Minneapolis, Minnesota

Short-term rentals are legal in Minneapolis but must be registered or licensed through the city. A homesteaded unit, meaning a condo or home the owner lives in, requires a short-term rental registration at $64 per year. A non-homesteaded, investor owned unit requires a short-term rental license instead, carrying the same fee and inspection cycle as a regular rental license. Hosts must also hold a separate short-term rental hosting license tied to the booking platform used, such as Airbnb or Vrbo.

Key operational rules: an owner may run only one short-term rental in addition to their own homestead. Occupancy is capped at 10 guests per unit regardless of size. Liability insurance of at least $300,000 is required, and a management plan covering noise, trash, and parking must be filed with the city. Neighbors must be notified, and a floor plan must be posted inside the unit. The registration or license number must appear in every online listing. In buildings of 20 or more units, short-term rentals are capped at 10% of total units.

Owner occupancy is not required for a license, so non-owner-occupied investor STRs are permitted. On taxes, the city’s 3% lodging tax applies only to establishments with 50 or more rooms, so most individual short-term rentals are exempt from that specific tax. STRs must still collect Minnesota state sales tax of 6.875% plus Hennepin County and Minneapolis local sales and transit taxes, bringing the total tax collected on bookings to roughly 13.5%.

Enforcement runs through the standard rental licensing inspection system and is rated moderate. The city has signaled tighter enforcement, including a proposed rule that would require properties with 40 or more violation points to seek City Council approval at license renewal.