Investors looking for scale and product-market fit will find Duluth’s revenue landscape shaped by bedroom count and zip code. Three-bedroom properties (13% of supply) average $29,518 annually at a $326 ADR and 39% occupancy, while four-bedrooms command an average $38,956 but at a lower 27% occupancy, reflecting their premium $620 ADR. Two-bedrooms, comprising 30% of supply, deliver $22,349 at a $258 ADR and 42% occupancy, making them a volume play for operators seeking higher utilization. For tailored acquisition strategies and on-the-ground insight, connect with a Chalet agent.
Geographically, revenue concentration is highest in select zip codes. The 55802 cluster (52 listings) posts a median annual revenue of $44,446 at a $292 ADR and 38% occupancy, though its 10.2% yield is moderated by a $436,260 median home value. For yield-driven investors, 55806 (37 listings) stands out with a 17.8% gross yield on a $197,575 median home value and $35,236 median revenue. Notably, 55808, though a thinner sample, shows a striking 23.4% yield, but with only 18 listings and low 24% occupancy, it warrants careful underwriting. These clusters offer differentiated entry points for investors balancing revenue, yield, and capital outlay—again, best navigated with local expertise from a Chalet agent.
At scale, Duluth’s winners are operators who can capture drive-market demand from Minneapolis (17.8% of reviews) and Saint Paul (7.5%), leveraging an average booking lead time of 49 days and a 3.5-night average stay. The guest mix is overwhelmingly regional, with international travelers representing just 1.8%. Professionalization is evident—77% of listings are Superhost-managed, and the top 10 hosts control 38.2% of supply. For investors modeling returns, the Chalet ROI calculator is essential for scenario planning in this segmented, highly seasonal market.
Risks are concentrated and acute. The most material movement in the past year is a +6.6% increase in median home value, pressuring entry yields and raising the bar for acquisition discipline. The January trough—26% occupancy, $2,182 revenue—underscores the volatility of winter demand. The regulatory environment is the defining risk: as of late 2025, Duluth has imposed a moratorium on new STR licenses, with active city review of its rules and enforcement. No new licenses are being issued, and compliance costs are high relative to revenue. For a comprehensive, up-to-date view of licensing and enforcement, consult Duluth STR regulations.
