Legality Verdict
Short-term rentals are legal in Duluth, Minnesota, but subject to a city licensing regime and a moratorium on new licenses as of late 2025. The city is actively reviewing its rules and enforcement posture.
- Legality Status: 2/5
- License Availability: 1/5
- Compliance Cost (% revenue): 4/5
- Regulatory Stability: 2/5
- Enforcement Climate: 2/5
TL;DR
Duluth defines STRs as rentals under 30 days and requires a city-issued rental license and interim use permit before advertising or operating. The total tax burden is 9.875% (6.875% state sales tax + 3% city lodging tax). Annual inspections are mandatory. As of late 2025, a moratorium on new STR licenses is in effect, making license availability the biggest investor risk. The single biggest gotcha: No new licenses are being issued during the moratorium.
Quick Facts
| Item | Detail |
|---|---|
| STR Definition | Rental of a dwelling for less than 30 days One Family Dwelling Application |
| Registration Required | Yes — city rental license and interim use permit required City of Duluth |
| Permit Cost | needs verification — call City Clerk’s Office at (218) 730-5500 or check online |
| Annual Renewal | needs verification — call City Clerk’s Office at (218) 730-5500 or check online |
| Late Penalty | Fine for unlicensed operation: ~$200 Duluth News Tribune |
| State Sales Tax | 6.875% Airbnb Help Center |
| Local Accommodations Tax | 3% Duluth lodging excise tax City of Duluth |
| Total Effective Lodging Tax | 3% (city lodging excise tax only) City of Duluth |
| Total Tax Burden (all taxes) | 9.875% (state + city) Airbnb Help Center |
| Occupancy Cap | Not codified — no separate city rule identified in sources reviewed Chapter 29A Code |
| Minimum Night Stay | Not codified — no separate city rule identified in sources reviewed Chapter 29A Code |
| Parking Requirement | Not codified — no separate city rule identified in sources reviewed Chapter 29A Code |
| Inspection Requirement | Yes — annual inspection required Chapter 29A Code |
| Primary Regulator | City Clerk’s Office & Fire Department (Life Safety Division) City of Duluth |
| License Cap | needs verification — call City Clerk’s Office at (218) 730-5500 or check online |
| Permitted Zones | [needs verification — no primary source found] |
| Prohibited Zones | [needs verification — no primary source found] |
| HOA/Condo Override | Not codified — no separate city rule identified in sources reviewed Chapter 29A Code |
| Enforcement Penalties | ~$200 fine for unlicensed operation Duluth News Tribune |
| Last Updated | June 11, 2026 |
Regulatory Impact Snapshot
Underwriters should model compliance costs at 7.0% of gross revenue, with median Duluth, MN STRs earning $35,606 at an average daily rate of $251 and 36% occupancy. The binding constraint is the city’s moratorium on new STR licenses, which effectively blocks new entrants as of late 2025. Existing operators face annual inspections and a 9.875% tax stack, but the largest risk is regulatory uncertainty and potential for further restrictions. Run this market in our Airbnb Calculator →
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Frequently Asked Questions
Basics
What is considered a short-term rental in Duluth?
A short-term rental is defined as renting a dwelling for less than 30 days One Family Dwelling Application.
Are short-term rentals legal in Duluth?
Yes, but only with a valid city-issued rental license and interim use permit City of Duluth.
Does the St. Louis County STR ordinance apply in Duluth?
No, Duluth governs its own STR regulations; county rules do not apply within city limits Duluth News Tribune.
Licensing
Is a license required to operate an STR in Duluth?
Yes, a city rental license and interim use permit are required before advertising or renting City of Duluth.
How do I apply for a Duluth STR license?
Apply through the City Clerk’s Office and Fire Department (Life Safety Division) City of Duluth.
What is the cost of a Duluth STR license?
needs verification — call City Clerk’s Office at (218) 730-5500 or check online.
Is there a cap on the number of STR licenses?
needs verification — call City Clerk’s Office at (218) 730-5500 or check online.
Taxes
What taxes apply to Duluth STRs?
A 6.875% Minnesota state sales tax and a 3% Duluth lodging excise tax apply to stays of 29 nights or less Airbnb Help Center.
Does Airbnb collect and remit taxes for Duluth hosts?
Yes, Airbnb collects and remits both the state and city lodging taxes for eligible bookings Airbnb Help Center.
Do I need to register with the state for tax purposes?
If you collect payments directly (not via Airbnb), you must register with the Minnesota Department of Revenue RedAwning.
Operations
Are annual inspections required for STRs?
Yes, annual inspections are required to ensure compliance with the Housing and Property Maintenance Code Chapter 29A Code.
Is there a minimum night stay or occupancy cap?
No separate city rule codified for minimum night stay or occupancy cap Chapter 29A Code.
Which zones allow STRs in Duluth?
[needs verification — no primary source found]
Enforcement
What is the penalty for operating without a license?
A fine of approximately $200 applies for unlicensed operation Duluth News Tribune.
Is Duluth actively enforcing STR rules?
Enforcement is under review, with inconsistent application and a focus on unlicensed operators as of late 2025 Duluth News Tribune.
Is there a moratorium on new STR licenses?
Yes, a one-year moratorium on new STR licenses was enacted in November 2025 Duluth News Tribune.
Permit Process
Duluth requires a rental license and an interim use permit for any property rented for less than 30 days. Both must be issued before advertising or operating. The City Clerk’s Office and Fire Department (Life Safety Division) oversee the process, and annual inspections are mandatory to maintain compliance City of Duluth.
Zoning
Duluth’s zoning and property maintenance codes incorporate the International Property Maintenance Code and the Minnesota State Building Code. However, no separate city rules for STR-specific occupancy caps, minimum stays, or parking requirements are codified in available sources. Zoning district eligibility for STRs requires direct verification with city planning staff Chapter 29A Code.
Taxes and Remittance
Short-term rentals in Duluth are subject to a 6.875% Minnesota state sales tax and a 3% city lodging excise tax, totaling 9.875% for stays of 29 nights or less. Airbnb collects and remits both taxes for eligible bookings. Hosts collecting payments directly must register with the Minnesota Department of Revenue to file and remit taxes Airbnb Help Center.
Enforcement and Recent Actions
Duluth’s enforcement of STR rules has been inconsistent, with some large developments operating outside current ordinances. The city imposed a moratorium on new STR licenses in late 2025 to study impacts and review enforcement. Fines for unlicensed operation are about $200, and city staff are reviewing detection and penalty escalation Duluth News Tribune.
Recent Changes and Pending Legislation
In November 2025, Duluth enacted a one-year moratorium on new STR licenses to address housing concerns and regulatory gaps. The city is considering additional changes, including possible spacing limits and departmental oversight shifts. The Right to Repair ordinance passed in 2025 does not apply to STRs Winthrop & Weinstine.
Comparable Markets
- Minneapolis, MN — Consider if you want a large urban market with a mature STR ordinance.
- St. Paul, MN — Consider for a capital city with evolving STR rules.
- Rochester, MN — Consider for a medical hub with steady STR demand.
- Superior, WI — Consider for a nearby market with different regulatory posture.
Sources
- City of Duluth, MN – Licenses and Permits: https://duluthmn.gov/fire/licenses-and-permits/
- City of Duluth, MN – Business Licensing: https://duluthmn.gov/city-clerk/licenses-permits/business-licensing/
- City of Duluth, MN – Tourism Taxes: https://duluthmn.gov/finance/taxes/tourism-taxes/
- One Family Dwelling – Rental License Application Form: https://duluthmn.gov/media/1131/one-family-dwelling-application-fillable.pdf
- Chapter 29A. Housing, Property Maintenance and Rental Code (PDF): https://mcclibrary.blob.core.usgovcloudapi.net/codecontent/50009/355383/Chapter%2029A%20-%20Housing,%20Property%20Maintenance%20and%20Rental%20Code.pdf
- Duluth News Tribune: https://www.duluthnewstribune.com/news/st-louis-county-adopts-permitting-for-short-term-rentals
- Duluth News Tribune: https://www.duluthnewstribune.com/opinion/letters/readers-view-moratorium-on-short-term-rentals-misses-the-real-issues
- Duluth News Tribune: https://www.duluthnewstribune.com/news/local/duluth-places-moratorium-on-short-term-rental-licenses
- Northern News Now: https://www.northernnewsnow.com/2025/10/16/duluths-vacation-rental-boom-prompts-call-licensing-freeze/
- Star Tribune: https://www.startribune.com/no-permit-but-some-duluth-dwellings-advertise-vacation-rentals-anyway/601459752
- Winthrop & Weinstine: https://winthrop.com/bold-perspectives/client-alert-duluth-right-to-repair-ordinance/
- Airbnb Help Center: https://www.airbnb.com/help/article/2311
- Minnesota House Research Department: https://www.house.mn.gov/hrd/pubs/lodgetax.pdf
- Home Team Luxury Rentals: https://hometeamluxuryrentals.com/blog/minnesota-short-term-rental-regulations
- RedAwning: https://www.redawning.com/pm/post/minnesota-short-term-rental-laws
This page is research, not legal advice. Consult local counsel before acquiring or operating a short-term rental in City of Duluth, St. Louis County, Minnesota.
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