Short-Term Rental Laws in Minneapolis, Minnesota

Minneapolis operates a two-license-type framework: Short-Term Rental — Host (Type 1) for the operator's primary residence (no nightly cap, host may be present or absent); and Short-Term Rental — Non-Owner-Occupied (Type 2) for investor properties, which is permitted but requires a separate rental license, certificate of occupancy, and compliance with the Truth In Sale of Housing inspection regime. Type 2 STRs in R1/R1A/R2 single-family residential districts are restricted — the city primarily routes investor STR activity into multi-family, mixed-use, and commercial zones.

Minneapolis Code Ch 281 (Short-Term Rentals) splits the license by ownership occupancy. Type 1 (Host / Primary Residence) — broad permission across residential zones, primary-residence verification required annually. Type 2 (Non-Owner-Occupied) — requires the property also hold a current Minneapolis rental license and pass the standard rental-property inspection cycle (Tier 1/2/3 based on prior violations). Type 2 in standard single-family residential zones (R1, R1A, R2) is constrained; multi-family (R3+, OR, C, B, I) and mixed-use zones are the practical home for investor STRs. Confirm parcel zoning via the Minneapolis Zoning & Planning portal before any offer.

Operators must hold a short-term rental permit before listing. See the official permit portal.

Minneapolis Regulatory Services + Licenses Division jointly enforce. Annual license renewal. Operating without a license triggers administrative citations starting at $200 escalating to $2,000+ per violation, plus stop-rental orders. The city cross-references Airbnb/Vrbo listings against the STR registry quarterly. Platforms operating in Minneapolis are obligated under the ordinance to require a city license number on each listing — non-compliant listings are subject to removal requests. Type 2 license suspensions follow the standard rental-property Tier escalation pattern when complaints accumulate.

Combined short-term lodging tax in Minneapolis is approximately 14.025% of gross nightly revenue (state sales + state TRT + local TRT + applicable resort/city options).

Minnesota State sales tax 6.875% + Minneapolis city sales 0.5% + Hennepin County 0.15% + Minneapolis Lodging Tax 3% + Downtown Lodging Tax 3% (where applicable) — combined ~14.0% on transient lodging within the downtown taxing district; ~11.0% citywide outside it

Verify the current combined rate via the Utah State Tax Commission before remitting — rates drift quarterly.