Lutsen, Minnesota Short-Term Rental Market
Lutsen North Shore STRs averaged $184/night at 43.9% occupancy in April 2026, with July peaks reaching $255/night.
Quick Answer: Lutsen, 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 $4,729. average daily rate in the Minnesota Area market area is $302. the top operator in the Minnesota Area market area is Evolve with 339 listings. market score is 72/100 (grade B).
Market data reflects the Minnesota Area regional market, which includes Lutsen. Regulations, taxes, and permit details below are specific to Lutsen.
Market Score Breakdown
Five dimensions StaySTRA evaluates per market.
Market Overview
The Lutsen and Cook County North Shore short-term rental market tracks 10,421 active listings across the region, spanning lakefront cabins, ski-adjacent condos, and forested retreat properties. Entire-place rentals account for 9,688 units (93% of supply), with private rooms adding 727 listings and shared rooms representing a negligible 6 units. Bedroom distribution spans the full range: 2-bedroom units lead at 3,011 listings, followed by 1-bedroom (2,555), 3-bedroom (2,548), 4-bedroom (1,420), and 5-or-more-bedroom properties (875).
In April 2026, the all-listing average daily rate reached $184, a 6.2% gain from April 2025. Occupancy stood at 43.9%, up 2.6% year over year, reflecting normal shoulder-season conditions between the close of ski season and the onset of summer recreation demand. RevPAR was $80.89 and average monthly revenue per listing was $2,115. Year-over-year revenue declined 3.3% in April, consistent with calendar-period variability rather than a structural market shift.
Channel distribution reflects a multi-platform operator base: 4,768 listings appear on both Airbnb and VRBO, 4,166 are Airbnb-exclusive, and 1,487 are VRBO-exclusive. The market composite score is 72.1 out of 100, with investability scoring highest at 88.6, followed by revenue growth (80.5) and rental demand (69.8). Seasonality (58.4) and regulation (58.9) score lower, consistent with the market’s pronounced summer-winter demand swing and Cook County’s active licensing framework.
On an annual basis, 2025 average monthly revenue reached $3,334, up from $3,070 in 2024, an approximate 8.6% year-over-year gain. The 2025 average ADR was $241, up from $218 in 2024.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 40% | $180 | $2,076 |
| Feb | 45% | $181 | $2,063 |
| Mar | 46% | $171 | $2,211 |
| Apr | 46% | $158 | $1,914 |
| May | 54% | $195 | $2,323 |
| Jun | 66% | $253 | $3,994 |
| Jul | 71% | $255 | $4,769 |
| Aug | 66% | $251 | $4,457 |
| Sep | 50% | $214 | $2,966 |
| Oct | 50% | $196 | $2,740 |
| Nov | 41% | $164 | $1,982 |
| Dec | 47% | $180 | $2,160 |
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 Lutsen, so these counts are not Lutsen-only figures.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Evolve | 339 | 13,153 | ★ 4.77 |
| 2 | Cascade Vacation Rentals | 182 | 3,864 | ★ 4.76 |
| 3 | Heirloom | 111 | 7,480 | ★ 4.82 |
| 4 | Sota Lake Home Rentals | 61 | 1,311 | ★ 4.50 |
| 5 | Woods To Water Vacation Homes | 48 | 942 | ★ 4.95 |
What Kind of STR Should I Buy in Lutsen?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 2,555 |
| 2 bed | 3,011 |
| 3 bed | 2,548 |
| 4 bed | 1,420 |
| 5 bed | 875 |
ADR by Property Tier
| Entire Home | $316 |
| Luxury | $536 |
| Professionally Managed | $387 |
Revenue by Dwelling Type
| Apartment | $3,651 |
| Entire Place | $4,948 |
| House | $5,105 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 40% |
| vrbo | 14.3% |
| both | 45.8% |
Investment Analysis
Lutsen’s investability score of 88.6 out of 100 reflects the North Shore’s durable outdoor-recreation demand and a well-established rental base. Revenue growth scored 80.5, supported by the trend from $3,070/month average in 2024 to $3,334/month in 2025. At the 2025 rate, gross annual revenue per listing approximates $40,008, before platform fees, permit costs, and operating expenses.
Property pricing data is not available in the housing snapshot for this market, so a gross yield calculation cannot be made from available data. Investors considering entry should source local assessed values and recent sales directly from Cook County property records.
Rate tier comparisons reveal meaningful differentiation within the market. Entire-home listings averaged $196/night in April 2026 versus the all-listing average of $184, a 6.5% premium. Professionally managed listings averaged $223/night, a 21% premium over the market average, indicating that skilled revenue management generates measurable rate lift. Luxury-tier properties averaged $377/night, more than double the market average, representing a distinct high-end segment with substantially higher per-night yield.
From a listing-type revenue perspective, entire-place rentals averaged $2,224/month and houses averaged $2,216/month in April 2026. Apartments and condos averaged $1,922/month, approximately $302 below entire-place rentals.
The permit structure adds a known fixed cost: $600/year for the required Cook County Vacation Rental License, plus the operator’s obligation to collect and remit the 4% local lodging tax independently (platforms do not remit this tax for owners). These costs are manageable relative to the revenue baseline but require consistent operational attention.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
Guests book Lutsen-area rentals an average of 43 days in advance. This approximately 6-week lead window is shorter than many leisure resort markets and reflects the drive-market nature of the North Shore, where travelers frequently plan trips within a one-to-two-month horizon rather than booking far ahead.
Average length of stay is 3.94 nights, approximately 4 nights per booking. This stay length suggests a mix of long-weekend and midweek trips rather than single-night turnovers. The 4-night average supports moderate turnover costs relative to a high-churn, nightly-booking model.
For operators, the 43-day advance booking window means peak-summer revenue is largely captured in the May-June pricing window. Setting rates and opening availability for July and August by late May positions listings to capture the bulk of advance bookings. Last-minute inventory in June and July can sometimes command premium rates given the compressed booking window, but relying on last-minute demand for peak weekend dates carries more yield risk than advance pricing strategies.
Short-Term Rental Regulations
Short-term rentals in Lutsen are legal under Cook County, Minnesota regulations. Because Lutsen is an unincorporated community, STR oversight falls to Cook County rather than a municipal government. Any dwelling, cabin, condominium, or similar property rented for periods under 30 days is classified as a vacation rental and requires a Cook County Vacation Rental License, administered by the Land Services department.
The license fee is $600/year. The permit renewal period is annual, with expiration on December 31 and a renewal window running approximately December 1 through January 31. There is no owner-occupancy or primary-residence requirement. No maximum annual night cap is published. Residential parcels are generally limited to two rental units per parcel. Cook County has set an approximately 393-unit license trigger that would prompt review of a potential countywide cap.
Operators must collect and remit a 4% local lodging tax independently. This tax consists of a 3% state-authorized lodging tax plus a 1% county events tax. Airbnb and VRBO do not remit this tax on behalf of owners, making owner compliance essential. Minnesota state sales tax applies separately.
Enforcement has increased in recent years. The county added a dedicated Vacation Rental Administrator and a 24/7 complaint hotline (218-264-9799). The permit fee was raised from $200 to $400 in 2023 and subsequently increased again to $600, with the increase funding expanded enforcement capacity. The Vacation Rental Ordinance was updated in 2025. Enforcement severity is rated moderate.
Market Comparison
Nationally, the median STR occupancy is approximately 55% and the median ADR is approximately $220. Lutsen’s April 2026 occupancy of 43.9% falls below the national median, though April is a shoulder month; the July peak of 71.5% substantially exceeds the national median. The all-listing ADR of $184 is below the national median of $220, while the luxury-tier ADR of $377 aligns with premium resort markets nationally.
The market composite score of 72.1 compares favorably across STR markets, particularly on investability (88.6) and revenue growth (80.5). Seasonality (58.4) trails the norm for year-round markets, as expected for a climate-dependent outdoor-recreation destination.
The top five property management companies account for a combined 741 listings, approximately 7.1% of the 10,421-listing market. Evolve leads with 339 listings (3.3% market share) and a 4.77 average guest rating across 13,153 reviews. Cascade Vacation Rentals manages 182 listings with a 4.76 rating, serving as a regional North Shore specialist. Heirloom manages 111 listings with the highest average rating among large operators at 4.82 (7,480 reviews). Woods To Water Vacation Homes holds the highest guest rating in the top 5 at 4.95 across 48 listings. The overall market remains fragmented, with the top 5 operators controlling less than 8% of total listings.
Frequently Asked Questions About Lutsen, Minnesota
What is the average nightly rate for short-term rentals in the Lutsen/Cook County North Shore area?
When is the peak season for Lutsen STR rentals and how much does revenue vary?
Do I need a permit to operate a short-term rental in Lutsen, Minnesota?
What taxes must Lutsen STR operators collect and remit?
How far in advance do guests typically book Lutsen-area rentals?
Who are the leading property managers in the Lutsen short-term rental market?
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