Group 2 8 min ReadThe Minneapolis Short Term Rental Market in 2025 The Twin Cities of Minneapolis and St. Paul Minnesota continue to grow as hubs for both leisure and business travel in 2025. In addition to being a popular tourism destination, Minneapolis continues to be a popular conference destination for regional, national, and international events drawing thousands of out town visitors every year. The Minneapolis Convention Center, U.S. Bank Stadium and other downtown venues hosted over 700 major events in 2024, bringing Minneapolis regularly plays host to major events like the 2024 U.S. Gymnastics Olympic Team Trials, The Big Ten Women’s Basketball Tournament, and even Taylor Swift. 2024 saw record numbers of hotel room bookings, inbound flights, and tourism spending. ContentsMonthly Revenue for Minneapolis Short Term Rentals in 2025Occupancy Rate for Minneapolis Short Term Rentals in 2025 Nightly Rates for Minneapolis Short Term Rentals in 2025 Top Areas of Minneapolis for Short Term RentalsKey Factors Impacting Bookings and Revenue of Minneapolis Vacation Rentals in 2025Minneapolis Short Term Rental RegulationsMinneapolis Vacation Rental Market Opportunity Our Analysis and Outlook for The Minneapolis Vacation Rental Market The continued growth of tourism and business travel to the Twin Cities area has continued to propel Minneapolis into an excellent short-term rental market. Similar to the rest of the United States, the real estate market in Minneapolis has seen higher home prices, slower selling times, and lower overall sales in 2024 and 2025. The average home sale price in Minneapolis was $355,000 in July 2025, which is considerably lower than the national average of over $400,000. With no major changes to the real estate market on the horizon and continuing growth in demand for short term housing in the area, Minneapolis is great market for property owners to start generating revenue. SkyRun has analyzed the data from over 2,000 active vacation rental properties listed on Airbnb, VRBO, Booking.com, and our own market data to help Minneapolis property owners get actionable insights and information to maximize the value of their investment property. We’ve analyzed occupancy rates, average daily rates, monthly revenue, amenities, seasonality, and other metrics to give the most in-depth insight of the Minneapolis short term rental market possible. Monthly Revenue for Minneapolis Short Term Rentals in 2025 Looking only at the average monthly rental income for Minneapolis Airbnb properties can be misleading, as it can be heavily skewed by outlier properties with extremely high nightly rates or cleaning fees. The mean gives a more realistic picture of the revenue potential. Over the last 12 months, the mean monthly revenue for a Minneapolis short term rental was $2,964 and the annual revenue for a was $32,337. This is up 18.8% from the previous 12 months. Month/YearJun 2024Jul 2024Aug 2024Sept 2024Oct 2024Nov 2024Dec 2024Jan 2025Feb 2025Mar 2024Apr 2025May 2025Jun 2025Median Monthly Revenue$3,478$3,314$3,488$2,786$2,819$2,411$2,432$2,012$2,333$3,110$3,273$4,170$4,757 Occupancy Rate for Minneapolis Short Term Rentals in 2025 Over the last 12 months, the occupancy rate for Minneapolis Airbnb properties was 66%, meaning a typical property was booked for 241 nights out of the year. This is unchanged from the previous 12 months. The occupancy rate for Minneapolis is 11.7% higher than the average occupancy rate for US vacation rentals of 54.3% Month/YearJun 2024Jul 2024Aug 2024Sept 2024Oct 2024Nov 2024Dec 2024Jan 2025Feb 2025Mar 2024Apr 2025May 2025Jun 2025Median Monthly Occupancy Rate88%85%89%70%70%60%58%43%47%62%64%74%83% Nightly Rates for Minneapolis Short Term Rentals in 2025 Over the last 12 months, the median nightly rate for short term rental properties in Minneapolis was $130. This is up 23.4% over the previous 12 months. Month/YearJun 2024Jul 2024Aug 2024Sept 2024Oct 2024Nov 2024Dec 2024Jan 2025Feb 2025Mar 2024Apr 2025May 2025Jun 2025Median Nightly Rate$120$124$123$124$125$124$129$142$153$156$160$179$182 Top Areas of Minneapolis for Short Term Rentals There’s strong demand for short term rentals across all of Minneapolis, but a few areas show a stronger demand and command a higher nightly rate than others. Additional areas of Minneapolis that didn’t quite make the top 10 were Lake Nokomis, Loring Park, downtown Minneapolis, Uptown, North Loop, and Linden Hills. Name Median Occupancy Rate Median Nightly Rate Annual Revenue Potential Corcoran78%$122$35,393 Loring Park74%$122$33,252 Powderhorn Park74%$76$21,104 Greater Central73%$90$24,680 Columbia Park69%$138$35,595 Union Park68%$116$29,441 St. Anthony Park66%$227$55,908 Lyndale65%$112$27,772 Richfield64%$174$42,296 Chain of Lakes Regional Park55%$300$63,025 Key Factors Impacting Bookings and Revenue of Minneapolis Vacation Rentals in 2025 In addition to property location, multiple factors influence the overall guest experience including amenities, cancellation policies, check-in methods, property size, and property type. Property Size (Bedrooms and Bathrooms) The mix of business travelers, tourists, and families to the Minneapolis area means that properties of all sizes enjoy a relatively high occupancy rate. # of Bedrooms Median Occupancy Rate 0 72% 1 68% 2 67% 3 64% 4 64% 5 58% 6+ 55% # of Bathrooms Median Occupancy Rate 1 70% 2 80% 3 60% 4 70% 5 80% 6+ 60% Property Type 75% of Minneapolis short term rentals are private homes where guests are renting the entire house whereas only 6% of listings are for apartments or condos. Condos are in high demand for as short term rentals in Minneapolis as seen by an 80% median occupancy rate. Property TypePrivate HomeApartment/CondoPrivate RoomOtherMedian Occupancy Rate60%80%70%59% Most Impactful Amenities These amenities had the highest impact on occupancy rates and nightly rate for Minneapolis rentals. Lakefront, riverfront, or waterfront Pool access Amazing views Washer and dryer TV Air conditioning Heated floors Fireplace Most Common Amenities Across the full data set of Minneapolis short term rentals, these were the most commonly found amenities in property listings Minneapolis Short Term Rental Regulations Local rules and regulations can make or break a short term rental investment opportunity. STR rules and local regulations have been changing rapidly in the Twin Cities area. Minneapolis has more stringent local regulations than many other areas of the US, but property owners, Airbnb hosts, and property managers tend to find the rules and process not overly restrictive or impacting profitability. Short term rentals are legal in Minneapolis and actively licensed, managed by the Department of Regulatory Services (DRS). Generating income from a short term rental in Minneapolis is considered Facilitating The Sale of Lodging, which is defined as “brokering, coordinating, or in any way arranging for purchase of or the right to use accommodations by a customer.” There are specific rules regarding tax collection and obligations property owners and property managers, which can be found here. Short Term Rental Ownership Limits Unlike some areas of the US, Minneapolis limits the number of short term rental properties that can be owned by an individual or company. STR owners can have one short term rental property licensed in Minneapolis in addition to their homestead property. If the property being licensed is a building with 20 or more units, no more than 10% of the units can be used as short term rentals. Short Term Rental Classifications Minneapolis STR properties fall into two primary categories, which determine their licensing and zoning requirements. A small number of properties will fall under the “Exempt” category. Owner-Occupied Units Primary residence of the host. Requires registration, not a full license. Occupancy limit generally capped at 10 guests. Must display the registration number on all listings. Non-Owner-Occupied Units Includes investment properties or second homes. Requires a short-term rental license and more rigorous oversight. Certificate of occupancy, safety inspections, and management plan are mandatory. Buildings with 20+ units are limited to having no more than 10% of units used as STRs. Exempt Properties Renting a single bedroom Long term rentals (30+ days) Even if your STR is technically exempt from licensing, many short term rental platforms will require you to prove the exemption status within your account with The City of Minneapolis. STR Licensing, Registration, and Fees in Minneapolis Short term rental properties in Minneapolis require several items to become licensed. While technically there is a single fee for short term rental registrations, there are other fees related to the for administration, change of ownership, and other items. You can find a full list of fees for registration in Minneapolis here . $58 registration fee (current as of August 2025) A completed application packet that includes Management plan Proof of liability insurance with $300,000 minimum coverage Neighbor notification letter Pre inspection checklist Floor plan Local contact Zoning for Short Term Rentals in Minneapolis Minneapolis does have zoning restrictions for STRs but in general, they’re allowed almost everywhere in the city. Primary residences (homestead units) have very little zoning restrictions in residential zones, mixed use districts, and commercial zones where residential uses are allowed. Investment properties and second homes (non-homestead units) may have slightly more restrictive rules. STR Licensing Enforcement and Penalties in Minneapolis The City of Minneapolis actively enforces STR regulations through the Regulatory Services Department. Regular audits are conducted along with periodic checks of short term rental platforms, listing reviews, and neighborhood reports. 90% of Minneapolis Airbnb listings have a valid license Most Common Violations Unlicensed operation Exceeding unit limits Management plan failures (inadequate noise, parking, or renter management) Not displaying license number in listings or in the property Failing to collect or remit required taxes Potential Penalties for Violations Warning letters Fines License revocation Tier adjustment (higher fees and more frequent inspections) Housing court Minneapolis Vacation Rental Market Opportunity Minneapolis continues to show strong year over year growth in visitor numbers with a robust tourism base, a steady stream of business travelers, and year-round events. Minneapolis has a multi-year trend of delivering strong demand for vacation rentals of all types. Short term rental hosts and property owners benefit from above average occupancy rates, competitive nightly rates, clearly structured, but not overly restrictive regulatory framework that rewards professionalism and compliance. Whether you’re a homeowner thinking about getting into the Airbnb market for the first time or a real estate investor seeking long-term returns, Minneapolis offers the ideal mix of income potential, legal clarity, and community alignment. Interested in having your property professionally managed by the local Minneapolis short term rental experts from SkyRun? Learn how your property could be earning more. Get the profitability, care, and local expertise that you deserve. Learn More About Minneapolis Short Term Rental Management Theresa & Craig Schaefer Minneapolis, MN Owners of SkyRun Twin Cities 612-482-3435 twincities@skyrun.com Call us today! 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