Is Bloomington, Minnesota Good for Airbnb Investment?

Potentially—Bloomington, Minnesota combines visitor demand with long-term real estate upside.

• Presents a unique opportunity, largely influenced by its strategic location near Minneapolis-Saint Paul International Airport and the Mall of America.
• Current market conditions in Bloomington show a steady demand for short-term rentals, especially given its role as a travel hub and a destination for large-scale retail and entertainment.
• Tourism trends indicate consistent visitor numbers, benefiting from events, conventions, and the continuous appeal of the Mall of America.
• While property values in Bloomington are generally stable and reflect the desirability of the area, they are typically more accessible than in a major metropolitan downtown.
• This combination of sustained tourism and relatively stable property values suggests a positive investment potential for well-managed Airbnb properties.

$1,200–$2,800 per month based on location, season, and property quality.

• Based on available market data and rental analytics, Airbnb hosts in Bloomington, Minnesota typically earn between $1,200 to $2,800 per month.
• Seasonal variations show peak earnings during summer months (June through August) when revenue can increase by 25-40% due to higher tourism demand.
• Properties near Mall of America command premium rates averaging $150-200 per night compared to $80-120 for standard residential listings, while proximity to Minneapolis-St.
• Paul International Airport also boosts occupancy rates by an estimated 10-15%.
• Key factors affecting earnings include property size and amenities, with three-bedroom homes outperforming smaller units, professional photography increasing bookings by approximately 20%.
• Market saturation has intensified competition, with newer listings requiring 3-6 months to establish consistent booking patterns.

Potentially strong—typical annual ROI is 8–12%.

• Typically generate ROI between 8-12% annually, with properties near the Mall of America and Minneapolis-St.
• Paul International Airport commanding premium rates of $85-120 per night compared to the city average of $70-95.
• The payback period for initial investment ranges from 7-10 years, depending on property acquisition costs averaging $280,000-350,000 for suitable rental properties.
• Short-term rentals in Bloomington generally outperform long-term rentals by 15-25%, as traditional rental properties yield approximately 6-8% ROI with average monthly rents of $1,200-1,600 for comparable units.
• Occupancy rates hover around 65-75% annually, with peak performance during summer months and major events at nearby venues, though investors must factor in higher operational costs including cleaning fees.

Bloomington, Minnesota averages 65–70% annual occupancy, with seasonal variation.

• Airbnb occupancy rates in Bloomington, Minnesota typically average around 65-70% annually, with significant seasonal variation that peaks during summer months (June-August) at approximately 75-80% due to increased tourism and business travel to the Twin Cities metro area.
• Winter months (December-February) see the lowest occupancy rates at around 50-55%, while spring and fall maintain moderate levels of 60-65%.
• Peak demand periods coincide with major events at nearby venues like the Mall of America and Minneapolis-St.
• Paul International Airport proximity drives consistent business traveler demand.
• Bloomington's occupancy rates generally perform 5-10 percentage points higher than the Minnesota state average of 60-65% due to its strategic location and tourist attractions.

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

• The best Airbnb investment neighborhoods in Bloomington, Minnesota include East Bloomington near the Mall of America.
• West Bloomington around Penn Avenue provides excellent value with lower property acquisition costs while maintaining good access to major attractions and highways.
• The Old Shakopee Road corridor is ideal for investors seeking steady occupancy due to its proximity to corporate headquarters like Ceridian and Donaldson Company.
• South Loop area near American Boulevard offers strong rental potential with easy freeway access and proximity to both leisure and business destinations.
• The France Avenue corridor provides upscale investment opportunities with higher-end properties that can command premium rates from affluent visitors.
• Nine Mile Creek area appeals to families and longer-term stays with its residential feel while remaining close to major attractions.
• Finally, the 494 Strip near major hotels creates opportunities for overflow accommodation during peak events and conventions.

Yes, but only where zoning permits short-term rentals and every required license is current.

• Bloomington, Minnesota requires short-term rental operators to obtain a business license and register their property with the city.
• The city limits occupancy to two guests per bedroom plus two additional guests, with a maximum of 10 guests total regardless of property size, and requires adequate parking for all guests.
• Owner-occupancy is not mandated for short-term rentals, allowing both owner-occupied and non-owner-occupied properties to operate as vacation rentals.
• Zoning restrictions permit short-term rentals in most residential districts but prohibit them in certain multi-family zones and require compliance with neighborhood compatibility standards including noise ordinances and parking requirements.
• The registration process involves submitting a completed application, paying licensing fees of approximately $200-300 annually, providing proof of insurance, passing safety inspections.
• Recent regulatory changes implemented in 2022-2023 include stricter enforcement of occupancy limits, enhanced penalties for violations, mandatory posting of house rules and emergency contact information.

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

• Short-term rentals in Bloomington, Minnesota are subject to several fees and taxes including a state lodging tax of 3% and local lodging tax of approximately 3-4%.
• The city requires an annual short-term rental license costing approximately $150-200, with initial registration fees of around $50-75.
• Property owners must also pay standard property taxes which average 1.1-1.3% of assessed value annually.
• There may be additional inspection fees of $75-100 for initial permits and potential renewal inspection costs.
• The Metropolitan Council transit tax of 0.25% applies to lodging accommodations, and operators must collect and remit Minnesota sales tax of 6.875% on rental income.
• Some properties may be subject to special assessments or tourism improvement district fees ranging from $25-100 annually depending on location within the city.