Lake City, Minnesota Short-Term Rental Market
Lake City, MN area STRs averaged $184/night at 43.9% occupancy in April 2026, with July peaking at 71.5% and $4,769 average monthly revenue.
Quick Answer: Lake City, 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 337 listings. market score is 71/100 (grade B).
Market data reflects the Minnesota Area regional market, which includes Lake City. Regulations, taxes, and permit details below are specific to Lake City.
Market Score Breakdown
Five dimensions StaySTRA evaluates per market.
Market Overview
Lake City, Minnesota sits on Lake Pepin, the widest natural section of the Mississippi River, approximately 70 miles southeast of the Twin Cities. The city of 5,306 residents brands itself the ‘Birthplace of Waterskiing’ (Ralph Samuelson, 1922) and draws visitors for boating, sailing, angling, cycling, and events on Lake Pepin. The Chamber of Commerce reported record lodging-tax revenue for the third consecutive year in 2024, signaling consistent growth in overnight demand.
The STR data covers the broader Lake Pepin and surrounding lake-region area. Approximately 10,408 active listings are tracked. Entire-place rentals account for 9,675 (92.9%), with 727 private rooms and 6 shared rooms. By bedroom count, 2-bedroom properties lead with 3,013 listings, followed by 1-bedrooms (2,551) and 3-bedrooms (2,537). Larger properties are well-represented: 1,420 four-bedrooms and 876 five-bedrooms.
Channel distribution shows dual-platform listings are the plurality: 4,753 appear on both Airbnb and VRBO, 4,169 are Airbnb-only, and 1,486 are VRBO-only.
As of April 2026, average daily rate was $184.49 with occupancy at 43.9%, producing RevPAR of $80.99. Year-over-year, occupancy improved 2.7% and ADR rose 6.2%, though total revenue declined 3.3% against April 2025.
Seasonal Patterns
| Month | Occupancy |
|---|---|
| Jan | 40% |
| Feb | 45% |
| Mar | 46% |
| Apr | 47% |
| May | 54% |
| Jun | 66% |
| Jul | 71% |
| Aug | 66% |
| Sep | 50% |
| Oct | 50% |
| Nov | 41% |
| Dec | 47% |
Month-by-month nightly rates and revenue figures for Lake City 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 Lake City, so these counts are not Lake City-only figures.
| # | 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 Lake City?
Revenue and nightly-rate breakdowns by bedroom count, property tier, and dwelling type for Lake City 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 | Share |
|---|---|
| airbnb | 40.1% |
| vrbo | 14.3% |
| both | 45.7% |
Home Value Trends (Lake City)
Typical home values, median sale prices, and the 10-year price trend for Lake City 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 Lake City — 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
The City of Lake City, MN operates a capped, registration-based STR program first adopted around 2018. Key provisions:
Only single-family residences qualify as STRs. Non-residential structures cannot be used. Registration with the city is required before renting; registrations are filed once with no annual renewal requirement per the city’s registration page.
The program includes a hard cap: the city may limit STRs to a maximum of 15 properties in a residential or prescribed zone, with a 500-foot minimum separation between units. Applicants lacking a proven rental history may be denied and placed on a waiting list. Licenses are non-transferable.
Operationally, the owner or a designated contact must be reachable and able to respond at the property within 15 minutes. Properties must comply with building and fire codes, and operators must observe noise and occupancy limits. Unpermitted STRs are declared public nuisances subject to legal remedies including court injunction.
A municipal lodging tax applies. Minnesota statute caps local lodging taxes at 3%, and the profile data shows a 3.0% rate. An application fee amount was not published online.
Note: The market area tracked here includes approximately 10,400 listings beyond the city limits. The 15-property cap applies specifically to the City of Lake City. Surrounding Wabasha County properties operate under county-level rules. Confirm which jurisdiction applies to any specific property before assuming city ordinance terms apply.
Market Comparison
Nationally, STR markets average roughly 55% occupancy and $220 ADR. Lake City’s April 2026 occupancy of 43.9% is below the national average for that month, though the market’s annual average across all months is approximately 52%, near the national norm. ADR at $184 is below the national median, consistent with a Midwest lake-recreation market rather than a premium mountain or beach destination.
The operator landscape is led by Evolve with 337 listings, 13,110 reviews, and a 4.77 rating. Cascade Vacation Rentals holds 182 listings with a 4.76 rating. Heirloom manages 112 listings and carries the highest rating among the top three at 4.82. Sota Lake Home Rentals holds 61 listings (rating 4.50), and Woods to Water Vacation Homes rounds out the top five with 48 listings and the highest rating in the group at 4.95.
The top five operators collectively manage 740 listings, representing about 7.1% of the 10,408-listing market. This low concentration reflects a fragmented market with many independent operators. The strong investability score (88.6/100) and consistent revenue growth trend support the case for this market, particularly for investors able to acquire at or below the $320,017 typical home value.
Frequently Asked Questions About Lake City, Minnesota
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