10 Best Places to Buy Short-Term Rentals in Minneapolis (2026)

Minneapolis stands out for short-term rental investors in 2026, not just for its cultural pull but for the clear data story. Yields are highest in the city’s central and near-central zip codes, where property values are accessible and demand is surging. Across the top ten Minneapolis zip codes, gross yields span from 9.5% up to a remarkable 17.6%, with entry prices ranging from just over $200K to above $400K.

The city’s median yield sits at 9.9%, putting Minneapolis in the 61st percentile nationally, and occupancy rates have jumped 20% year-over-year as supply tightens and ADRs climb. Investors are seeing the strongest returns in areas where home values have softened or lagged, but demand has soared, especially downtown and in university-adjacent districts.

For buyers ready to act, these numbers point to a market where timing and location can sharply accelerate payback. Connect with a Minneapolis short-term rental agent to match your investment goals to the right zip code.

The Best Minneapolis Zip Codes for Airbnb, Ranked by Yield

Source note: Data as of July 11, 2026. Each listing’s annual revenue is calculated from its own ADR × occupancy × 365 using trailing 12-month data, gross before expenses. The table reports the median listing’s revenue, ADR, and occupancy, which are computed independently, multiplying ADR by occupancy will not reproduce the revenue figure.

Gross yield divides the median revenue by the median home value (Zillow Home Value Index). See /methodology for details. The active-operator revenue benchmark filters to listings with real, sustained booking activity and is what a committed buyer should underwrite against, while the headline revenue averages all listings.

1. 55403: Loring Park’s Yield Outlier

In 55403, which covers the Loring Park area, the numbers are hard to ignore. This zip code posts a 17.6% gross yield, nearly double the citywide median, and a median home value of just $209,587, which has dipped 6.3% year-over-year. That combination of high yield and falling prices is rare in a major city.

Occupancy here peaks at 68% in August, but the annual average is a modest 42%, suggesting a market that runs on strong seasonal surges, especially in spring (30% of annual revenue) and summer (29%). January is the slowest month, with occupancy at 23%.

The ADR is $172, well above the Minneapolis median, and the payback period is a brisk 5.9 years on gross active-operator revenue. Most listings are 1-bedrooms, but 2-bedrooms deliver the highest earnings, reflecting demand from small groups and business travelers.

The active-operator revenue ($35,647) closely tracks the headline number, indicating that committed hosts see little drop-off from the market average. For a closer look at how Loring Park stacks up, the full analytics page for 55403 breaks down the trends by property type and season.

Who it fits. Buyers seeking high returns at a low entry price, comfortable with pronounced seasonality.

2. 55401: North Loop’s High-Occupancy Engine

Price trends in 55401 reflect a market where owners benefit from rare consistency across the calendar. Occupancy rates hold a median of 74%, surging to a perfect 100% in August and dipping only to 60% in January, a pattern that signals robust demand from both business travelers and leisure guests year-round.

This steadiness, along with a $208 ADR and $52,663 annual revenue, positions 55401’s gross yield at 16.7%, placing it in the 93rd percentile among 501 US markets and far above the national median.

Momentum here is unmistakable. June 2026 saw occupancy up 32% and ADR up 68% year-over-year, even as listings dropped 29%, creating a classic supply squeeze that strengthens pricing power for hosts. The payback period is notably short at about 6.1 years, which is attractive for investors underwriting new acquisitions, especially given higher home values ($315,156, up 0.3% YoY).

Spring and winter each generate over a quarter of annual revenue, confirming that demand is not just seasonal but well distributed. While 1-bedrooms dominate the inventory, 0-bedroom units actually outperform on a revenue-per-listing basis, offering flexibility for different investment strategies. The analytics for 55401 offer a detailed view of this zip’s resilient performance through market shifts.

Who it fits. Investors prioritizing steady bookings and strong downtown demand, even at a higher price point.

3. 55414: University District’s Winter Strength

Revenue patterns in 55414 reflect a market where winter demand anchors returns, with 34% of annual revenue earned during the coldest months and occupancy holding at 34% in January. August brings a sharp seasonal spike, as occupancy soars to 87%, a pattern shaped by the academic calendar and the influx of students and visiting families.

The average daily rate lags the US median at $136 (US: $232), but the area’s gross yield of 13.9% places it in the 86th percentile nationally, far outpacing most US markets.

Operators here face a relatively swift payback horizon, with the median purchase price recouped in about 7.2 years of gross active-operator revenue. That figure is underpinned by a bedroom mix dominated by 1-bedroom units (20 listings), which cater well to students, solo academics, and short-term visitors.

The near match between active-operator revenue ($47,727) and the all-listings average signals that committed hosts are not penalized by off-peak volatility, likely due to steady academic and event-driven demand even outside summer peaks. For more on how this zip code weathers seasonal swings, see the analytics dashboard for 55414.

Who it fits. Buyers targeting academic and event-driven demand, with appetite for moderate seasonality and mid-range price points.

4. 55404: Central Minneapolis, Value Play

Seasonal demand shapes the 55404 market, with occupancy soaring to 76% in August and dropping to just 37% in February, making summer a critical period for maximizing returns. This zip code’s 51% median occupancy rate stands well above the US median of 45%, while its average daily rate of $113 is notably lower than the national median, helping to keep entry costs accessible for new hosts.

The most common listing type is a 1-bedroom, with 53 such properties generating $12,972 per year at an $89 ADR, which signals a market well-suited to solo travelers and couples seeking affordable urban stays.

Momentum has shifted decisively in favor of owners. Occupancy surged 44% year-over-year while the number of listings fell by 8%, creating a supply squeeze that has kept ADR steady despite higher demand. This dynamic, combined with a gross yield at the 80th percentile nationally (12.8%), means investors can expect a relatively quick payback period of about 8.1 years based on active-operator revenue.

The home value has dipped slightly (-1.3% YoY), but the strong seasonal revenue mix, 32% of annual income arrives in summer, helps offset this, making 55404 a compelling choice for those seeking both affordability and solid returns in central Minneapolis.

Who it fits. Buyers seeking a lower-cost entry into central Minneapolis with strong seasonal upside.

5. 55413: Northeast’s Consistent Performer

Strong summer demand shapes the 55413 market, with occupancy climbing to 79% in August and average daily rates reaching $168, while winter sees a dip to 36% occupancy.

This reliable seasonality helps spread revenue evenly across the year, summer accounts for 28% of annual revenue, closely followed by fall at 26% and spring at 25%, leaving winter with a still-respectable 21%. These patterns reflect Northeast’s enduring appeal for both leisure and business stays, with guests drawn by its mix of local breweries, art spaces, and proximity to downtown.

Gross yield here stands at 11.8%, placing 55413 in the 75th percentile nationally and well above the US median of 9.0%. The payback period, at 8.6 years, signals a balanced investment profile for buyers who value consistency over rapid returns.

With 65 full-time listings and a dominant 1-bedroom mix, the neighborhood caters to couples and solo travelers, helping keep occupancy steady even as supply tightened by 8% over the past year. For those wanting to see how Northeast’s numbers stack up, the analytics page for 55413 provides the full breakdown.

Who it fits. Investors looking for stable, year-round demand and above-average ADRs in a classic Minneapolis neighborhood.

6. 55408: Uptown’s Large Market, Steady Returns

Price-conscious investors find 55408 attractive, as its $293,448 median home value sits well below the US median yet supports a 10.8% gross yield, ranking in the 68th percentile among 501 US markets.

Occupancy rates jump from a winter low of 37% in February to a robust 88% in August, with the seasonal revenue mix staying balanced, summer, spring, and fall each contribute roughly a quarter, while winter lags at 22%. These patterns reflect a steady flow of both leisure and business travelers, drawn by Uptown’s nightlife and year-round events, but with clear summer peaks when outdoor amenities are in full swing.

Strong booking momentum (+14% occupancy, +7% ADR in June 2026 vs the prior year) is helping offset the recent 17% drop in listings, creating a mild supply squeeze. For active operators, the payback period clocks in at 9.5 years, underscoring the shifting market dynamics.

Most listings are 1-bedrooms, but 2-bedrooms command the highest annual revenue at $25,136, suggesting that families and small groups seeking extra space are willing to pay a premium. Uptown’s robust operator base of 130 full-time listings provides scale for benchmarking and operational learning. For a detailed look at Uptown’s property mix and seasonal swings, see the analytics for 55408.

Who it fits. Buyers wanting a large, established market with balanced seasonality and mid-range prices.

7. 55421: High Occupancy, Budget ADR

Low nightly rates define 55421, yet the area’s booking pace sets it apart from much of the US. Occupancy in this northern Minneapolis market climbs to 83% in September, then dips to 52% in February, reflecting strong late-summer demand and a pronounced winter lull. Despite a modest $72 ADR, well below the US median of $232, annual revenue holds up at $31,012, with the market’s gross yield of 10.1% placing it in the 63rd percentile nationally.

Spring and summer together account for 55% of annual revenue, so investors should expect pronounced seasonality and plan for leaner winter months, which contribute only 20% of the yearly total. The payback period sits at 10.4 years, reflecting a balance between affordable home values ($305,990) and the need for consistently high occupancy to offset lower rates.

In this neighborhood, 20 of the 30 active full-time properties are 1-bedrooms, so returns hinge on efficient operations and steady guest turnover. The recent supply squeeze, occupancy up 32%, ADR up 33%, and listings down 18% year-over-year, suggests rising competition for available units is helping to sustain both rates and booking levels.

Who it fits. Investors who value high occupancy and are comfortable with lower nightly rates and longer payback.

8. 55416: West End’s Upscale Option

Momentum in 55416 accelerated over the past year, as occupancy climbed 44% and average daily rates rose 7% in June, even while the number of active listings dropped by 18%.

This supply squeeze, paired with a median occupancy rate of 72%, well above the US median of 45%, drives a competitive environment where properties are booked solid in August (100% occupancy, $132 ADR) but slow dramatically in April (30% occupancy). The area’s revenue mix is notably balanced, with winter contributing an unusually high 27% of annual income, which helps insulate investors from typical off-season dips.

Buyers targeting higher-end segments may be drawn to 55416, where the median home value is $417,048 and gross yield ranks at the 62nd percentile nationally (10.1%). Operators face a payback period of about 10.1 years, reflecting both premium pricing and steady returns.

The small pool of just 48 full-time listings signals limited competition, but also means new entrants must deliver a differentiated guest experience to stand out. For a closer look at how seasonal swings and pricing trends shape performance, the analytics for 55416 provide the full picture.

Who it fits. Buyers seeking an upscale, low-density market with strong winter and summer demand.

9. 55423: Richfield’s High-ADR Niche

Price-driven investors will notice that 55423’s $206 average daily rate stands out, trailing only downtown among Minneapolis submarkets. Occupancy rates here reach their peak in August at 78%, then fall to 42% in February, reflecting strong summer demand and a pronounced winter slowdown.

This dynamic helps summer account for 31% of annual revenue, while winter lags at just 19%. These swings are typical for suburban settings that attract families and longer stays during school breaks, but see less activity in the colder months.

At a 10.0% gross yield, this market lands in the 62nd percentile nationally, outperforming the US median of 9.0% and offering a compelling balance of income and stability. The payback period for active operators is about 10.3 years, which is competitive given the steady demand and moderate home prices (median $352,336, up 2.8% year-over-year).

With 66 full-time listings, supply tightened over the past year as listings dropped 12%, even while occupancy jumped 17% and ADR climbed 21%. This supply squeeze supports pricing power for existing hosts and signals a resilient market for new entrants. For a breakdown of how Richfield’s ADR and occupancy combine, see the analytics for 55423.

Who it fits. Investors prioritizing high nightly rates and stable occupancy in a suburban setting.

10. 55409: South Minneapolis’s Balanced Play

Revenue patterns in 55409 reflect a market where spring and fall each deliver over a quarter of the year’s income, with occupancy peaking at a remarkable 97% in August and dropping to 46% in December.

These pronounced seasonal swings are driven by Minneapolis’s summer event calendar and the area’s strong appeal for warm-weather travelers, while winter’s lower occupancy mirrors the city’s cold off-season. The average daily rate holds steady at $151, matching the city median, and occupancy outpaces the US median by a wide margin (59% vs 45%), helping to keep annual revenue stable despite softer winter months.

In 55409, a gross yield of 9.5% places the area at the 56th percentile among 501 US markets, offering a slightly above-average return for buyers. The payback period of about 10.7 years, based on active-operator revenue, signals a reasonable timeline for recouping the median home price of $379,136.

Solo travelers or couples find 1-bedroom listings well suited to their needs, though this may limit upside for those seeking larger group bookings. For those weighing a move into South Minneapolis, the analytics for 55409 detail the area’s steady performance and listing mix.

Who it fits. Buyers seeking a well-rounded, mid-priced market with steady demand and moderate seasonality.

How to read these rankings before you buy

Gross yield is a powerful first filter, showing the ratio of annual rental income to home price, but it does not account for expenses, vacancy risk, or property-specific quirks. Headline revenue averages all listings, while the active-operator benchmark focuses on properties with consistent bookings, this is the figure serious buyers should use for underwriting.

Occupancy and ADR can vary sharply by property type, management quality, and guest segment, so even within a high-yield zip code, outcomes differ. Always verify seasonality, local demand drivers, and property-level compliance before committing capital. These rankings are a starting point, not a substitute for due diligence.

How to Act on This

In Minneapolis, the strongest short-term rental opportunities cluster in central and near-central zip codes, where yields are highest and demand is rising fastest. Investors should weigh not just gross yield, but also occupancy trends, ADR, and the payback period, all of which are shaped by property type and local guest demand. Regulatory compliance is essential. Minneapolis requires a rental license for every property, and owners can operate one short-term rental in addition to their homesteaded property.

Hosts must register and display their permit number on listings, and both state and local lodging taxes apply to stays of 30 days or less. Tax rates and compliance requirements are address-specific, so confirm the latest rules with city and state authorities before closing.

Given the ongoing supply squeeze and rising ADRs, buyers who can move quickly and secure a property in a top-performing zip code are best positioned for strong returns. Ready to take the next step? Get matched with a Minneapolis short-term rental agent who knows the latest data and local regulations.