Is Hibbing, Minnesota Good for Airbnb Investment?

To start an Airbnb in Hibbing, Minnesota, begin by researching local zoning laws and regulations through the City of Hibbing 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 owner-occupied properties or specific districts. Contact Hibbing City Hall at 218-262-1800 to obtain the necessary permits, including a business license ($50-100 annually) and potentially a conditional use permit if operating in certain residential zones. Find a suitable property by searching local real estate listings through agents familiar with Hibbing's Iron Range market, focusing on areas near attractions like the Hull Rust Mahoning Mine or downtown, with properties typically ranging from $80,000-150,000 for suitable homes. Furnish the property with durable, comfortable furniture from retailers like Menards or Fleet Farm in nearby Duluth, ensuring you include essentials like quality bedding, kitchen appliances, Wi-Fi, and heating suitable for Minnesota winters, with initial furnishing costs around $8,000-15,000. List your property on Airbnb and VRBO with professional photos highlighting unique local features, competitive pricing around $75-125 per night based on Hibbing's tourism market, and descriptions emphasizing proximity to mining heritage sites and outdoor activities. Manage your rental by establishing relationships with local cleaning services, maintenance contractors, and consider using property management software or hiring Iron Range Vacation Rentals for full-service management, while maintaining compliance with Minnesota's sales tax requirements (6.875%) and potential local lodging taxes that may apply to short-term rentals in St. Louis County.

To identify profitable short-term rental properties in Hibbing, Minnesota, focus on locations near the Hull Rust Mahoning Mine, Hibbing Community College, and downtown areas within walking distance of restaurants and attractions, as these draw tourists and business travelers year-round. Target 2-4 bedroom properties built after 1980 with updated kitchens, reliable heating systems, parking, and WiFi, as winter functionality is crucial in this northern climate. Analyze pricing by researching comparable Airbnb listings in the $80-150 per night range, considering seasonal fluctuations with higher rates during summer tourism and Iron Range events, while factoring in occupancy rates of 40-60% annually. Study competition using AirDNA and STR analytics tools to identify gaps in the market, noting that Hibbing has limited hotel options which creates opportunities for well-positioned rentals. Utilize resources like the Hibbing Area Chamber of Commerce for event calendars, Range Association of Municipalities and Schools for economic data, Minnesota Department of Employment and Economic Development for tourism statistics, and local real estate platforms like Edina Realty and Lakes Sotheby's to identify undervalued properties near key attractions like the Bob Dylan Boyhood Home and Greyhound Bus Museum.

To obtain an Airbnb/STR permit in Hibbing, Minnesota, you must first contact the Hibbing City Hall at 1712 East Howard Street or call (218) 262-1799 to inquire about their short-term rental licensing requirements, as the city likely requires a business license and rental permit. You'll need to submit an application form along with required documents including proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, and completed safety inspection checklist. The application fee is estimated at $150-300 annually, with additional inspection fees of approximately $75-150. You must ensure the property meets all building codes, fire safety requirements including smoke and carbon monoxide detectors, and zoning compliance for residential areas. The city may require a public hearing notice to neighbors within 300 feet of the property and compliance with parking requirements of at least one space per bedroom. Submit all materials to the Community Development Department, and the approval process typically takes 30-60 days including inspection scheduling. Once approved, you'll receive your permit which must be renewed annually, and you're required to collect and remit local lodging taxes of approximately 3-5% to the city, while also registering with the Minnesota Department of Revenue for state sales tax collection.

Short-term rentals (STRs) in Hibbing, Minnesota are generally legal but subject to local regulations and zoning restrictions. The city of Hibbing requires STR operators to obtain proper permits and comply with zoning ordinances, which typically limit short-term rentals to certain residential districts while prohibiting them in some neighborhoods to preserve residential character. Property owners must register their rentals with the city, maintain safety standards including smoke and carbon monoxide detectors, provide adequate parking, and ensure properties don't create nuisances for neighbors. Recent changes around 2022-2023 have included stricter enforcement of existing regulations and clearer permit requirements, with the city focusing on balancing tourism revenue opportunities with neighborhood stability. Violations can result in fines and permit revocation, and some areas near schools or in exclusively single-family zones may have additional restrictions or outright prohibitions on STR operations.

The best areas for Airbnb investment in Hibbing, Minnesota include the Historic Downtown District near Howard Street and 3rd Avenue East, which attracts visitors to the Hibbing Historical Museum and local festivals, plus offers proximity to restaurants and shops. The area around Hibbing High School and Hibbing Community College draws parents visiting students and event attendees, particularly during graduation seasons and sports tournaments. The neighborhoods near Memorial Building and Hibbing City Hall benefit from government-related business travel and civic events. Properties close to Carey Lake and the recreational areas along Highway 169 appeal to outdoor enthusiasts visiting for fishing, hiking, and seasonal activities. The residential areas near Mahoning Street and 1st Avenue provide quiet accommodations for mining industry professionals conducting business with local operations, as Hibbing's economy remains tied to iron ore mining. Additionally, properties within walking distance of the Greyhound Bus Museum and Bob Dylan's childhood home on 7th Avenue attract music tourism and cultural visitors year-round, making these locations particularly valuable for short-term rental investments.

In Hibbing, 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. St. Louis County, where Hibbing is located, imposes an additional lodging tax of approximately 3%, bringing the total lodging tax to around 6%. The City of Hibbing may also impose a local lodging tax of 2-3%, potentially making the total tax burden 8-9%. 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 service, which began around 2017-2018 for Minnesota. Hosts who collect taxes independently must register with the Minnesota Department of Revenue and remit state taxes monthly if collections exceed $500 per month, or quarterly if less. Local taxes must be remitted to St. Louis County and the City of Hibbing according to their respective schedules, typically monthly or quarterly. Exemptions generally apply to stays of 30 days or longer, which are considered long-term rentals rather than transient lodging, and certain tax-exempt organizations may qualify for exemptions with proper documentation.

Starting an Airbnb in Hibbing, Minnesota requires approximately $180,000-220,000 in total initial investment. Property purchase costs average $140,000-160,000 based on median home prices in the Iron Range area as of 2023. Furnishing a 2-3 bedroom property typically runs $15,000-25,000 including beds, linens, kitchen essentials, living room furniture, and décor to create an appealing guest experience. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total around $2,000-3,000. Permits and fees vary but expect $500-1,500 for business licenses, short-term rental permits, and potential zoning approvals required by St. Louis County and Hibbing city regulations. Insurance premiums for short-term rental coverage typically cost $2,000-3,500 annually, with the first year paid upfront. Utility setup and deposits for electricity, gas, water, internet, and cable services require approximately $1,000-2,000 initially. First six months of operating costs including utilities ($300-500/month), cleaning services ($75-150 per turnover), maintenance reserves, property management software subscriptions, and marketing expenses total roughly $4,000-8,000, assuming moderate occupancy rates during the startup period in this northern Minnesota tourism market.

Airbnb properties in Hibbing, Minnesota typically generate modest returns with average daily rates ranging from $75-120 depending on property size and amenities, resulting in annual gross revenues of $15,000-35,000 for properties with 40-60% occupancy rates. Operating expenses including cleaning fees ($25-40 per turnover), utilities ($150-250 monthly), property management (15-25% of revenue), insurance ($800-1,200 annually), and maintenance costs typically consume 45-65% of gross revenue, leaving net profit margins between 20-40% for well-managed properties. Success factors in this Iron Range market include proximity to the Hull Rust Mahoning Mine tourist attraction, winter sports amenities for cross-country skiing and snowmobiling enthusiasts, and targeting business travelers visiting local mining operations or the nearby Hibbing Community College. Properties performing above average often feature unique mining heritage themes, hot tubs for winter guests, and strong partnerships with local tourism boards, with some hosts reporting annual net profits of $8,000-18,000 on initial investments of $80,000-150,000 for renovated properties, though seasonal fluctuations mean summer months (June-August) typically generate 40-50% of annual bookings while winter months rely heavily on snowmobile trail access and holiday travelers.

Airbnb investments in Hibbing, 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 iron ore mining operations and seasonal tourism to the Iron Range region. Properties near downtown Hibbing or within 15 minutes of Hull Rust Mahoning Mine tend to achieve higher occupancy rates of 45-60% annually, with average daily rates between $75-$120 depending on property size and amenities. Most investors reach profitability within 18-24 months, assuming a 20-25% down payment on properties valued between $80,000-$150,000, with gross rental yields typically falling between 12-16% before expenses. The market benefits from consistent demand from mining contractors, seasonal workers, and tourists visiting Bob Dylan's birthplace and local mining heritage sites, though winter months see reduced occupancy requiring investors to maintain 3-4 months of operating reserves for optimal cash flow management.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Hibbing, Minnesota. Local real estate agents like those at Edina Realty Hibbing and RE/MAX Results have experience with investment properties in the Iron Range area, while Century 21 Atwood has served the Hibbing market since the 1980s. National services include Mashvisor for property analysis, AirDNA for market data, and BiggerPockets for investor networking and deal sourcing. Vacasa and RedAwning offer property management services for short-term rentals in northern Minnesota markets. Local property management companies like Iron Range Property Management and Mesabi Property Services have expanded into Airbnb management since 2018. Investment-focused platforms like Roofstock and BiggerPockets Marketplace occasionally feature Hibbing properties, while local investors often work with Hibbing Area Board of Realtors members who understand the seasonal tourism patterns around the Iron Range and nearby outdoor recreation areas.