Performance indicators for the Faribault short-term rental market based on reliable data.
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The highest-performing listings in Faribault.
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Generally Investor friendly
STRs are explicitly allowed citywide and treated like other residential rentals, with clear, relatively modest licensing fees (e.g., Type 2: $350 for one unit, $25 per additional unit), a standard inspection process, and a 3% lodging tax—overall a predictable compliance path. The main drag is Minnesota’s 10‑unit ownership cap, which limits larger‑scale investment, and typical life‑safety and reporting requirements add modest operational friction.
Local STR Agent
STR specialist · Faribault, MN
Faribault sits in Rice County in southern Minnesota, a small city of roughly 24,000 residents located about 50 miles south of the Minneapolis–Saint Paul metropolitan area. Set along the Cannon River, the city has the character of a historic river town, with a walkable downtown, a celebrated industrial heritage, and a strong sense of regional identity. It is best known for its long-running woolen mill, an architecturally significant 19th-century cathedral, and as a gateway to the surrounding lakes, woods, and small college towns of the southern Minnesota countryside.
One of the city's most recognizable institutions is the Faribault Woolen Mill, which has been producing blankets, throws, and scarves in the heart of downtown since 1865. The mill survived a major fire in 2014 and reopened with a flagship retail store, factory tours, and a heritage room, making it a popular stop for visitors interested in Minnesota-made goods and industrial history.
A few blocks from the river, the Cathedral of Our Merciful Saviour is a stone Episcopal cathedral completed in the 1860s and designed in part by Richard Upjohn, one of the most influential American church architects of the 19th century. The cathedral remains in active use and is open for tours by appointment, drawing visitors interested in the city's deep religious and architectural history.
About 12 miles west of town lies Nerstrand Big Woods State Park, a roughly 3,000-acre park protecting a remnant of the Big Woods hardwood forest that once covered much of south-central Minnesota. The park is known for its hiking trails, picnic areas, and the cascading Hidden Falls, and it draws visitors year-round for cross-country skiing, snowshoeing, and spring wildflower walks.
Closer to town, the River Bend Nature Center offers paved and natural-surface trails through prairie, wetland, and hardwood habitat, with an outdoor classroom, a natural playscape, and rotating exhibits on local ecology. The Cannon River itself, which winds through the heart of Faribault, provides paddling and tubing in summer and trout fishing in the spring-fed stretches upstream. Just north of the city, Northfield is home to the campuses of Carleton and St. Olaf colleges, while Owatonna, with the village of Catawba-era Heritage Hjemkomst-style architecture and nearby state parks, lies a short drive to the south.
Faribault's appeal as a base for short-term rentals comes from its balance of small-town character, historic landmarks, and easy access to both the Twin Cities and the southern Minnesota lake country. Visitors can spend a day exploring downtown and the woolen mill, drive west to Nerstrand for hiking, or take a short trip north to Northfield or south to Owatonna, making the city a comfortable and distinctive home base for travelers exploring the region.