Ask the city how a short-term rental fits that program, whether your zoning district allows it, and whether a separate approval is needed. Bettendorf, Eldridge and LeClaire each set their own rules, so check the city where the property sits rather than assuming Davenport's approach applies.
Many newer subdivisions in north Davenport and Bettendorf have covenants that set minimum lease terms. Read them before you write an offer. If a property cannot legally take nightly guests, the loan will be underwritten on long-term rent instead, and the numbers usually look very different.
Iowa applies sales tax and a state hotel and motel tax to short stays, and cities and counties can add a local hotel-motel tax. Booking platforms collect some of these on your behalf, but not always all of them, so confirm with the Iowa Department of Revenue what you need to file yourself.
On the property side, Scott County assessors revalue homes in odd-numbered years, and Iowa applies a statewide residential rollback that sets how much of the assessed value is taxed. Homestead credits only go to owner-occupants, so the bill after an investor buys can be higher than the seller's. Budget on the full bill without a homestead credit.
This example is illustrative and not a quote. An investor buys a furnished three-bedroom near the Village of East Davenport for $245,000. A third-party projection estimates $29,400 a year in gross booking revenue, or about $2,450 a month.
At 75% LTV the loan is $183,750. Estimated principal and interest on a 30-year term is about $1,253 a month. Property taxes are budgeted at $380 and an STR insurance policy at $175, for a total payment of about $1,808. Divided into the projected monthly revenue, the DSCR is about 1.35x.
Some programs discount projected revenue. If the program counts only 85% of the projection, about $2,082 a month, the ratio is still about 1.15x, above the 1.0x standard minimum.
| Line | Monthly amount |
|---|---|
| Projected gross revenue | $2,450 |
| Estimated principal and interest | $1,253 |
| Property taxes | $380 |
| STR insurance | $175 |
| Total payment | $1,808 |
| DSCR on full projection | About 1.35x |
| DSCR at 85% of projection | About 1.15x |
Quad Cities bookings run strongest from late spring through early fall and soften in January and February, when the hospital and business traveler base carries most of the demand. A projection that looks good on an annual basis can still leave thin winter months, so keep reserves for the slow stretch.
Mid-term stays of one to three months for traveling nurses and relocating employees can smooth the calendar. Those stays may fall under different tax and permit rules than nightly rentals, so ask the city and the state how they are treated.
Davenport is known for leaving much of its riverfront open rather than walled off, and the Mississippi has flooded parts of downtown and low-lying neighborhoods, including during the record 2019 crest. Homes near the river or along Duck Creek and Blackhawk Creek can sit in mapped flood zones where flood insurance is generally required.
Get the flood determination and an STR-specific insurance quote during your inspection period. A standard landlord policy often excludes nightly guests, and the right policy belongs in the DSCR math from day one.
If a Davenport address does not work, look along the river. LeClaire, a small river town north of Bettendorf, draws day-trippers to its riverfront, shops and boat traffic and is the Scott County town most investors think of for nightly rentals. Bettendorf's riverfront and areas near the TaxSlayer Center and Moline attractions also book well, though Moline and Rock Island are across the river in Illinois with Illinois rules and taxes.
Farther afield, investors look at Iowa river and lake markets covered on our Iowa short-term rental page. Always confirm the local rules in each town before relying on nightly income.
Send the address, purchase price, a revenue projection or your booking history if you already operate the home, and your target leverage. The form below works, or call (877) 298-1001. We will run the ratio on projected revenue and on long-term rent so you can see both.
Often, but confirm it address by address. Check the city rental housing program, your zoning district and any HOA covenants before you buy. The loan relies on the home being able to operate legally as a short-term rental.
On some programs, yes. The DSCR can be calculated from a third-party revenue projection. Some programs discount the projection, so leave room in the ratio.
DSCR loans start at $150,000. Many Davenport homes sell for less than that would require at typical leverage, so investors sometimes combine properties or look at higher-priced homes near the river.
Short stays in Iowa are generally subject to sales tax and the state hotel and motel tax, plus any local hotel-motel tax. Platforms collect some of it. Confirm your filing duties with the Iowa Department of Revenue.
If the home is in a mapped flood zone, flood insurance is generally required. Get the flood determination early and include the premium in the payment.
Yes. With 12 months of booking history, a refinance can often use your actual revenue. Cash-out goes up to 75% LTV and seasoning varies by program.
Yes. LLC borrowers are standard on our DSCR programs, with a 620 minimum credit score and no W-2s or tax returns.
No. Our investor loans are business-purpose loans on non-owner-occupied property, and we do not finance a home you live in.
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