Alexandria's 127-listing lake country market averages 70% occupancy in peak summer with top-quartile properties earning over $13,900 per month.
Market Overview
Alexandria, Minnesota sits at the center of a lake-dense corridor in west-central Minnesota, drawing roughly 400,000 visitors annually to a city of about 14,900 residents. The short-term rental market here is driven almost entirely by seasonal lake demand, and the data reflects that with sharp clarity.
As of February 2026, there are 127 active STR listings in the market. That number has grown significantly from 57 listings in 2021, a 123% increase in just four years. Supply growth has been the defining story of this market: more operators have entered, competing for the same peak-summer window.
The average daily rate stood at $364.90 in February 2026, reflecting the off-peak period. Over the full 2025 calendar year, ADR averaged $404, up from $262 in 2021, a 54% increase. Operators have successfully pushed rates higher even as supply grew.
Overall occupancy, however, has compressed. Market-wide average occupancy was 58.6% in 2021 and fell to 36.8% in 2025 as new listings absorbed available demand. This is a normal pattern in maturing STR markets, and it does not signal declining visitor interest. It signals a more competitive field where property quality, positioning, and pricing discipline matter more than they did in the pandemic-era boom.
The RevPAR figure for February 2026 was $71.90, with a median of $55.60. In peak summer (July 2025), RevPAR reached $331.60, with a median of $249.90. The gap between average and median reveals that a subset of high-performing properties pulls the average up considerably.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue | Active Listings |
|---|---|---|---|---|
| Jan | 29% | $311 | $2,621 | 94 |
| Feb | 30% | $296 | $2,419 | 95 |
| Mar | 33% | $278 | $3,156 | 79 |
| Apr | 34% | $277 | $3,091 | 80 |
| May | 47% | $331 | $4,727 | 78 |
| Jun | 65% | $384 | $7,651 | 84 |
| Jul | 70% | $393 | $9,377 | 95 |
| Aug | 66% | $365 | $7,847 | 94 |
| Sep | 51% | $342 | $4,803 | 93 |
| Oct | 43% | $303 | $3,889 | 91 |
| Nov | 31% | $298 | $2,814 | 92 |
| Dec | 32% | $330 | $3,351 | 94 |
Alexandria’s STR market follows one of the more pronounced seasonal curves in the Upper Midwest. The data across all available months tells a clear story: the market lives and dies by summer lake season.
July is the peak month by every measure. Average occupancy reaches 70%, ADR averages $393, and average monthly revenue hits $9,377. June is the second-strongest month at 64.6% occupancy, $384 ADR, and $7,651 in revenue. August follows at 66.4% occupancy, $365 ADR, and $7,847 in revenue. These three months account for the bulk of annual income for most operators.
May and September form a viable shoulder season. May averages 47% occupancy and $331 ADR ($4,727 revenue). September averages 51% occupancy and $342 ADR ($4,803 revenue). October holds up reasonably well at 43.2% occupancy, likely supported by fall foliage visitors and hunting season demand, generating average monthly revenue of $3,889.
The winter months are the clear soft floor. January and February sit at roughly 29% and 30% occupancy respectively, with average monthly revenues of $2,621 and $2,419. March and April are similarly slow at 33% and 34.2% occupancy. December shows a slight uptick to 32% occupancy and $330 ADR ($3,351 revenue), likely from holiday travel.
The occupancy swing from trough to peak is about 40 percentage points: from roughly 29% in January to 70% in July. ADR swings are smaller in percentage terms but still meaningful: from $277 in April to $393 in July. Operators who price dynamically and push ADR hard in June and July, while staying competitive in May, September, and October, tend to outperform the market averages shown here.
Revenue Breakdown
| Metric | 25th Pctile | Median | 75th Pctile | 90th Pctile |
|---|---|---|---|---|
| Revenue/mo | $628 | $1,556 | $2,654 | $4,344 |
| ADR | $181 | $335 | $452 | $628 |
| Occupancy | 11% | 17% | 25% | 32% |
Revenue in the Alexandria market is distributed unevenly, and the percentile data reveals what separates strong performers from average ones.
In February 2026 (deep off-season), the 25th percentile property earned $628, the median earned $1,556, and the 75th percentile earned $2,654. The 90th percentile reached $4,344, suggesting a small group of properties actively markets year-round and attracts winter getaway bookings.
In July 2025 (peak summer), the spread widens sharply. The 25th percentile earned $4,508. The median property earned $7,748. The 75th percentile earned $13,959. The 90th percentile earned $25,727. That means the top 10% of Alexandria STR properties earned more than three times the median in a single month.
Annualizing from the monthly seasonal averages: a median-performing property earns roughly $4,000 to $4,500 per month across the year, or approximately $48,000 to $55,000 gross annually. A top-quartile property earning near the p75 revenue level each month would gross closer to $80,000 to $90,000. The gap is substantial and reflects differences in property size, lake access, amenities, listing quality, and pricing strategy.
The ADR percentile spread is also instructive. In July 2025, the 25th percentile ADR was $255, while the 90th percentile ADR was $936. Operators at the top of the rate distribution are not necessarily achieving higher occupancy; they are commanding premium rates for premium properties.
Investment Analysis
Revenue Trend
RevPAR & ADR Trend
| Date | Revenue | RevPAR | ADR |
|---|---|---|---|
| Mar 2021 | $5,310 | $171 | $240 |
| Apr 2021 | $4,947 | $165 | $241 |
| May 2021 | $5,897 | $190 | $263 |
| Jun 2021 | $7,809 | $260 | $297 |
| Jul 2021 | $8,910 | $287 | $306 |
| Aug 2021 | $7,937 | $256 | $282 |
| Sep 2021 | $5,790 | $193 | $277 |
| Oct 2021 | $4,476 | $144 | $254 |
| Nov 2021 | $3,256 | $109 | $219 |
| Dec 2021 | $3,472 | $112 | $240 |
| Jan 2022 | $3,290 | $106 | $248 |
| Feb 2022 | $3,034 | $108 | $242 |
| Mar 2022 | $3,043 | $98 | $247 |
| Apr 2022 | $3,145 | $105 | $267 |
| May 2022 | $5,136 | $166 | $312 |
| Jun 2022 | $8,413 | $280 | $344 |
| Jul 2022 | $9,544 | $308 | $362 |
| Aug 2022 | $8,005 | $258 | $327 |
| Sep 2022 | $5,788 | $193 | $314 |
| Oct 2022 | $4,919 | $159 | $282 |
| Nov 2022 | $3,998 | $133 | $286 |
| Dec 2022 | $4,237 | $137 | $288 |
| Jan 2023 | $2,544 | $82 | $257 |
| Feb 2023 | $2,770 | $99 | $256 |
| Mar 2023 | $2,609 | $84 | $260 |
| Apr 2023 | $2,687 | $90 | $277 |
| May 2023 | $4,628 | $149 | $319 |
| Jun 2023 | $7,258 | $242 | $358 |
| Jul 2023 | $9,376 | $303 | $390 |
| Aug 2023 | $6,830 | $220 | $335 |
| Sep 2023 | $4,289 | $143 | $343 |
| Oct 2023 | $3,163 | $102 | $267 |
| Nov 2023 | $1,901 | $63 | $284 |
| Dec 2023 | $2,800 | $90 | $313 |
| Jan 2024 | $2,769 | $89 | $326 |
| Feb 2024 | $2,237 | $77 | $283 |
| Mar 2024 | $1,892 | $61 | $290 |
| Apr 2024 | $1,939 | $65 | $241 |
| May 2024 | $3,829 | $124 | $344 |
| Jun 2024 | $6,942 | $231 | $424 |
| Jul 2024 | $8,777 | $283 | $432 |
| Aug 2024 | $7,693 | $248 | $419 |
| Sep 2024 | $3,819 | $127 | $373 |
| Oct 2024 | $2,869 | $93 | $332 |
| Nov 2024 | $2,251 | $75 | $328 |
| Dec 2024 | $3,098 | $100 | $354 |
| Jan 2025 | $2,078 | $67 | $336 |
| Feb 2025 | $2,042 | $73 | $337 |
| Mar 2025 | $2,925 | $94 | $356 |
| Apr 2025 | $2,739 | $91 | $359 |
| May 2025 | $4,144 | $134 | $418 |
| Jun 2025 | $7,835 | $261 | $496 |
| Jul 2025 | $10,279 | $332 | $476 |
| Aug 2025 | $8,771 | $283 | $461 |
| Sep 2025 | $4,328 | $144 | $405 |
| Oct 2025 | $4,017 | $130 | $383 |
| Nov 2025 | $2,665 | $89 | $372 |
| Dec 2025 | $3,148 | $102 | $453 |
| Jan 2026 | $2,423 | $78 | $389 |
| Feb 2026 | $2,013 | $72 | $365 |
Occupancy vs Supply
| Date | Occupancy | Active Listings |
|---|---|---|
| Mar 2021 | 44% | 49 |
| Jun 2021 | 76% | 58 |
| Sep 2021 | 68% | 58 |
| Dec 2021 | 42% | 59 |
| Mar 2022 | 40% | 59 |
| Jun 2022 | 74% | 78 |
| Sep 2022 | 59% | 80 |
| Dec 2022 | 40% | 80 |
| Mar 2023 | 31% | 80 |
| Jun 2023 | 65% | 80 |
| Sep 2023 | 48% | 78 |
| Dec 2023 | 28% | 75 |
| Mar 2024 | 22% | 74 |
| Jun 2024 | 54% | 64 |
| Sep 2024 | 39% | 120 |
| Dec 2024 | 28% | 129 |
| Mar 2025 | 28% | 134 |
| Jun 2025 | 54% | 139 |
| Sep 2025 | 41% | 130 |
| Dec 2025 | 22% | 126 |
Alexandria presents a classic seasonal-market investment profile: low winter floors and strong summer ceilings, with overall returns depending heavily on the property’s competitive position within the market.
The typical home value in Alexandria is $285,117, providing a relatively accessible entry point compared to many resort markets. At that price point, an investor targeting the median revenue trajectory would be underwriting roughly $40,000 to $55,000 in annual gross revenue based on recent 12-month data, before platform fees, operating costs, and management.
The revenue spread across the market is wide. In July 2025, the strongest month on record in the dataset, the 25th percentile property earned $4,508 while the 90th percentile earned $25,727. The median was $7,748. That gap is large enough that property selection and quality tier matter as much as market selection itself.
Looking at annual revenue trends, the average revenue per active listing was $5,780 in 2021 (with only 57 listings) and shifted to $4,581 in 2025 (with 132 listings). The per-listing revenue compression of roughly 21% over four years reflects supply growth outpacing total demand expansion.
For a new entrant today, the realistic underwriting scenario at the median occupancy and ADR levels points to annual gross revenue in the $38,000 to $50,000 range for a well-positioned property. Properties in the top quartile, based on July 2025 p75 revenue of $13,959 per month, can push annual gross above $80,000 to $100,000, but those properties are outliers with premium lake access, higher bedroom counts, or strong repeat-guest bases.
Key risk factors: the market has 127 listings competing for a peak window of roughly 60 to 90 days (June through August). Off-peak revenue is real but modest. January 2026 saw a market average of $2,423 in monthly revenue. Investors who cannot sustain carrying costs through a six-month soft season should model conservatively.
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| Date | Typical Home Value |
|---|---|
| Mar 2021 | $212,536 |
| Dec 2021 | $234,967 |
| Sep 2022 | $252,002 |
| Jun 2023 | $256,370 |
| Mar 2024 | $264,221 |
| Dec 2024 | $273,605 |
| Sep 2025 | $281,038 |
Booking Insights
Booking behavior in Alexandria shifts dramatically between seasons, and understanding those patterns directly informs pricing and availability strategy.
In February 2026, the average booking lead time was 36 days and the median was 23 days. That means off-season guests typically book within three to four weeks of arrival. Average length of stay in February was 7.9 days, with a median of just 2 days, reflecting a split between extended winter retreats and short weekend getaways.
In July 2025, the patterns reverse sharply. Average lead time was 141 days and median was 129 days, meaning peak-summer guests book roughly four to five months in advance. Average length of stay in July was 5.6 days with a median of 4 days, reflecting the weekly or long-weekend structure of summer lake vacations.
The strategic implication is clear: operators who leave peak-summer availability open or hold back pricing until June are leaving money on the table. The data shows the market books out well before the season starts. Opening July and August availability with firm rates by February or March, and applying dynamic pricing to capture last-minute premiums for any remaining gaps, is the approach that matches how this market actually behaves.
For the shoulder season (May, September, October), lead times of 45 to 95 days are typical. This window rewards operators who actively market to outdoor recreation and fall foliage visitors rather than waiting passively for bookings to arrive.
Short-Term Rental Regulations
Alexandria adopted a formal short-term rental regulatory framework in August 2023, making it the last jurisdiction in the immediate region to do so. The regulations were developed over two years through a Short-Term Rental Task Force established in 2021, reflecting a deliberate and community-driven process.
The key threshold: property owners who rent for more than 10 days per year must obtain a short-term rental permit and a business license from the City of Alexandria. Rentals under 10 days annually are not subject to the permitting requirement, though tax obligations may still apply.
Permit requirements include neighbor notification before establishing a new STR operation. Operators must provide guests with a good neighbor guide covering community rules and must post waste disposal instructions. The regulations emphasize ongoing compliance with noise and neighbor relations standards; confirmed noise violations count toward permit revocation.
Safety standards are explicit. Required items include smoke detectors on each level and in all sleeping areas, carbon monoxide detectors near fuel-burning appliances and sleeping areas, and a fire extinguisher on the premises. Properties must also comply with occupancy and parking requirements set by the city zoning ordinance.
On the tax side, operators must collect and remit a 3% state lodging tax on rental income. Minnesota also imposes state sales tax on short-term rentals (stays under 30 days), which platforms like Airbnb and Vrbo typically remit on behalf of hosts. Operators should confirm with a tax advisor whether additional county or local lodging taxes apply.
The municipal code reference is the City of Alexandria ordinance accessible through the Minnesota Law Library at mn.gov/law-library. For most investors operating through established platforms, compliance with the permitting and safety requirements is straightforward. The main operational risk is noise complaints, which the city treats seriously under the current framework.
Market Comparison
Alexandria sits in a segment of the STR market that can be described as regional lake resort: high seasonality, mid-range ADR, and growing supply. Comparing it against broader benchmarks puts the market’s performance in context.
The U.S. national average STR occupancy rate has generally ranged from 48% to 55% across recent years. Alexandria’s 2025 annual average of 36.8% is below that benchmark, but the comparison is somewhat misleading for a market where 60 to 90 days drive most of the economic activity. Peak-month occupancy of 70% in July exceeds national averages for that period.
Alexandria’s 2025 average ADR of $404 places it in the middle tier of regional lake markets in the Upper Midwest. It is above many smaller rural Minnesota markets but below high-demand destinations like Lutsen, Lake Minnetonka-area properties, or Wisconsin Dells-adjacent markets, which regularly see summer ADRs above $500.
The typical home value of $285,117 produces a gross rent multiplier that is competitive with similar lake markets where property prices have escalated further. Markets like Northern Wisconsin lake towns or the Boundary Waters corridor have seen property prices rise faster than Alexandria’s, compressing potential returns for new buyers. Alexandria’s price-to-revenue ratio currently offers more room for reasonable returns at entry.
Supply growth, at 123% from 2021 to 2025, is faster than most comparable Midwestern lake markets but consistent with patterns seen nationally as operators entered the STR space during 2021 to 2023. The market appears to be stabilizing, with listing counts holding near 127 to 134 through late 2025 and into early 2026.
Frequently Asked Questions About Alexandria, Minnesota
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