Is International Falls, Minnesota Good for Airbnb Investment?

To start an Airbnb in International Falls, Minnesota, begin by researching local zoning laws and regulations through the City of International Falls Planning Department, as the city requires short-term rental permits and compliance with residential zoning restrictions that typically limit rentals to owner-occupied properties or designated areas. Contact the city clerk at (218) 283-8435 to obtain the necessary business license and short-term rental permit, which costs approximately $100-200 annually and requires proof of insurance, safety inspections, and neighbor notification. Find a suitable property in residential zones that allow short-term rentals, focusing on areas near Voyageurs National Park, the downtown historic district, or waterfront locations along the Rainy River, with property prices ranging from $80,000-250,000 depending on size and location. Furnish the property with durable, comfortable furniture emphasizing the area's outdoor recreation theme, including kayak storage, fishing equipment, and cozy cabin-style decor, budgeting $15,000-30,000 for a complete setup. Create your Airbnb listing highlighting proximity to Voyageurs National Park, International Bridge, and seasonal activities like fishing, boating, and cross-border shopping, with competitive pricing around $75-150 per night depending on season and property size. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider using property management companies like Vacasa or local services, while maintaining 24/7 guest communication and coordinating with the International Falls Tourism Bureau for local recommendations and seasonal event information.

To identify profitable short-term rental properties in International Falls, Minnesota, focus on locations within walking distance of Rainy Lake, Voyageurs National Park access points, and the historic downtown district, as these areas attract tourists year-round for outdoor recreation and cross-border activities with Canada. Target properties with 2-4 bedrooms, waterfront or water-view access, outdoor amenities like fire pits or docks, and rustic cabin or lodge-style features that appeal to nature enthusiasts and fishing groups. Analyze pricing by researching comparable STRs on Airbnb and VRBO, noting that peak seasons (summer fishing/boating and winter snowmobiling) can command $150-300 per night while off-seasons may see $75-150, with annual occupancy rates typically ranging 40-60% due to the seasonal tourism patterns. Competition research should focus on the limited inventory of existing STRs, identifying gaps in amenities or property types, and monitoring properties managed by local companies like Rainy Lake Vacation Rentals or individual owners advertising on major platforms. Utilize tools like AirDNA for market analytics, STR Helper for performance tracking, Mashvisor for investment analysis, and local resources including the International Falls Chamber of Commerce tourism data, Koochiching County property records, and Minnesota DNR visitor statistics for Voyageurs National Park to validate demand patterns and seasonal trends.

To obtain an Airbnb/STR permit in International Falls, Minnesota, you must first contact the International Falls City Hall at 600 3rd Street or call (218) 283-8900 to obtain the short-term rental license application, as the city requires all properties rented for less than 30 days to be licensed. Submit the completed application along with a copy of your property deed or lease agreement, proof of liability insurance (minimum $1 million coverage), a floor plan of the rental unit, contact information for a local representative if you're not local, and the required fee of approximately $150-200 annually. The city will schedule an inspection of the property to ensure compliance with fire safety codes, occupancy limits, and zoning requirements, which typically occurs within 2-3 weeks of application submission. International Falls specifically requires STR properties to maintain adequate parking (minimum one space per bedroom), display the license number in all advertisements, limit occupancy to no more than 2 people per bedroom plus 2 additional guests, maintain a guest registry, and ensure quiet hours from 10 PM to 7 AM. The entire approval process generally takes 4-6 weeks from submission to permit issuance, and you must renew the license annually by December 31st each year, with renewal applications due by November 1st.

Short-term rentals (STRs) are legal in International Falls, Minnesota, but operate under specific municipal regulations established around 2019-2020. The city requires STR operators to obtain a business license and comply with zoning restrictions that primarily allow rentals in commercial and mixed-use districts, while residential areas have more limited permissions typically requiring conditional use permits. Properties must meet safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers, with occupancy limits based on bedroom count and square footage. The city prohibits STRs in certain residential neighborhoods to preserve community character, and operators must provide local contact information for noise complaints and maintain guest registries. Recent changes include stricter enforcement of noise ordinances and parking requirements, with violations potentially resulting in license revocation. International Falls has taken a moderate approach compared to other Minnesota cities, balancing tourism revenue with neighborhood preservation, particularly given its location near Voyageurs National Park which drives significant visitor demand.

The best areas for Airbnb investment in International Falls, Minnesota are the downtown historic district near the Koochiching County Courthouse and 3rd Street corridor, which attracts tourists visiting Voyageurs National Park and offers walkability to restaurants and shops; the residential neighborhoods along the Rainy River waterfront between 4th and 8th Avenues, popular with fishing enthusiasts and boaters seeking scenic river views; the area near Smokey Bear Park and the International Bridge, which draws cross-border travelers and families visiting the Smokey Bear statue; and properties within a 10-minute drive of Voyageurs National Park entrances, particularly along Highway 11 east toward Kabetogama, as this location serves outdoor recreation visitors, snowmobilers in winter, and summer tourists exploring the Boundary Waters region, with additional appeal from the annual Icebox Days winter festival and steady business from border crossing traffic and government workers.

In International Falls, Minnesota, Airbnb properties are subject to both state and local lodging taxes. The Minnesota state lodging tax is 3% on gross receipts from lodging rentals, while Koochiching County imposes an additional 3% lodging tax, bringing the total to approximately 6%. The City of International Falls may also impose a local lodging tax of up to 3%, potentially making the combined rate around 9%. These taxes are typically collected by Airbnb directly from guests at the time of booking through their tax collection service, which began around 2018-2019 for Minnesota properties. Airbnb then remits these taxes quarterly to the Minnesota Department of Revenue and applicable local jurisdictions on behalf of hosts. However, some smaller local jurisdictions may require hosts to register separately and remit taxes directly. Exemptions generally apply to stays longer than 30 consecutive days, certain government employees on official business, and properties rented for less than a minimum threshold period. Hosts should verify current rates and collection procedures with local tax authorities, as International Falls being a border city may have specific tourism-related tax provisions that differ from other Minnesota municipalities.

The total cost to start an Airbnb in International Falls, Minnesota is approximately $185,000-$225,000. Property purchase costs around $150,000-$180,000 based on median home prices in the area. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for beds, linens, kitchen essentials, living room furniture, and decor. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$4,000. Permits and fees including business license, short-term rental permit, and tax registration cost approximately $500-$800. Insurance for short-term rental coverage adds $1,200-$2,000 annually. Utility deposits and connections for electricity, gas, water, internet, and cable cost $800-$1,200. First six months operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance reserves ($200/month), property management software ($50/month), and marketing ($100/month) total approximately $6,300. Additional considerations include potential HOA fees, property taxes, and emergency repair funds which could add another $3,000-$5,000 to initial startup costs.

Airbnb properties in International Falls, Minnesota typically generate annual revenues between $15,000-$35,000 for well-positioned properties, with average daily rates ranging from $75-$120 depending on seasonality and proximity to Voyageurs National Park. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-40 per turnover), property management (15-25% of revenue), utilities ($150-250 monthly), insurance ($800-1,200 annually), and maintenance costs averaging $2,000-4,000 yearly. Profit margins typically range from 15-35% for successful operators, with properties near the Rainy River or offering unique amenities like hot tubs or waterfront access commanding premium rates. Success factors include strategic location within walking distance of downtown attractions, professional photography showcasing the area's natural beauty, competitive pricing during peak summer months (June-August) when tourism peaks due to fishing and boating activities, and maintaining high cleanliness standards to achieve Superhost status. Properties that cater to fishing enthusiasts and families visiting Voyageurs National Park tend to achieve higher occupancy rates of 60-75% during peak season, while winter occupancy typically drops to 25-40%, making year-round profitability challenging without proper pricing strategies and targeting snowmobile enthusiasts and ice fishing groups.

Based on International Falls, Minnesota market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property acquisition costs and seasonal demand patterns. Properties near Voyageurs National Park and the Canadian border crossing command premium rates of $80-120 per night during peak summer months (June-September) and winter recreation season (December-February), while shoulder seasons see rates drop to $50-75 nightly. Initial profitability usually occurs within 18-24 months for well-positioned properties, with average annual gross revenues of $18,000-28,000 for typical 2-3 bedroom homes purchased in the $120,000-180,000 range. The market benefits from consistent cross-border tourism, outdoor recreation visitors, and business travelers, though occupancy rates fluctuate seasonally from 45-65% annually, with operating expenses including utilities, maintenance, and management fees typically consuming 35-45% of gross rental income.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including International Falls, Minnesota. Local real estate agents like those at Rainy Lake Realty and Border Country Real Estate have experience with vacation rental properties in the International Falls area, given its proximity to Voyageurs National Park and the Canadian border. National services include Mashvisor, which provides Airbnb analytics and property search tools, AirDNA for market data and investment analysis, and Awning for turnkey Airbnb investment properties. BiggerPockets marketplace connects investors with local agents familiar with STR regulations, while Roofstock and Arrived Homes offer managed real estate investment opportunities. Local property management companies like Northwoods Property Management and Rainy River Property Services can assist with ongoing Airbnb operations. RedAwning and Vacasa provide full-service vacation rental management that can help investors maximize returns on International Falls properties, particularly those near popular attractions like the Smokey Bear Park and International Bridge.