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Iowa City, IA Short-Term Rentals: Occupancy Limits (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Short-term rental defined
Let for a fee, 30 days or less
First-occupant floor area
120 sq. ft. minimum
Each additional occupant
100 sq. ft. minimum
STR permit fee
No application or inspection fee
Permit suspension
Up to 180 days
Permit revocation
Minimum 1 year

Summary

Iowa City treats a short-term rental, a house or unit let for 30 days or less, as a rental property that needs a City rental permit, and that permit states a maximum occupancy figure. The number comes from the Housing Code's floor-area formula: 120 square feet of habitable space for the first occupant plus 100 square feet for each additional occupant.

E. Short-Term Rentals. The requirements for a short-term rental property are as follows: 1. Short-term rental property means: Any individually or collectively owned single-family house or dwelling unit; any unit or group of units in a condominium, cooperative, or timeshare; or an owner-occupied residential home that is offered for a fee of thirty (30) days or less. ... It shall be a violation of this Code for any person to let to another a short-term rental property unless the owner or operator holds a valid rental permit issued by the City. 3. All provisions in Sections 17-5-16A, B, C, and D of this chapter apply to short-term rental permits except that no application or inspection fee may be charged. ... The rental permit shall also state the maximum occupancy and the telephone number for the property owner or designated agent. ... Every dwelling unit shall contain at least one hundred twenty (120) square feet of habitable floor space for the first occupant thereof and at least one hundred (100) additional square feet of habitable floor space for every additional occupant thereof.

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: 2026 S-26: Code current through: Ord. 26-4985, passed May 19, 2026).

Full Breakdown

E defines a short-term rental property as any individually or collectively owned single-family house or dwelling unit, any unit in a condominium, cooperative, or timeshare, or an owner-occupied residential home offered for a fee of 30 days or less, excluding units used for retail, restaurant, banquet, or event-center purposes. Letting a short-term rental without a valid rental permit issued by the Department of Housing and Inspection Services is a violation of the Code. A through D, except that no application or inspection fee is charged for a short-term rental permit.

1, every rental permit, short-term or not, must state the maximum occupancy allowed for the unit along with the property owner's or designated agent's phone number. a: every dwelling unit must contain at least 120 square feet of habitable floor space for the first occupant and at least 100 additional square feet for each occupant after that, with any part of a room under a five-foot ceiling excluded from the calculation. A separate sleeping-room standard in the same subsection requires at least 70 square feet for one occupant sleeping in a room and 40 additional square feet for each further occupant of that room. S, which can lead to a limitation on occupancy or suspension of the rental permit itself.

Violations & Fines

Operating a short-term rental without a permit, or above its stated maximum occupancy, is a Code violation handled through the Department of Housing and Inspection Services and the Appeals Board rather than a simple citation. A rental permit found out of compliance can be suspended for up to 180 days or revoked for at least one year, and false statements on a permit application are grounds for outright revocation; violations of the Code generally are also municipal infractions carrying escalating civil penalties under section 1-4-2.

Frequently Asked Questions

Does Iowa City require a permit for a short-term rental?
Yes. Code section 17-5-16.E requires the owner or operator of any property let for a fee of 30 days or less to hold a valid rental permit issued by the Department of Housing and Inspection Services; letting without one is a Code violation, though no application or inspection fee applies to a short-term rental permit specifically.
How is the maximum occupancy for a short-term rental calculated?
The Housing Code's floor-area standard in section 17-5-17.K.1.a sets the number: 120 square feet of habitable floor space for the first occupant and 100 additional square feet for every occupant after that. The rental permit issued for the unit, short-term or otherwise, must state that maximum occupancy figure under section 17-5-16.C.1.
What happens if a short-term rental exceeds its occupancy limit?
It is treated as a noncompliant situation under section 17-5-18.S and can result in the City limiting occupancy at the property or suspending the rental permit for up to 180 days; repeated or serious violations can lead to revocation of the permit for at least one year.

Sources & Official References

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