Is St. Cloud, Minnesota Good for Airbnb Investment?

To start an Airbnb in St. Cloud, Minnesota, begin by researching local regulations through the St. Cloud Planning and Zoning Department, as the city requires short-term rental operators to obtain a conditional use permit and business license, with properties limited to no more than two guests per bedroom and maximum occupancy of eight people. Contact the St. Cloud City Clerk's office at (320) 650-2900 to apply for a business license ($50-100 annually) and submit a conditional use permit application ($200-400) to the Planning Commission, which typically takes 4-6 weeks for approval. Find a suitable property in residential zones that allow short-term rentals, focusing on areas near St. Cloud State University or downtown for higher demand, with average property prices ranging $150,000-300,000 for single-family homes. Furnish the property with essential amenities including Wi-Fi, cable TV, full kitchen appliances, linens, and safety equipment like smoke detectors and fire extinguishers as required by Minnesota fire codes. Create your listing on Airbnb and VRBO platforms with professional photos, competitive pricing ($75-150 per night based on local market rates), and detailed descriptions highlighting proximity to attractions like Munsinger Clemens Gardens and Mississippi River. Manage your property by establishing cleaning protocols between guests, maintaining 24/7 communication availability, coordinating with local cleaning services like Molly Maid St. Cloud, and ensuring compliance with Minnesota's 6.875% sales tax collection requirements for short-term rentals.

To identify profitable short-term rental properties in St. Cloud, Minnesota, focus on locations within 2-3 miles of St. Cloud State University and downtown areas, particularly near the Mississippi River corridor and Beaver Island Trail, as these attract both business travelers and tourists visiting the Granite City attractions. Target 2-4 bedroom single-family homes or duplexes built after 1980 with modern amenities, parking, and outdoor spaces, as winter activities and university events drive consistent demand. Analyze pricing by researching comparable Airbnb listings in the $80-150 per night range, considering seasonal fluctuations during university academic calendar and summer tourism peaks. Study competition using AirDNA and Mashvisor to assess occupancy rates and revenue potential, noting that St. Cloud has moderate STR competition compared to Minneapolis metro area. Utilize local resources including the St. Cloud Area Association of Realtors MLS data, city zoning maps to ensure STR compliance, and connect with local property management companies like Granite City Property Management who understand the university rental market dynamics and can provide insights on neighborhood performance and regulatory requirements.

To obtain an Airbnb/STR permit in St. Cloud, Minnesota, you must first contact the St. Cloud Planning and Zoning Department at City Hall located at 400 2nd Street South to determine if short-term rentals are permitted in your specific zoning district, as the city requires conditional use permits for STRs in most residential areas. Submit a conditional use permit application along with a site plan showing the property layout, parking arrangements, and neighboring properties, plus a detailed operational plan describing guest capacity, noise control measures, and property management procedures. Required documents include proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, fire safety inspection certificate from the St. Cloud Fire Department, and compliance verification for building and health codes. Application fees typically range from $500-800 for the conditional use permit plus additional inspection fees of approximately $150-300. The approval process generally takes 6-8 weeks including a public hearing before the Planning Commission, during which neighboring property owners are notified and may provide input. St. Cloud specific requirements include limiting occupancy to no more than 2 guests per bedroom with maximum 8 guests total, providing adequate off-street parking (typically 1 space per 2 guests), maintaining 24/7 contact information for a responsible party, and ensuring compliance with noise ordinances particularly between 10 PM and 7 AM.

Short-term rentals (STRs) are legal in St. Cloud, Minnesota, but operate under specific regulations established by the city. St. Cloud requires STR operators to obtain a rental license and comply with zoning restrictions that primarily allow STRs in commercial and mixed-use districts, while residential areas have more limited permissions. The city implemented comprehensive STR regulations around 2019-2020 that include requirements for owner registration, safety inspections, occupancy limits, parking provisions, and noise restrictions. Properties must meet building and fire codes, maintain liability insurance, and operators must respond to complaints within specified timeframes. Recent changes have focused on strengthening enforcement mechanisms and clarifying permitted locations, with some residential neighborhoods having stricter limitations or outright prohibitions on STRs to preserve neighborhood character. The city also requires a good neighbor agreement and limits the number of unrelated occupants, while mandating that operators provide local contact information for 24/7 response to issues.

The most promising Airbnb investment areas in St. Cloud, Minnesota include the downtown Historic District near the Paramount Theater and St. Cloud State University campus vicinity, which attract business travelers, university visitors, and tourists attending cultural events year-round. The Riverside neighborhood along the Mississippi River offers scenic appeal for leisure travelers and families visiting Munsinger and Clemens Gardens, particularly during summer months. The Southside area near CentraCare Health System provides consistent demand from medical travelers and visiting families, while properties near Crossroads Center shopping district capture retail tourists and conference attendees. The Waite Park border area benefits from proximity to both St. Cloud amenities and quieter suburban appeal, attracting longer-stay business travelers working with local companies like Coborn's headquarters or visitors to the nearby quarries and recreational areas.

In St. Cloud, 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. Additionally, St. Cloud imposes a local lodging tax of 3%, bringing the total lodging tax to 6%. 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 tax collection service, which began in Minnesota around 2017. 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 the City of St. Cloud according to their filing schedule. Exemptions generally include stays of 30 days or longer, which are considered long-term rentals rather than transient lodging, and certain government or charitable organization bookings may qualify for exemptions with proper documentation.

Starting an Airbnb in St. Cloud, Minnesota requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000-180,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property typically runs $8,000-12,000 including beds, linens, kitchen essentials, living room furniture, and basic appliances. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-3,000. Permits and fees in St. Cloud include business license ($50-100), short-term rental permit ($200-400), and potential zoning compliance costs totaling $500-1,000. Insurance premiums for short-term rental coverage run $1,200-2,000 annually. Utility setup and deposits for electricity, gas, water, internet, and cable cost approximately $500-800 initially. First six months of operating costs including utilities ($300-500/month), cleaning services ($75-100 per turnover), maintenance reserves ($200-300/month), platform fees (3% of bookings), and marketing expenses total roughly $4,000-6,000, assuming moderate occupancy rates of 50-60% during the initial period.

Airbnb properties in St. Cloud, Minnesota typically generate annual revenues between $15,000-$35,000 for entire home listings, with average daily rates ranging from $75-$120 depending on property size and location proximity to St. Cloud State University and downtown areas. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), utilities ($150-$250 monthly), property management (10-20% of revenue), insurance ($800-$1,500 annually), and maintenance costs ($2,000-$4,000 yearly). Properties near the university campus achieve higher occupancy rates of 65-75% during the academic year, with successful hosts like those operating 2-3 bedroom homes in the Southside neighborhood reporting net profit margins of 25-35%. Key success factors include strategic pricing during SCSU events and hockey tournaments, maintaining 4.8+ star ratings through consistent cleanliness standards, and offering amenities like high-speed internet and parking. Properties purchased for $180,000-$250,000 in neighborhoods like Cooper and Centennial typically achieve 8-12% annual returns on investment, though seasonal fluctuations require hosts to maximize bookings during peak university and summer tourism periods while managing lower winter occupancy rates of 35-45%.

Based on St. Cloud, 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 city. Properties near St. Cloud State University and downtown areas tend to perform better, with investors like RedAwning and Vacasa reporting stronger returns in these zones. Initial profitability usually occurs within 12-18 months for well-positioned properties, with break-even points averaging 14 months according to 2023 market analysis. Single-family homes in residential neighborhoods show more conservative returns around 7-9% annually, while properties closer to the Mississippi River and historic districts can achieve 10-14% ROI. The market has shown steady growth since 2021, with occupancy rates averaging 65-75% year-round, and seasonal peaks during summer months and university events driving higher nightly rates of $80-120 compared to off-season rates of $60-85.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including St. Cloud, Minnesota. Local real estate agents in the St. Cloud area who specialize in investment properties include Keller Williams Integrity Realty agents, Coldwell Banker Realty professionals, and RE/MAX Results agents who understand the Central Minnesota vacation rental market. National services like Mashvisor, AirDNA, and Rabbu provide market analysis and property identification tools for the St. Cloud region. BiggerPockets connects investors with local wholesalers and agents familiar with Airbnb regulations in Stearns County. Local property management companies such as Vacasa and RedAwning can help identify turnkey opportunities, while investment-focused brokerages like eXp Realty and Century 21 have agents experienced in analyzing cap rates and occupancy projections for short-term rentals near St. Cloud State University and the downtown lakes district. Roofstock and Awning are national platforms that occasionally feature Central Minnesota markets, and local mortgage brokers at Bremer Bank and Great River Federal Credit Union understand investment property financing for vacation rentals in the region.