Spencer, IA

  • Overview
  • Performance
  • Listings
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Key Performance Metrics

Market snapshot

Performance indicators for the Spencer short-term rental market based on reliable data.

Listings

18 / 26

Reliable / Active

Cap Rate

10%

Middle-Earners Gross Yield

Revenue

$19,280

Middle-Earners Revenue

Occupancy

49%

Middle-Earners Occupancy

Home Value

$198,921

Median Home Sale Price

Top Earners

$27,485

Top-Earners Revenue

Spencer

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Spencer.

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B

Generally Investor friendly

Spencer Regulations

No explicit city prohibition or STR‑specific rules; short‑term rentals are treated like standard residential use, with modest home‑based or lodging permits and state lodging/tax/fire requirements.

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About Spencer

Spencer is a small city in northwestern Iowa, serving as the seat of Clay County and the regional commercial hub for the surrounding agricultural landscape. With a population of approximately 11,000 residents, the city blends small-town Midwestern character with the amenities of a regional service center. Spencer is best known as the home of the annual Clay County Fair and sits just south of the Iowa Great Lakes, a popular summer recreation area. The city lies roughly 130 miles east of Sioux Falls, South Dakota, and approximately 200 miles northwest of Des Moines, placing it along a well-traveled corridor of the Upper Midwest.

The Clay County Fair is the city's marquee attraction and one of the largest county fairs in the United States, drawing hundreds of thousands of visitors each September. The fairgrounds feature livestock exhibitions, grandstand concerts, agricultural displays, a renowned antique farm machinery collection, and a dedicated arts center. Beyond the September fair, the fairgrounds host trade shows, conventions, and events throughout the year, making them a year-round economic engine and a consistent source of visitor traffic for the community.

Just a short drive north of Spencer, the Iowa Great Lakes region offers a resort-style escape centered on West Okoboji Lake, East Okoboji Lake, and Spirit Lake, among others. The area is home to Arnolds Park, a historic lakeside amusement park that has operated since the late nineteenth century and features the Legend, a classic wooden roller coaster. Small lakeside towns such as Okoboji, Spirit Lake, and Milford provide dining, boating, fishing, and beach access, and the entire region functions as a busy summer playground for families from across the Midwest and the Plains.

Within Spencer itself, parks and greenways along the Little Sioux River offer walking paths and quiet outdoor space, while the downtown core features locally owned shops, cafés, and restaurants that reflect the city's agricultural roots. A heritage center on the fairgrounds preserves the history of the region and the fair itself, with exhibits on early settler life and prairie agriculture, giving visitors a deeper sense of place beyond the September festivities.

Spencer makes a compelling base for short-term rental owners because it offers a rare combination of year-round event-driven travel through the Clay County Fair and seasonal lake tourism via the nearby Iowa Great Lakes. Guests who book a stay in Spencer gain easy access to one of Iowa's signature fairs as well as the boating, beaches, and family attractions of the Okoboji region, all within a short drive. The city's central location in the region, combined with its full range of lodging, dining, and retail services, positions it well for hosts seeking a steady mix of fair-week crowds and summer lake vacationers traveling through northwest Iowa.

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