This guide covers short-term rental rules for the City of Minneapolis only. Neighboring markets have separate rules and are often confused with Minneapolis:
- Saint Paul: Minnesota’s capital, directly east of Minneapolis, with its own STR licensing and occupancy rules.
- Bloomington: South of Minneapolis, home to the Mall of America, with stricter STR restrictions.
- Edina: Southwest suburb with distinct STR ordinances and enforcement.
- Golden Valley: West of Minneapolis, operates under separate local regulations for STRs.
Legality Verdict
Short-term rentals are legal in Minneapolis with a required license or registration, a $1,000 conversion fee for most new licenses, and a 9.9% tax stack. Owners are limited to one non-homesteaded STR in addition to their primary residence.
- Legality Status: 4/5
- License Availability: 4/5
- Compliance Cost (% revenue): 3/5
- Regulatory Stability: 4/5
- Enforcement Climate: 4/5
TL;DR
Minneapolis defines STRs as rentals of less than 30 days and requires a license (non-owner-occupied) or registration (owner-occupied). The main fee is a $1,000 conversion fee for most new licenses, plus annual fees. The total effective lodging tax is 9.9%. Owners may operate one non-homesteaded STR in addition to their primary home. The biggest gotcha: strict owner limits and a high upfront conversion fee.
Quick Facts
| Item | Detail |
|---|---|
| STR Definition | Rental of a dwelling unit for less than 30 consecutive days City of Minneapolis |
| Registration Required | Yes, for owner-occupied; license required for non-owner-occupied City of Minneapolis |
| Permit Cost | $1,000 conversion fee for most new licenses; annual fee $85–$200 plus per-unit fee STR Application Packet |
| Annual Renewal | Yes; annual fee based on property type and tier STR Application Packet |
| State Sales Tax | 6.875% Airbnb Help Center |
| Local Accommodations Tax | 3% entertainment tax (all STRs) Prudent Accountants |
| County/District Tax | Not codified — Hennepin County does not separately tax STRs in Minneapolis MN House Research |
| Total Effective Lodging Tax | 9.9% (6.875% state + 3% entertainment) Prudent Accountants |
| Occupancy Cap | Not codified — state/building code limits apply Short Term Rentals Title 12 Ordinance |
| Minimum Night Stay | Not codified — no separate city rule identified in sources reviewed Municode Library |
| Parking Requirement | Not codified — no separate city rule identified in sources reviewed Municode Library |
| Primary Regulator | City of Minneapolis Business Licensing, 505 S 4th Ave, Room 510A, Minneapolis, MN 55415; 612-673-3000 STR Application Packet |
| License Cap | No citywide cap; each owner limited to one non-homesteaded STR plus their homestead City of Minneapolis |
| Permitted Zones | [needs verification — no primary source found] |
| Prohibited Zones | [needs verification — no primary source found] |
| HOA/Condo Override | Not codified — private covenants may apply but not enforced by city Municode Library |
| Enforcement Penalties | needs verification — call 612-673-3000 or see city STR page |
| Transferability | Not transferable; new owner must reapply and pay fee STR Application Packet |
| Inspection Requirement | Yes; same cycle as regular rental licenses City of Minneapolis |
| Local Contact Requirement | Not codified — no separate city rule identified in sources reviewed Municode Library |
| Density Limit | Not codified — no separate city rule identified in sources reviewed Municode Library |
| Last Updated | 2026-06-11 |
Regulatory Impact Snapshot
Underwriters should model compliance costs at 9.9% of gross revenue, with median Minneapolis STRs earning $30,613 at an average daily rate of $150 and 57% occupancy. The binding constraint is the $1,000 conversion fee for most new licenses, plus annual fees and a 9.9% tax stack (6.875% state sales tax + 3% entertainment tax). Owners are limited to one non-homesteaded STR in addition to their homestead, restricting portfolio scale. Run this market in our Airbnb Calculator →
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Frequently Asked Questions
Basics
What is considered a short-term rental in Minneapolis?
A short-term rental is any dwelling unit rented for less than 30 consecutive days City of Minneapolis.
Are short-term rentals legal in Minneapolis?
Yes, STRs are legal with required licensing or registration City of Minneapolis.
Do state or county rules override city STR rules?
No, Minneapolis sets its own STR rules; state law does not preempt local ordinances Minnesota House Research.
Licensing
Do I need a license to operate an Airbnb in Minneapolis?
Yes, a license is required for non-owner-occupied STRs; owner-occupied units require registration City of Minneapolis.
What is the cost to get a short-term rental license?
Most new licenses require a $1,000 conversion fee, plus annual fees based on property type and tier STR Application Packet.
Is there a cap on the number of STR licenses?
No citywide cap, but each owner is limited to one non-homesteaded STR plus their homestead City of Minneapolis.
Are STR licenses transferable?
No, licenses are not transferable; new owners must reapply and pay the applicable fee STR Application Packet.
How long does it take to get licensed?
[needs verification — call/check https://www2.minneapolismn.gov/business-services/licenses-permits-inspections/rental-licenses/short-term-rentals/ or phone 612-673-3000.]
Taxes
What taxes apply to STRs in Minneapolis?
STRs are subject to 6.875% state sales tax and 3% Minneapolis entertainment tax, totaling 9.9% Prudent Accountants.
Does Hennepin County charge an additional lodging tax?
No, Hennepin County does not separately tax STRs in Minneapolis MN House Research.
Do I need to register with the Minnesota Department of Revenue?
Yes, if you collect payments directly and are subject to state sales or lodging taxes RedAwning.
Does Airbnb collect and remit taxes for me?
Airbnb collects and remits state and local sales and special taxes for stays of 29 nights or less Airbnb Help Center.
Operations
Are there occupancy limits for STRs?
No separate citywide cap; state or building code occupancy limits apply Short Term Rentals Title 12 Ordinance.
Is there a minimum night stay requirement?
No, Minneapolis does not codify a minimum night stay for STRs Municode Library.
Are there parking requirements for STRs?
No separate city parking requirement for STRs is codified Municode Library.
Do I need to notify neighbors?
Yes, a neighbor notification letter is required for STR applications Short Term Rentals Title 12 Ordinance.
Are inspections required?
Yes, STRs follow the same inspection cycle as regular rental licenses City of Minneapolis.
Enforcement
What are the penalties for operating without a license?
[needs verification — call/check https://www2.minneapolismn.gov/business-services/licenses-permits-inspections/rental-licenses/short-term-rentals/ or phone 612-673-3000.]
How does Minneapolis enforce STR rules?
Enforcement includes warnings, fines, and possible license revocation for violations Steadily.
Are there recent changes to enforcement?
Yes, as of March 2026, Minneapolis bans algorithmic rent-setting tools using non-public competitor data Winthrop & Weinstine.
Is rent control in effect?
No, as of June 2026, Minneapolis has not enacted rent control, though it remains under consideration Hemlane.
Permit Process
Minneapolis requires a license for non-owner-occupied short-term rentals and registration for owner-occupied units. Most new licenses incur a $1,000 conversion fee, with annual renewal fees based on property type and tier. The application process includes submitting a neighbor notification letter and, for multi-unit properties, a change of ownership fee may apply. Licenses are not transferable; new owners must reapply and pay the applicable fee. STR Application Packet
Zoning
Minneapolis does not codify specific zoning districts for STRs in available sources. Owners are limited to one non-homesteaded STR in addition to their homestead. There are no citywide density caps, minimum night stays, or parking requirements for STRs. Occupancy is governed by state or building code limits. For zoning district specifics, verification with the city’s Community Planning & Economic Development office is recommended. Municode Library
Taxes and Remittance
Short-term rentals in Minneapolis are subject to a 6.875% Minnesota state sales tax and a 3% Minneapolis entertainment tax, totaling 9.9%. The 3% Minneapolis lodging tax applies only to hotels with more than 50 rooms. Hennepin County does not impose a separate lodging tax within city limits. Airbnb collects and remits state and local taxes for most bookings, but hosts collecting payments directly must register with the Minnesota Department of Revenue. Prudent Accountants
Enforcement and Recent Actions
Minneapolis enforces STR rules through a licensing system, requiring license numbers on all listings and adherence to safety standards. Enforcement actions may include warnings, fines, and license revocation for repeated or serious violations. The city emphasizes fairness and transparency in enforcement. As of March 2026, a ban on algorithmic rent-setting tools using non-public competitor data is in effect, with a private right of action for tenants. Steadily
Recent Changes and Pending Legislation
Effective March 2026, Minneapolis prohibits the use of algorithmic devices that rely on non-public competitor data for setting rents or occupancy. Tenants may sue landlords who violate this ban. While voters approved rent control authority in 2021, no rent stabilization ordinance is in effect as of June 2026. State law now prohibits landlord retaliation against tenants who report code violations or organize associations, effective January 2025. Winthrop & Weinstine
Comparable Markets
- Saint Paul, MN: Consider if you want a capital city market with its own STR licensing and occupancy rules.
- Bloomington, MN: Consider if you seek proximity to the Mall of America but can navigate stricter STR restrictions.
- Edina, MN: Consider for a suburban alternative with distinct STR ordinances.
- Golden Valley, MN: Consider for a west metro market with separate local STR regulations.
Sources
- City of Minneapolis: https://www2.minneapolismn.gov/business-services/licenses-permits-inspections/rental-licenses/short-term-rentals/
- V3.1 APPLICATION FOR A SHORT-TERM RENTAL: https://www2.minneapolismn.gov/media/content-assets/www2-documents/business/STR—Short-Term-Rental-Packet.pdf
- Rental license fees – City of Minneapolis: https://www2.minneapolismn.gov/business-services/licenses-permits-inspections/rental-licenses/fees/
- Short Term Rentals Title 12 Ordinance: https://lims.minneapolismn.gov/Download/FileV2/22877/Short-Term-Rentals-Title-12-Ordinance.pdf
- Code of Ordinances | Minneapolis, MN | Municode Library: https://library.municode.com/mn/minneapolis/codes/code_of_ordinances
- Minnesota House Research Department: https://www.house.mn.gov/hrd/pubs/ss/ssprempll.pdf
- Local Lodging Taxes in Minnesota (MN House Research): https://www.house.mn.gov/hrd/pubs/lodgetax.pdf
- Prudent Accountants – Minneapolis Special Local Taxes – Industry Guide: https://prudentaccountants.com/minneapolis-special-local-taxes-industry-guide/
- Airbnb Help Center: https://www.airbnb.com/help/article/2311
- RedAwning – Minnesota Airbnb and Short-Term Rental Regulations (2025 Update): https://www.redawning.com/pm/post/minnesota-short-term-rental-laws
- Home Team Luxury Rentals: https://hometeamluxuryrentals.com/blog/minnesota-short-term-rental-regulations
- Steadily: https://www.steadily.com/blog/airbnb-short-term-rental-laws-regulations-minneapolis
- Winthrop & Weinstine: https://winthrop.com/bold-perspectives/minneapolis-ban-on-rent-setting-algorithms-top-3-things-landlords-need-to-know/
- Hemlane: https://www.hemlane.com/resources/minnesota-rent-control-laws/
- tenant-rights.com: https://tenant-rights.com/minnesota/minnesota-rent-control-laws-2025-update-for-renters
This page is research, not legal advice. Consult local counsel before acquiring or operating a short-term rental in City of Minneapolis, Hennepin County, Minnesota.
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