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The highest-performing listings in Baudette.
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Generally Investor friendly
Short‑term rentals are explicitly allowed with a straightforward annual license ($150) and standard safety/operational rules, but require a local agent if the owner is 100+ miles away and may need a county conditional use permit ($200 fee + recording + public hearing) depending on location and zoning—moderate burdens that are manageable rather than prohibitive.
Local STR Agent
STR specialist · Baudette, MN
Baudette is a small city in far northern Minnesota that serves as the county seat of Lake of the Woods County, perched on the south bank of the Rainy River where it flows out of Lake of the Woods toward Hudson Bay. The community has a population of roughly 1,100 residents, and its downtown hugs the river, giving the town a distinctly border-town feel with shops, marinas, and outfitters catering to travelers crossing to and from Ontario. Anglers, snowmobilers, hunters, and summer road-trippers pass through in steady numbers, and the town has a friendly, outdoorsy, working-class character rather than a polished resort vibe. Baudette sits about 320 miles north of the Twin Cities (Minneapolis–Saint Paul) and roughly 280 miles northwest of Duluth, with the nearest sizable Canadian city, Winnipeg, located about three and a half hours to the northwest.
The marquee draw in the area is Lake of the Woods, the enormous lake that gives the surrounding county its name and laps at Baudette's northern edge. The lake spans more than a million acres across Minnesota, Manitoba, and Ontario and is widely considered one of North America's premier walleye fisheries, attracting thousands of fishing parties every open-water season and ice anglers in winter. Resorts, guides, and charter operations are clustered right in town, and visitors can also book passage on the M.V. Kenora, a passenger vessel that cruises into the lake's open waters during the summer months.
A short drive east of Baudette along the lake's south shore leads to Zippel Bay State Park, a Minnesota state park known for its white sand beach, clear shallows, and campground tucked among pines. It is a popular family stop in summer for swimming, paddling, and picnicking, and in winter the same bay draws snowmobilers riding the regional trail network. The park lies within about twenty minutes of town.
Closer in, the Lake of the Woods County Museum and nearby Pioneer Village preserve the area's logging, fur-trade, and homesteading past, with relocated historic buildings, vintage equipment, and exhibits on local Indigenous history and the early European settlers who arrived in the late 1800s. The museum is an easy walk from most of Baudette's lodging and a good rainy-day stop.
Baudette makes a compelling base for a short-term rental because it sits at the intersection of several distinct traveler flows: summer walleye anglers, fall hunters, winter snowmobilers, and the steady stream of cross-border tourists moving between Minnesota and Manitoba. Its small size means limited hotel supply, and visitors planning a fishing trip, a family lake vacation, or a long weekend riding the surrounding state and provincial trail systems often prefer a house with a kitchen, dock access, or room for a group, leaving reliable year-round demand for well-located rental properties.