Is Winona, Minnesota Good for Airbnb Investment?

To start an Airbnb in Winona, Minnesota, begin by researching local regulations through the City of Winona Planning Department, as the city requires short-term rental operators to obtain a conditional use permit and business license, with properties needing to meet specific zoning requirements and safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers. Contact Winona County for any additional county-level requirements and ensure compliance with Minnesota state tax obligations including sales tax registration. Find a suitable property in residential zones that allow short-term rentals, focusing on areas near Winona State University, downtown historic district, or Mississippi River attractions, with properties typically ranging from $150,000-$300,000 for purchase or $800-$1,500 monthly for rental arbitrage opportunities. Furnish the space with quality basics including comfortable bedding, kitchen essentials, WiFi, TV, and local guidebooks, budgeting approximately $5,000-$15,000 for a complete setup depending on property size. Create your Airbnb listing with professional photos highlighting Winona's scenic bluff views and proximity to Great River Bluffs State Park, pricing competitively at $80-$150 per night based on local market analysis. Manage the property by establishing cleaning protocols between guests, maintaining responsive communication, coordinating with local cleaning services like those found through Winona Area Chamber of Commerce, and consider using property management companies such as regional firms serving the Mississippi River valley area if you prefer hands-off management.

To identify profitable short-term rental properties in Winona, Minnesota, focus on locations within walking distance of Winona State University campus, downtown historic district near the Mississippi River, and areas with scenic bluff views, as these attract both university visitors and tourists exploring the Great River Road. Target 2-4 bedroom properties built after 1950 with updated kitchens, reliable WiFi capability, parking availability, and outdoor spaces that can accommodate families and university groups year-round. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against existing STRs in the $80-150 nightly range, accounting for seasonal fluctuations during university events, summer river tourism, and fall foliage periods. Research competition by analyzing occupancy rates and guest reviews for properties near Winona State University, Sugar Loaf Bluff, and the Historic Third Street district, identifying gaps in amenities or target markets. Utilize tools like Rabbu, BiggerPockets calculators, and local resources including the Winona Convention & Visitors Bureau data, Winona County property records, and networking with local real estate agents familiar with the university rental market to validate demand patterns and regulatory requirements specific to Winona's short-term rental ordinances.

To obtain an Airbnb/STR permit in Winona, Minnesota, you must first contact the Winona City Planning Department at City Hall located at 207 Lafayette Street to determine if short-term rentals are permitted in your zoning district, as the city has specific zoning restrictions for STRs. Submit a completed short-term rental license application along with a site plan showing the property layout, proof of property ownership or lease agreement, a floor plan indicating maximum occupancy, proof of liability insurance (typically $1 million minimum), and a completed fire safety inspection from the Winona Fire Department. You'll also need to provide contact information for a local property manager if you live more than 50 miles away, parking plans showing adequate off-street parking for guests, and waste management arrangements. The application fee is approximately $200-300 with an annual renewal fee of around $150-200, and you may need additional inspections costing $50-100 each. The timeline typically takes 4-6 weeks for processing once all documents are submitted, including the required public notification period where neighbors within 200 feet are notified of your application. Winona requires STR operators to maintain a guest registry, limit occupancy to no more than 2 people per bedroom plus 2 additional guests, ensure quiet hours from 10 PM to 8 AM, and display the permit number in all advertising, with properties subject to annual inspections and compliance with all building, fire, and health codes.

Short-term rentals (STRs) are legal in Winona, Minnesota, but operate under specific municipal regulations that the city has developed over recent years. Winona requires STR operators to obtain a business license and comply with zoning restrictions that primarily allow these rentals in commercial and mixed-use districts, while residential areas have more limited permissions depending on the specific zoning classification. The city has implemented occupancy limits, parking requirements, noise ordinances, and safety standards including smoke detectors and emergency egress requirements. Recent changes around 2020-2022 included more formalized licensing procedures and enhanced enforcement mechanisms following community concerns about neighborhood impacts. Properties must meet building and fire codes, maintain adequate insurance, and operators are subject to complaint procedures that can result in license suspension or revocation for violations. The regulations generally prohibit STRs in certain residential zones to preserve neighborhood character while allowing them in areas deemed more appropriate for transient accommodations.

The best areas for Airbnb investment in Winona, Minnesota include the Historic Downtown District near Main Street, which attracts tourists visiting the Minnesota Marine Art Museum, Winona County Historical Society, and various antique shops and restaurants. The Sugarloaf Bluff area offers scenic views and proximity to hiking trails, appealing to outdoor enthusiasts and nature tourists visiting Great River Bluffs State Park. The East End/Lake Winona neighborhood provides waterfront access and recreational activities, drawing visitors for fishing, boating, and lakeside relaxation. The area near Saint Mary's University generates consistent demand from visiting families, prospective students, and academic conference attendees throughout the year. The Third Street corridor benefits from its proximity to the Winona State University campus, creating opportunities for parent visits, graduation events, and university-related business travel. Properties near the Mississippi River waterfront capitalize on river tourism, especially during summer months when visitors come for riverboat tours, fishing tournaments, and water recreation activities.

In Winona, 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. Winona County imposes an additional lodging tax of approximately 3%, bringing the total lodging tax to around 6%. These taxes are typically collected by Airbnb directly from guests at the time of booking through their tax collection service, which began operating in Minnesota around 2018. Airbnb then remits these taxes quarterly to the Minnesota Department of Revenue and applicable local jurisdictions on behalf of hosts. However, hosts should verify their registration status and may need to register with the Minnesota Department of Revenue if they're not covered by Airbnb's collection service. Properties rented for 30 days or more are generally exempt from lodging taxes, and certain nonprofit or government-related stays may also qualify for exemptions. Hosts should also be aware that regular sales tax of 6.875% may apply to any additional services provided beyond basic lodging.

To start an Airbnb in Winona, Minnesota, expect total costs around $185,000-$220,000. Property purchase represents the largest expense at approximately $150,000-$180,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $8,000-$15,000 for a complete 2-3 bedroom setup including furniture, bedding, kitchenware, and decor. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$4,000. Permits and fees in Minnesota include business registration ($135), potential city licensing ($100-$500), and safety inspections ($200-$400). Insurance costs run $1,200-$2,400 annually for short-term rental coverage. Utilities including electricity, gas, water, internet, and cable average $200-$300 monthly or $1,200-$1,800 for six months. First six months operating costs encompass cleaning services ($150-$300 per turnover), maintenance reserves ($500-$1,000), marketing ($300-$600), and platform fees to Airbnb averaging 3% of bookings, totaling approximately $3,000-$6,000 depending on occupancy rates and seasonal demand in the Mississippi River valley tourism market.

Airbnb properties in Winona, Minnesota typically generate annual revenues between $15,000-$35,000 for entire home listings, with average daily rates ranging from $85-$150 depending on property size and location near Winona State University or the Mississippi River. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25% if outsourced), utilities ($150-300 monthly), insurance ($800-1,500 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties within walking distance of downtown or the university command premium rates, particularly during graduation weekends, homecoming, and summer river tourism season when occupancy rates peak at 70-85% compared to winter lows of 30-45%. A typical 3-bedroom Victorian home near the historic district might generate $28,000 annually with $16,000 in expenses, yielding a 43% profit margin or roughly $12,000 net income. Success factors include professional photography, responsive communication, strategic pricing during university events, and targeting both leisure travelers exploring the Great River Road and business visitors to local companies like Fastenal Corporation headquarters, with the most profitable properties being those purchased specifically for short-term rental rather than converted primary residences.

Airbnb investments in Winona, Minnesota typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the city's proximity to the Mississippi River recreational activities and Winona State University student housing demand. Properties near the historic downtown district and riverfront areas command premium nightly rates of $80-120, with occupancy rates averaging 65-75% annually due to seasonal tourism peaks during summer months and consistent university-related bookings. Initial profitability is generally achieved within 18-24 months for properties purchased under $200,000, with investors typically seeing positive cash flow by month 8-12 after accounting for mortgage payments, property management fees of 15-20%, and maintenance costs. The market benefits from limited hotel inventory and growing tourism to Winona's outdoor recreation areas, though winter months see occupancy drops to 45-55%, requiring investors to budget for seasonal fluctuations in revenue streams.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Winona, Minnesota. Local real estate agents specializing in investment properties include Coldwell Banker River Valley Realtors, RE/MAX Results, and Edina Realty, with agents like those at Century 21 Affiliated focusing on rental property investments since 2018. National services include Mashvisor for property analysis, BiggerPockets for investor networking and deal sourcing, Roofstock for turnkey rental properties, and AirDNA for market data and revenue projections. Regional companies like Midwest Real Estate Investment Group and Minnesota Investment Properties have been serving the Twin Cities and southeastern Minnesota markets since 2015, while vacation rental management companies such as RedAwning and Vacasa offer property acquisition consulting alongside their management services. Local property management firms including Winona Property Management and River City Rentals provide market insights for investors, and national platforms like Awning and Mashvisor offer automated underwriting tools specifically designed for short-term rental investments in secondary markets like Winona.