Ames, Iowa Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Ames, IA?

Yes, short-term rentals are explicitly allowed in Ames, Iowa. The City of Ames has established a comprehensive regulatory framework through Chapter 35 of the Ames Municipal Code, known as the "Guest Lodging Code," which provides a voluntary registration alternative for short-term rental operators. This system allows property owners to operate short-term rentals while being exempt from full compliance with the more stringent Chapter 13 Rental Housing Code requirements.

Ames offers two distinct short-term rental categories:

Hosted Home Share: Limited short-term rental of a portion of the dwelling unit while the property owner is present overnight
Home Share: Limited short-term rental of the entire dwelling unit when the property owner is not present

The city defines short-term rentals as "the advertising, offering, or otherwise making available use of a dwelling unit for overnight lodging for a period of thirty (30) consecutive days or less in exchange for money, goods, labor or service."

What do Airbnb hosts actually earn in Ames?

Ames hosts earn a median $27,485/year with $175 ADR and 54% occupancy.

Top performers pull in $38,524+ per year.

See the full Ames market breakdown

How to Start a Short-Term Rental Business in Ames

Step 1: Determine Eligibility

Before proceeding, ensure your property meets the following fundamental requirements:

Primary Residence Requirement: The dwelling unit must be your primary residence (the only place where you have a true, fixed, and permanent home)
Zoning Compliance: Your property must be located in a zoning district that permits the intended use (Hosted Home Share or Home Share)
Owner Occupancy: For Hosted Home Share, you must be present overnight during rental periods

Step 2: Choose Your STR Category

Hosted Home Share allows:

Rental of up to 2 approved bedrooms
Maximum of 2 adult guests
Owner must be present overnight
No additional parking required
No maximum number of days per year

Home Share allows:

Rental of the entire dwelling unit
Maximum of 2 adults per approved bedroom (capped at 5 adults total)
Owner not required to be present
1 parking space per bedroom (maximum 5 spaces)
Maximum 90 days per annual registration period

Step 3: Prepare for Registration

Complete the Guest Lodging Short-Term Rental Registration Application, which includes:

Property owner information and documentation
Proof of primary residency ( driver's license, utility bill, or recent addressed mail within 3 months)
Fire & Safety Compliance Checklist completion
Site plan for parking (Home Share only)
Floor area sketch (Hosted Home Share only)

Step 4: Schedule Special Request Inspection

All STR units require a Special Request Inspection before registration approval. This inspection verifies compliance with:

Fire safety regulations per Ames Municipal Code Chapter 13, Division VIII
Building code requirements
Safety standards for guest lodging bedrooms
Carbon monoxide and fire protection systems
Smoke detector and fire extinguisher requirements

Step 5: Submit Registration Application

Submit your complete application to the Department of Planning & Housing. Applications are reviewed within 5 working days for completeness, and decisions are typically made within 2 weeks of receiving complete applications and inspection approval.

Step 6: Maintain Compliance

Once approved, maintain ongoing compliance including:

Annual registration renewal
Biennial Special Request Inspections
Tax compliance (hotel/motel taxes)
Guest registry maintenance
Complaint response and documentation

Required Documents, Permits, Licenses, and Guidelines

Registration Documents

Required for all applicants:

Completed and signed Guest Lodging Short-Term Rental Registration Application
Fire & Safety Compliance Checklist (completed and signed)
Proof of primary residency documentation
Property owner verification
Operational compliance acknowledgments

Additional requirements for Home Share:

Site plan sketch showing existing and proposed parking spaces with surface materials and dimensions
Documentation of number of rented nights during previous 12 months (renewals only)

Additional requirements for Hosted Home Share:

Floor area sketch illustrating areas available for guest lodging

Permits and Licenses

Short-Term Rental Registration: Free voluntary registration under Chapter 35
Special Request Inspection: Required before registration approval and every other year thereafter
No Application Fee: Registration is free; only inspection fees apply

Fire Safety and Building Requirements

All STR units must comply with:

Guest Lodging Bedroom Standards:
- Minimum 70 square feet per bedroom
- Emergency escape windows in each bedroom
- Minimum 7-foot ceiling height
Fire Protection Systems:
- At least one charged and operable fire extinguisher
- Smoke detectors outside sleeping areas and in each bedroom
- Carbon monoxide detectors where fuel-burning appliances exist
- All systems maintained in accordance with International Fire Code

Parking Requirements

Hosted Home Share: No additional parking required
Home Share: 1 space per guest bedroom (maximum 5 spaces required)
Compliance: Must meet dimensional, location, and surfacing requirements of Zoning Ordinance Section 29.406
Prohibition: Front yard parking is not permitted

Tax Obligations

Hotel/Motel Tax: Must comply with payment requirements under Ames Municipal Code Section 24.3 and state law
Documentation: Tax compliance must be documented at each registration renewal
State Requirements: Additional state-level tax obligations may apply

Specific Regulations: City, County, and State Level

City of Ames Regulations (Chapter 35)

Operational Requirements:

Maximum Stay: 30 consecutive days maximum
Guest Contracts: Only one guest contract allowed at a time per dwelling unit
Advertising: Must reference approved Guest Lodging Registration in all advertisements
Registration Display: Must post registration certificate prominently inside the dwelling near the front door
Guest Registry: Must maintain a registry of all guests accommodated

Occupancy Limits:

Hosted Home Share: Maximum 2 approved bedrooms, 2 adult guests
Home Share: Maximum 5 adult guests (2 per bedroom), 90-day annual limit

Zoning Districts Where Allowed: A, RL, RM, UCRM, RH, RLP, NC, CCR, DSC, CSC, S-SMD, DGC, O-SFC, O-LMU, PUD, F-VR, FS-RL, FS-RM, & F-PRD

Registration Term:

1-year registration period
Non-transferable to new owners or properties
Ineligible for re-registration for 1 year after revocation

County Level Regulations

No specific Story County regulations for short-term rentals were identified in the provided materials. County regulations may apply for other aspects of property operation.

State of Iowa Regulations

Significant State Preemption (House File 2641, 2020): Iowa Code Section 414.1 significantly limits municipal authority over short-term rentals:

Cities cannot adopt regulations, restrictions, or ordinances specifically relating to short-term rental properties
Cities cannot require licenses or permit fees for short-term rental properties
Local governments cannot regulate short-term rentals differently from other residential uses
Limited exceptions exist for certain health and safety situations, but protecting residential housing stock is not a valid exception

Implications for Ames:

Ames's Chapter 35 operates as a voluntary registration system to avoid state preemption
The city cannot mandate compliance with the registration requirements
Registration provides benefits (exemption from full Chapter 13 compliance) rather than being a requirement
Local regulations must be carefully crafted to avoid conflicting with state law

Contact Information for Local Authority

Primary Contact

Department of Planning & Housing

Phone: 515-239-5400
Email: planning@cityofames.org
Mailing Address:
- City of Ames, Department of Planning & Housing
- P.O. Box 811
- Ames, Iowa 50010

Enforcement and Inspection

Enforcement Officer

Designated by the City Manager for administration and enforcement of Chapter 35
Authority to establish administrative rules and regulations
Responsible for registration review and enforcement actions

Special Request Inspection

Inspection fees are invoiced separately from registration
Inspection scheduling coordinated through Planning & Housing Department
Inspections required before initial registration and every other year for renewal

Appeals Process

Zoning Board of Adjustment

Appeals of enforcement decisions must be filed within 30 days
Procedures follow Zoning Ordinance Section 29.1403(8)
Contact through Department of Planning & Housing

Links to Source Pages

Additional Resources

Iowa Department of Revenue - Hotel/Motel Tax Information: tax.iowa.gov/node/4298
Iowa Code Section 414.1: www.legis.iowa.gov/docs/code/2022/414.1.pdf

Key Considerations for STR Investors

Market Opportunity

Limited regulatory barriers to entry in Ames compared to many other cities
University town with consistent demand from students, faculty, and visitors
Voluntary registration system provides regulatory certainty while maintaining flexibility

Investment Risks

State preemption limits local protections and regulations
Registration is voluntary and can be revoked for violations
Primary residence requirement limits investment property opportunities
90-day annual limit for Home Share operations may restrict revenue potential

Compliance Strategy

Consider registration under Chapter 35 to gain regulatory certainty and exemption from full Chapter 13 requirements
Budget for biennial inspections and ongoing compliance costs
Maintain detailed records of guest registry and tax payments
Stay informed about potential changes to state preemption laws

This comprehensive framework positions Ames as a relatively investor-friendly market while maintaining important safety and neighborhood protection standards through the voluntary registration system.

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STR Regulations for Ames, Iowa