Airbnb market analysis and investment insights
$150
Minneapolis, MN — Market Intelligence Report
Researched by Chalet's Senior STR Analysts · Verified with local Minneapolis market partners
Minneapolis’s short-term rental market is defined by a resilient, yield-driven core: active full-time operators average $32,698 in annual revenue (Chalet data, trailing 12 months), with the broader whole-market median of $30,613 held down by a sizable part-time segment. The city’s 57% median occupancy and $150 ADR underpin a median gross yield of 9.68% on a $316,172 median home value, placing Minneapolis at #170 nationally. Seasonality is pronounced, with peak revenue in May ($2,992, 64% occ, $171 ADR) and a deep trough in January ($2,030, 38% occ), underscoring the need for operators to optimize during the high-demand summer and shoulder months.
The most investable product segments in Minneapolis are larger homes, which command a premium on both nightly rate and annual revenue. Three-bedroom listings average $37,001 annually at a $231 ADR, while four-bedrooms reach $45,694 with a $315 ADR—both well above the market average, though occupancy rates hover in the low- to mid-50s. Investors seeking to maximize gross yield may look to the 55403 zip code, where 76 listings post a median $35,013 in annual revenue, a $171 ADR, and a standout 17.8% yield on a median home value of just $197,103. For tailored acquisition guidance, a Chalet agent can help pinpoint inventory that aligns with these outperforming clusters.
For those targeting stable, mid-market returns, the 55408 and 55418 zip codes offer a balance of occupancy and yield. In 55408, 133 listings generate a median $29,694 on a $134 ADR and 60% occupancy, translating to a 10.7% yield on a $278,642 home. Meanwhile, 55418’s 73 listings post $30,732 median revenue at a $149 ADR and 52% occupancy, with a 9.3% yield on $332,209 homes. These neighborhoods combine steady guest demand with accessible price points, making them attractive for first-time or scaling investors.
At scale, the market rewards operators who can navigate seasonality and capture demand from a predominantly regional guest base—Minneapolis, Chicago, and New York are the top sources of reviews, with international guests making up just 3.9%. The average booking lead time is 38 days (median 20), and stays average 5.9 nights, favoring listings that accommodate longer bookings and flexible minimums. The top-10 hosts control just 10.9% of supply, signaling a fragmented landscape where new entrants can still carve out share. Use the Chalet ROI calculator to model returns across bedroom types and neighborhoods.
Risks are concentrated around regulatory compliance and pronounced winter troughs. Occupancy is up 2.0% YoY, ADR has surged 22.8%, listing supply is up a modest 0.5%, and home values have appreciated by 1.2%—all according to Chalet data. The January trough (38% occupancy, $2,030 revenue) remains a drag on annualized returns. Regulatory risk is non-trivial: Minneapolis requires a license or registration, limits owners to one non-homesteaded STR in addition to their primary residence, and imposes a $1,000 conversion fee plus a 9.9% lodging tax. See Minneapolis STR regulations for a full compliance breakdown.
Minneapolis’s short-term rental market is a yield-driven play for disciplined operators who can navigate regulatory hurdles and capitalize on surging ADRs, with the strongest returns clustered in larger homes and high-yield urban zips.
Get matched with top Minneapolis, MN lenders who specialize in short-term rental financing — they understand STR underwriting and offer competitive rates for investment properties.
| 55421 |
| 10% |
| $28,394 |
| 45 |
| $289K |
| 3 | 55426 | 10% | $33,745 | 21 | $354K |
| 4 | 55402 | 0% | $20,999 | 42 | $0K |
| 5 | 55417 | 8% | $27,681 | 114 | $363K |
| 6 | 55418 | 9% | $30,732 | 110 | $332K |
| 7 | 55415 | 14% | $43,919 | 5 | $308K |
| 8 | 55429 | 12% | $34,031 | 20 | $290K |
| 9 | 55446 | 6% | $36,232 | 12 | $602K |
| 10 | 55406 | 8% | $26,824 | 135 | $326K |
| 11 | 55423 | 11% | $37,163 | 102 | $333K |
| 12 | 55405 | 6% | $28,557 | 98 | $443K |
| 13 | 55430 | 7% | $18,327 | 17 | $269K |
| 14 | 55432 | 14% | $41,994 | 35 | $308K |
| 15 | 55454 | 10% | $15,066 | 6 | $152K |
| 16 | 55409 | 10% | $34,252 | 59 | $356K |
| 17 | 55416 | 8% | $31,721 | 74 | $391K |
| 18 | 55449 | 7% | $31,432 | 33 | $445K |
| 19 | 55411 | 9% | $21,315 | 54 | $233K |
| 20 | 55433 | 7% | $20,592 | 6 | $309K |
| 21 | 55413 | 11% | $33,374 | 99 | $312K |
| 22 | 55427 | 8% | $29,104 | 21 | $351K |
| 23 | 55437 | 9% | $34,271 | 6 | $378K |
| 24 | 55401 | 15% | $46,272 | 87 | $304K |
| 25 | 55442 | 5% | $22,176 | 9 | $454K |
| 26 | 55447 | 10% | $49,249 | 15 | $477K |
| 27 | 55420 | 11% | $34,984 | 9 | $321K |
| 28 | 55441 | 7% | $29,154 | 21 | $440K |
| 29 | 55431 | 3% | $12,341 | 3 | $363K |
| 30 | 55403 | 18% | $35,013 | 114 | $197K |
| 31 | 55404 | 11% | $27,006 | 134 | $236K |
| 32 | 55438 | 4% | $16,655 | 8 | $389K |
| 33 | 55407 | 8% | $24,376 | 132 | $303K |
| 34 | 55425 | 5% | $14,924 | 3 | $307K |
| 35 | 55422 | 9% | $28,851 | 30 | $325K |
| 36 | 55408 | 11% | $29,694 | 200 | $279K |
| 37 | 55443 | 8% | $29,186 | 15 | $371K |
| 38 | 55410 | 6% | $32,806 | 119 | $567K |
| 39 | 55419 | 8% | $35,466 | 77 | $469K |
| 40 | 55412 | 8% | $18,234 | 32 | $226K |
| 41 | 55448 | 11% | $35,741 | 5 | $330K |
| 42 | 55435 | 13% | $27,513 | 17 | $210K |
| 43 | 55414 | 8% | $27,782 | 56 | $329K |
| 44 | 55434 | 21% | $69,175 | 8 | $324K |
| 45 | 55439 | 4% | $29,126 | 6 | $652K |
Click any zipcode above to explore detailed analytics for that specific neighborhood in Minneapolis, MN. Each neighborhood page includes comprehensive data on occupancy rates, seasonal trends, and investment projections.
