Is Murdock, Minnesota Good for Airbnb Investment?

To start an Airbnb in Murdock, Minnesota, begin by researching local zoning laws and regulations through Swift County and the City of Murdock, as this small rural community may have specific ordinances regarding short-term rentals that differ from larger Minnesota cities. Contact the Swift County Planning and Zoning Department and Murdock City Hall to understand permit requirements, which typically include a business license, possible conditional use permits, and compliance with fire safety codes. Find a suitable property by searching local real estate listings or considering converting existing residential property, keeping in mind that Murdock's rural location may attract visitors interested in outdoor activities, hunting, fishing, or agricultural tourism. Furnish the property with essential amenities including comfortable bedding, kitchen supplies, Wi-Fi, and consider adding local touches that reflect Minnesota's rural charm such as fishing equipment or information about nearby lakes and recreational areas. List your property on Airbnb and other platforms like VRBO, emphasizing unique selling points such as proximity to Lac qui Parle State Park, hunting opportunities, or peaceful rural setting, with competitive pricing likely ranging from $75-150 per night based on rural Minnesota market rates. Manage the property by establishing cleaning protocols, creating a local network of service providers in the Murdock area, implementing keyless entry systems, and maintaining responsive communication with guests while highlighting nearby attractions like the Lac qui Parle River and seasonal hunting opportunities that draw visitors to this western Minnesota region.

To identify profitable short-term rental properties in Murdock, Minnesota, focus on properties within 2-3 miles of Glacial Lakes State Park and near Lake Minnewaska, as these natural attractions drive seasonal tourism from May through October. Target 2-4 bedroom cabins or lake homes with amenities like fireplaces, decks, boat access, and modern kitchens, as guests pay premiums for authentic Minnesota lake experiences. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties in nearby Alexandria and Glenwood, typically seeing rates of $150-300 per night during peak summer months. Research competition by monitoring existing STRs within a 15-mile radius on Airbnb and VRBO, noting occupancy patterns and guest reviews to identify service gaps. Utilize the Pope County Assessor's office for property values, check local zoning regulations through Murdock city offices, and leverage STR-specific tools like Rabbu and AllTheRooms for market analysis, while connecting with local real estate agents familiar with lake properties and seasonal rental potential in the Glacial Lakes region.

To obtain an Airbnb/STR permit in Murdock, Minnesota, contact the Swift County Planning and Zoning Department at 320-843-3377 or visit their office at 301 14th Street North in Benson, as Murdock falls under Swift County jurisdiction. Submit a completed short-term rental application form along with a site plan showing the property layout, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, septic system compliance certificate if applicable, and a $150 application fee. The property must comply with Minnesota State Building Code, have working smoke and carbon monoxide detectors in all sleeping areas, provide adequate parking for guests, maintain septic system capacity for occupancy levels, and ensure the rental use doesn't violate any existing deed restrictions or HOA covenants. The review process typically takes 30-45 days and may require a site inspection by county officials. Once approved, you'll receive a conditional use permit valid for one year, renewable annually for $75, and must display the permit number in all rental listings and maintain a guest registry available for inspection by county officials.

Short-term rentals (STRs) in Murdock, Minnesota are generally legal but subject to state and local regulations. As a small city in Swift County with approximately 280 residents, Murdock likely follows Minnesota's statewide framework that allows STRs while requiring compliance with safety standards, tax collection, and local zoning ordinances. The city may require business licenses or permits for STR operations, and properties must meet building and fire safety codes. Minnesota requires STR operators to collect and remit state sales tax and local lodging taxes where applicable. Recent changes at the state level since 2019-2020 have included enhanced tax compliance requirements and safety standards. Murdock may have specific zoning restrictions limiting STRs to certain residential areas or requiring conditional use permits, and there could be occupancy limits, parking requirements, and noise ordinances that apply. Property owners should verify current local ordinances with Murdock city officials, as small municipalities sometimes update their STR regulations to address community concerns about housing availability and neighborhood character.

The best areas for Airbnb investment in Murdock, Minnesota would be the historic downtown district near Main Street, which attracts visitors interested in small-town charm and local events like the annual Murdock Days celebration, and properties near the recreational areas around Lake Murdock and nearby fishing spots that draw outdoor enthusiasts year-round. The residential neighborhoods within walking distance of the Murdock Community Center and local parks are also attractive for family visitors attending youth sports tournaments and community gatherings. Properties near the grain elevators and agricultural facilities can capture business travelers and agricultural consultants visiting during harvest season (September-November), while homes close to the Murdock School District may appeal to visiting family members during graduation ceremonies and school events. The area near Highway 12 offers convenient access for travelers passing through western Minnesota, making it suitable for overnight stays, and properties with rural views or farm settings can attract agritourism visitors and those seeking peaceful retreats from urban areas like Minneapolis-St. Paul, approximately 120 miles southeast.

Airbnb properties in Murdock, 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, Swift County imposes a local lodging tax of approximately 2-3% that may need to be collected and remitted separately by hosts depending on local agreements with Airbnb. The city of Murdock itself does not appear to have a specific municipal lodging tax as of 2023, but hosts should verify current local ordinances. Collection occurs at the time of booking through Airbnb's platform for state taxes, while any local county taxes may require manual collection and quarterly remittance to Swift County. Exemptions typically apply to stays of 30 days or longer, which are considered long-term rentals rather than transient lodging, and some exemptions may exist for certain government or charitable organization bookings, though specific exemption criteria should be confirmed with local tax authorities.

To start an Airbnb in Murdock, Minnesota, the total estimated costs would be approximately $185,000-$220,000. Property purchase costs around $150,000-$180,000 based on median home prices in rural Minnesota communities. Furnishing a 2-3 bedroom property would cost $8,000-$12,000 including beds, linens, kitchen essentials, living room furniture, and appliances. Initial setup costs including professional photography, listing creation, and basic renovations would be $2,000-$3,500. Permits and fees including business license, short-term rental permit, and tax registration would total $300-$800. Insurance for short-term rental coverage would cost $1,200-$2,000 annually. Utilities including electricity, water, sewer, internet, and cable would run $200-$350 monthly. First six months operating costs including utilities ($1,200-$2,100), cleaning supplies and services ($600-$1,200), maintenance reserves ($1,000), marketing ($500), and property management software ($300) would total approximately $3,600-$4,800. Additional considerations include potential HOA fees, property taxes, and emergency repair funds which could add another $3,000-$5,000 to initial costs.

Airbnb properties in Murdock, Minnesota, a small rural community of approximately 280 residents, face significant profitability challenges due to limited tourism demand and low nightly rates typically ranging from $40-70 per night with occupancy rates around 15-25% annually. Revenue potential is constrained by the town's remote location and lack of major attractions, with most properties generating $2,000-4,000 in annual gross revenue, while expenses including property taxes ($800-1,500), utilities ($1,200-2,000), cleaning fees ($600-1,000), insurance ($400-800), and maintenance ($500-1,200) often total $3,500-6,500 annually, resulting in negative or marginal profit margins of -10% to 5%. Success factors for the few profitable properties include targeting hunters during fall season, fishing enthusiasts visiting nearby lakes, and family reunions seeking affordable group accommodations, with properties featuring amenities like boat access, hunting storage, or large gathering spaces achieving slightly higher occupancy rates of 30-35% and nightly rates up to $90, though even these optimized properties rarely exceed 10-15% profit margins due to the inherent limitations of the rural Minnesota market.

Based on Murdock, Minnesota market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the area. Properties near lakes or recreational areas in Murdock can achieve higher returns of 10-14% annually due to seasonal tourism demand. Initial profitability usually occurs within 12-18 months for well-positioned properties, with full investment recovery expected in 7-10 years. Cash-on-cash returns are generally stronger for properties purchased with 20-25% down payments, averaging 8-12% annually. The rural Minnesota market shows steady appreciation of 3-5% yearly, contributing to overall investment returns. Seasonal fluctuations are significant, with summer months (June-August) generating 40-50% of annual revenue due to lake tourism and outdoor recreation activities in the Murdock region.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Murdock, Minnesota. Local real estate agents like those at RE/MAX Results and Coldwell Banker Realty have experience with investment properties in the Murdock area and can assist with Airbnb acquisitions. AirDNA provides market analysis and revenue projections for short-term rentals in rural Minnesota markets including Murdock. Mashvisor offers investment property analysis tools that cover Minnesota markets and can help evaluate Airbnb potential in small towns like Murdock. Local property management companies such as Minnesota Vacation Rentals and Lake Country Property Management can provide insights into profitable Airbnb opportunities while offering ongoing management services. BiggerPockets connects investors with local real estate professionals familiar with the Murdock market, and Roofstock specializes in turnkey rental properties that could be converted to short-term rentals. Regional firms like Edina Realty and Lakes Sotheby's International Realty have agents experienced in investment properties throughout Minnesota's lake country region where Murdock is located.