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  3. Minnesota
  4. Detroit Lakes

Detroit Lakes, Minnesota

Short-Term Rental Market Data & Investment Analysis

Detroit Lakes, Minnesota Short-Term Rental Market

Detroit Lakes STRs averaged $184/night at 43.9% occupancy in April 2026, anchored by WE Fest and 400-plus lakes in Minnesota's Lake Country.

Quick Answer: Detroit Lakes, Minnesota is an active short-term rental market. average occupancy in the Minnesota Area market area is 63%. average monthly revenue in the Minnesota Area market area is $5,579. average daily rate in the Minnesota Area market area is $320. the top operator in the Minnesota Area market area is Evolve with 339 listings. market score is 72/100 (grade B).

Avg Monthly Revenue
$5,579
↑ 0.6% YoY
63%
Occupancy
↓ 2.6% YoY
$320
Avg Daily Rate
↑ 3.2% YoY
87.8 days avg lead time4 avg length of stay

Market data reflects the Minnesota Area regional market, which includes Detroit Lakes. Regulations, taxes, and permit details below are specific to Detroit Lakes.

Market Score Breakdown

Five dimensions StaySTRA evaluates per market.

Regulation59
Seasonality58
Investability89
Rental Demand70
Revenue Growth80

Market Overview

The Detroit Lakes short-term rental market covers Becker County’s lake district in northwestern Minnesota, with approximately 10,421 active listings serving a summer recreation destination best known for WE Fest, lake country outdoor recreation, and the area’s 400-plus lakes within 25 miles of the city. As of April 2026, operators averaged $184.45 per night at 43.9% occupancy, producing a RevPAR of $80.89.

Entire-place rentals account for 9,688 of 10,421 total listings (93%), with private rooms adding 727 units. Two-bedroom units are the most common at 3,011 listings, followed by one-bedrooms (2,555), three-bedrooms (2,548), four-bedrooms (1,420), and five-plus bedrooms (875). The larger bedroom mix compared to urban markets reflects the lake cabin and cottage-style inventory typical of Minnesota lake country. Both Airbnb (4,166 Airbnb-only listings) and VRBO (1,487 VRBO-only) are active, with 4,768 listings appearing on both platforms.

Year-over-year performance in April 2026 shows occupancy up 2.6 percentage points and ADR up 6.2%, though the revenue YoY figure registers -3.3% for the specific April comparison month, reflecting underlying seasonal variation in the comparison base. The investability score of 88.58 is strong, while the seasonality score of 58.37 reflects the pronounced summer-winter demand swing. The total market score is 72.14.

Seasonal Patterns

Monthly seasonal data for Detroit Lakes, Minnesota
MonthOccupancy
Jan40%
Feb45%
Mar46%
Apr46%
May54%
Jun66%
Jul71%
Aug66%
Sep50%
Oct50%
Nov41%
Dec47%

Month-by-month nightly rates and revenue figures for Detroit Lakes are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.

Top Short-Term Rental Operators in Minnesota Area market area

Ranked by total active listings. Useful for understanding the competitive landscape. Operator data is published for the Minnesota Area market as a whole, which includes Detroit Lakes, so these counts are not Detroit Lakes-only figures.

#OperatorListingsReviewsRating
1Evolve33913,153★ 4.77
2Cascade Vacation Rentals1823,864★ 4.76
3Heirloom1117,480★ 4.82
4Sota Lake Home Rentals611,311★ 4.50
5Woods To Water Vacation Homes48942★ 4.95

What Kind of STR Should I Buy in Detroit Lakes?

Revenue and nightly-rate breakdowns by bedroom count, property tier, and dwelling type for Detroit Lakes are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.

Booking Channel Mix

Distribution of bookings across major STR platforms.

Channel mix
ChannelShare
airbnb40%
vrbo14.3%
both45.8%

Investment Analysis

The full investment analysis for Detroit Lakes — gross-yield math against current home values, plus 5-year monthly revenue, nightly-rate, and occupancy trend charts — is available to StaySTRA Pro members and updates monthly. The figures shown elsewhere on this page are the free market snapshot.

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Home Value Trends (Detroit Lakes)

Typical home values, median sale prices, and the 10-year price trend for Detroit Lakes are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.

Booking Insights

Booking-window and length-of-stay analysis for Detroit Lakes — how far ahead guests book and how to price around it — is available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.

Short-Term Rental Regulations

Detroit Lakes regulates short-term rentals under Ordinance No. 501 (City Code Section 616), which took effect with licensing beginning in 2023. Every STR operator must obtain an annual Short-Term Rental License from the city, at a fee of $350 (set for 2023; subsequent fees set by Council resolution), with all licenses expiring December 31.

The city imposes a total license cap of 100 STR licenses per calendar year. This hard cap means operators need to apply promptly each year, and new market entrants may encounter a waitlist if the cap is reached. The ordinance defines three license categories: Hosted (owner present during stays), Un-hosted (owner’s primary residence but owner absent), and Dedicated (not the owner’s primary residence). There is no owner-occupancy or primary-residence requirement, so investor-owned dedicated rentals are explicitly permitted.

Zoning matters significantly. STRs are permitted by right in commercially zoned areas. In residential districts, STRs require a Conditional Use Permit, which triggers a public hearing with notice to adjacent property owners. This adds time and discretionary risk for residential-zone operators.

Each rental must designate a property manager living within 30 miles of the city. Operators must maintain guest records (name, address, phone, vehicle plate) available to the city on 48-hour notice. The penalty structure uses a three-strike system: $250 for the first violation, $500 for the second, and $750 for the third, with license revocation and a one-year reapplication ban after the third strike. Operators must collect and remit the city’s 3% lodging tax plus applicable Minnesota state and local sales taxes. Enforcement is moderate.

Market Comparison

Detroit Lakes operates near the national STR benchmarks on ADR ($184.45 vs. approximately $220 national median) but below average on occupancy (43.9% vs. approximately 55% national median), reflecting the highly seasonal nature of a Minnesota lake market where winter months produce limited demand.

The investability score of 88.58 is strong, driven by the regulated supply constraint (100-license cap), WE Fest event demand, and multi-bedroom cabin inventory with group-travel pricing power. The revenue growth score of 80.49 reflects solid long-term ADR appreciation (from $170 in 2017 to $241 in 2025), even as occupancy has eased from 2021 highs.

Among professional operators, Evolve leads with 339 listings and 13,153 reviews at a 4.77 average rating. Cascade Vacation Rentals holds 182 listings at a 4.76 rating with 3,864 reviews. Heirloom manages 111 listings with 7,480 reviews at a 4.82 rating. Together, the top three operators account for 632 listings, approximately 6.1% of total market inventory. Woods To Water Vacation Homes rounds out the top five with 48 listings and the highest rating of any top-5 operator in this batch at 4.95.

Frequently Asked Questions About Detroit Lakes, Minnesota

What is the average daily rate for short-term rentals in Detroit Lakes?
Detroit Lakes short-term rentals average $320 per night across all listing types. Nightly-rate breakdowns by property tier are available with StaySTRA Pro.
How many STR licenses are available in Detroit Lakes?
Detroit Lakes caps total active short-term rental licenses at 100 per calendar year under Ordinance No. 501 (City Code Section 616). Licenses are renewed annually and expire December 31. The $350 annual fee applies to all three license categories: Hosted, Un-hosted, and Dedicated. Operators should apply early each year given the 100-license ceiling.
What occupancy rate can I expect for a Detroit Lakes short-term rental?
The market-wide average occupancy rate was 43.9% in April 2026, up 2.6 percentage points year-over-year. Peak summer months (June-August) average 66-72% historically. January is the occupancy trough at 40.5%. The market is highly seasonal, with summer months generating the large majority of full-year revenue.
When is WE Fest and how does it affect short-term rental demand?
Occupancy in Detroit Lakes peaks in Jul (71%) and is softest in Jan (40%). Month-by-month rate and revenue figures are available with StaySTRA Pro.
What taxes apply to Detroit Lakes short-term rentals?
Operators must collect and remit the City of Detroit Lakes’ 3% lodging tax (the Minnesota statutory maximum for a city of this size), plus applicable Minnesota state and local sales taxes. Confirm current rates with the city Finance office before operating.
How much revenue can a Detroit Lakes short-term rental generate?
Across all listing types, Detroit Lakes short-term rentals average $5,579 per month. Breakdowns by property type, bedroom count, and season are available with StaySTRA Pro, or run a free address-level estimate with the StaySTRA Analyzer.
Who are the top property managers in the Detroit Lakes STR market?
Evolve leads with 339 listings and a 4.77 average rating across 13,153 reviews. Cascade Vacation Rentals manages 182 listings at 4.76. Heirloom holds 111 listings with 7,480 reviews at 4.82. Sota Lake Home Rentals (61 listings, 4.50) and Woods To Water Vacation Homes (48 listings, 4.95 rating) round out the top five.
Detroit Lakes, MinnesotaRev $5,579ADR $320Occ 63%Score B (72)

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Table of Contents

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Quick Facts: Minnesota Area market area

Avg Daily Rate
$320
Occupancy Rate
63%
Avg Revenue/Mo
$5,579
Detroit Lakes Population
10,033

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