Airbnb Rules Minnesota: Laws, Regulations, and Compliance Guide

Minnesota Airbnb Compliance Checklist

• ☐ Register with Your City or County

  • Check whether the municipality requires a short-term rental license or permit before accepting bookings. Minneapolis, St. Paul, Duluth, and Rochester all maintain separate registration systems.

  • Collect the confirmation number or license certificate; it must appear on the listing in jurisdictions that require public disclosure.

• ☐ Confirm Zoning Eligibility

  • Verify the property's zoning classification with the local planning department. Minneapolis, for example, restricts non-owner-occupied STRs to specific zoning districts.

  • Review any HOA covenants or condominium association rules; local ordinances do not override private deed restrictions.

• ☐ Obtain a Minnesota Tax ID

  • Register with the Minnesota Department of Revenue to collect and remit the 6.875% state sales tax on short-term rental income.

• ☐ Verify Local Lodging Tax Obligations

  • Identify applicable county and city lodging taxes. Hennepin County imposes a 3% lodging tax; Minneapolis adds a further 3% convention tax. Confirm rates with the relevant local finance office before the first booking.

• ☐ Install Required Safety Equipment

  • Install smoke detectors in every sleeping room and on every level of the property per Minnesota State Fire Code requirements.

  • Install carbon monoxide detectors within 10 feet of each sleeping room, as required under Minnesota Statute 299F.50.

  • Place a portable fire extinguisher on each floor; verify it's current on the inspection date.

• ☐ Meet Minimum Habitability Standards

  • Confirm the property meets Minnesota Housing Code standards for heating, ventilation, and structural integrity before the first guest's stay.

• ☐ Set and Post Occupancy Limits

  • Establish the maximum guest count consistent with any local ordinance cap and post it clearly in the listing. Minneapolis limits occupancy to two persons per bedroom plus two additional guests as a baseline.

• ☐ Post Required Notices Inside the Property

  • Display the local STR license number, emergency contact information, and applicable noise or parking rules in a visible location inside the unit, as required by most Minnesota municipal STR ordinances.

• ☐ Review Minimum Stay Requirements

  • Check whether the municipality enforces a minimum rental period. Some Minnesota cities restrict rentals to stays of 30 days or longer

1. Regulatory Overview

Short-term rental operators in Minnesota face compliance obligations at three distinct levels: state statute, county ordinance, and municipal code. There is no single statewide licensing law that governs all short-term rentals uniformly.

Instead, the state establishes the tax collection framework and baseline consumer protection requirements, while cities and counties set the registration, zoning, and operational rules that determine whether a rental can legally operate at all.

At the state level, Minnesota Statutes Chapter 297A governs sales and use tax obligations for short-term rental income, and Minnesota Statutes Section 327.14 through 327.28 establishes lodging facility standards that apply to certain rental configurations.

No single piece of legislation equivalent to New York City's Local Law 18 of 2022 exists at the state level; the operative rules are almost always local.

Minnesota law defines a short-term rental as an accommodation rented for a period of fewer than 30 consecutive days. Rentals meeting or exceeding 30 days fall outside STR regulation and are treated as residential tenancies under Minnesota Statutes Chapter 504B.

Enforcement authority sits with individual municipalities. In Minneapolis, the Department of Regulatory Services (DRS) administers licensing. In Saint Paul, the Department of Safety and Inspections (DSI) holds that authority.

Hosts operating outside those cities must identify the relevant city or county department directly, as there is no statewide enforcement agency for short-term rental compliance.

2. Airbnb License Requirements Minnesota Property Owners Should Check

Minnesota has no statewide short-term rental registration program as of May 27, 2026. There is no state registry, no Minnesota Department of Revenue licensing requirement specific to STRs, and no primary-residence threshold enforced at the state level.

Registration obligations fall entirely to individual municipalities, which means requirements vary significantly by city and county.

Minneapolis Short-term Rental License

Minneapolis has operated a mandatory STR licensing program since January 1, 2018, administered by the Minneapolis Department of Licenses and Consumer Services (LCS). All hosts renting for fewer than 30 consecutive days must hold a current license before accepting bookings.

• License Type: Tier 1 (owner-occupied, hosted) or Tier 2 (non-owner-occupied or unhosted); fees and inspection requirements differ by tier.

• Annual Fee: $46 for Tier 1; $92 for Tier 2 as of the 2025 fee schedule.

• Required Documentation: Government-issued ID, proof of property ownership or lease authorization, and a completed application through the Minneapolis e-Services portal.

• Inspection Requirement: Tier 2 properties require a city inspection before the license is issued.

Minneapolis does not impose a 183-day primary-residence cap, but Tier 1 status requires the host to reside at the property as their primary address. Misclassifying a Tier 2 property as Tier 1 to reduce fees is treated as a license violation.

Other Minnesota Municipalities

Don't assume the rules are the same everywhere. Cities like Duluth, Rochester, and Bloomington each have their own STR permit frameworks with wildly different fees and occupancy rules; for instance, Duluth's annual permit costs just $75, while some cities charge over double that.

Hosts operating outside Minneapolis have to contact their city or county clerk directly because there’s no central state registry to help them out. You're on your own. Because all Airbnb license requirements in Minnesota are strictly local, your permit in one city means absolutely nothing in the next.

3. Property and Building Eligibility

You won't find a state-level prohibited buildings list in Minnesota. There isn't one. The state has no formal property classification system like New York's famous Class A/B framework, so no single law tells you which buildings can host short-term rentals.

Instead, eligibility comes from three overlapping and often conflicting sources: local zoning ordinances that might restrict rentals in an R-1 single-family zone, your homeowners association (HOA) bylaws, and any condominium association documents. It's a three-headed monster, and you have to check all of them.

Zoning Ordinances

Most Minnesota municipalities that regulate short-term rentals do so through their zoning code.

Minneapolis, for example, restricts STR operation to properties in residential zones where the operator holds a valid license and the unit qualifies as a primary residence (defined as the operator's principal place of dwelling for at least 183 days per year under Minneapolis Code of Ordinances Title 13, Chapter 244).

Properties zoned exclusively for commercial or industrial use are ineligible, regardless of physical configuration.

HOA and Condo Restrictions

• HOA Prohibitions: Association covenants, conditions, and restrictions (CC&Rs) can ban short-term rentals outright, independent of municipal licensing. A valid city license does not override an HOA prohibition.

• Condo Board Rules: Condominium associations operating under Minnesota Statutes Chapter 515B may adopt rental restrictions through board resolution or amended bylaws. Hosts must obtain written confirmation from the board before listing.

• Deed Restrictions: Some parcels carry recorded deed restrictions limiting rental duration. A title search will surface these before any license application is filed.

Hosts operating in municipalities without a formal STR ordinance are still bound by HOA rules and any applicable county zoning regulations.

4. Local Airbnb Restrictions Minnesota Hosts Commonly Face

Minnesota doesn't have a statewide guest-count cap or host-presence mandate. But don't get too comfortable.

All operational restrictions come directly from municipal ordinances, which vary sharply; for example, one city might cap your rental at 10 guests while another requires you to live on-site full-time. It’s a local free-for-all.

The rules you'll see below are the most common frameworks we've encountered in local STR licensing codes as of May 2026.

Guest Limits

• Occupancy tied to bedroom count: Most Minnesota cities that license STRs cap occupancy at two guests per bedroom plus two additional guests. Minneapolis STR licenses issued under Minneapolis Code of Ordinances Title 13, Chapter 244 (effective January 1, 2023) apply this formula, which typically yields a maximum of eight guests for a three-bedroom unit.

• Hard unit caps: Some municipalities impose an absolute ceiling regardless of bedroom count. Duluth's STR ordinance (Chapter 50, Article VII) limits all licensed short-term rentals to ten overnight guests per permitted unit.

Minimum-Stay Thresholds

No Minnesota statute sets a minimum-night requirement for private STRs. Several cities impose a two-night minimum on certain license tiers; Rochester's STR code (Chapter 62, Section 62-500, effective March 15, 2022) applies a two-night minimum to Tier 2 non-owner-occupied listings during peak event weekends designated by the City Clerk.

Host Presence Requirements

Minneapolis distinguishes owner-occupied from non-owner-occupied licenses. Owner-occupied listings require the primary resident to be present during guest stays under Minneapolis Code Chapter 244.60.

Non-owner-occupied licenses carry no presence requirement but face stricter annual inspection obligations and lower density allowances per residential block.

Note: Minnesota House File 4081 (introduced February 2026) would prohibit cities from imposing host-presence mandates on non-owner-occupied STRs statewide. The bill remained in committee as of May 27, 2026.

5. Tax Obligations

State Taxes

Minnesota imposes two state-level taxes on short-term rental revenue. Both apply to rentals of fewer than 30 consecutive days and are administered by the Minnesota Department of Revenue under Minnesota Statutes Chapter 297A.

City and County Taxes

Minneapolis imposes an additional 3.0% lodging tax on short-term rentals under Minneapolis Code of Ordinances § 302.

Saint Paul applies a 3.0% lodging tax under its own municipal code. Counties outside these cities may levy a separate lodging tax under Minn. Stat. § 469.190, typically ranging from 1.0% to 3.0%.

Hosts must verify the exact rate with the relevant county auditor, as no single statewide schedule governs county rates.

Total Combined Tax Rate (Minneapolis example): Brace yourself. In Minneapolis, your minimum tax hit is 9.875%. That's a combination of the 6.875% state sales tax and a 3.0% city lodging tax, and it doesn't even include potential county surcharges like the 0.25% transit improvement tax often found in Hennepin County.

Platform Collection Requirements

Airbnb collects and remits Minnesota state sales tax and Minneapolis lodging tax on behalf of hosts for bookings made through the platform, under a voluntary collection agreement with the Minnesota Department of Revenue effective January 1, 2020.

Vrbo adopted similar collection practices in Minnesota beginning January 1, 2021. Hosts using direct booking channels remain fully responsible for collecting and remitting all applicable taxes themselves.

Tax Filing Requirements

Hosts receiving income outside platform-collected transactions must register with the Minnesota Department of Revenue and file sales tax returns on a monthly,

6. Safety, Insurance, and Guest Standards That Affect Compliance

Mandatory Safety Equipment

Minnesota's State Fire Marshal Division enforces baseline safety requirements that apply to all short-term rental properties under Minnesota Statutes Chapter 299F. Hosts must maintain:

• Smoke Detectors: Operational detectors on every level of the dwelling, inside each sleeping room, and outside each sleeping area, per Minnesota Statute 299F.50.

• Carbon Monoxide Detectors: Required within 10 feet of each sleeping room in any dwelling with a fuel-burning appliance, fireplace, or attached garage, per Minnesota Statute 299F.50, Subdivision 2.

• Fire Extinguisher: A minimum 2A:10B: C-rated extinguisher accessible on each occupied floor.

Building Compliance

Local municipalities enforce occupancy and habitability conditions through their building departments. Properties must satisfy:

• Egress Requirements: Each sleeping room must have at least one emergency exit window or door meeting Minnesota State Building Code Section 1310.

• Electrical Systems: No exposed wiring, functioning GFCI outlets in kitchens and bathrooms.

• Structural Integrity: No condemned or uninhabitable designations on record with the local building department.

Minnesota has not enacted a statewide law requiring booking platforms to verify host registrations before accepting transactions, block unregistered listings, or submit periodic transaction reports to a state agency.

No statute at the state level imposes compliance obligations directly on Airbnb, Vrbo, or Booking.com as platform operators.

A small number of Minnesota municipalities have moved toward platform accountability through local ordinance. Minneapolis, for example, requires hosts to display a valid license number in all listings, and the city can request transaction data from platforms during enforcement investigations.

However, no Minneapolis ordinance compels platforms to proactively verify licenses or block bookings before a reservation is confirmed; enforcement remains host-side, not platform-side.

Hosts operating under local short-term rental restrictions in Minnesota should not assume platforms will flag or prevent non-compliant listings. Compliance responsibility sits with the host. Platforms are not required by Minnesota law to act as registration gatekeepers.

Minnesota does not have a statewide statute that makes it illegal to advertise a short-term rental before a booking transaction occurs.

No Minnesota law targets STR advertising specifically; the state's consumer protection rules under Minnesota Statutes Chapter 325F apply broadly to deceptive trade practices and do not impose STR-specific advertising prohibitions.

At the local level, cities such as Minneapolis and St. Paul regulate licensing and operational conduct, but neither city has enacted an ordinance that prohibits advertising an unlicensed STR as a standalone offense separate from the underlying licensing violation.

Hosts operating without a required local license may face penalties for the unlicensed operation itself, not for the act of advertising.

7. Enforcement and Penalties

Minnesota does not operate a single statewide STR enforcement agency. Enforcement authority sits with individual municipalities, meaning penalty structures vary by city. The figures below reflect Minneapolis and Saint Paul frameworks, which represent the most codified enforcement regimes in the state.

Civil Penalties

• Operating without registration: Up to $2,000 per violation in Minneapolis under the Minneapolis Code of Ordinances Chapter 244

• Exceeding occupancy limits: Up to $1,000 per violation per inspection event

• Failure to display license number: $500 per listing, per platform, per violation period

• Repeat violations within 12 months: Fines double on the second offense; a third offense triggers mandatory license review

Enforcement Mechanisms

• Platform verification: Municipalities cross-reference active listings against the city registration database

• Complaint response: Neighbor complaints routed through 311 generate mandatory inspections within 10 business days in Minneapolis

• Proactive monitoring: City staff conduct periodic sweeps of Airbnb and Vrbo listings for missing license numbers

• Physical inspections: Required at initial registration and triggered by substantiated complaints

Registration Denial and Revocation

• Grounds for denial: Outstanding code violations, unpaid municipal fines, or failure to pass safety inspection

• Grounds for revocation: Three substantiated complaints within 12 months, or a single serious safety violation

• Appeal body: Minneapolis appeals go to the Board of Zoning Appeals; Saint Paul appeals are heard by the City Council's Legislative Hearing Officer

Property Owner Liability

Property owners remain liable for violations even when a co-host or property manager operates the listing. The registration holder bears primary responsibility under Minneapolis Code of Ordinances Section 244.1960. Fines are assessed against the property owner of record, not the platform account

8. Special Considerations

Homeowners Associations and Condominium Boards

Minnesota has no statewide statute that overrides HOA or condo association rules on short-term rentals. If a declaration of covenants, conditions, and restrictions (CC&Rs) prohibits rentals under 30 days, that prohibition is enforceable regardless of what the municipality permits.

Violating HOA rental restrictions can trigger fines ranging from $100 to $500 per day and, in documented cases, injunctive action that forces an immediate listing removal.

• Common Conflict Points: CC&Rs that define "residential use only," board-adopted rental caps limiting the percentage of units rented at any time, and lease-approval requirements that effectively block subletting.

• Practical Risk: Airbnb regulation. Minnesota municipalities may issue a valid license while the HOA simultaneously pursues civil enforcement; the license does not shield a host from association penalties.

Accessory Dwelling Units

Several Minnesota cities, including Minneapolis and St. Paul, permit accessory dwelling units (ADUs) by right in single-family zones. However, both cities restrict STR licensing on ADUs where the primary unit is not owner-occupied.

Minneapolis Zoning Code Title 20 ties STR eligibility to owner-occupancy of the principal structure, meaning an investor-owned lot with a detached ADU cannot obtain an STR license for either structure.

• Zoning Overlay Conflicts: ADUs in historic overlay districts may face additional use restrictions under Minneapolis Heritage Preservation regulations.

• Consequence of Violation: Operating an unlicensed STR in an ADU carries the same per-night fine schedule as any unlicensed primary unit, up to $2,000 per violation in Minneapolis.

9. Exemptions

Not every short-term occupancy arrangement in Minnesota falls under local STR registration and short-term rental licensing requirements; several categories operate under separate regulatory regimes or are excluded by statute.

• Stays of 30 consecutive days or more: These are considered standard residential tenancies under Minnesota landlord-tenant law (Minnesota Statutes Chapter 504B) and are not subject to STR permit requirements.

• Licensed hotels and motels: Properties holding a valid lodging establishment license under Minnesota Statutes Section 157.16 operate under the Minnesota Department of Health's licensing framework, not local STR ordinances.

• Bed and breakfast establishments: B&Bs licensed separately by the Minnesota Department of Health are exempt from STR-specific registration rules.

• Student housing and dormitories: University-operated or institutionally managed housing falls outside STR regulation entirely.

10. Legislative Developments

Minnesota's legislature has not enacted a statewide short-term rental registration or licensing statute as of May 2026. STR-specific regulation has developed almost entirely at the municipal level, through city council ordinances rather than state legislation.

The most recent enacted change at the state level affecting STRs was the 2023 omnibus tax bill, which clarified that marketplace facilitator collection obligations under Minnesota Statutes Section 297A.67 apply to platforms, including Airbnb and Vrbo, effective January 1, 2024.

No pending bills in the 2025-2026 Minnesota legislative session have advanced to committee vote as of the last updated date.

Two informal proposals circulated in early 2025 around requiring statewide STR registration through the Department of Revenue, but neither was introduced as a numbered bill. Hosts should monitor the Minnesota Legislature bill tracker for any filings in the 2026 session.

11. Resources and Contact Information

Government Agencies

Minnesota Department of Revenue

• Address: 600 North Robert Street, St. Paul, MN 55101

• Phone: (651) 296-6181

• Website: Minnesota Department of Revenue

Minnesota Department of Labor and Industry (DLI)

• Address: 443 Lafayette Road North, St. Paul, MN 55155

• Phone: (651) 284-5005

• Website: dli.mn.gov

Local City or County Zoning Office

• STR registration, licensing, and zoning compliance are administered at the municipal level. Hosts must contact the zoning or planning department for the specific city or county where the property is located.

Filing Complaints

Complaints about unlicensed short-term rentals or code violations are handled by local code enforcement offices, not a single state agency. Hosts or neighbors can report suspected violations through the relevant city's 311 service, municipal code enforcement hotline, or online complaint portal.

Minneapolis residents may file through the city's 311 Contact Center at (612) 673-3000. St. Paul residents can contact the Department of Safety and Inspections at (651) 266-8989.

Disclaimer

This information is provided for general guidance only and does not constitute legal advice. Short-term rental regulations in Minnesota are complex and subject to change.

Hosts should consult with qualified legal counsel and tax professionals to ensure full compliance with all applicable laws and regulations. The enforcement space continues to evolve, and hosts are responsible for staying informed of current requirements.