Is Aurora, Minnesota Good for Airbnb Investment?

To start an Airbnb in Aurora, Minnesota, begin by researching local zoning laws and regulations through the St. Louis County planning department, as Aurora typically falls under county jurisdiction for short-term rental regulations, which may require a conditional use permit or business license depending on your property type and location within city limits. Contact Aurora City Hall at (218) 229-2107 to verify specific permit requirements, as some areas may restrict short-term rentals in residential zones or require special permits costing approximately $100-300 annually. Find a suitable property by searching MLS listings through local realtors like Edina Realty or RE/MAX, focusing on properties near Aurora's outdoor attractions like the Mesabi Trail or Giants Ridge, with typical investment properties ranging from $80,000-200,000 for cabins or homes. Furnish the space with durable, northwoods-themed furniture from retailers like Menards in Duluth or online suppliers, budgeting $8,000-15,000 for a complete 2-3 bedroom setup including linens, kitchen essentials, and outdoor gear storage for guests visiting the Iron Range area. List your property on Airbnb and VRBO with professional photos highlighting proximity to snowmobile trails, fishing lakes, and the Superior National Forest, setting competitive rates of $75-150 per night based on seasonal demand. Manage bookings using automated messaging systems, coordinate cleaning with local services like Iron Range Cleaning (estimated $40-60 per turnover), and maintain relationships with Aurora-area contractors for maintenance needs while ensuring compliance with Minnesota's transient accommodation tax requirements through the Department of Revenue.

To identify profitable short-term rental properties in Aurora, Minnesota, focus on locations within 10-15 minutes of Lake Vermilion and the Boundary Waters Canoe Area Wilderness, as these attract year-round outdoor enthusiasts and seasonal tourists. Target 2-4 bedroom cabins or homes with lake access, fireplaces, hot tubs, and outdoor amenities like fire pits or boat docks, as these features command premium rates of $150-300 per night during peak summer and fall seasons. Analyze comparable properties on Airbnb and VRBO within a 20-mile radius, noting that successful properties typically achieve 60-75% occupancy rates with average daily rates varying from $100 in winter to $250+ during fishing opener and fall color seasons. Research competition by monitoring listings in nearby Ely, Tower, and Cook to understand market saturation and identify gaps in amenities or pricing. Utilize AirDNA for market analytics, STR Helper for performance tracking, and connect with local property management companies like North Country Vacation Rentals who understand seasonal demand patterns, while also consulting the St. Louis County planning department regarding short-term rental regulations and the Iron Range Tourism Bureau for visitor trend data.

To obtain an Airbnb/STR permit in Aurora, Minnesota, contact the Aurora City Hall at 218-229-2107 or visit their offices at 22 2nd Avenue NW to inquire about short-term rental licensing requirements, as this small city may have recently implemented or be developing STR regulations. You will likely need to submit a completed rental license application, provide proof of property ownership or lease agreement, submit a site plan or floor plan of the property, obtain liability insurance coverage of at least $1,000,000, pass a property inspection for safety and zoning compliance, and pay application fees estimated between $100-300 annually. Required documents typically include a valid driver's license, property deed or lease, insurance certificate, emergency contact information, and parking plan showing adequate off-street parking spaces. The approval process generally takes 30-60 days from application submission, during which the city will conduct inspections and review compliance with local zoning ordinances, noise regulations, and occupancy limits. Aurora may require STR properties to maintain guest registries, post emergency contact information visibly, limit occupancy to 2 people per bedroom plus 2 additional guests, and ensure compliance with residential neighborhood character preservation standards.

Short-term rentals (STRs) in Aurora, Minnesota are generally legal but subject to local zoning regulations and state requirements. As a small city in St. Louis County, Aurora follows Minnesota state laws requiring STR operators to register with the Minnesota Department of Revenue, collect lodging taxes, and comply with safety standards including smoke and carbon monoxide detectors. The city likely requires STRs to operate in compliance with residential zoning ordinances, which may restrict the number of guests, require adequate parking, and limit noise disturbances to maintain neighborhood character. Aurora may prohibit STRs in certain residential zones or require conditional use permits for properties not owner-occupied, though specific restrictions would be outlined in the city's zoning code. Recent changes at the state level since 2021 have strengthened registration and tax collection requirements, while local municipalities like Aurora retain authority to impose additional restrictions on density, safety, and operational standards within their jurisdiction.

The best Airbnb investment areas in Aurora, Minnesota center around the downtown historic district near Highway 135 and the lakefront properties along Embarrass Lake, which attract tourists visiting the Iron Range region and outdoor enthusiasts year-round. The area near the Aurora Municipal Airport sees steady business travel demand from mining industry professionals visiting local taconite operations, while properties within walking distance of the Mesabi Trail draw cycling tourists and snowmobile enthusiasts during winter months. The residential neighborhoods near Aurora-Hoyt Lakes School District benefit from family relocations and extended stays related to mining employment with companies like Cleveland-Cliffs and U.S. Steel, particularly during peak operational periods from 2020-2024. Properties near the intersection of Highway 135 and County Road 100 offer convenient access to both Duluth (45 minutes) and the Boundary Waters Canoe Area, making them attractive to visitors seeking a central base for exploring northeastern Minnesota's outdoor recreation opportunities, especially during summer fishing season and fall hunting periods.

In Aurora, Minnesota, Airbnb hosts are subject to Minnesota state sales tax of 6.875% on lodging rentals, which applies to stays of less than 30 consecutive days. Additionally, hosts must collect and remit local lodging taxes that vary by municipality, with Aurora likely imposing a local lodging tax rate between 2-4% based on typical Iron Range area rates. The Minnesota Department of Revenue requires hosts to register for a sales tax permit and file returns monthly, quarterly, or annually depending on tax liability volume, with taxes typically due by the 20th of the month following the reporting period. Hosts can register through the Minnesota Business Registration system and must collect taxes from guests at the time of booking or check-in, then remit to the state which distributes local portions to municipalities. Exemptions generally include stays of 30 days or longer which are considered residential rather than transient lodging, and certain government or nonprofit organization bookings may qualify for exemptions with proper documentation. Airbnb may collect and remit these taxes automatically in some jurisdictions through their platform, but hosts remain ultimately responsible for compliance and should verify their specific obligations with local authorities and the Minnesota Department of Revenue.

To start an Airbnb in Aurora, Minnesota, expect total costs around $185,000-$220,000. Property purchase represents the largest expense at approximately $150,000-$180,000 based on median home prices in northern Minnesota markets. Furnishing costs typically range $8,000-$12,000 for a complete 2-3 bedroom setup including beds, linens, kitchen essentials, and living room furniture from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$3,500. Permits and fees vary but expect $500-$1,200 for business licenses, short-term rental permits, and potential zoning approvals through the city. Insurance costs run $1,200-$2,000 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utility setup and deposits total approximately $500-$800 for electricity, water, internet, and cable services. First six months operating costs including utilities ($600-$900 monthly), cleaning supplies, maintenance, property management software subscriptions, and marketing average $5,000-$7,500. Additional considerations include potential HOA fees, property taxes, and a 10-15% contingency fund for unexpected expenses during the initial launch period.

Airbnb properties in Aurora, Minnesota show moderate profitability potential with average nightly rates ranging from $85-$150 depending on property type and seasonality, generating approximately $15,000-$35,000 in annual gross revenue for properties with 60-70% occupancy rates. Operating expenses typically consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (10-20%), utilities ($150-300 monthly), insurance ($800-1,500 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties near outdoor recreation areas like the Superior National Forest or lakefront locations achieve higher profit margins of 25-35%, while standard residential properties average 15-25% net profit margins. Success factors include strategic pricing during peak summer months (June-August) when rates can increase 30-40%, offering amenities like hot tubs or fire pits, and maintaining super-host status to boost bookings. A typical 3-bedroom cabin near Embarrass Lake generates around $28,000 annually with $18,000 in expenses, yielding approximately $10,000 net profit, while urban properties in Aurora's downtown area average lower returns due to limited tourist attractions, making lakefront and wilderness-adjacent properties the most profitable investment opportunities in this northern Minnesota market.

Airbnb investments in Aurora, Minnesota typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by seasonal tourism to nearby Mesabi Trail and proximity to Duluth attractions. Properties in Aurora generally reach profitability within 18-24 months, with average daily rates of $85-120 during peak summer and fall seasons when visitors come for outdoor recreation and Iron Range tourism. The market benefits from limited hotel inventory in the area, allowing well-positioned short-term rentals to capture overflow demand from Virginia and Hibbing, though investors should expect seasonal fluctuations with stronger performance May through October and during snowmobile season, while winter months may see occupancy rates drop to 35-45% compared to summer peaks of 70-85%.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Aurora, Minnesota, using data analytics and market insights. Local real estate agents specializing in investment properties include Keller Williams Realty, RE/MAX Results, and Coldwell Banker Realty, with agents like those at Edina Realty having extensive knowledge of the Aurora market since the early 2000s. National services include Awning (founded 2017), which provides full-service Airbnb investment management, Mashvisor for property analysis and market data, and BiggerPockets for investor networking and deal sourcing. Local property management companies such as RedAwning and Vacasa have expanded into the Minnesota market to help investors manage their short-term rentals. Additional services include AirDNA for market research and revenue projections, Rabbu for Airbnb-specific investment analysis, and local mortgage brokers like Fairway Independent Mortgage Company who understand investment property financing in the Aurora area.