Minneapolis, Minnesota Airbnb Rules & Investment Guide (2026)

Minneapolis allows short-term rentals, but the operator must complete both property-level rental licensing and host registration before advertising or accepting stays.

• Confirm that the exact dwelling has a current Minneapolis rental license or complete the rental-license application process before operating.
• Register each short-term rental unit with the City; the adopted 2026 fee schedule lists the host registration fee at $64 per unit.
• Use the City packet rather than a marketplace listing as the checklist: it includes the application, management plan, neighbor notice, floor-plan requirements, and rental-property inspection checklist.
• Confirm the advertised bedroom count, occupancy, exits, and sleeping areas against approved records and the City inspection.
• Review condominium declarations, HOA rules, leases, lender terms, and insurance separately; City approval does not override private restrictions.

The City treats the property license and the short-term rental host registration as related but distinct requirements.

• Begin with the City short-term rental packet and identify the correct property owner, responsible local contact, and every dwelling unit offered for stays.
• Submit the rental license application, management plan, neighbor notification, floor plan, and supporting documents requested in the current packet.
• The packet says the license application requires an inspection; correct cited housing-code or life-safety items before renting.
• Use the adopted fee schedule for current charges rather than an older fee printed in a packet or repeated by a third party.
• Display and advertise only after City staff confirms the required license and registration are active for the address.

A registration does not cure an illegal bedroom, unpermitted conversion, or unsafe means of egress.

• Compare the listing floor plan with City property, permit, and inspection records before underwriting guest capacity.
• Document each bedroom, smoke alarm, carbon-monoxide alarm, exit, handrail, guard, and fire extinguisher required by the current checklist or inspector.
• Ask Regulatory Services whether a basement, attic, accessory unit, duplex conversion, or other alteration needs permits or a new certificate.
• Confirm parking, trash storage, snow removal, exterior maintenance, and common-area responsibilities with the owner or association.
• Do not use the platform guest limit as a substitute for the City-approved capacity and the insurer’s occupancy limits.

Minneapolis asks applicants to document who will manage the rental and how issues will be handled.

• Keep the responsible contact information current and ensure the contact can respond to guest, neighbor, and City concerns.
• Deliver the required neighbor notice and retain evidence of delivery with the licensing file.
• State parking, noise, trash, smoking, event, pet, and maximum-guest rules in the listing and pre-arrival message.
• Maintain a response log for complaints, safety events, maintenance, and corrective action.
• Use an insurance policy that expressly covers transient rental activity and review its exclusions regardless of any marketplace protection.

Minnesota Revenue’s Minneapolis rate sheet lists 12.025% for lodging establishments with 50 rooms or fewer.

• The published 12.025% total combines 6.875% Minnesota general sales tax, 0.15% Hennepin County sales tax, 0.5% Hennepin County transit sales tax, 0.25% metro housing sales tax, 0.75% metro transportation sales tax, 0.5% Minneapolis sales tax, and 3% Minneapolis entertainment tax.
• The separate 3% Minneapolis lodging tax shown on the rate sheet applies to lodging establishments with more than 50 rooms, not the 50-or-fewer category.
• Minnesota Revenue treats residential short-term rentals as lodging and explains that taxable charges can include required fees and services.
• Verify which taxes a marketplace collects and remits; direct bookings and uncollected taxes can leave registration, collection, filing, and recordkeeping duties with the operator.
• Confirm current rates, taxable charges, filing frequency, exemptions, and marketplace treatment with Minnesota Revenue before configuring checkout.

The adopted 2026 fee schedule is the controlling source for budgeting City charges.

• The 2026 schedule lists Short-Term Rental Registration Hosts at $64 per unit.
• Rental-license charges depend on building size and tier; the same schedule lists Tier I charges for 1–3 unit buildings at $98 per building plus $41 per unit.
• For 4+ unit Tier I buildings, the schedule lists $167 per building plus $12 per unit.
• Inspection, conversion, late, reinstatement, or higher-tier charges may apply to a particular property.
• Recheck the current fee schedule at application and renewal because City fees can change annually.

Licenses and registrations remain subject to inspection, housing-code enforcement, and complaint response.

• Use 911 for emergencies and Minneapolis 311 at 311 or 612-673-3000 for non-emergency City service and complaint routing.
• The City short-term rental hosting page links directly to its lodging-complaint process.
• Business Licenses & Consumer Services handles hosting-license questions at 612-673-2080.
• Regulatory Services and Inspections handle rental-property and housing-code questions through 311 or 612-673-3000.
• Repeated noise, parking, trash, safety, occupancy, or maintenance problems can create licensing, association, lease, and insurance consequences.

Public sources establish rules and taxes, not future revenue, occupancy, ADR, appreciation, or ROI.

• Build a current comp set matched on property type, legal bedroom count, location, parking, amenities, review quality, stay restrictions, and availability.
• Separate displayed nightly price from realized average daily rate after discounts, refunds, blocked nights, taxes, and required fees.
• Model demand by month and include owner blocks, maintenance downtime, turnover gaps, event volatility, and a downside case.
• Include utilities, internet, cleaning gaps, supplies, snow removal, landscaping, repairs, insurance, management, platform fees, taxes, licensing, reserves, and financing.
• Do not treat gross revenue, occupancy, cap rate, cash-on-cash return, appreciation, or payback as verified without current property-level evidence.

Use the department responsible for each decision and keep written answers.

• Business Licenses & Consumer Services: hosting-license questions, businesslicenses@minneapolismn.gov, 612-673-2080.
• Inspections Services: rental packet and inspection questions, fispermit@minneapolismn.gov, 612-673-3000.
• Minneapolis 311: non-emergency service and complaint routing, 311 or 612-673-3000.
• Lodging complaints: the City’s online complaint route for lodging issues.
• Minnesota Department of Revenue: sales-tax registration, taxable charges, marketplace treatment, and filing questions.

Checked September 28, 2026.

• City short-term rental packet and its application, management-plan, neighbor-notification, floor-plan, and inspection materials.
• City short-term rental hosting license guidance and application links.
• Adopted 2026 Minneapolis license fee schedule.
• Minnesota Revenue residential short-term rental guidance and lodging guidance.
• Minnesota Revenue Minneapolis special local taxes rate sheet.