Minneapolis Short-Term Rentals: 2025 Investment Insights
Home to vibrant neighborhoods and the renowned Walker Art Center, Minneapolis short-term rentals remain a hot topic for real estate investors. Whether you’re considering vacation rentals in Minneapolis for passive income or exploring STR investing in Minneapolis as part of your portfolio, understanding market trends and local advantages is essential.
Quick Takeaways:
- Over 2,300 active STR listings with strong Downtown and Uptown concentrations
- Average Daily Rate (ADR) hovers around $196/night, peaking in summer
- Occupancy rates average 68% in high season, dip to 51% in winter
- YOY revenue up 9% in neighborhoods near U.S. Bank Stadium
- Flexible cancellation policies drive most bookings
- Focus on walkability, local partnerships, and unique interiors for stronger ROI
Minneapolis Market Pulse
Minneapolis has emerged as a Midwest hotspot for STR growth, fueled by a thriving arts scene, major sports venues, and an active calendar of festivals like the Minnesota Fringe Festival. Investors are seeing increased demand thanks to the city’s mix of business and leisure travel, especially with ongoing events at the Minneapolis Institute of Art. With the city welcoming a record number of annual visitors, well-managed vacation rentals in Minneapolis offer potential for competitive returns.
Neighborhood Performance & Guest Trends
The highest-performing areas for Minneapolis short-term rentals are Downtown and Uptown, known for nightlife and proximity to the Mississippi River. Across these neighborhoods, the average nightly rate is near $196, with occupancy spikes during local sports games and summer festivals. Unique interiors and neighborhood partnerships set top listings apart, often leading to higher guest satisfaction and repeat bookings for savvy STR investing in Minneapolis.
Revenue Drivers & Seasonal Dynamics
Winter months see occupancies drop, but savvy investors pivot with flexible minimum stays and event-targeted pricing. Properties near major venues like U.S. Bank Stadium showed a 9% year-over-year revenue bump as concert and sports guests booked in droves. Listings with flexible cancellation options are notably more appealing to last-minute bookers seeking convenience and assurance.
StaySTRa Analyzer
If you’re evaluating a specific property or narrowing your investment focus, the StaySTRa Analyzer lets you plug in an address and see actual STR performance data. It’s free to use and built for investors.
Maximizing Your STR Investment
To capture market share and maximize ROI, focus on walkable locations, collaborate with local businesses, and design unique guest experiences. Data-driven rental rates and optimized seasonal pricing ensure consistent bookings across the calendar. For sample local STRs, browse live listings on Airbnb to understand current trends.
Conclusion
Minneapolis short-term rentals offer outstanding opportunities for investors who monitor seasonality, local attractions, and guest preferences. Pair strategy with the right tools, and you’ll unlock the city’s full STR potential.
