Minnesota Airbnb and Short-Term Rental Regulations (2026 Guide)

Minnesota's 10,000 lakes, Boundary Waters Canoe Area, and cities like Minneapolis-St. Paul make it a year-round STR destination for outdoor enthusiasts and urban travelers. Whether you already own a vacation rental in Minnesota or are evaluating your first investment, understanding the regulatory landscape is essential. STR laws in Minnesota vary significantly by city and county — and getting compliance wrong can mean fines, forced delistings, or lost income.

This guide covers Minnesota's approach to short-term rental regulation at the state level, then breaks down the rules in key markets investors and hosts need to know. Regulations as of 2026 — always verify current rules directly with your local municipality before listing.

If you'd like help navigating STR compliance in Minnesota, Awning's property management team operates in Minneapolis, the Boundary Waters region, and Duluth and helps hosts stay compliant while maximizing revenue.

How Minnesota Defines a Short-Term Rental

For regulatory and tax purposes, a short-term rental in Minnesota is generally defined as a residential property rented for 29 consecutive days or fewer. Any rental longer than this threshold is typically treated as a long-term rental and subject to different rules.

Does Minnesota Require a Statewide STR License?

Minnesota does not have a statewide STR licensing requirement. Regulation is handled at the city and county level, with significant variation across the state.

Minnesota Short-Term Rental Taxes

Minnesota imposes a 6.875% sales tax and a 3% lodging tax on STRs of 29 nights or fewer. Many counties add local lodging taxes. Airbnb collects state taxes automatically; local tax compliance depends on your specific jurisdiction.

Regardless of which booking platform you use, it is your responsibility as a host to ensure all applicable taxes are collected and remitted correctly. Failure to comply can result in penalties, back taxes, and potential loss of your ability to operate.

STR Regulations by City in Minnesota

Below are the key STR markets in Minnesota and their current regulatory requirements. City regulations change frequently — check with your local planning or licensing department for the most current rules before investing.

Minneapolis

Minneapolis requires STR operators to obtain a Type 1 (owner-occupied) or Type 2 (non-owner-occupied) license. Type 2 licenses are capped and competitively allocated by neighborhood. All licensed STRs must pass a safety inspection annually.

Duluth

Duluth allows STRs but requires a rental license and compliance with zoning rules. Lake Superior-area properties near Canal Park face higher demand and stricter scrutiny during peak summer season.

Brainerd Lakes Area

The Brainerd Lakes area (Crow Wing County) has lighter regulation, making it one of Minnesota's most investor-friendly STR markets. Basic registration and tax collection are the primary requirements.

Key Questions to Ask Before Listing an STR in Minnesota

• Does your city or county require an STR permit or license?
• Are there caps on the number of STR permits in your neighborhood or zone?
• Is your property owner-occupied or non-owner-occupied — and does that distinction affect your eligibility?
• What occupancy, noise, and parking rules apply to your specific property?
• Which taxes are you responsible for collecting and remitting vs. what the platform handles?
• Does your HOA or condo association allow short-term rentals?

The Bottom Line

Minnesota's STR regulatory environment ranges from investor-friendly rural counties to tightly regulated resort towns and urban cores. Understanding the specific rules in your target market — not just at the state level — is what determines whether your rental operates smoothly or faces costly disruptions.

Staying on top of changing regulations is one of the most valuable things a professional property manager brings to your operation. Awning manages short-term rentals in Minneapolis, the Boundary Waters region, and Duluth and monitors local regulatory changes so you don't have to. Reach out to learn how we can help you operate compliantly and profitably in Minnesota.