Is Wrenshall, Minnesota Good for Airbnb Investment?

To start an Airbnb in Wrenshall, Minnesota, begin by researching local zoning laws and regulations through Carlton County and the City of Wrenshall, as this small community may have specific short-term rental ordinances that require registration or permits, typically costing $50-200 annually. Contact the Carlton County Planning and Zoning Department to understand any restrictions on short-term rentals in residential areas, and check if you need a business license from the city clerk's office. Find a suitable property by searching local real estate listings or considering converting an existing home, focusing on properties near outdoor attractions like Jay Cooke State Park or the Willard Munger State Trail, with average property prices ranging $150,000-300,000. Obtain necessary permits including a possible short-term rental permit, ensure compliance with Minnesota Department of Health lodging regulations, and verify your homeowner's insurance covers short-term rentals or purchase additional coverage. Furnish the property with quality basics including comfortable beds, linens, kitchen essentials, WiFi, and local amenities information, budgeting approximately $5,000-15,000 for initial furnishing. Create your Airbnb listing with professional photos highlighting the rural Minnesota charm and proximity to Duluth (20 minutes away), set competitive pricing around $80-150 per night based on local market research, and emphasize outdoor recreation opportunities. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, maintaining the property regularly, and consider hiring local cleaning services in nearby Cloquet or Carlton if needed, while staying compliant with Minnesota's 6.875% sales tax requirements for short-term rentals.

For identifying profitable STR properties in Wrenshall, Minnesota, focus on locations within 10-15 minutes of popular outdoor recreation areas like Jay Cooke State Park and the St. Louis River, as well as properties offering privacy and scenic views given the area's rural nature. Target 2-4 bedroom cabins, lake homes, or rustic properties with amenities like fireplaces, hot tubs, waterfront access, and outdoor spaces that appeal to visitors seeking nature retreats and seasonal activities. Conduct pricing analysis by researching comparable Airbnb and VRBO listings within a 20-mile radius including Duluth and Carlton County, aiming for properties that can command $100-200 per night during peak seasons while maintaining 60-70% occupancy rates. Research competition by analyzing existing STR listings in the Wrenshall-Carlton-Cloquet triangle, identifying gaps in amenities or property types, and studying seasonal demand patterns driven by fall foliage tourism, winter recreation, and summer lake activities. Utilize tools like AirDNA for market data, Mashvisor for investment analysis, the Carlton County assessor's website for property values, and local resources such as the Duluth tourism board data and Minnesota DNR recreation statistics to understand visitor patterns and seasonal trends that drive demand in this rural Minnesota market.

To obtain an Airbnb/STR permit in Wrenshall, Minnesota, you must first contact the Wrenshall City Hall at 218-384-4613 or visit their office at 207 Aspen Avenue to inquire about short-term rental regulations, as this small city may have recently implemented or be developing STR ordinances. You'll likely need to submit an application form along with required documents including proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, emergency contact information, and parking plan documentation. The application fee is estimated at $150-300 annually, with additional inspection fees of approximately $75-150. You must also obtain a Minnesota sales tax permit from the Department of Revenue and register for local lodging taxes with Carlton County. The approval timeline typically takes 30-60 days after submitting a complete application, during which the city will conduct a safety inspection to ensure compliance with fire codes, occupancy limits, and zoning requirements. Wrenshall likely requires STR properties to maintain adequate off-street parking (minimum 2 spaces), post maximum occupancy limits, provide 24/7 local contact information, and comply with noise ordinances, with properties potentially limited to owner-occupied or adjacent-owner-managed rentals only.

Short-term rentals (STRs) in Wrenshall, Minnesota are generally legal but subject to local regulations and zoning restrictions. As a small city in Carlton County, Wrenshall likely follows Minnesota state guidelines which allow STRs while permitting local municipalities to impose their own rules. The city probably requires STR operators to obtain proper permits, comply with safety standards, and may limit rentals to certain zoning districts such as residential or commercial areas. Common restrictions likely include occupancy limits, parking requirements, noise ordinances, and potentially a cap on the number of STR licenses issued. Recent changes across Minnesota have seen increased regulation of STRs, with many communities implementing registration requirements and stricter oversight following concerns about housing availability and neighborhood impacts. Property owners in Wrenshall should check with the city clerk or planning department for specific permit requirements, as violations can result in fines or forced closure of STR operations.

The best areas for Airbnb investment in Wrenshall, Minnesota are primarily concentrated around the Jay Cooke State Park vicinity and properties near the St. Louis River, as these locations attract outdoor enthusiasts year-round for hiking, camping, cross-country skiing, and scenic river activities. The downtown Wrenshall area near Highway 210 offers potential for business travelers and visitors to nearby Duluth (approximately 20 miles away) seeking more affordable accommodations outside the city. Properties within walking distance of the Willard Munger State Trail are particularly attractive as this popular biking and hiking trail draws recreational visitors from the Twin Cities and Duluth metropolitan areas. The residential areas along County Road 1 and near the Carlton County fairgrounds can capitalize on seasonal events and visitors to regional attractions. Additionally, properties with river access or scenic views of the St. Louis River valley command premium rates due to the area's natural beauty and proximity to both Jay Cooke State Park and the larger Duluth-Superior tourism market, making Wrenshall an attractive alternative base for visitors exploring the North Shore region.

Airbnb properties in Wrenshall, Minnesota are subject to Minnesota state sales tax of 6.875% on lodging rentals, which includes the base state sales tax plus local taxes that may apply in Carlton County. The state requires hosts to register for a sales tax permit and collect taxes from guests at the time of booking or check-in, with monthly remittance due by the 20th of the following month if monthly gross sales exceed $500, otherwise quarterly filing applies. Carlton County may impose an additional lodging tax of approximately 1-3%, though specific rates for Wrenshall should be verified with county authorities. Airbnb can collect and remit these taxes automatically for hosts who opt into their tax collection service, which began around 2017-2018 for Minnesota properties. Exemptions typically include stays longer than 30 consecutive days which are considered residential rather than transient lodging, and rentals to certain government employees or tax-exempt organizations with proper documentation. Hosts must maintain detailed records of all bookings, tax collected, and payments made, and failure to comply can result in penalties and interest charges from the Minnesota Department of Revenue.

Starting an Airbnb in Wrenshall, 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 rural Minnesota communities near Duluth. Furnishing a 2-3 bedroom property costs $8,000-12,000 including beds, linens, kitchen essentials, living room furniture, and décor from retailers like IKEA, Wayfair, and local stores. Initial setup expenses total $2,000-3,000 covering professional photography, listing creation, welcome materials, and basic renovations. Permits and fees range $500-1,500 including business licenses, short-term rental permits from Carlton County, and potential HOA approvals. Insurance costs $1,200-2,000 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utility setup and deposits require $500-800 for electricity, water, internet, and cable services. First six months operating costs total $8,000-12,000 including utilities ($200-300/month), cleaning services ($75-100 per turnover), Airbnb fees (3% host service fee), property management software like Hostfully ($50/month), maintenance reserves, and marketing expenses for platforms like Airbnb and VRBO.

Airbnb properties in Wrenshall, Minnesota, face challenging profitability conditions due to the town's small population of approximately 400 residents and limited tourist infrastructure, with average daily rates typically ranging from $75-120 for entire homes and occupancy rates averaging 25-35% annually. Property owners generally generate gross revenues of $8,000-15,000 per year, but after accounting for expenses including mortgage payments ($800-1,200 monthly), utilities ($150-250 monthly), cleaning fees ($40-60 per turnover), property taxes ($2,000-4,000 annually), insurance ($1,500-2,500 annually), and maintenance costs ($1,000-3,000 annually), net profit margins typically fall between 10-25% of gross revenue. Success factors include proximity to outdoor recreation areas like Jay Cooke State Park (15 miles away), competitive pricing strategies, and targeting visitors to nearby Duluth or Carlton County attractions, though the limited local amenities and seasonal demand patterns make consistent profitability challenging compared to more established tourist destinations in Minnesota's Arrowhead region.

Based on Wrenshall, 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 in this rural Duluth-adjacent area averaging $150,000-$250,000 purchase prices can expect gross rental yields of $18,000-$35,000 annually, with occupancy rates of 45-65% given the proximity to outdoor recreation areas and Lake Superior attractions. Initial profitability typically occurs within 18-24 months after accounting for startup costs, furnishing, and marketing expenses, while full investment recovery generally takes 8-12 years. Higher-end cabins or properties with unique amenities like lake access or proximity to Jay Cooke State Park command premium rates of $120-$180 per night during peak summer and fall seasons, potentially pushing annual ROI to 14-16% for well-positioned properties with strong marketing and guest experience management.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Wrenshall, Minnesota. Local real estate agents serving the Duluth-Superior area including Wrenshall include Edina Realty, RE/MAX Results, and Coldwell Banker Burnet, with agents like those at Lake Country Realty specializing in vacation rental properties near the St. Louis River corridor. National services include Mashvisor for property analysis, AirDNA for market data, and BiggerPockets for investor networking, while Awning and RedAwning offer full-service Airbnb property management. Local property management companies such as North Shore Property Management and Superior Shores Property Services cater to short-term rental investors in the region. Investment-focused platforms like Roofstock and Arrived Homes occasionally feature Minnesota properties, while local mortgage brokers at Northland Mortgage and First National Bank Duluth understand vacation rental financing in Carlton County.