Annandale, Minnesota Short-Term Rental Market
Annandale, MN STRs averaged $184/night at 43.9% occupancy in April 2026, with July peak occupancy reaching 71.5% across a lake-driven market.
Quick Answer: Annandale, 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
The Annandale, MN short-term rental market is centered on lake access in Wright County, approximately 50 miles northwest of Minneapolis. In April 2026, the most recent data month, the market recorded an average daily rate of $184 and occupancy of 43.9%, a figure typical of the shoulder season for this lake-destination market. RevPAR stood at $81 in that month.
Listing inventory is dominated by entire-place rentals, which account for 9,675 of 10,408 listing-type records (92.9%), with private rooms making up 727 (7.0%) and shared rooms just 6. By bedroom count, 2-bedroom units represent the largest segment at 3,013 listings (approximately 29% of the bedroom mix), followed by 1-bedroom at 2,551 and 3-bedroom at 2,537. Larger properties are well represented: 4-bedroom units total 1,420 and 5-bedroom units reach 876, reflecting the lake-cabin profile of the market.
On a year-over-year basis, occupancy rose 2.71 percentage points from the prior April, while ADR increased 6.16%. Monthly revenue in April 2026 was $2,119 per active listing on average, though that figure declined 3.27% from the same month a year earlier, indicating that higher rates have not fully offset softer volume. The market’s overall investability score of 88.6 out of 100 and revenue growth score of 80.6 reflect sustained operator interest despite moderate near-term revenue softness.
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 Annandale
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 Annandale?
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
At a Zillow typical home value of $407,727 for the Annandale area, an investor buying at that price and generating $2,119 in monthly STR revenue would see a pre-expense gross yield of approximately 6.2% ($25,424 annualized divided by $407,727). Listings in the median list price range of $530,533 would produce a lower gross yield closer to 4.8%, though lake-adjacent properties often command premium nightly rates that shift this calculation.
The tier spread supports active management. The all-listings average ADR was $184 in April 2026, while entire-home listings averaged $196, professionally managed listings averaged $222, and luxury-tier listings reached $376. The $38 gap between all-listings and professionally managed rates suggests that professional management or deliberate positioning can lift yield materially.
Annual averages show a clear trend: occupancy peaked at 60.5% in 2021 and has declined to 50.0% for full-year 2025, while ADR climbed from $202 in 2021 to $241 in 2025, partially offsetting occupancy softness. The full-year 2025 average monthly revenue across all active listings was $3,335. The investability score of 88.6 is the market’s strongest dimension, indicating that the underlying economic case remains solid even as occupancy normalizes from post-pandemic highs.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
In April 2026, Annandale guests booked 43.2 days in advance on average and stayed 3.95 nights per booking. The 43-day lead time is consistent with a market where guests are planning seasonal lake trips: a week out from the Fourth of July weekend, most desirable properties are already reserved. Operators should price peak-season dates (June through August) aggressively 60 to 90 days before arrival, as last-minute availability in those windows typically signals underpriced inventory.
The 3.95-night average stay is just under the 4-night mark and reflects a mix of weekend getaways (2 to 3 nights) and full-week lake stays (7 nights). Owners who impose 3-night minimums during peak season protect against single-night turnovers without significantly compressing demand. A 2-night minimum in shoulder months (May, September, October) can improve calendar fill without sacrificing the rate premium available during those periods.
Short-Term Rental Regulations
Annandale, MN does not require a short-term rental permit as of May 2026. STRs are permitted under the city’s existing zoning framework without a dedicated STR ordinance or registration program. Neither owner-occupancy nor primary-residence requirements apply.
The primary compliance obligation is tax collection. Minnesota’s state sales tax of 6.875% applies to all rentals under 30 consecutive days. Wright County adds an additional 0.5% transit sales and use tax, bringing the minimum combined rate to approximately 7.375%. The data records a combined occupancy tax rate of 6.88% for this jurisdiction. Operators using Airbnb or Vrbo have state taxes collected and remitted automatically by those platforms. Hosts who accept direct bookings must register with the Minnesota Department of Revenue for a Tax ID and handle remittance independently.
No city lodging tax specific to Annandale has been identified. No restrictions on maximum rental nights per year, no mandatory inspections, and no license fees have been documented. Enforcement severity is classified as minimal. Wright County’s most recent ordinance update was Ordinance 24-8 (December 2024), which was not confirmed to address STRs. Investors should confirm current requirements directly with the City of Annandale Planning and Zoning at 320-274-3055 before operating, as local ordinances can be adopted or amended without prior public notice.
Market Comparison
Annandale’s April 2026 occupancy of 43.9% sits below the US STR median of approximately 55%, which is expected for a shoulder-season snapshot in a lake market with pronounced summer concentration. The July peak of 71.5% is well above national median, confirming strong seasonal demand. April ADR of $184 is below the national median of approximately $220, though the market’s luxury tier reaches $376.
The market’s total score of 71.3 out of 100, with investability at 88.6 and revenue growth at 80.6, places it in a favorable tier among Midwest lake markets. Regulation and seasonality scores (57.9 and 58.4 respectively) reflect the market’s known risks: no regulatory moat against new supply, and wide seasonal swings that concentrate revenue into three months.
Professionally managed inventory is concentrated among a few operators. Evolve leads with 337 listings and 13,110 reviews at a 4.77 average rating. Cascade Vacation Rentals holds 182 listings with 3,861 reviews at 4.76. Heirloom manages 112 listings with 7,458 reviews at 4.82, the highest rating among the top five. Together, the top three operators account for 631 listings. Sota Lake Home Rentals (61 listings, 4.50 rating) and Woods To Water Vacation Homes (48 listings, 4.95 rating) round out the top five with strong local presence.
Frequently Asked Questions About Annandale, Minnesota
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