Fairmont, Minnesota Short-Term Rental Market
Fairmont, MN STRs averaged $184/night at 43.9% occupancy in April 2026, with ADR up 6.2% year-over-year.
Quick Answer: Fairmont, Minnesota is an active short-term rental market. average occupancy is 44%. average monthly revenue is $2,119. average daily rate is $184. the top operator is Evolve with 337 listings. market score is 71/100 (grade B).
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
Fairmont is a small lakeside city of 10,176 residents in Martin County, southern Minnesota, marketed as the City of Lakes for its interconnected chain of five lakes: George, Sisseton, Budd, Hall, and Amber. The STR market draws regional visitors for boating, fishing, kayaking, and water sports, as well as I-90 corridor travelers and outdoor recreation enthusiasts.
In April 2026, the average daily rate was $184 at 43.9% occupancy, producing RevPAR of $80.99. Year-over-year in April 2026, occupancy rose 2.71 percentage points and ADR increased 6.16%. Per-listing revenue for April 2026 came in at $2,119, which the data reports as 3.27% below the prior April; the combination of rising occupancy and ADR alongside lower reported revenue likely reflects a change in the mix or count of active listings in the comparison period.
The market is nearly entirely entire-place: 9,675 of approximately 10,408 tracked listings are entire-place units, with 727 private rooms and 6 shared rooms. Bedroom distribution is balanced across 2-bedroom (3,013), 1-bedroom (2,551), and 3-bedroom (2,537) units, with fewer 4-bedroom (1,420) and 5-bedroom (876) units. Channel distribution is relatively balanced: 4,753 listings appear on both Airbnb and VRBO, 4,169 are Airbnb-only, and 1,486 are VRBO-only.
Market scores: total 71.3, investability 88.6, revenue growth 80.6, rental demand 69.6, seasonality 58.4, regulation 57.9.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 40% | $180 | $2,076 |
| Feb | 45% | $181 | $2,063 |
| Mar | 46% | $171 | $2,213 |
| Apr | 47% | $158 | $1,915 |
| May | 55% | $190 | $2,257 |
| Jun | 66% | $247 | $3,902 |
| Jul | 71% | $255 | $4,769 |
| Aug | 66% | $251 | $4,457 |
| Sep | 50% | $214 | $2,966 |
| Oct | 50% | $196 | $2,740 |
| Nov | 41% | $164 | $1,983 |
| Dec | 47% | $180 | $2,161 |
Top Short-Term Rental Operators in Fairmont
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Evolve | 337 | 13,110 | ★ 4.77 |
| 2 | Cascade Vacation Rentals | 182 | 3,861 | ★ 4.76 |
| 3 | Heirloom | 112 | 7,458 | ★ 4.82 |
| 4 | Sota Lake Home Rentals | 61 | 1,310 | ★ 4.50 |
| 5 | Woods To Water Vacation Homes | 48 | 939 | ★ 4.95 |
What Kind of STR Should I Buy in Fairmont?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 2,551 |
| 2 bed | 3,013 |
| 3 bed | 2,537 |
| 4 bed | 1,420 |
| 5 bed | 876 |
ADR by Property Tier
| Entire Home | $196 |
| Luxury | $376 |
| Professionally Managed | $222 |
Revenue by Dwelling Type
| Apartment | $1,923 |
| Entire Place | $2,228 |
| House | $2,221 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 40.1% |
| vrbo | 14.3% |
| both | 45.7% |
Investment Analysis
Fairmont’s investment case rests on low entry cost combined with a clear summer demand peak. The typical home value is $173,295 (Zillow, April 2026), with a median list price of $226,450 and only 51 properties for sale, indicating a thin market. At April 2026’s average monthly revenue of $2,119, annualized revenue would be approximately $25,424 at current average performance, implying a gross revenue yield of roughly 14.7% relative to typical home value before expenses.
Tier differentiation in April 2026: entire-home listings average $196/night versus $184 for the all-listings average, $222 for professionally managed properties, and $376 for luxury-tier listings. The luxury premium of $192 over the market average ADR is the largest proportional spread in this batch, suggesting that high-specification lakefront properties can command more than double the market-wide rate.
Revenue by type in April: entire-place listings average $2,228 per month, houses average $2,221, and apartments average $1,923. The house and entire-place figures are essentially at parity, both outperforming apartments by roughly $300 per month.
The 2025 annual average ADR was $241 at 50.0% occupancy, producing $3,335 per listing per month, considerably higher than the April 2026 snapshot. The market peaked by annual revenue in 2021 ($3,229) and has been relatively stable at $3,000 to $3,335 since then. ADR has grown every year from $170 in 2017 to $241 in 2025, a meaningful 42% increase over eight years, while occupancy has declined from its 2020-2021 peak of 58 to 60% back toward the long-run range of 50%.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
The average booking lead time in Fairmont is 43.2 days, approximately 6 weeks. This is consistent with a regional lake market where guests plan summer trips in advance but not as far ahead as destination coastal vacation markets. The 6-week window gives operators time to price-optimize before arrival, with most summer bookings coming in during the April-May planning window for June-July stays.
Average length of stay is 4.0 nights, consistent with long-weekend and mid-week lake vacation patterns. At 43.9% April occupancy and a 4-night average, operators can expect approximately 3 to 4 booking events per month in slow periods and 5 to 6 in peak summer months. A 3-night minimum stay policy aligns with guest behavior and reduces single-night turnovers that increase cleaning costs relative to revenue.
The July and August peak at 66 to 71% occupancy is strong enough that operators can enforce weekly minimums (7 nights) during peak summer weekends to maximize revenue per calendar slot, particularly for larger lakefront properties where a single week at premium ADR equals two to three off-season bookings.
Short-Term Rental Regulations
Fairmont has no short-term-rental-specific ordinance. STRs are permitted and operate under the city’s general Rental Housing Ordinance, which applies the same licensing and inspection framework to all residential rentals regardless of length of stay.
Operators must register each rental unit and pay a registration fee of $5 per unit (capped at $100 per rental complex), and pass a city inspection before renting. Inspections recur every three years, with inspection fees of approximately $40 per unit for 1 to 4 unit buildings. A copy of the license must be posted inside the kitchen sink cabinet. There is no maximum nights per year, no owner-occupancy requirement, and no primary-residence requirement.
Lodging rented for 30 days or less is subject to a local lodging tax. The area profile reports this at 3%; the Minnesota Department of Revenue sales-tax chart listed a 2% local lodging rate for Fairmont, so operators should confirm the current applicable rate with the city before operating. State and local Minnesota sales taxes also apply to short-term lodging receipts.
Enforcement is complaint-driven, with the city investigating complaints within 48 hours. No recent ordinance changes were identified. Investors should contact Fairmont Community Development at 507-238-3933 to confirm current zoning conformance, license fees, and the applicable lodging tax rate before listing.
Market Comparison
At $184 ADR and 43.9% occupancy in April 2026, Fairmont sits below the US STR median occupancy of approximately 55% and is in line with the national median ADR of roughly $220 on an annual-average basis (the 2025 annual ADR was $241). The market’s RevPAR of $80.99 reflects its off-peak April reading; the summer months push monthly revenue well above the April baseline.
The total market score of 71.3 reflects the market’s strengths and limits. Investability scores 88.6, driven by the low entry cost and favorable gross yield potential. Revenue growth scores 80.6, consistent with the 42% ADR increase from 2017 to 2025. The lower rental demand score of 69.6 and the seasonality score of 58.4 reflect the seasonal concentration and limited year-round demand base.
Professional management is present but not dominant. Evolve leads with 337 listings, followed by Cascade Vacation Rentals (182 listings) and Heirloom (112 listings). Sota Lake Home Rentals (61 listings) and Woods To Water Vacation Homes (48 listings) represent local operators with lake-specific specialization. The top five operators hold 740 combined listings, a meaningful share of the market but not the overwhelming concentration seen in some coastal markets. Local operators with lake-area knowledge compete effectively alongside national platforms here.
Frequently Asked Questions About Fairmont, Minnesota
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