Is Braham, Minnesota Good for Airbnb Investment?

To start an Airbnb in Braham, Minnesota, begin by researching local zoning laws and regulations through the City of Braham and Kanabec County offices, as short-term rentals may require special permits or have restrictions in residential areas. Contact the city clerk at (320) 396-2292 to inquire about business licenses, occupancy permits, and any specific short-term rental ordinances that may have been enacted since 2020-2022 when many Minnesota municipalities began regulating Airbnb properties. Obtain necessary permits including a business license from the city, ensure compliance with Minnesota Department of Health lodging regulations, and verify fire safety requirements with the local fire marshal. Find a suitable property by searching real estate listings in Braham's residential areas, considering proximity to attractions like the Braham Pie Day Festival venue and Highway 65 accessibility for guests traveling from the Twin Cities area. Purchase or lease a property that meets zoning requirements, then furnish it with quality furniture, linens, and amenities suitable for travelers visiting this small town of approximately 1,800 residents. Create your Airbnb listing with professional photos highlighting the rural Minnesota charm and proximity to outdoor activities like fishing and hiking in the surrounding Kanabec County area. Set competitive pricing based on similar properties in nearby Cambridge or Pine City, typically ranging $75-150 per night for rural Minnesota markets. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guest inquiries, and ensuring compliance with Minnesota's 6.875% sales tax plus local lodging taxes that may apply to short-term rentals.

To identify profitable short-term rental properties in Braham, Minnesota, focus on locations within 2-3 miles of Braham Lakes and recreational areas, as well as properties near Highway 65 for easy Twin Cities access approximately 60 miles south. Target 2-4 bedroom cabins, lake homes, or rural properties with 1,500-3,000 square feet featuring outdoor amenities like decks, fire pits, boat access, or scenic views that appeal to weekend getaways and fishing enthusiasts. Analyze pricing by researching comparable Airbnb listings in the $100-250 per night range, considering seasonal fluctuations with peak rates during summer months (June-August) and hunting season (September-November). Research competition using AirDNA and Mashvisor to identify occupancy rates around 40-60% annually, while examining existing listings within 10 miles including nearby Cambridge and Rush City markets. Utilize tools like Rabbu, PriceLabs for dynamic pricing, and local resources such as Isanti County property records, Braham Area Chamber of Commerce for event calendars, and Minnesota DNR for recreational activity data to assess demand drivers and optimize property selection for maximum profitability in this rural lake country market.

To obtain an Airbnb/STR permit in Braham, Minnesota, contact the Braham City Hall at 218-396-2292 or visit their office at 416 South 4th Street to request a short-term rental license application, as the city likely requires registration under their business licensing ordinance. Submit the completed application along with a copy of your property deed or lease agreement, proof of liability insurance (typically $1 million minimum), a floor plan of the rental space, contact information for a local property manager if you live more than 50 miles away, and proof of compliance with fire safety codes including smoke and carbon monoxide detectors. Pay the application fee of approximately $100-200 annually, though Braham may charge around $150 based on similar Minnesota municipalities. The approval process typically takes 2-4 weeks after submission of complete documentation. Braham likely requires compliance with residential zoning restrictions, maximum occupancy limits based on bedrooms and square footage, quiet hours enforcement, adequate parking provision, and annual license renewal. Contact the Isanti County Building Department at 763-689-1711 for any additional building or safety inspections that may be required, and ensure compliance with Minnesota state tax registration requirements through the Department of Revenue for collecting and remitting lodging taxes.

Short-term rentals (STRs) in Braham, Minnesota are generally legal but subject to local regulations and state oversight. As a small city in Kanabec County, Braham likely follows Minnesota's statewide STR framework which requires registration with the state and compliance with safety standards, though specific local ordinances may impose additional restrictions on zoning, occupancy limits, and operational requirements. The city may have designated certain residential areas where STRs are permitted while potentially restricting them in specific zones or requiring conditional use permits. Minnesota implemented comprehensive STR legislation around 2021-2022 that standardized registration requirements and safety standards across the state, and Braham would need to comply with these state mandates while potentially adding its own local restrictions regarding parking, noise, and neighborhood compatibility. Property owners should verify current local zoning ordinances and obtain necessary permits from both the city and state before operating an STR in Braham.

The best areas for Airbnb investment in Braham, Minnesota include the downtown historic district near Main Street, which attracts visitors interested in the town's Swedish heritage and annual Pie Day Festival each August, and properties near the Braham Pie Park that capitalize on the town's famous pie tourism. The residential areas along Highway 107 offer good potential due to proximity to both downtown attractions and easy highway access for business travelers heading to the Twin Cities. Properties near the Snake River and surrounding recreational areas appeal to outdoor enthusiasts visiting for fishing, hiking, and seasonal activities, while locations within walking distance of local antique shops and the historic depot museum provide charm for weekend tourists. The area near Braham's golf course and country club attracts golfers and event attendees, particularly during wedding season and golf tournaments from May through September.

In Braham, Minnesota, Airbnb hosts are subject to Minnesota state sales tax at 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 collect tax from guests at the time of booking, with remittance due monthly if annual tax liability exceeds $500, or annually if less. Additionally, hosts must pay Minnesota's statewide lodging tax of 3% on gross receipts from transient lodging. Pine County, where Braham is located, does not impose a separate county lodging tax as of 2023. The city of Braham itself does not currently levy a municipal lodging or occupancy tax on short-term rentals. Airbnb automatically collects and remits the state sales tax and lodging tax for hosts in Minnesota through their platform since 2019, though hosts remain ultimately responsible for compliance. Exemptions include stays of 30 days or longer, which are considered long-term rentals rather than transient lodging, and rentals to guests who qualify for sales tax exemptions such as certain government employees on official business.

To start an Airbnb in Braham, Minnesota, expect total costs around $185,000-$220,000. Property purchase represents the largest expense at approximately $150,000-$180,000 based on median home prices in rural Minnesota markets. Furnishing costs typically range $8,000-$12,000 for a complete 2-3 bedroom setup including beds, linens, kitchen essentials, and living room furniture 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 through Pine County and city offices. Insurance premiums for short-term rental coverage run $1,200-$2,000 annually, significantly higher than standard homeowner policies. Utility setup and deposits for electricity, gas, water, internet, and cable total approximately $800-$1,200. First six months operating costs including utilities ($600-$900 monthly), cleaning services ($75-$100 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 during peak seasons.

Airbnb properties in Braham, Minnesota, a small city of approximately 1,800 residents located between Minneapolis and Duluth, typically generate modest returns due to limited tourism demand and seasonal fluctuations. Properties in this rural market generally earn $2,000-4,000 annually in gross revenue, with average daily rates ranging from $75-120 depending on property size and amenities. Operating expenses including cleaning fees ($25-40 per turnover), utilities ($100-150 monthly), insurance ($800-1,200 annually), and maintenance typically consume 40-50% of gross revenue, resulting in net profit margins of 15-25% for well-managed properties. Success factors include proximity to outdoor recreation areas like the Rum River, competitive pricing during peak summer months (June-August), and targeting visitors to nearby attractions or those traveling between the Twin Cities and North Shore. Properties with unique features like lakefront access or historic charm perform better, with some hosts reporting occupancy rates of 35-45% during peak season but dropping to 10-15% in winter months. The limited local tourism infrastructure and competition from established vacation rental markets in nearby areas like Taylors Falls or Grand Rapids constrains overall profitability, making Braham more suitable for supplemental income rather than primary investment returns.

Airbnb investments in Braham, Minnesota typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, based on the area's proximity to outdoor recreation areas like Mille Lacs Lake and the North Shore tourism corridor. Properties in Braham, particularly those marketed as rural retreats or lake-adjacent accommodations, can achieve profitability within 18-24 months given average nightly rates of $85-120 and occupancy rates of 45-60% during peak seasons from May through October. The market benefits from Minneapolis-St. Paul metro area visitors seeking weekend getaways, with investors typically seeing break-even points around month 20-26 when factoring in property acquisition costs, renovations, and operational expenses, while established properties with strong reviews can achieve 12-15% annual returns by year three of operation.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Braham, Minnesota. Local real estate agents specializing in investment properties include Coldwell Banker Realty agents in the Pine City and Cambridge areas who serve Braham, along with RE/MAX Results agents familiar with the rural Minnesota vacation rental market. Vacasa and RedAwning offer property management services for Airbnb investors in the region, while AirDNA provides market analytics specifically for short-term rental investments in smaller Minnesota markets like Braham. National services include BiggerPockets for investor networking, Mashvisor for property analysis, and Roofstock for turnkey rental property investments, though their Minnesota inventory may be limited. Local property management companies such as Minnesota Vacation Rentals and North Woods Property Management specialize in managing short-term rentals in rural Minnesota communities. Real estate investment groups like the Minnesota Real Estate Investors Association (MNREIA) provide networking opportunities and market insights for investors targeting smaller markets like Braham, which benefits from its proximity to the Twin Cities and outdoor recreation areas.