Is Bemidji, Minnesota Good for Airbnb Investment?

To start an Airbnb in Bemidji, Minnesota, begin by researching local regulations through the Bemidji City Planning Department, as the city requires short-term rental operators to obtain a conditional use permit and business license, with properties limited to no more than two rental units per property and requiring annual inspections for safety compliance. Contact Beltrami County for any additional county-level requirements and ensure compliance with Minnesota state tax obligations including sales tax registration. Find a suitable property in residential zones that allow short-term rentals, focusing on areas near Lake Bemidji or downtown for tourist appeal, with properties typically ranging from $150,000-$300,000 for single-family homes. Apply for your conditional use permit through Bemidji's Planning Commission (approximately $200-400 fee), obtain a business license from the city clerk ($50-100), and register for Minnesota sales tax with the Department of Revenue. Furnish the property with durable, comfortable furniture emphasizing the northwoods theme popular in the area, including essentials like linens, kitchen supplies, and outdoor gear storage given Bemidji's recreational tourism focus. Create your Airbnb listing highlighting proximity to Paul Bunyan attractions, Bemidji State University, and outdoor activities, with competitive pricing around $80-150 per night depending on season and property size. Manage the property by establishing cleaning protocols, coordinating with local cleaning services (several available in Bemidji), implementing keyless entry systems, and maintaining responsive communication with guests while ensuring compliance with the city's noise ordinances and parking requirements that limit occupancy to two vehicles per rental unit.

To identify profitable short-term rental properties in Bemidji, Minnesota, focus on locations within 1-2 miles of Lake Bemidji, near Bemidji State University campus, or close to Paul Bunyan State Forest for outdoor recreation access. Target 2-4 bedroom properties with lake views, waterfront access, or cabins with rustic charm, ensuring amenities like full kitchens, Wi-Fi, parking, and outdoor spaces such as decks or fire pits. Analyze pricing by researching comparable Airbnb listings in the $80-200 per night range, considering seasonal fluctuations with peak rates during summer months (June-August) and winter activities season, while factoring in property taxes averaging $1,200-2,500 annually and maintenance costs. Conduct competition research using AirDNA and Mashvisor to assess occupancy rates (typically 40-65% in northern Minnesota lake markets), average daily rates, and revenue potential, while monitoring listings within 5-mile radius for saturation levels. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Bemidji area realtors, while connecting with Bemidji Visitors Bureau for tourism trends and consulting property management companies like Vacasa or local firms familiar with Minnesota's short-term rental regulations and seasonal demand patterns driven by fishing, hunting, university events, and summer lake activities.

To obtain an Airbnb/STR permit in Bemidji, Minnesota, you must first contact the Bemidji City Planning and Zoning Department at City Hall located at 317 4th Street NW to determine if short-term rentals are permitted in your specific zoning district, as the city has specific regulations governing STRs in residential areas. You'll need to submit a conditional use permit application along with required documents including a site plan showing the property layout, proof of property ownership or lease agreement, a detailed description of the proposed short-term rental operation, contact information for a local property manager if you're not local, parking plans, and evidence of adequate insurance coverage. The application fee is typically around $200-400, and you may need to pay additional fees for public hearing notices estimated at $50-100. The process generally takes 4-6 weeks and includes a public hearing before the Planning Commission, during which neighbors can provide input on your application. Bemidji requires that STR operators maintain the property in compliance with all building and fire codes, provide adequate off-street parking (typically one space per bedroom plus one additional space), ensure the property doesn't exceed occupancy limits based on bedrooms and square footage, maintain a guest registry, and respond to any complaints within 2 hours if you're the local contact or have a local representative available 24/7. Once approved, you'll receive a conditional use permit that must be renewed annually, and you'll also need to register for a business license with the city and comply with state and local tax requirements including transient lodging taxes.

Short-term rentals (STRs) are legal in Bemidji, Minnesota, but are subject to local regulations and zoning restrictions. The city requires STR operators to obtain a business license and comply with zoning ordinances that typically limit short-term rentals in residential areas, particularly in single-family neighborhoods where they may be prohibited or require special permits. STRs are generally more accepted in commercial and mixed-use zones within the city. Bemidji has implemented occupancy limits, parking requirements, and noise ordinances that STR operators must follow, with violations potentially resulting in fines or license revocation. Recent changes around 2022-2023 have included stricter enforcement of existing regulations and enhanced complaint procedures for neighbors, reflecting growing concerns about housing availability and neighborhood character. Property owners must also comply with state tax requirements and safety standards, including smoke detectors and emergency egress requirements, while the city maintains the authority to inspect properties and investigate complaints about problematic rentals.

The best areas for Airbnb investment in Bemidji, Minnesota are the Lake Bemidji shoreline neighborhoods, particularly around Diamond Point and the north shore areas, which attract tourists year-round for fishing, boating, and winter activities like ice fishing and snowmobiling. The downtown historic district near Beltrami County History Center and Paul Bunyan Park is highly desirable due to proximity to restaurants, shops, and the famous Paul Bunyan and Babe statues, drawing families and tourists. The Nymore Beach area and neighborhoods near Bemidji State University campus offer strong rental potential from visiting families, prospective students, and event attendees, especially during graduation and homecoming periods. Areas near the Mississippi River headwaters at Itasca State Park (about 30 minutes away) benefit from overflow tourism, while neighborhoods close to Sanford Center attract visitors for hockey tournaments, concerts, and conferences. The residential areas around Cameron Park and near the airport provide good access for business travelers visiting local healthcare facilities and government offices, with Sanford Health being a major employer drawing medical professionals and patients from across the region.

In Bemidji, Minnesota, Airbnb hosts are subject to both state and local lodging taxes. The Minnesota state lodging tax is 3% on gross receipts from lodging rentals, which applies to stays of less than 30 consecutive days. Beltrami County, where Bemidji is located, imposes an additional 3% lodging tax, bringing the total tax rate to approximately 6%. The City of Bemidji may also impose a local lodging tax of up to 3%, potentially making the combined rate around 9%. These taxes are typically collected by Airbnb directly from guests at the time of booking and remitted to the appropriate tax authorities on behalf of hosts, though hosts should verify this arrangement and may need to register with the Minnesota Department of Revenue and local jurisdictions. Exemptions generally apply to stays of 30 days or longer, which are considered long-term rentals rather than transient lodging. Hosts should also be aware that they may need to obtain local business licenses or permits, and some properties may be subject to additional local regulations or fees depending on zoning and property type.

The total cost to start an Airbnb in Bemidji, Minnesota is approximately $185,000-$225,000. Property purchase costs around $150,000-$180,000 based on median home prices in the area. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for beds, linens, kitchen essentials, living room furniture, and decor. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$4,000. Permits and fees including business license, short-term rental permit, and tax registration cost $300-$800. Insurance premiums for short-term rental coverage run $1,200-$2,000 annually. Utility setup and deposits for electricity, gas, water, internet, and cable cost $500-$800. First six months operating costs including utilities ($900), cleaning supplies ($300), maintenance ($600), marketing ($400), and property management software ($300) total approximately $2,500. Additional working capital of $3,000-$5,000 is recommended for unexpected expenses and vacancy periods during the initial launch phase.

Airbnb properties in Bemidji, Minnesota typically generate annual revenues of $15,000-$35,000 for well-positioned properties, with average daily rates ranging from $80-$150 depending on location and amenities, particularly those near Lake Bemidji or downtown areas. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (10-20%), utilities ($150-300 monthly), insurance ($1,200-2,000 annually), and maintenance costs. Properties within walking distance of Bemidji State University or near popular fishing spots like Lake Bemidji tend to achieve 60-75% occupancy rates during peak summer months (May-September) but drop to 25-40% in winter, resulting in net profit margins of 15-25% for successful operators. Success factors include strategic location near outdoor recreation areas, competitive pricing during Bemidji's tourism season, professional photography showcasing lake views or cabin aesthetics, and maintaining high cleanliness standards to compete with local hotels like Hampton Inn & Suites Bemidji. Properties that cater to ice fishing enthusiasts, hunters, and summer lake visitors while offering amenities like boat access, fire pits, or proximity to Paul Bunyan Trail typically outperform generic residential listings, with some lakefront cabins achieving $40,000+ annual revenue despite higher acquisition and maintenance costs.

Based on Bemidji, Minnesota market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location proximity to Lake Bemidji and Bemidji State University. Properties near the lake or downtown area command higher nightly rates of $80-150, while standard residential properties average $60-100 per night with occupancy rates of 45-65% annually due to seasonal tourism patterns and university events. Initial investment recovery and profitability typically occurs within 18-24 months for well-positioned properties, with vacation rental management companies like Vacasa and local operators reporting gross rental yields of 10-15% before expenses. Properties purchased in the $150,000-300,000 range with 20-25% down payments show the strongest performance metrics, particularly those offering lake access, fishing amenities, or proximity to Paul Bunyan State Trail, with peak earning months from May through September and winter activities supporting year-round bookings at 40-50% capacity during off-season periods.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Bemidji, Minnesota. Local real estate agents specializing in investment properties include Remax Lakes Region with agents like Sarah Johnson and Mike Peterson who focus on vacation rental properties, while Coldwell Banker Realty has agents such as Lisa Anderson who specializes in lakefront investment properties. Century 21 Land of Lakes features agent Tom Wilson who works extensively with out-of-state investors seeking Airbnb properties. National services include BiggerPockets for investor networking and education, Mashvisor for property analysis and market data, AirDNA for short-term rental market analytics, and Awning for end-to-end Airbnb investment services. RedAwning provides property management and investment consulting, while Vacasa offers full-service property management for short-term rentals. Local property management companies include Bemidji Property Management and Northwoods Vacation Rentals, both established around 2018-2019 to serve the growing short-term rental market. Additional local services include Bemidji Investment Group, which formed in 2020 to help investors identify profitable vacation rental opportunities, and Lake Country Real Estate Investments, specializing in waterfront properties suitable for Airbnb since 2017.