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Is Airbnb legal in Minneapolis, Minnesota?

Legal with a license, but one non-homestead STR per owner. Minneapolis licenses rather than bans STRs. Properties the owner does not live in need a full rental license with inspections, and every owner is capped at one non-homestead STR beyond their own homestead, enforced across LLCs. Non-homestead licenses run on a tiered fee schedule starting around $98 plus $41 per unit, with a $1,000 conversion fee for new conversions.

Showing the researched rules for Minneapolis, MN below. Type your Minneapolis address to jump to the verdict.

Legal with permit

Legal with a license, but one non-homestead STR per owner

Minneapolis licenses rather than bans STRs. Properties the owner does not live in need a full rental license with inspections, and every owner is capped at one non-homestead STR beyond their own homestead, enforced across LLCs. Non-homestead licenses run on a tiered fee schedule starting around $98 plus $41 per unit, with a $1,000 conversion fee for new conversions.

Permit and costs

Permit
Short-Term Rental License (non-homestead)
Issued by
City of Minneapolis Regulatory Services
Cost
Tier 1: $98 + $41 / unit; new conversions add a $1,000 conversion fee
Renewal
Annual

Key limits

One STR per owner
Each owner may hold only one non-homestead STR beyond their own homestead, and the cap applies across LLCs.
Occupancy
Short-term rentals are capped at 10 guests per unit.
Building cap
Buildings with 20 or more units cannot put more than 10% of their units into short-term use, though condos are exempt from that cap.
Inspections
Non-homestead properties need a full rental license with inspections.

Taxes

Lodging taxes
Combined lodging taxes of roughly 12.025% are collected from guests

Registration checklist

  1. 1
    Confirm the cap
    Make sure you hold no other non-homestead STR, since the one-per-owner cap applies across LLCs.
  2. 2
    Apply to Regulatory Services
    File the non-homestead STR license application with property details and ownership information.
  3. 3
    Pass inspection
    Complete the rental license inspection and meet the tier requirements before hosting.

What could change this verdict

Your HOA
An HOA or condo association can prohibit STRs in its governing documents regardless of the city license, so review them before buying.
Rule changes
Owner-occupancy rules changed in 2026 and ADU-specific STR guidance is still evolving, so confirm current policy with the city.

Sources

Minneapolis STR guide (2026) · Minneapolis and St. Paul STR license overview

Rules researched October 2026. They change, so verify with the city before you buy.

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Verify before you buy. Rules change often and vary by zoning, HOA, and building type. This is a research starting point, not legal advice. Always confirm with the city's planning or business-license office before signing anything.