This guide covers short-term rental rules for the City of Brainerd, Minnesota. Neighboring markets often confused with Brainerd include:
- Baxter: Separate city with its own STR rules, directly adjacent to Brainerd.
- Nisswa: Popular lakes area city north of Brainerd, with distinct STR regulations.
- Pequot Lakes: Another lakes region city north of Brainerd, often grouped with Brainerd in regional STR discussions.
Legality Verdict
Short-term rentals are legal in Brainerd with a city rental license and, for non-owner-occupied units, an Interim Use Permit. Annual inspections and layered tax compliance are required. No citywide cap or moratorium is in effect.
- Legality Status: 4/5
- License Availability: 4/5
- Compliance Cost (% revenue): 4/5
- Regulatory Stability: 4/5
- Enforcement Climate: 4/5
TL;DR
Brainerd defines STRs as rentals of 28 nights or less. All STRs require a city rental license; non-owner-occupied units also need an Interim Use Permit. The total tax burden is 8.375%. Annual city inspection is mandatory. The main investor risk is the layered permit process and the need for a Minnesota Department of Health license for stays under 7 days. Biggest gotcha: Owner-occupied STRs are exempt from the Interim Use Permit but not from licensing or inspection.
Quick Facts
| Item | Detail |
|---|---|
| STR Definition | Rental of a dwelling unit for 28 nights or less Short Term Rental Ordinance – Brainerd, MN |
| Registration Required | Yes, city rental license required for all STRs Section 425 – Rental Housing Code – Brainerd, MN |
| Interim Use Permit | Required for non-owner-occupied STRs Short Term Rental Ordinance – Brainerd, MN |
| Permit Cost | [needs verification — call City of Brainerd Community Development Department at (218) 828-2307 or visit https://www.ci.brainerd.mn.us/213/Forms] |
| Annual Renewal | [needs verification — call City of Brainerd Community Development Department at (218) 828-2307 or visit https://www.ci.brainerd.mn.us/213/Forms] |
| Inspection Requirement | Yes, annual city inspection by rental housing inspector and fire marshall Short Term Rental Ordinance – Brainerd, MN |
| Occupancy Cap | 2 people per bedroom Short Term Rental Ordinance – Brainerd, MN |
| Local Contact Requirement | Yes, 24/7 local contact required Short Term Rental Ordinance – Brainerd, MN |
| State Sales Tax | 6.875% Airbnb Help Center |
| County Lodging Tax | 0.5% Black Pine Beach Resort |
| Local Lodging Tax | 1% Black Pine Beach Resort |
| Total Effective Lodging Tax | 1.5% (county + city lodging taxes) Black Pine Beach Resort |
| Total Tax Burden (all taxes) | 8.375% (state + county + city) Black Pine Beach Resort |
| State Hospitality Fee | $50/year per licensed lodging activity Minnesota Department of Health |
| License Cap | Not codified — no citywide cap on STR permits identified in sources reviewed Short Term Rental Ordinance – Brainerd, MN |
| Permit Transferability | Not codified — no city rule on transferability in sources reviewed Short Term Rental Ordinance – Brainerd, MN |
| Enforcement Penalties | [needs verification — no primary source found] |
| Last Updated | May 22, 2026 |
Regulatory Impact Snapshot
Brainerd’s layered licensing and inspection regime means investors must budget for both city and state compliance steps. The binding constraint is the need for an Interim Use Permit for non-owner-occupied STRs, plus annual city inspection and a Minnesota Department of Health license for stays under 7 days. Tax compliance is straightforward but multi-layered. Investors should confirm all fees and enforcement penalties directly with the city. Run this market in our Airbnb Calculator →
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Frequently Asked Questions
Basics
What is considered a short-term rental in Brainerd?
A short-term rental is any dwelling unit rented for 28 consecutive nights or less Short Term Rental Ordinance – Brainerd, MN.
Are short-term rentals legal in Brainerd?
Yes, STRs are legal with a city rental license and, for non-owner-occupied units, an Interim Use Permit Section 425 – Rental Housing Code – Brainerd, MN.
Does Brainerd have a cap on STR permits?
No citywide cap is codified for STR permits Short Term Rental Ordinance – Brainerd, MN.
Licensing
What licenses are required to operate an STR in Brainerd?
All STRs need a city rental license; non-owner-occupied units also require an Interim Use Permit Short Term Rental Ordinance – Brainerd, MN.
Do owner-occupied STRs need an Interim Use Permit?
No, owner-occupied STRs are exempt from the Interim Use Permit but must be licensed and inspected Short Term Rental Ordinance – Brainerd, MN.
Is a Minnesota Department of Health license required?
Yes, for STRs rented for less than 7 days, a state lodging license is required Short Term Rental Ordinance – Brainerd, MN.
How much does the STR permit cost?
[needs verification — call City of Brainerd Community Development Department at (218) 828-2307 or visit https://www.ci.brainerd.mn.us/213/Forms]
Taxes
What is the total tax rate on STRs in Brainerd?
The total tax burden is 8.375% (6.875% state sales tax, 0.5% county lodging tax, 1% city lodging tax) Black Pine Beach Resort.
Does Airbnb collect and remit taxes for Brainerd STRs?
Airbnb collects state sales tax and some local taxes, but hosts are responsible for any not collected by the platform Airbnb Help Center.
Is there a state hospitality fee?
Yes, $50 per year per licensed lodging activity Minnesota Department of Health.
Do I need to register for tax remittance?
If your platform does not collect all local taxes, you must register with the Minnesota Department of Revenue and remit directly Avalara MyLodgeTax.
Operations
What is the occupancy limit for STRs?
Occupancy is capped at 2 people per bedroom Short Term Rental Ordinance – Brainerd, MN.
Is a local contact required?
Yes, a 24/7 local contact must be provided to neighbors within 100 feet Short Term Rental Ordinance – Brainerd, MN.
Are annual inspections required?
Yes, all STRs must be inspected annually by the city’s rental housing inspector and fire marshall Short Term Rental Ordinance – Brainerd, MN.
Can STRs be operated in all zones?
[needs verification — no primary source found]
Enforcement
How is STR compliance enforced in Brainerd?
Enforcement is generally complaint-driven, with penalties for noncompliance Home Team Luxury Rentals.
What are the penalties for operating without a permit?
[needs verification — no primary source found]
Are there recent or pending changes to STR rules?
No recent amendments or pending legislation affecting STRs as of May 2026 Explore Brainerd Lakes.
How quickly must security deposits be returned?
Within 21 days of tenant move-out, or face double damages plus up to $500 for bad faith Minnesota Statutes Chapter 504B.
Permit Process
Brainerd requires all STRs to be licensed as rental units under the city’s Rental Housing Maintenance Code. Non-owner-occupied STRs must also obtain an Interim Use Permit from the Community Development Department. Owner-occupied STRs are exempt from the Interim Use Permit but not from licensing or inspection. STRs rented for less than 7 days require a Minnesota Department of Health lodging license. Annual inspections by the city’s rental housing inspector and fire marshall are mandatory. Permit numbers must be posted on all advertisements.
Zoning
Brainerd defines STRs as rentals of 28 nights or less. The city requires STRs to be connected to city sewer and water and to have a full bathroom. Occupancy is limited to two people per bedroom. Additional occupancy via tents, RVs, or accessory structures is prohibited. A 24/7 local contact must be provided to neighbors within 100 feet, and written disclosures must be given to renters. [For zoning district eligibility, call Planning & Zoning at (218) 828-2307.]
Taxes and Remittance
STRs in Brainerd are subject to 6.875% Minnesota state sales tax, 0.5% Crow Wing County lodging tax, and 1% city lodging tax, totaling 8.375%. A $50 annual state hospitality fee applies. Airbnb and similar platforms collect state and some local taxes, but hosts are responsible for any not collected. If platforms do not remit all taxes, hosts must register with the Minnesota Department of Revenue and remit directly.
Enforcement and Recent Actions
Brainerd’s STR enforcement is primarily complaint-driven. The city does not separately codify fine amounts for STR violations; state law provides for penalties, including double withheld security deposits and up to $500 for bad faith. No evidence of recent crackdowns or named enforcement actions was found for 2024–2026. Enforcement is handled by city authorities, with possible legal action for noncompliance.
Recent Changes and Pending Legislation
No amendments to Brainerd’s STR ordinances or new enforcement legislation were identified between 2024 and May 2026. No active or pending city or state bills affecting Brainerd STRs were found as of May 2026. The regulatory environment is stable, with no major changes anticipated in the near term.
Comparable Markets
- Baxter, MN: Consider if you want a neighboring city with its own STR rules.
- Nisswa, MN: Consider for lakeside STRs with distinct local regulations.
- Pequot Lakes, MN: Consider for a similar lakes region market north of Brainerd.
Sources
- Brainerd City Code Section 425 – Rental Housing Code: https://www.ci.brainerd.mn.us/DocumentCenter/View/89/Section-425—Rental-Housing-Code-PDF
- Short Term Rental Ordinance – Brainerd, MN: https://www.ci.brainerd.mn.us/DocumentCenter/View/4244/Short-Term-Rental-Procedure-PDF
- Forms | Brainerd, MN: https://www.ci.brainerd.mn.us/213/Forms
- Minnesota Department of Health: https://www.health.state.mn.us/communities/environment/food/license/hospfee.html
- Minnesota House Research Department – State Preemption of Local Law: https://www.house.mn.gov/hrd/pubs/ss/ssprempll.pdf
- Minnesota Statutes Chapter 504B: https://www.revisor.mn.gov/statutes/cite/504B
- Minnesota House of Representatives (Bill Tracker): https://www.revisor.mn.gov/bills/94/2026/0/HF/4593/versions/0/pdf/
- Crow Wing County, MN – Official Website: https://www.crowwing.gov/
- Explore Brainerd Lakes (Official Tourism Site): https://explorebrainerdlakes.com/lodging-availability-where-to-stay-in-the-brainerd-lakes-area/
- Airbnb Help Center: https://www.airbnb.com/help/article/2311
- Avalara MyLodgeTax: https://www.avalara.com/mylodgetax/en/resources/vacation-rental-tax-guides/minnesota.html
- Black Pine Beach Resort: https://www.blackpinebeach.com/accommodations-rates/
- Home Team Luxury Rentals (Minnesota Short Term Rental Regulations): https://hometeamluxuryrentals.com/blog/minnesota-short-term-rental-regulations
This page is research, not legal advice. Consult local counsel before acquiring or operating a short-term rental in City of Brainerd, Crow Wing County, Minnesota.
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