Top 14 Airbnb Markets in Minnesota

Minnesota’s diverse geography—ranging from the iconic North Shore of Lake Superior to the bustling Twin Cities—creates a fertile landscape for short-term rental (STR) investment. Whether you’re interested in cozy lake cabins, urban condos, or family-friendly suburbia, the “Land of 10,000 Lakes” offers multiple paths to solid returns. Based on AirDNA’s proprietary data, here are the top-performing Airbnb markets across the state.

What Is AirDNA’s Market Score?

Market Score is a proprietary metric that ranks how attractive a location is for STR investment. Each score is calculated based on the following five metrics:

• Investability
• Rental Demand
• Revenue Growth
• Seasonality
• Regulation

Scores range from 0 to 100, with higher scores indicating stronger overall market health. In addition to an overall Market Score, each of the five metrics gets its own score on the same scale within the AirDNA app. This level of granularity is useful for Airbnb stakeholders interested in a particular aspect of market behavior.

Understanding Markets vs. Submarkets

This list includes a mix of the largest markets and submarkets, which are defined as:

Markets refer to well-defined, often larger geographic areas like cities or metro regions.

• Submarkets are more granular locations, such as smaller towns, neighborhoods, or lakeside communities within those larger regions.

Including both allows investors to spot opportunities that may be overlooked when focusing solely on large-scale market data. A market with a mediocre score might contain submarkets with excellent performance.

Airbnb Market Overview in Minnesota

Minnesota’s STR landscape is as varied as its seasons. Summer drives robust demand for lake destinations such as Grand Marais, Two Harbors, and Brainerd, while year-round medical and business travel keep places like Rochester and the MSP Airport area bustling even during frigid winters. Urban neighborhoods in Minneapolis–Saint Paul continue to command strong average daily rates (ADRs), but savvy investors are also eyeing emerging suburbs and wilderness gateways for lower competition and high upside.

Top 14 Airbnb Markets in Minnesota (Ranked by Market Score)

14. Brainerd

Market Score: 38.28

Average Annual Revenue: $45,927

Brainerd, situated in the heart of Minnesota’s lake country, is famous for fishing resorts, golf courses, and outdoor adventure parks. Although seasonality drags down its overall score, peak-summer ADRs can be impressive for well-located cabins and lake homes.

13. Uptown Minneapolis

Market Score: 45.21

Average Annual Revenue: $31,834

Known for vibrant nightlife, trendy eateries, and proximity to the Chain of Lakes, Uptown attracts both leisure and corporate travelers. Tighter regulations and competition hold back growth potential, but strong demand keeps occupancy healthy for compliant operators.

12. Alexandria

Market Score: 50.10

Average Annual Revenue: $45,787

Alexandria’s chain of glacial lakes makes it a summertime favorite for boating and fishing. Affordable property prices and repeat family vacationers create an attractive entry point, though bookings dip sharply in the off-season.

11. Mounds View / Lino Lakes

Market Score: 59.32

Average Annual Revenue: $37,532

Located just north of Minneapolis–Saint Paul, these suburbs offer easy interstate access, regional parks, and lower home prices than core urban areas. Consistent mid-week bookings from business travelers help smooth out seasonality.

10. Boundary Waters

Market Score: 64.51

Average Annual Revenue: $40,946

The Boundary Waters Canoe Area Wilderness draws adventurers seeking remote paddling and pristine night skies. High nightly rates during the short peak season counterbalance minimal winter demand, rewarding hosts who optimize for summer.

9. Tangletown

Market Score: 71.96

Average Annual Revenue: $38,369

Tangletown, a tree-lined neighborhood in Southwest Minneapolis, offers quick access to Minnehaha Creek and family-oriented amenities. Lower STR density means less competition, while proximity to downtown keeps occupancy robust.

8. Northeast

Market Score: 72.35

Average Annual Revenue: $35,219

Northeast Minneapolis has evolved into an arts and brewery district, attracting weekend travelers and locals on staycations. Moderate property prices and steady event-driven demand add to its investment appeal.

7. Duluth

Market Score: 74.87

Average Annual Revenue: $48,033

Duluth, perched on Lake Superior, acts as a gateway to the North Shore’s scenic drives and national forests. Summer tourism, fall foliage trips, and winter ski weekends keep calendars filled, though regulations require careful compliance.

6. Downtown Saint Paul

Market Score: 79.05

Average Annual Revenue: $29,977

The state capital’s downtown core hosts concerts, NHL games, and conferences. High mid-week corporate demand offsets softer weekends, and light-rail connectivity broadens guest appeal.

5. Two Harbors

Market Score: 79.46

Average Annual Revenue: $55,336

Two Harbors offers iconic lighthouse views, access to Split Rock Lighthouse State Park, and the Superior Hiking Trail. Limited hotel inventory boosts ADRs for well-managed STRs, particularly larger family-friendly homes.

4. Rochester

Market Score: 81.78

Average Annual Revenue: $28,759

Home to the world-renowned Mayo Clinic, Rochester benefits from medical tourism that drives year-round bookings and longer-than-average stays. Regulatory clarity and steady demand provide reliable cash flow.

3. MSP Airport

Market Score: 85.73

Average Annual Revenue: $31,025

Properties near Minneapolis–Saint Paul International Airport and the Mall of America attract corporate travelers, flight crews, and families. Exceptional transit links and consistent occupancy make this submarket a workhorse performer.

2. Standish

Market Score: 92.06

Average Annual Revenue: $29,839

Standish, a residential pocket in South Minneapolis, offers quick light-rail access to downtown, the airport, and the University of Minnesota. Affordable entry prices and limited STR saturation help boost its impressive score.

1. Grand Marais

Market Score: 94.77

Average Annual Revenue: $71,825

Named “America’s Coolest Small Town” by national travel magazines, Grand Marais anchors the North Shore’s arts scene and serves as a jumping-off point to the Boundary Waters. High ADRs, low inventory, and strong summer-to-fall demand put it firmly atop Minnesota’s STR rankings.

Should You Invest in Minnesota?

Minnesota presents a well-rounded STR landscape with options to match virtually any investment thesis. Lake-rich vacation spots such as Grand Marais and Two Harbors command premium nightly rates in peak season, while urban and suburban pockets around Minneapolis–Saint Paul provide year-round occupancy driven by business, healthcare, and event travel. Even remote wilderness gateways like the Boundary Waters can deliver strong returns when priced and managed effectively.

Before jumping in, investors should familiarize themselves with local regulations—particularly within the Twin Cities—and prepare for pronounced seasonality in northern and lake markets. That said, favorable property prices, solid demand drivers, and a growing tourism profile make Minnesota an increasingly attractive destination for Airbnb hosts.