For eleven days every August, the Iowa State Fair turns Des Moines into one of the most booked cities in the Midwest. The rest of the year, central Iowa STRs live on insurance-company business travel, hospital stays, concerts and football weekends up the road in Ames.
In short: LendingStreet finances short-term rentals in Des Moines, West Des Moines, Ankeny, Altoona, Ames and other central Iowa towns with DSCR loans that qualify on the property's income, not your tax returns. On some programs the ratio can be calculated on projected short-term revenue from a third-party projection. Des Moines registers and inspects rental property, and suburbs and HOAs set their own rules, so confirm that the address can legally operate as a short-term rental before you rely on nightly income.
The Iowa State Fair in August is the single biggest week of the year, and homes on the east side near the fairgrounds, in neighborhoods such as Capitol East and the areas along East University Avenue, can earn a large share of their annual revenue in those days. Beyond the fair, the Drake Relays in April, concerts at Wells Fargo Arena, Iowa Cubs games at Principal Park and events in the East Village fill weekends.
Weekday demand comes from business travel tied to the region's insurance and financial employers, including Principal and Wells Fargo, data center and construction crews in West Des Moines and Altoona, and families visiting patients at the Iowa Methodist, MercyOne and Broadlawns campuses. Prairie Meadows in Altoona adds racing and casino visitors.
| Area | Main draw | Booking pattern |
|---|---|---|
| East side near the fairgrounds | Iowa State Fair | Very strong in August; weaker otherwise |
| East Village, Sherman Hill, Drake | Downtown events, Drake Relays, university | Weekends and event dates |
| Beaverdale, Waveland Park | Hospital and family visits, quiet neighborhoods | Steady, longer stays |
| West Des Moines, Altoona | Business, data centers, Prairie Meadows | Weekday-heavy |
| Ames | Iowa State football and university events | Fall Saturdays, graduation |
Des Moines requires rental property to be registered and inspected under its rental certificate program, and short-term rentals may have additional zoning or registration requirements depending on the district. Ask the city's neighborhood services and zoning staff how a short-term rental at your address is treated before you buy.
Suburbs such as West Des Moines, Ankeny, Urbandale and Johnston set their own rules, and many newer subdivisions have covenants that set minimum lease terms. A home that cannot take nightly guests will be underwritten on long-term rent instead.
Short stays in Iowa are generally subject to sales tax and the state hotel and motel tax, and cities can add a local hotel-motel tax. Booking platforms collect some of this, but owners should confirm with the Iowa Department of Revenue what they must file themselves.
Polk County assessors revalue property in odd-numbered years, and Iowa's residential rollback sets how much of each assessment is taxed. Homestead credits go only to owner-occupants, so your post-purchase bill is often higher than the seller's. Des Moines-area tax bills are significant relative to home prices, so they deserve careful attention in the ratio.
This example is illustrative and not a quote. An investor buys a furnished three-bedroom brick home in Beaverdale for $295,000. A third-party projection estimates $36,000 a year, about $3,000 a month, including roughly $9,000 earned during State Fair week and other peak events.
At 75% LTV the loan is $221,250. Estimated principal and interest on a 30-year term is about $1,509 a month. Taxes are budgeted at $500 and STR insurance at $165, for a total payment of about $2,174. The DSCR is about 1.38x.
Without the peak-event revenue, the year would bring about $2,250 a month, a DSCR near 1.03x. That is the honest cushion if fair week underperforms.
Summer, fall football weekends and the August fair are the strongest periods, and graduation weekends at Drake and Iowa State add spring peaks. January and February are the slowest, with cold weather and fewer events. A projection that leans heavily on the fair can look strong on paper and still leave thin winter months, so keep reserves and consider mid-term stays for traveling nurses and relocating employees to fill the calendar.
Des Moines has seen major river flooding, including the 1993 flood that shut down the city's water supply and the 2008 floods along the Des Moines River. Homes near the Des Moines and Raccoon rivers and along creeks can sit in mapped flood zones where flood insurance is generally required. Hail is also common in central Iowa. Get an STR-specific insurance quote and a flood determination during your inspection period.
Ames, about 30 miles north, is a strong football-weekend market around Iowa State home games and university events. Saylorville Lake north of the city and Lake Red Rock near Pella draw summer visitors, and Pella's Tulip Time each May fills rooms for miles around. Each town and county sets its own rules, so confirm them parcel by parcel. Our Iowa short-term rental page covers markets farther afield, including the Iowa Great Lakes.
If you already operate a Des Moines-area STR, a refinance can often use your actual booking history instead of a projection. Strong State Fair and event results show up directly in that history, which can support a better outcome than a generic projection. Have twelve months of platform statements, your city certificate or registration and your tax filings ready. Cash-out goes up to 75% LTV, and seasoning varies by program. To start, use the form below or call (877) 298-1001.
Often, but confirm with the city for your address. Des Moines registers and inspects rental property, and zoning and HOA rules can limit short stays.
It can be a large share of annual revenue for homes near the fairgrounds. Underwrite the year with and without the fair so you know your cushion.
On some programs, yes, using a third-party projection. Some programs discount it, so leave room in the ratio.
Generally sales tax and the state hotel and motel tax, plus any local hotel-motel tax. Platforms collect some of it.
Yes, where local rules allow short-term rentals. Ames football weekends and university events drive demand.
DSCR loans start at $150,000, with a 620 minimum credit score and LLC borrowers standard.
In mapped flood zones, generally yes. Get the flood determination early and include the premium in the payment.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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