Is Coon Rapids, Minnesota Good for Airbnb Investment?

To start an Airbnb in Coon Rapids, Minnesota, begin by researching local zoning laws and regulations through the Coon Rapids Planning Department, as the city requires short-term rental operators to obtain a business license and comply with residential zoning restrictions that may limit rentals to primary residences only. Contact the Anoka County assessor's office to understand property tax implications and ensure your property meets fire safety codes by installing smoke detectors, carbon monoxide detectors, and fire extinguishers as required by Minnesota state law. Find a suitable property in residential zones like the Coon Rapids Dam Regional Park area or near Northdale Boulevard, ensuring it has adequate parking and meets the city's occupancy limits of typically 2 people per bedroom plus 2 additional guests. Furnish the space with essential amenities including Wi-Fi, linens, towels, basic kitchen supplies, and cleaning materials while maintaining a neutral, welcoming décor that appeals to business travelers visiting nearby Medtronic or families exploring the Mississippi River corridor. Create your Airbnb listing with professional photos highlighting proximity to attractions like the Bunker Hills Regional Park and Riverdale Village shopping, setting competitive rates around $80-120 per night based on local market analysis. Manage your property by establishing check-in procedures, maintaining a 4.8+ star rating through excellent guest communication, coordinating cleaning between stays, and keeping detailed records for tax purposes while monitoring compliance with any evolving city ordinances regarding short-term rentals in Coon Rapids.

To identify profitable short-term rental properties in Coon Rapids, Minnesota, focus on locations within 2-3 miles of major attractions like the Coon Rapids Dam Regional Park, Bunker Hills Regional Park, and proximity to Minneapolis-St. Paul metro area for business travelers. Target 3-4 bedroom single-family homes or townhomes built after 1990 with modern amenities, full kitchens, parking, and outdoor spaces that appeal to families visiting local parks or attending events at nearby venues. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, aiming for $80-150 per night depending on size and amenities, while monitoring seasonal demand patterns around summer recreation and winter activities. Research competition by examining existing Airbnb and VRBO listings within a 5-mile radius, identifying gaps in amenities or underserved areas near Northdale Middle School, Coon Rapids High School, or the Riverdale area. Utilize tools like Rabbu, AllTheRooms, and local MLS data through Edina Realty or RE/MAX Results to analyze property values, rental potential, and neighborhood trends, while consulting Anoka County tourism data and connecting with local property management companies like RedAwning or Vacasa to understand market dynamics and regulatory requirements specific to Coon Rapids' short-term rental ordinances.

To obtain an Airbnb/STR permit in Coon Rapids, Minnesota, you must first contact the Coon Rapids City Hall at 11155 Robinson Drive NW or call 763-767-6400 to inquire about their short-term rental licensing requirements, as the city requires a business license and may have specific STR regulations. You'll need to submit an application form (available at City Hall or online), provide proof of property ownership or lease agreement, submit a site plan showing the rental unit layout, obtain liability insurance documentation with minimum $1 million coverage, pass a fire safety inspection conducted by the Anoka County Fire Department, and provide contact information for a local property manager if you live more than 50 miles away. Required documents typically include a completed application, property deed or lease, insurance certificate, floor plan, emergency contact information, and parking plan showing adequate off-street parking. The application fee is estimated at $150-300 annually, with additional inspection fees of approximately $75-150. The timeline usually takes 4-6 weeks from application submission to permit approval, depending on inspection scheduling and any required corrections. Coon Rapids specifically requires STR properties to maintain quiet hours from 10 PM to 7 AM, limit occupancy to 2 people per bedroom plus 2 additional guests, provide adequate parking (typically 1 space per bedroom), and ensure the property manager responds to complaints within 2 hours if living locally or within 1 hour if using a management company.

Short-term rentals (STRs) in Coon Rapids, Minnesota are generally prohibited in residential zoning districts, which comprise the majority of the city. The city's zoning ordinance does not explicitly allow STRs as a permitted or conditional use in single-family residential areas, effectively making them illegal in most neighborhoods. STRs may be permitted in certain commercial or mixed-use zoning districts, but operators must comply with business licensing requirements, safety inspections, and potentially conditional use permits. The city has maintained this restrictive approach since approximately 2018-2019 when many Minnesota municipalities began addressing the STR issue, with Coon Rapids choosing to prioritize preserving residential neighborhood character over allowing short-term rental operations. Property owners considering STR operations should contact the Coon Rapids Community Development Department to verify current zoning compliance and licensing requirements, as enforcement has become more active in recent years with code compliance officers investigating unpermitted rental activities.

The most promising Airbnb investment areas in Coon Rapids, Minnesota include the Riverdale neighborhood near the Mississippi River, which attracts visitors seeking scenic waterfront access and outdoor recreation activities, and the areas surrounding Bunker Hills Regional Park, particularly the neighborhoods along Foley Boulevard, which benefit from year-round tourism due to the park's golf course, beach, and winter sports facilities. The downtown Coon Rapids area near Northdale Boulevard offers strong potential due to its proximity to the Anoka County Government Center and various business districts, attracting government workers and business travelers. Properties near the Coon Rapids Dam Regional Park area are highly desirable for tourists interested in hiking, fishing, and historical attractions, while neighborhoods close to Highway 10 and Interstate 35W provide excellent accessibility for travelers heading to the Twin Cities metro area for business or leisure, making them attractive for short-term stays from visitors attending events at venues like the nearby Anoka County Fairgrounds or conducting business in Minneapolis-St. Paul.

In Coon Rapids, Minnesota, Airbnb hosts are subject to multiple lodging taxes including the state lodging tax of 3% on gross receipts, Hennepin County's lodging tax of 3%, and the Minneapolis-St. Paul Metropolitan Council tax of $0.75 per room per night. The city of Coon Rapids may also impose a local lodging tax of approximately 3-4%, though this varies by municipality. These taxes are typically collected by Airbnb directly from guests at the time of booking for properties that qualify under their tax collection agreements, which began around 2018-2019 in Minnesota. For properties where Airbnb doesn't collect taxes automatically, hosts must register with the Minnesota Department of Revenue and remit state taxes monthly if gross receipts exceed $20,000 annually, while county and local taxes are remitted to respective jurisdictions. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient lodging, and some exemptions may exist for certain non-profit or government-related stays, though hosts should verify current exemption criteria with local tax authorities as regulations can change.

To start an Airbnb in Coon Rapids, Minnesota, the total costs would be approximately $285,000-$315,000. Property purchase costs around $250,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property would cost $15,000-$25,000 including furniture, bedding, kitchenware, and decor. Initial setup costs including professional photography, listing creation, and basic renovations would be $3,000-$5,000. Permits and fees including business license, short-term rental permit, and tax registration would cost $500-$1,000. Insurance for short-term rental coverage would be $2,000-$3,000 annually. Utilities setup and deposits would cost $500-$800. First six months operating costs including utilities ($900), cleaning supplies ($300), maintenance ($1,000), property management software ($300), and marketing ($500) would total approximately $3,000. Additional costs may include HOA fees if applicable and potential property improvements to meet rental standards.

Airbnb properties in Coon Rapids, 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. Net profit margins typically range from 15-35% for well-managed properties, with successful hosts in the Twin Cities metro area reporting annual profits of $8,000-$18,000 per property. Key success factors include proximity to Minneapolis-St. Paul attractions (30-minute drive), competitive pricing during peak summer months and winter events, professional photography, and maintaining super-host status through consistent 4.8+ ratings. Properties near Coon Rapids Dam Regional Park and those offering family-friendly amenities tend to outperform, with occupancy rates averaging 60-75% annually. A typical 3-bedroom home purchased for $280,000 in 2022 generated approximately $28,000 in gross revenue with $18,000 in expenses, yielding a 3.6% return on investment plus property appreciation, making short-term rentals moderately profitable compared to traditional long-term rentals in the market.

Airbnb investments in Coon Rapids, Minnesota typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in this Minneapolis suburb, with median home prices around $280,000-$320,000, can expect nightly rates of $85-$120 depending on property size and amenities, with occupancy rates averaging 65-75% annually. Initial investment including down payment, furnishing, and setup costs typically range from $60,000-$80,000 for a standard 3-bedroom property, with most investors reaching profitability within 18-24 months. The proximity to Minneapolis-St. Paul International Airport and downtown Minneapolis drives consistent demand from business travelers and tourists, while local attractions like the Mississippi River and Bunker Hills Regional Park support weekend bookings. Monthly gross revenues typically range from $1,800-$2,800, with net profits after expenses (cleaning, utilities, maintenance, platform fees) averaging $800-$1,400 monthly, resulting in break-even timelines of 4-6 years for full property acquisition costs.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors, offering comprehensive market analysis and property recommendations in Coon Rapids, Minnesota. Local real estate agents like those at RE/MAX Results, Coldwell Banker Realty, and Keller Williams Premier Realty have experience with investment properties in the Twin Cities metro area including Coon Rapids. National services such as Mashvisor, AirDNA, and Rabbu provide data-driven insights and property analysis tools for Airbnb investments in the Minneapolis-St. Paul market. BiggerPockets connects investors with local professionals, while companies like Awning and RedAwning offer full-service property management and investment guidance. Local investment-focused brokerages such as Investment Property Experts and Twin Cities Real Estate Investors Group provide specialized knowledge of the Coon Rapids market. Additional services include Hostfully for property management software, Beyond Pricing for revenue optimization, and local property management companies like North Residential and Zenplace that cater to short-term rental operators in the greater Minneapolis area.