Duluth, Minnesota Short-Term Rental Market
Duluth STRs posted $184 ADR at 43.9% occupancy in April 2026 across roughly 10,400 active listings on Lake Superior.
Quick Answer: Duluth, 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
Duluth is Minnesota’s largest freshwater port city, drawing approximately 6.7 million visitors per year to Lake Superior’s western shore. The short-term rental market is substantial, with roughly 10,400 active listings spanning the Canal Park waterfront, the hillside neighborhoods, and the North Shore corridor. Entire-place listings account for the vast majority of supply at 9,675 units, while private rooms add another 727 options. Channel distribution skews toward dual-listed properties (4,753 on both Airbnb and VRBO), with 4,169 Airbnb-only and 1,486 VRBO-only listings rounding out the mix.
Bedroom distribution is relatively balanced across the mid-range: 1-bedroom (2,551), 2-bedroom (3,013), 3-bedroom (2,537), 4-bedroom (1,420), and 5-bedroom (876). The 2-bedroom segment leads by count, reflecting the market’s strong drive-tourism base from the Minneapolis metro.
In April 2026, Duluth STRs averaged $184 per night with 43.9% occupancy, generating a RevPAR of $80.99 and average monthly host revenue of $2,119. Year-over-year, ADR rose 6.2% and occupancy nudged up 2.7%, though monthly revenue fell 3.3% year-over-year, reflecting the softer spring shoulder period versus the prior April. The market’s overall score is 71.3 out of 100, with investability scoring highest at 88.6 and revenue growth at 80.6, signaling solid long-run upside despite moderate seasonality pressure (seasonality score 58.4).
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 Duluth
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 Duluth?
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
Duluth’s investability score of 88.6 reflects a combination of accessible entry prices and demand driven by one of Minnesota’s strongest visitor economies. Typical home values run approximately $293,000, and the median sale price in April 2026 was $271,750, which is low relative to many coastal STR markets. At April 2026’s average monthly revenue of $2,119, annualized gross revenue would approximate $25,428, implying a gross yield of roughly 8.7% against a $293,000 acquisition cost. That figure assumes consistent occupancy across all 12 months, which the seasonal pattern does not support (see Seasonal Patterns section), so underwrite with summer peak revenue carrying the annual load.
The ADR spread across tiers reveals meaningful upside for quality operators. All-listing ADR averaged $184, while entire-home listings averaged $196. Professionally managed properties posted $222 average nightly rates, and the luxury tier averaged $376. The gap between the average and professionally managed tier ($38/night) suggests that professional operations and elevated amenities move the needle materially in Duluth.
Revenue growth scores an 80.6, consistent with the multi-year ADR trend: $170 in 2017, $202 in 2021, $211 in 2022, and $241 for the 2025 annual average. The revenue dip in 2022-2024 reflected occupancy softening from the COVID-era peak (60.5% in 2021 to 50.3% in 2024), but ADR continued climbing. Median days-to-pending of 6 days in April signals a competitive acquisition environment.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
Duluth guests book an average of 43 days in advance, which places the market in a mid-range lead-time category. This means operators have a meaningful advance booking window to optimize rates before arrival. Dynamic pricing tools should be configured to shift rates upward for summer bookings that arrive 30-60 days out, as those bookings are likely for the peak July-August window where inventory tightens.
Average length of stay is 3.95 nights, reflecting the market’s predominantly weekend and short-break drive-tourism base from Minneapolis-St. Paul (approximately 4-hour drive). This near-4-night average suggests a mix of long weekends and mid-week stays, likely driven by outdoor recreation itineraries along the North Shore. Shorter stays increase turnover costs but also allow more revenue optimization opportunities per month. Operators should price the 3-night minimum at a slight premium over the 2-night rate to encourage the 4-night stay that aligns with the average guest intent.
Short-Term Rental Regulations
Duluth operates a three-tier short-term rental permit system. All STRs require a city permit, a Minnesota state lodging license, a state tax ID, and city tourism-tax registration.
Tier 1, Accessory Home Share, applies to owner-occupied properties where the host is present during guest stays. It allows up to 4 guests across 2 bedrooms and costs approximately $700, renewable on a 3-year cycle.
Tier 2, Accessory Vacation Dwelling Unit Limited, applies to homestead or owner-occupied properties where the owner need not be present. Rentals must be 2-7 nights with a hard cap of 21 nights per calendar year. This tier is suited to part-time rental of a primary home.
Tier 3, Interim Use Permit for a Vacation Dwelling Unit, is the only option for full-time investor-operated, non-owner-occupied short-term rentals. Stays must be 2-29 nights. A local property manager is required, permits last 6 years or until the property changes ownership (not transferable), and approval requires a Planning Commission public hearing taking roughly 3 months. The critical constraint: whole-unit Vacation Dwelling Units are subject to a citywide permit cap outside of Form districts (F-1 through F-9). That cap is currently full, and the city maintains a lottery eligibility waitlist expected to take several years to clear.
Investors targeting non-owner-occupied whole-unit rentals should target properties in Form districts (F-1 to F-9), where no cap applies. Duluth levies a 3% local tourism/lodging excise tax in addition to the 6.875% Minnesota state sales tax. Enforcement severity is rated moderate.
Market Comparison
Duluth’s April 2026 ADR of $184 sits below the US STR median of approximately $220, reflecting the market’s regional drive-tourism positioning rather than destination resort pricing. Occupancy at 43.9% is below the US STR median of approximately 55%, driven by the April timing (the market’s seasonal trough) and Duluth’s pronounced summer concentration. In peak summer months, Duluth occupancy regularly exceeds 65%, which compares favorably to most inland Midwest markets.
The market’s total score of 71.3 and investability score of 88.6 rank it competitively among upper-Midwest STR destinations. The revenue growth score of 80.6 reflects ADR appreciation from $170 (2017) to $241 (2025 annual average).
The professional management segment is active and concentrated. Evolve leads with 337 listings and 13,110 reviews at a 4.77 average rating. Cascade Vacation Rentals holds 182 listings with a 4.76 rating. Heirloom operates 112 listings and has accumulated 7,458 reviews at 4.82. Sota Lake Home Rentals manages 61 properties at a 4.50 rating, and Woods To Water Vacation Homes rounds out the top five with 48 listings and a notably high 4.95 average rating. The top 5 operators together account for approximately 740 listings, or roughly 7% of the total active inventory, indicating a fragmented market where independent operators still dominate.
Frequently Asked Questions About Duluth, Minnesota
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