Is Blaine, Minnesota Good for Airbnb Investment?

To start an Airbnb in Blaine, Minnesota, begin by researching local regulations as Blaine requires short-term rental operators to obtain a business license and comply with zoning ordinances that typically allow rentals in residential areas with restrictions on occupancy and parking. Contact Blaine City Hall at 763-785-6100 to obtain the necessary permits including a business license ($50-100 annually) and ensure compliance with fire safety codes and building inspections. Find a suitable property by purchasing or leasing a home in residential zones, ensuring it meets minimum square footage requirements and has adequate parking spaces as mandated by city code. Furnish the property with essential amenities including Wi-Fi, linens, kitchen supplies, and safety equipment like smoke detectors and fire extinguishers, while considering Blaine's family-friendly demographic by including amenities for children. List your property on Airbnb and other platforms with competitive pricing around $80-150 per night based on Blaine's market rates, highlighting proximity to attractions like the National Sports Center and Twin Cities access. Manage the property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guests, and ensuring compliance with Blaine's noise ordinances and occupancy limits, while collecting and remitting the required Minnesota state sales tax of 6.875% plus local taxes on all bookings.

To identify profitable short-term rental properties in Blaine, Minnesota, focus on locations within 10-15 minutes of major attractions like the National Sports Center, Northtown Mall, and easy highway access to Minneapolis-St. Paul metro area. Target 3-4 bedroom single-family homes or townhomes built after 1990 with modern amenities, full kitchens, parking for 4+ vehicles, and outdoor spaces since many visitors come for youth sports tournaments and family gatherings. Analyze pricing by researching comparable Airbnb listings in Blaine, Coon Rapids, and Anoka, aiming for properties that can generate $150-250 per night during peak sports seasons and $100-150 during off-peak periods. Competition research should focus on the 50-80 existing STR listings in the area, identifying gaps in amenities like hot tubs, game rooms, or pet-friendly options that command premium rates. Utilize tools like AirDNA for market data, Mashvisor for investment analysis, and monitor Blaine's municipal regulations since the city requires STR licenses and has occupancy limits, while leveraging resources like the Anoka County property records, local real estate agents familiar with investment properties, and connecting with the National Sports Center event calendar to understand demand patterns throughout the year.

To obtain an Airbnb/STR permit in Blaine, Minnesota, you must first contact the Blaine City Hall at 10801 Town Square Drive NE or call (763) 717-2600 to obtain a Short-Term Rental License application, as Blaine requires all properties rented for less than 30 consecutive days to be licensed. Submit the completed application along with required documents including proof of property ownership or lease agreement allowing short-term rentals, a site plan showing parking areas and property layout, proof of liability insurance with minimum $1 million coverage naming the City of Blaine as additional insured, a floor plan indicating maximum occupancy, and contact information for a local responsible party available 24/7. Pay the application fee of approximately $200-300 plus annual renewal fees of around $150-200, though exact amounts should be confirmed with the city. The city will conduct a property inspection to ensure compliance with building codes, fire safety requirements, and zoning regulations, which typically takes 2-4 weeks after application submission. Blaine requires STRs to maintain adequate off-street parking (typically 2 spaces minimum), limit occupancy to 2 people per bedroom plus 2 additional guests, prohibit events or parties, maintain quiet hours from 10 PM to 7 AM, and display the license number in all advertising. Once approved, the license is valid for one year and must be renewed annually with updated insurance documentation and compliance verification, with the entire initial process typically taking 4-6 weeks from application to approval.

Short-term rentals (STRs) are legal in Blaine, Minnesota, but are subject to city regulations and licensing requirements. The city requires STR operators to obtain a business license and comply with zoning ordinances, which typically restrict short-term rentals to certain residential zones while prohibiting them in areas zoned for single-family residential use only. Properties must meet safety standards including smoke and carbon monoxide detectors, and operators must maintain liability insurance. Blaine has implemented occupancy limits based on property size and requires adequate parking for guests. The city has been actively updating its STR regulations since around 2018-2020 to address neighborhood concerns about noise, parking, and property maintenance, with recent changes focusing on stricter enforcement of existing rules rather than outright bans. Operators must also comply with state and local tax requirements, and violations can result in license revocation and fines.

The best areas for Airbnb investment in Blaine, Minnesota include the neighborhoods near the National Sports Center, which attracts year-round visitors for soccer tournaments, hockey events, and other sporting competitions, generating consistent demand from traveling teams and families. The areas around Northtown Mall and Highway 65 corridor offer excellent accessibility and proximity to shopping, dining, and entertainment venues, making them attractive to both leisure and business travelers. Properties near Bunker Beach Water Park and the Bunker Hills Regional Park are highly desirable during summer months, drawing families seeking recreational activities and outdoor experiences. The residential areas close to TPC Twin Cities golf course appeal to golf enthusiasts and corporate groups hosting business retreats or tournaments. Additionally, neighborhoods with easy access to Highway 35W and Interstate 694 are valuable for business travelers commuting to Minneapolis-St. Paul metropolitan area, as Blaine's location provides a quieter suburban alternative while maintaining convenient urban access. The Ham Lake and Coon Rapids border areas also benefit from spillover demand when accommodations in neighboring cities are fully booked during major Twin Cities events and conventions.

In Blaine, 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. Additionally, Blaine imposes a local lodging tax of approximately 3-4% on short-term rental accommodations. 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 through Airbnb's automated tax collection system, which began around 2017-2018 for Minnesota properties. Hosts may still need to register with the Minnesota Department of Revenue and obtain a sales tax permit, and should verify their tax obligations with local authorities. Exemptions generally apply to stays of 30 days or longer, certain government employees on official business, and some nonprofit organization bookings. The combined tax rate for Airbnb stays in Blaine is approximately 6-7%, though hosts should confirm current rates with the Minnesota Department of Revenue and Anoka County tax authorities as rates can change annually.

To start an Airbnb in Blaine, Minnesota, expect total costs around $385,000-$420,000. Property purchase represents the largest expense at approximately $350,000 based on median home prices in the area as of 2023. Furnishing costs typically range $15,000-$25,000 for a complete 3-bedroom setup including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic marketing materials run about $1,500-$2,500. Permits and fees in Blaine include business license ($100-$200), short-term rental permit ($200-$400), and potential HOA approval processes. Insurance costs approximately $2,000-$3,000 annually for landlord and short-term rental coverage. Monthly utilities average $200-$300 covering electricity, gas, water, internet, and cable. First six months operating costs including utilities ($1,800), cleaning services ($1,200), maintenance reserves ($1,000), property management software ($300), and marketing ($500) total approximately $4,800. Additional considerations include potential property improvements ($3,000-$8,000) and working capital reserves for vacancy periods, bringing the comprehensive startup investment to the upper end of the estimated range.

Airbnb properties in Blaine, Minnesota typically generate annual revenues between $15,000-$35,000 for entire homes, with average daily rates ranging from $85-$140 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (10-20% of revenue), utilities ($150-300 monthly), insurance ($800-1,500 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties near the National Sports Center and those offering family-friendly amenities like game rooms or proximity to lakes tend to perform 20-30% above market average, with successful hosts like those managing 3-bedroom homes near Lexington Avenue reporting net profit margins of 25-35% after all expenses. The market benefits from Blaine's strategic location between Minneapolis and the northern lake region, with peak seasons during summer months (June-August) and hockey tournaments generating occupancy rates of 70-85%, while winter months typically see 45-60% occupancy. Properties that maintain consistent 4.8+ star ratings and offer competitive pricing strategies typically achieve break-even within 18-24 months, with the most successful operators focusing on corporate travelers and sports families visiting the area's numerous athletic facilities.

Airbnb investments in Blaine, Minnesota typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties near the National Sports Center and close to Minneapolis-St. Paul International Airport tend to perform better, with average daily rates of $85-120 during peak seasons and $60-85 in off-peak periods. Initial investment recovery and profitability usually occurs within 18-24 months, assuming 65-75% occupancy rates throughout the year. The proximity to Twin Cities metro area, recreational facilities, and corporate housing demand from companies like Medtronic, Target, and 3M supports consistent booking rates, with properties requiring initial investments of $200,000-350,000 typically generating $18,000-35,000 in annual net income after expenses including property management, utilities, and maintenance costs.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Blaine, Minnesota. Local real estate agents who focus on investment properties in the Blaine area include Keller Williams Realty agents specializing in vacation rentals, RE/MAX Results investment property specialists, and Coldwell Banker Realty agents with STR expertise. National services that can help find Airbnb properties in Blaine include AirDNA for market analysis and property identification, Mashvisor for investment property analytics, BiggerPockets marketplace connections, and Roofstock's short-term rental platform. Local property management companies that also help with acquisitions include North Star Property Management, Twin Cities Property Management, and Minnesota Rental Management. Additional services include local real estate investment groups through the Minnesota Real Estate Investors Association, Airbnb property scouts who specialize in the Minneapolis-St. Paul metro area, and investment-focused mortgage brokers like Residential Mortgage Group and Guaranteed Rate who understand STR financing in Minnesota markets.