Overview: STRs appear to be allowed in Fayette, Iowa. No Fayette-specific short-term rental ordinance or permit program was identified in the provided sources. As a result, this guide addresses state-level requirements that apply in Fayette and provides a practical compliance pathway for investors. Always confirm local zoning and any local taxes with the city or county before listing.

Are Short-Term Rentals Allowed in Fayette, IA?

Explicit answer: Yes—short-term rentals are allowed in Fayette, IA under Iowa law as of the latest available information. No Fayette-specific STR ordinance or licensing requirements were found in the provided sources. Operators must comply with state sales and use tax obligations and any applicable local hotel/motel taxes. Property use must also align with local zoning (e.g., residential, R-1, C-1 zones), which should be verified with the local zoning administrator.

How to Start a Short-Term Rental Business in Fayette, IA

• Confirm property eligibility:
  • Verify zoning allows short-term stays at the property address. If the property is in the City of Fayette or within city limits, check with the city zoning/building department. For unincorporated areas, consult Fayette County zoning.
• Register your business with the Iowa Department of Revenue:
  • Obtain a sales/use tax permit and file returns (monthly or quarterly, depending on volume) to collect/remit sales tax and any applicable local hotel/motel taxes.
• Set up tax collection:
  • Collect applicable sales tax (currently 6% state sales tax) and any local hotel/motel tax. Most platforms (Airbnb/VRBO) will collect and remit state sales tax on Iowa listings automatically. Verify that the platform remits correctly for your property and that you are not double-taxed.
• Build a compliance package:
  • Keep the property in residential zoning compliance (parking, occupancy, signage).
  • Standardize guest rules; ensure quiet hours, occupancy limits, and local noise/parking codes are observed.
• Guest screening and safety:
  • Screen guests per federal fair housing rules; avoid discriminatory practices.
  • Maintain safe conditions (smoke/CO detectors, fire extinguishers, first-aid kit, safe egress, posted emergency contacts).
• Insurance and risk:
  • Obtain adequate short-term rental liability coverage (e.g., Host Liability or Commercial General Liability with STR endorsement). Coordinate coverage between your primary homeowners policy and any specialty STR policy.
• Documentation:
  • Maintain proof of sales tax registration, collected taxes, remittances, and guest logs with check-in/out dates.

Required Documents, Permits, Licenses, and Guidelines

• Business registration:
  • Iowa sales/use tax permit (Iowa Department of Revenue).
• Tax filings:
  • Monthly or quarterly sales tax returns (including state sales tax and any local hotel/motel tax).
• Insurance:
  • Liability insurance appropriate for STR operations (host liability and/or commercial coverage).
• Property documentation:
  • Proof of ownership or legal right to operate (e.g., lease if not owner).
• Guest records:
  • Guest check-in/out logs for audit purposes; align with any state/local recordkeeping requirements.
• Zoning compliance:
  • Confirmation that the property’s zoning allows short-term stays (city/county zoning verification).
• General housing safety:
  • Smoke detectors, carbon monoxide detectors, fire extinguisher, emergency contact posting. These are typically required under Iowa’s Safe Homes Act and state fire/life safety codes for rental properties; confirm specifics with the local fire marshal/building department.

No Fayette-specific STR application or licensing form was present in the provided sources.

Regulations: Fayette (City/County) and Iowa (State)

• City of Fayette (Fayette County, Iowa):
  • No Fayette-specific short-term rental ordinance or licensing program was identified in the provided sources.
  • Operators should confirm zoning (e.g., whether STR use is a permitted or conditional use in the relevant residential/commercial district) and any local codes (noise, parking, signage).
• Fayette County:
  • No county-specific STR licensing program was identified in the provided sources. County zoning rules may still apply and should be checked for the property location.
• Iowa State:
  • Short-term rentals are generally allowed. Operators must collect and remit state sales tax. If a local hotel/motel tax applies to Fayette, it should also be collected and remitted.
  • Iowa has provisions that limit local governments’ ability to regulate STRs beyond health and safety matters. Always verify any local ordinances or health/safety requirements that may be in effect.

Practical compliance guidance:

• Use a platform that automatically collects and remits state sales tax for Iowa listings; verify rates and any local hotel/motel tax coverage for Fayette.
• Maintain accurate records of guest nights and gross receipts to support tax filings.
• Be prepared to respond to health/safety inquiries from local authorities; keep documentation demonstrating safe conditions and compliance with fire/life safety requirements.

Contact Information

• City of Fayette (if within city limits or nearby):
  • City Hall / Zoning: 319-637-2235
  • Website: cityoffayette.com
• Fayette County (unincorporated properties):
  • County Assessor: 563-422-3294
  • Website: fayettecounty.iowa.gov
• State of Iowa (tax registration and reporting):
  • Iowa Department of Revenue: 515-281-3114
  • Website: revenue.iowa.gov

Source Links (Provided)

• www.useanvil.com/forms/short-term-rental/short-term-rental-application (general STR application—non-Fayette; example of a short-term rental application form)
• www.useanvil.com/forms/stormwater/inspection-and-maintenance-agreement-for-stormwater-management-controls/ (Fayette County stormwater maintenance agreement—non-STR context)

Notes for Investors

• Market opportunities: Fayette is a smaller community in Northeast Iowa near the Volga River and Yellow River State Forest, with potential for nature/tourism demand. The presence of Upper Iowa University can generate student-family weekend and event-related bookings. Expect moderate seasonality (spring/summer/outdoor seasons) and weekday shoulder demand; build pricing and minimum-stay rules accordingly.
• Risk management: Since no Fayette-specific ordinance is identified in the provided sources, regulatory risk is low at the municipal level. Nevertheless, monitor any changes to state law and local zoning actions that may introduce occupancy, parking, or permitting requirements.
• Operations: Prioritize automated compliance via platforms for tax collection; implement self-check-in, smart locks, and standardized cleaning protocols. Offer clear house rules and 24/7 guest communication to limit incidents and maintain good neighbor relations.

Disclaimer

• This guide is based solely on the provided web content. No Fayette-specific STR ordinance or licensing requirements were found in those sources. Investors should confirm any local zoning restrictions or local taxes directly with the City of Fayette or Fayette County before listing.