Silver Bay, Minnesota Short-Term Rental Market
Silver Bay, MN STRs averaged $184/night at 43.9% occupancy in April 2026 with $2,119/month average revenue.
Quick Answer: Silver Bay, 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
Silver Bay sits on Minnesota’s North Shore of Lake Superior in Lake County, 54 miles northeast of Duluth. The STR market spans 10,408 total listings across channels, making it a substantial market for a city of approximately 1,800 residents. Entire-place rentals account for 9,675 listings (93.0% of supply), with 727 private rooms and 6 shared rooms rounding out the inventory.
The bedroom mix leans toward mid-size vacation properties: 2-bedroom leads at 3,013 listings, followed by 3-bedroom at 2,537 and 1-bedroom at 2,551. Larger properties hold notable share with 1,420 4-bedroom and 876 5-bedroom listings, reflecting the market’s appeal to groups visiting Tettegouche State Park and the Superior Hiking Trail.
In April 2026, the market posted a $184 average daily rate and 43.9% occupancy, generating $2,119 average monthly revenue. RevPAR was $81. Year-over-year in April, occupancy improved 2.7 percentage points and ADR rose 6.2%, though monthly revenue was down 3.3% compared to April 2025, likely reflecting a mix or supply composition shift. The 2025 full-year average was meaningfully stronger: occupancy 50.0%, ADR $241, and average monthly revenue $3,335.
Channel distribution: Airbnb lists 4,169 properties, VRBO 1,486, and 4,753 appear on both platforms. The overall market score is 71.29 out of 100, with investability at 88.58 and revenue growth at 80.57.
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 Silver Bay
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 Silver Bay?
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
Silver Bay offers an unusually low entry cost relative to its revenue output. The Zillow typical home value as of April 2026 is $165,940. With April 2026 average monthly revenue of $2,119, annualized revenue runs approximately $25,424, producing a gross yield of roughly 15.3% before expenses. At 2025’s stronger annual average of $3,335 per month, the annualized figure is $40,020, yielding approximately 24.1%.
The ADR tier spread is notable. The all-listings ADR was $184 in April 2026, entire-home properties averaged $196, and professionally managed properties averaged $222. Luxury-tier properties commanded $376 per night, more than double the market average. The $38 per night premium for professionally managed properties over the market average (21% above) is meaningful and suggests management quality drives measurable rate uplift in this market.
Revenue by listing type in April: entire-place averaged $2,228, house properties averaged $2,221, and apartments averaged $1,923. The house and entire-place segments are nearly identical, reflecting that most entire-place listings are houses.
The 2025 annual average revenue of $3,335 was up from 2024’s $3,071, itself up from $3,003 in 2023, showing a consistent upward revenue trend even as occupancy has modestly declined. Rising ADR ($218 in 2024 to $241 in 2025) is driving the revenue gains. The market investability score of 88.58 out of 100 is strong.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
April 2026 data shows an average booking lead time of 43 days and an average length of stay of 4.0 nights in the Silver Bay market.
A 43-day lead time gives hosts roughly 6 weeks of pricing visibility before most stays commit. In a North Shore market with a pronounced summer peak, July and August bookings from Twin Cities travelers often arrive in March and April as guests plan summer trips well in advance. Hosts should set peak-season rates proactively by early spring rather than waiting for last-minute demand.
At 4.0 nights, Silver Bay leans toward multi-night leisure stays, consistent with a destination requiring a 1-hour-plus drive from Duluth and 2.5 hours from Minneapolis. A 2 to 3 night minimum-stay policy captures this demand profile without excessive friction. During the softer winter months, dropping to a 1-night minimum for weeknights can help convert single-night demand that would otherwise go unfulfilled in a restricted-permit market.
Short-Term Rental Regulations
Silver Bay adopted a formal STR ordinance (Chapter 12, Section 1239) in June 2023, amended April 2025 to add the Golf Course Residential zoning district. Operating legally in Silver Bay requires navigating specific zoning and permit rules.
STRs are permitted only in three zoning districts: Bayview Park (BP), Forest Reserve (FR), and Golf Course Residential (GCR). Standard R1/R2 residential zones do not permit STRs. A hard citywide cap of 6 STR permits applies to all districts except Bayview Park, which is uncapped. Forest Reserve STRs additionally require a Conditional Use Permit and cannot be within 300 feet of any R1/R2 zoned parcel.
An annual permit is required, expiring December 31. Renewal applications must be filed by November 1. Before permit issuance, operators must obtain a Certificate of Inspection from the Lake County Health Inspector (on behalf of the MN Dept of Health).
Key operational constraints: maximum 4 bedrooms per STR unit; maximum guests of 1 plus bedrooms times 2, capped at 10; minimum 2 off-street parking spaces; a 24/7 local agent must be designated; listings must display the city-issued permit number. Permits are non-transferable and auto-terminate upon property sale.
The permit fee is set by the city council fee schedule (specific amount not published in available sources). A local lodging tax applies under City Code Section 225 (administered by the MN Dept of Revenue), plus Minnesota’s 6.875% state sales tax on STRs. The specific local lodging tax rate was not available in public documents. Enforcement is rated moderate. Violations are misdemeanors; revocation triggers a mandatory 12-month ban on new permit applications.
Market Comparison
Against national STR benchmarks (median occupancy approximately 55%, median ADR approximately $220), Silver Bay’s April 2026 occupancy of 43.9% runs below average, which is expected for a shoulder-season April in a northern latitude market. The full-year 2025 occupancy of 50.0% is closer but still trails the national median. ADR of $184 in April is below the $220 national median, though the 2025 annual average ADR of $241 exceeded it.
The market’s standout characteristic is the extremely low acquisition cost ($165,940 typical home value) relative to revenue output. Few STR destinations nationally combine a sub-$170K entry price with $3,335 monthly average revenue at peak-year performance.
Top operators: Evolve leads with 337 listings and 13,110 reviews at a 4.77 rating. Cascade Vacation Rentals ranks second with 182 listings and 3,861 reviews at 4.76. Heirloom holds third with 112 listings and 7,458 reviews at a high 4.82 rating. Together the top 3 operators account for 631 listings out of 10,408 total, meaning independent hosts hold over 93% of supply. Woods To Water Vacation Homes (48 listings) carries the highest rating of the top 5 at 4.95, indicating strong guest satisfaction from a smaller specialist operator.
Frequently Asked Questions About Silver Bay, Minnesota
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