Is Barnum, Minnesota Good for Airbnb Investment?

To start an Airbnb in Barnum, Minnesota, begin by researching Carlton County and Minnesota state regulations, as Barnum typically follows county guidelines which generally allow short-term rentals with basic safety requirements and tax obligations including Minnesota sales tax (6.875%) and local lodging taxes around 3-4%. Contact Carlton County Planning and Zoning Department to confirm zoning compliance and obtain necessary permits, which may include a business license ($50-100) and potentially a conditional use permit if in residential zones. Find a suitable property by searching local real estate listings with prices ranging $80,000-150,000 for typical homes, ensuring it's in a zone that permits short-term rentals and considering proximity to attractions like Jay Cooke State Park and the Willard Munger State Trail. Furnish the property with essential amenities including quality bedding, kitchen supplies, WiFi, heating/cooling, and safety equipment like smoke detectors and fire extinguishers, budgeting approximately $5,000-10,000 for complete furnishing. Create your Airbnb listing with professional photos, competitive pricing around $75-125 per night based on local market rates, and highlight nearby outdoor activities and small-town charm. Manage the property by establishing cleaning protocols between guests, maintaining responsive communication, coordinating key exchanges or installing smart locks, and ensuring compliance with Minnesota's innkeeper laws and Carlton County health and safety standards while keeping detailed records for tax purposes.

To identify profitable short-term rental properties in Barnum, Minnesota, focus on properties within 2-3 miles of Jay Cooke State Park and the St. Louis River, as these natural attractions drive tourism year-round for hiking, fishing, and scenic photography. Target 2-4 bedroom cabins or homes built after 1980 with modern amenities like full kitchens, Wi-Fi, hot tubs, and fireplaces, as guests expect comfort during Minnesota's harsh winters. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties in nearby Duluth (30 minutes away), aiming for $80-150 per night depending on season and amenities, with peak rates during summer months and fall foliage season. Research competition by monitoring active listings within a 10-mile radius on Airbnb and VRBO, noting that Barnum has limited STR inventory compared to Duluth, creating opportunity for well-positioned properties. Utilize tools like Rabbu for market analysis, STR Helper for revenue projections, and connect with local real estate agents familiar with Carlton County tourism patterns, while ensuring compliance with Carlton County zoning regulations and any municipal STR licensing requirements that may apply to this small community of approximately 600 residents.

To obtain an Airbnb/STR permit in Barnum, Minnesota, you must first contact the Carlton County Planning and Zoning Department since Barnum is a small city that typically follows county regulations for short-term rentals. Submit an application through Carlton County's planning office located at 301 Walnut Avenue in Carlton, providing required documents including a completed STR permit application, proof of property ownership or lease agreement, site plan showing parking and access, septic system compliance certificate if applicable, and proof of liability insurance with minimum $1 million coverage. The application fee is estimated at $150-300 with an annual renewal fee of approximately $100-150. You must also register with the Minnesota Department of Revenue for lodging tax collection and obtain a Minnesota tax ID number. The property must meet all building and fire safety codes, provide adequate parking (typically 1-2 spaces per unit), maintain septic system compliance for rural properties, and limit occupancy based on bedroom count and square footage. The approval timeline is typically 30-60 days depending on completeness of application and any required inspections. Contact Carlton County Planning at (218) 384-9127 to confirm current requirements and begin the application process, as small municipalities like Barnum often defer to county-level oversight for STR regulations.

Short-term rentals (STRs) are generally legal in Barnum, Minnesota, as the small city in Carlton County does not have specific municipal ordinances prohibiting them as of 2024. However, STR operators must comply with Minnesota state regulations including business licensing, tax collection requirements, and safety standards. Carlton County may have zoning restrictions that could limit STRs in certain residential areas, and operators typically need to register with the Minnesota Department of Revenue for tax purposes. The city follows standard residential zoning laws which may restrict commercial activities in purely residential zones, so property owners should verify zoning compliance before operating an STR. Recent statewide changes in Minnesota have increased oversight of STRs, requiring platforms like Airbnb and VRBO to collect and remit taxes, while local communities have been given more authority to regulate these properties within their jurisdictions.

The best areas for Airbnb investment in Barnum, Minnesota include the downtown historic district near the railroad heritage sites, which attracts visitors interested in the area's logging and railroad history, and properties near the Moose Lake State Park boundary (approximately 15 miles south) which draw outdoor enthusiasts year-round for hiking, fishing, and winter sports. The residential areas along Highway 61 offer good accessibility for business travelers working with local forestry companies like Potlatch Corporation and visitors to the nearby Fond du Lac Reservation. Properties near the Kettle River provide appeal for fishing enthusiasts and nature lovers, particularly during summer months when tourism peaks. The area around the Barnum Public School district can attract families visiting for school events and sports tournaments, while locations with easy access to Interstate 35 (about 20 miles east) appeal to travelers heading to Duluth or the North Shore who prefer quieter, more affordable accommodations than urban hotels.

Airbnb properties in Barnum, Minnesota are subject to Minnesota's state lodging tax of 3% on gross receipts, which applies to all short-term rental accommodations under 30 days. Carlton County, where Barnum is located, does not impose an additional county lodging tax as of 2023. The City of Barnum does not currently have a specific municipal lodging or occupancy tax ordinance for short-term rentals. Taxes are typically collected by the host at the time of booking and must be remitted to the Minnesota Department of Revenue monthly if gross receipts exceed $20,000 annually, or quarterly for smaller operators. Airbnb may collect and remit state taxes automatically for hosts in Minnesota through their platform since 2019. Exemptions include stays of 30 days or longer, certain government employees on official business, and accommodations provided to homeless individuals by qualified organizations. Hosts must register with the Minnesota Department of Revenue, obtain a sales tax permit, and file returns even if no tax is owed, with penalties applying for late filing or non-compliance.

The total cost to start an Airbnb in Barnum, Minnesota is approximately $185,000-$220,000. Property purchase costs around $150,000 based on median home prices in rural Minnesota communities. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for beds, linens, kitchen essentials, living room furniture, and décor from retailers like IKEA, Wayfair, and local stores. Initial setup costs include $500 for professional photography, $200 for listing optimization, and $300 for welcome materials totaling $1,000. Permits and fees include a $150 business license, $200 short-term rental permit, and $100 in miscellaneous city fees for $450 total. Insurance costs $1,200-$1,800 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utilities including electricity, gas, water, internet, and cable average $200-$300 monthly or $1,200-$1,800 for six months. First six months operating costs include $600 for Airbnb host fees (3% of estimated $10,000 revenue), $1,200 for cleaning services, $600 for supplies and maintenance, $300 for marketing, and $500 for miscellaneous expenses totaling $3,200. Additional considerations include $2,000-$3,000 for potential renovations and $1,000 emergency fund, bringing the comprehensive startup investment to $185,000-$220,000.

Airbnb properties in Barnum, Minnesota, a small town of approximately 600 residents located in Carlton County, face significant profitability challenges due to limited tourism demand and low nightly rates typically ranging from $60-$120 per night. Properties in this rural area generally achieve occupancy rates of only 25-35% annually, generating gross revenues of $8,000-$15,000 per year for a typical 2-3 bedroom home, while expenses including mortgage payments, utilities, cleaning, maintenance, insurance, and Airbnb fees often total $12,000-$18,000 annually, resulting in negative profit margins of -15% to -25% for most operators. Success factors for the few profitable properties include proximity to outdoor recreation areas like Jay Cooke State Park (30 minutes away), competitive pricing strategies, exceptional guest experiences, and targeting niche markets such as hunters, fishermen, or visitors to nearby Duluth who seek budget accommodations. A case study of a renovated 3-bedroom cabin near the Kettle River achieved 40% occupancy and $18,000 annual revenue in 2023 by marketing to outdoor enthusiasts and maintaining costs at $14,000, yielding a modest 22% profit margin, though this represents an exceptional rather than typical performance in the Barnum market.

Airbnb investments in Barnum, Minnesota typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, though these figures are modest due to the small rural market size and limited tourist traffic in this Carlton County community of approximately 600 residents. Properties in Barnum, primarily serving visitors to nearby Jay Cooke State Park and the Willard Munger State Trail, generally achieve profitability within 18-24 months, with average nightly rates of $75-$110 and occupancy rates of 35-50% annually. The market benefits from proximity to Duluth (45 minutes) and outdoor recreation opportunities, but investors should expect longer payback periods compared to major tourist destinations, with break-even typically occurring in the second year of operation assuming 20-25% down payment on properties averaging $150,000-$200,000.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Barnum, Minnesota. Local real estate agents specializing in investment properties include Coldwell Banker Realty agents in nearby Duluth and RE/MAX Results professionals who cover the Carlton County area where Barnum is located. Vacasa and RedAwning offer property management services for short-term rentals in northern Minnesota markets. AirDNA provides market analytics specifically for Airbnb investments in smaller Minnesota markets like Barnum, while Mashvisor offers investment property analysis tools covering the region. Local services include North Shore Realty Group agents familiar with vacation rental properties along the Lake Superior corridor, and Edina Realty professionals who work with investors in rural Minnesota markets. BiggerPockets connects investors with local wholesalers and agents in the Duluth-Superior metropolitan area that encompasses Barnum. Awning Property Management and HostGPO provide short-term rental management services extending to smaller Minnesota communities, while local property management companies like Superior Property Management handle vacation rentals in the broader Carlton County region.