Is Benson, Minnesota Good for Airbnb Investment?

To start an Airbnb in Benson, Minnesota, begin by researching local zoning laws and contacting Benson City Hall (320-843-4562) to understand short-term rental regulations, as many Minnesota cities require business licenses and may have occupancy limits or parking requirements. Obtain necessary permits including a business license from the city, register with the Minnesota Department of Revenue for sales tax collection, and ensure compliance with Swift County health and safety codes. Find a suitable property by purchasing or leasing a home in residential areas that allow short-term rentals, focusing on properties near Benson's downtown area or close to Swift County Fair Park for tourist appeal. Furnish the space with quality basics including comfortable beds, linens, towels, kitchen essentials, WiFi, and safety equipment like smoke detectors and fire extinguishers, budgeting approximately $3,000-8,000 for initial furnishing. Create your Airbnb listing with professional photos highlighting the property's proximity to local attractions like Benson City Park and downtown businesses, setting competitive rates around $75-120 per night based on comparable properties in western Minnesota. Manage the property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guest inquiries, and considering hiring local cleaning services in Benson or nearby Morris for turnovers, while keeping detailed records for tax purposes and remitting required state and local taxes quarterly.

To identify profitable short-term rental properties in Benson, Minnesota, focus on properties within walking distance of downtown Main Street and near Swift County Fairgrounds, as these areas attract visitors for local events and business travelers. Target 2-3 bedroom single-family homes or duplexes built after 1950 with updated kitchens, reliable Wi-Fi capability, and parking spaces, as these features appeal to families visiting the area for agricultural business or regional events. Conduct pricing analysis by researching comparable rentals within a 30-mile radius including Morris and Willmar, aiming for nightly rates between $80-120 based on property size and amenities, while analyzing seasonal demand patterns around county fair season (July-August) and hunting seasons. Research competition by examining existing Airbnb and VRBO listings in Swift County and neighboring Pope County, noting occupancy rates and guest reviews to identify service gaps. Utilize tools like AirDNA for market data, STR Helper for revenue projections, and local resources such as the Benson Economic Development Authority and Swift County tourism information to understand visitor patterns, while connecting with local real estate agents familiar with investment properties and zoning regulations specific to short-term rentals in this rural Minnesota market.

To obtain an Airbnb/STR permit in Benson, Minnesota, contact the Benson City Hall at 1405 Atlantic Avenue or call (320) 843-4212 to begin the application process, as the city requires a business license and rental permit for short-term rentals. Submit a completed business license application along with a short-term rental permit application, providing required documents including proof of property ownership or lease agreement, property insurance certificate showing minimum $1 million liability coverage, floor plan of the rental unit, contact information for a local property manager if you're not local, and a signed affidavit acknowledging compliance with city ordinances. Pay the business license fee of approximately $50-75 and short-term rental permit fee of around $100-150 annually. The city requires properties to meet all building and fire safety codes, maintain adequate parking (typically 1-2 spaces per unit), display the permit number in all advertising, and limit occupancy to 2 people per bedroom plus 2 additional guests maximum. Properties must be owner-occupied or have a designated local contact person available 24/7, maintain quiet hours from 10 PM to 7 AM, and undergo annual inspections. The approval timeline is typically 2-4 weeks after submitting complete documentation, and permits must be renewed annually by December 31st with updated insurance and inspection certificates.

Short-term rentals (STRs) are generally legal in Benson, Minnesota, as the city does not appear to have specific municipal ordinances prohibiting them as of 2024. However, operators must comply with Minnesota state regulations and Swift County requirements, which typically include business licensing, tax collection, and safety standards. The city likely follows standard zoning regulations that may restrict STRs in certain residential areas or require conditional use permits depending on the property type and frequency of rentals. Property owners should verify compliance with local fire safety codes, obtain necessary business licenses, and collect applicable state and local taxes including Minnesota's lodging tax. While there haven't been significant recent legal changes specific to Benson, many Minnesota municipalities have been updating their STR regulations since 2020-2023, so operators should check with Benson City Hall for the most current requirements and any pending ordinances that might affect short-term rental operations.

The best areas for Airbnb investment in Benson, Minnesota include the downtown historic district near Swift County Courthouse and Main Street, which attracts visitors for county business, legal proceedings, and local events at the Swift County Fair Grounds. The residential neighborhoods near Benson Golf Club on the north side of town offer appeal to golf tourists and recreational visitors, particularly during summer months when the course hosts tournaments. Areas close to Highway 12 and Highway 29 intersection provide convenient access for business travelers and those visiting Swift County for agricultural business, as this region serves as a hub for farming operations and grain elevators. The neighborhoods near Benson City Park and the swimming pool area attract families during summer festivals and the annual corn festival, while properties within walking distance of downtown restaurants and the historic Swift County Museum appeal to heritage tourists and visitors exploring western Minnesota's agricultural history.

In Benson, 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. The state requires hosts to register for a sales tax permit and remit taxes monthly if annual taxable sales exceed $10,000, or quarterly for smaller operations, with payments due by the 20th of the month following the reporting period. Additionally, hosts may be subject to local lodging taxes imposed by Swift County, which typically range from 2-4% though the exact rate for Benson area should be verified with local authorities. Airbnb can collect and remit these taxes automatically for hosts who opt into their tax collection service, which became available for Minnesota properties around 2019-2020. Properties rented for 30 days or more are generally exempt from lodging taxes as they're considered long-term rentals rather than transient accommodations. Hosts should also check if Benson has implemented any city-specific transient lodging taxes, as many Minnesota municipalities have adopted such ordinances in recent years, and ensure compliance with both state Department of Revenue registration requirements and any local business licensing requirements that may apply to short-term rental operations.

To start an Airbnb in Benson, Minnesota, the total estimated costs would be approximately $185,000-$220,000. Property purchase represents the largest expense at $150,000-$180,000 based on median home prices in rural Minnesota markets like Benson. Furnishing costs typically range $8,000-$12,000 for a complete 2-3 bedroom property including furniture, bedding, kitchenware, and décor 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 from Swift County and Benson city officials. Insurance costs run $1,200-$2,000 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utility setup and deposits for electricity, gas, water, internet, and cable total approximately $800-$1,500. First six months operating costs including utilities ($600-$900 monthly), cleaning services ($75-$125 per turnover), supplies and maintenance ($200-$400 monthly), platform fees to Airbnb and VRBO (3% of bookings), and marketing expenses total roughly $6,000-$9,000, assuming 40-60% occupancy rates typical for rural Minnesota markets.

Airbnb properties in Benson, Minnesota, typically generate modest returns due to the small-town market dynamics, with average nightly rates ranging from $75-120 for entire homes and occupancy rates around 40-55% annually. Revenue for a typical 2-3 bedroom property averages $12,000-18,000 per year, while expenses including mortgage payments, utilities, cleaning fees, insurance, and platform fees typically consume 70-85% of gross revenue, leaving profit margins of 15-30%. Success factors in this rural Minnesota market include proximity to recreational areas like Swift County lakes, competitive pricing below $100/night, and targeting seasonal visitors during summer months and hunters in fall. Properties near downtown Benson or within walking distance of local attractions like the Swift County Historical Museum perform better, with some hosts reporting annual profits of $3,000-6,000 after expenses. The market faces challenges from limited year-round demand and competition from traditional lodging, making Airbnb most viable as a supplemental income source rather than a primary investment strategy, with break-even typically occurring in the second year of operation for properties with mortgages under $150,000.

Airbnb investments in Benson, Minnesota typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, based on the area's proximity to recreational lakes and seasonal tourism patterns. Properties in Benson, particularly those near Swift County lakes and hunting areas, can achieve profitability within 18-24 months due to consistent demand from outdoor enthusiasts and visitors to nearby Lac qui Parle State Park. The market benefits from relatively low property acquisition costs averaging $150,000-$250,000 for suitable rental properties, while nightly rates range from $80-$140 depending on property size and amenities. Seasonal fluctuations show peak performance during summer months (June-August) and hunting seasons (September-November), with occupancy rates averaging 65-75% annually. Investment properties focusing on 2-3 bedroom homes with outdoor amenities and lake access typically outperform the market average, achieving the higher end of ROI expectations within the 24-month profitability window.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Benson, Minnesota. In the Benson area, local real estate agents like those at RE/MAX Results and Coldwell Banker Realty have experience with investment properties and vacation rentals around the lakes region. National services include Awning (formerly RedAwning) which provides Airbnb investment analysis, Mashvisor for rental property analytics, and AirDNA for short-term rental market data. Local property management companies such as Vacasa and RedAwning operate in Minnesota lake communities and can assist with both acquisition and management. Regional real estate investment groups and the Minnesota Real Estate Investors Association provide networking opportunities for finding deals. BiggerPockets marketplace and their local Minnesota forums connect investors with agents familiar with STR properties. Local lake area specialists like those at Keller Williams Integrity Lakes often work with investors seeking cabin and lake home investments suitable for Airbnb conversion in the Benson and surrounding Swift County region.