Is Chisholm, Minnesota Good for Airbnb Investment?

To start an Airbnb in Chisholm, Minnesota, begin by researching local zoning laws and regulations through the Chisholm City Hall, as this small Iron Range community may have specific ordinances regarding short-term rentals that differ from larger Minnesota cities. Contact the city clerk's office to determine if you need a business license or special permits, and check with St. Louis County for any additional requirements since Chisholm operates under county jurisdiction for many services. Find a suitable property by searching local real estate listings or consider converting an existing home, keeping in mind that properties near Chisholm's historic downtown or close to outdoor recreation areas like nearby state parks may attract more guests. Furnish the space with durable, comfortable furniture from retailers in nearby Duluth or through online suppliers, focusing on a cozy, northwoods aesthetic that appeals to visitors exploring Minnesota's Iron Range region. Create your Airbnb listing with high-quality photos highlighting local attractions like the Minnesota Museum of Mining, Ironworld Discovery Center, and access to hiking and fishing opportunities. Set competitive pricing by researching similar properties in the region, typically ranging from $75-150 per night depending on size and amenities. For ongoing management, establish relationships with local cleaning services, maintenance providers, and consider using automated check-in systems, while staying responsive to guests who are often visiting for outdoor recreation, family reunions, or exploring the area's mining heritage.

To identify profitable short-term rental properties in Chisholm, Minnesota, focus on locations near the Mesabi Trail, Ironworld Discovery Center, and Lake Pokegama as these attract outdoor enthusiasts and tourists year-round. Target 2-4 bedroom properties built after 1980 with modern amenities, full kitchens, outdoor spaces, and parking, as these appeal to families and groups visiting the Iron Range region. Analyze pricing by researching comparable Airbnb listings within 20 miles, noting that properties typically rent for $80-150 per night depending on size and amenities, with higher rates during summer months and fall foliage season. Study competition using AirDNA and Mashvisor to assess occupancy rates and revenue potential, while monitoring listings in nearby Hibbing and Grand Rapids for market benchmarks. Utilize tools like Rabbu, STR Helper, and local MLS data through Edina Realty or RE/MAX Results, and consult with Chisholm's city planning department regarding short-term rental regulations, as Minnesota's Iron Range communities have varying ordinances that could impact profitability and operational requirements.

To obtain an Airbnb/STR permit in Chisholm, Minnesota, contact the Chisholm City Hall at 316 West Lake Street or call (218) 254-7930 to inquire about short-term rental licensing requirements, as the city likely requires a business license and may have specific STR regulations. You'll typically need to submit a completed application form, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, and pay applicable fees which generally range from $50-200 annually in similar Minnesota municipalities. Required documents usually include a state tax ID number, fire safety inspection certificate, and compliance with zoning ordinances since residential properties may need conditional use permits for commercial activity. The approval timeline is typically 30-60 days depending on inspection scheduling and application completeness. Chisholm likely requires compliance with occupancy limits based on square footage, adequate parking provisions, noise ordinances, and regular safety inspections, plus you must register with the Minnesota Department of Revenue for lodging taxes and may need to collect local taxes ranging from 3-7% depending on county requirements.

Short-term rentals (STRs) in Chisholm, Minnesota are generally legal but subject to local regulations and zoning restrictions. As a small city in St. Louis County with approximately 5,000 residents, Chisholm follows Minnesota state law which allows municipalities to regulate STRs through zoning ordinances and licensing requirements. The city likely requires STR operators to obtain business licenses and comply with residential zoning restrictions, which may limit STRs to certain residential districts while potentially prohibiting them in areas zoned for single-family residential use only. Property owners must typically register their rentals, maintain safety standards including smoke and carbon monoxide detectors, and may face occupancy limits and parking requirements. Recent changes across Minnesota municipalities since 2020-2022 have included stricter enforcement of existing regulations and enhanced registration processes, though Chisholm's specific ordinances may be less comprehensive than larger cities like Duluth or Minneapolis. STR operators should verify current local requirements with Chisholm's city planning department as regulations can change and enforcement varies by neighborhood and property type.

The best areas for Airbnb investment in Chisholm, Minnesota include the downtown historic district near the Minnesota Museum of Mining, which attracts tourists interested in Iron Range heritage and mining history, particularly during summer months when the Ironworld Discovery Center hosts events and festivals. The residential neighborhoods along Highway 169 offer convenient access for business travelers visiting local mining operations and healthcare facilities at Essentia Health-Northern Pines Medical Center. Areas near Longyear Lake provide seasonal appeal for outdoor enthusiasts seeking fishing, boating, and winter recreation activities, while properties within walking distance of the Chisholm Fire Days festival grounds in Longyear Park capitalize on the annual July celebration that draws thousands of visitors. The neighborhoods surrounding the historic Chisholm High School and near the intersection of Central Avenue and Lake Street offer good accessibility to local amenities while maintaining the small-town charm that appeals to visitors exploring the Iron Range region, with potential for year-round occupancy from workers in the mining industry and tourists visiting nearby attractions like the Hull Rust Mahoning Mine in Hibbing.

Airbnb properties in Chisholm, Minnesota are subject to Minnesota's state lodging tax of 3% on gross receipts from short-term rentals under 30 days, which is automatically collected by Airbnb and remitted to the Minnesota Department of Revenue on behalf of hosts. Additionally, St. Louis County imposes a local lodging tax of approximately 3-4% that may apply to short-term rentals, though collection and remittance procedures vary and some hosts may need to register directly with the county to collect and remit these taxes quarterly. The city of Chisholm itself does not appear to have a separate municipal lodging tax as of 2023, but hosts should verify current local ordinances as regulations can change. Exemptions typically apply to rentals of 30 days or longer, which are considered long-term stays rather than transient lodging, and some jurisdictions may exempt rentals under certain dollar thresholds or for specific property types, though these exemptions are limited and most short-term Airbnb rentals will be subject to the applicable state and county taxes.

The total cost to start an Airbnb in Chisholm, Minnesota is approximately $185,000-$220,000. Property purchase costs around $120,000-$140,000 based on median home prices in the Iron Range region. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, bedding, kitchenware, and decor suitable for short-term rentals. Initial setup costs including professional photography, listing creation, smart locks, and welcome materials total $2,000-$3,500. Permits and fees including business license, short-term rental permit, and potential zoning approvals cost $500-$1,200. Insurance for short-term rental coverage adds $2,000-$3,000 annually. Utilities including electricity, gas, water, internet, and cable average $300-$400 monthly or $1,800-$2,400 for six months. First six months operating costs including cleaning services, supplies, maintenance, platform fees, and marketing total $8,000-$12,000. Additional considerations include property taxes of approximately $2,000-$3,000 annually and potential renovation costs of $10,000-$25,000 depending on property condition, bringing the comprehensive startup investment to the upper end of the range for a fully operational Airbnb business in this northern Minnesota mining community.

Airbnb properties in Chisholm, Minnesota typically generate modest returns due to the city's small population of approximately 5,000 and limited tourism infrastructure, with average nightly rates ranging from $75-120 for entire homes and occupancy rates averaging 35-45% annually. Revenue for a typical 2-3 bedroom property averages $8,000-15,000 annually, while expenses including mortgage payments, utilities, cleaning fees, insurance, and platform fees typically consume 60-75% of gross revenue, resulting in net profit margins of 25-40% or roughly $2,000-6,000 per year. Success factors in this market include proximity to outdoor recreation areas like McCarthy Beach State Park, competitive pricing below $100/night, and targeting visitors to nearby attractions or workers in the Iron Range mining region. Properties within walking distance of downtown or near Longyear Lake tend to perform better, with some hosts reporting 50-60% occupancy during summer months by marketing to fishing enthusiasts and families visiting the area's mining heritage sites, though winter occupancy often drops to 20-30% due to harsh weather conditions limiting tourism activity.

Airbnb investments in Chisholm, Minnesota typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the area's proximity to outdoor recreation including the Mesabi Trail and nearby state parks which attract seasonal tourists and iron mining industry workers seeking short-term accommodations. Properties in Chisholm generally reach profitability within 18-24 months, with average daily rates of $75-$95 during peak summer months (May-September) and $50-$70 during winter periods, while occupancy rates average 45-60% annually due to the city's location along Highway 169 serving as a gateway to the Iron Range region. Investment properties typically require $15,000-$25,000 in initial setup costs for a standard 2-3 bedroom home, with gross rental yields of 10-14% supported by steady demand from Mesabi Range College visitors, mining contractors, and outdoor enthusiasts accessing the Superior National Forest, though investors should expect seasonal fluctuations with stronger performance during summer recreation seasons and hunting periods in fall.

STRSearch leads the national market for Airbnb investment property analysis and market research tools, helping investors identify profitable short-term rental opportunities in Chisholm, Minnesota. Local real estate agents like those at Edina Realty and RE/MAX Results have experience with investment properties in the Iron Range area, while Century 21 Atwood has served the Chisholm market since the 1980s. National services include Mashvisor for property analysis, BiggerPockets for investor networking and deal sourcing, and Awning which provides end-to-end Airbnb investment services including property acquisition assistance. RedAwning offers vacation rental investment consulting, while local property management companies like Iron Range Property Management and Northland Vacation Rentals can provide market insights for potential investors. Roofstock, though primarily focused on traditional rentals, expanded into short-term rental investments around 2021, and AirDNA provides crucial market data and revenue projections for the Chisholm area's tourism market, which benefits from proximity to outdoor recreation areas and mining heritage tourism.