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Alexandria, MN
Generally Investor Friendly
Local STR Agent
Local STR Agent

YES — Short-term rentals are explicitly allowed in Alexandria, Minnesota, provided operators comply with the city's and county's licensing and regulatory framework. The city has established Ordinance 793 that specifically addresses short-term vacation rental registration, and Douglas County (through Horizon Environmental Health) maintains comprehensive licensing and inspection requirements for private/vacation home rentals across jurisdictions including Alexandria.
Short-term rentals operate under a dual licensing system: property owners must obtain approval from both the local municipality and Horizon Environmental Health, which serves as the regional public health authority for Douglas County.
Alexandria hosts earn a median $40,102/year with $366 ADR and 47% occupancy.
Top performers pull in $57,162+ per year.
See the full Alexandria market breakdownCritical First Step: Confirm your property's zoning compliance before proceeding with any applications.
Alexandria City Registration:
Alexandria Township Properties:
Primary Licensing Authority: Horizon Environmental Health handles all private/vacation home rental licensing for Alexandria and Douglas County.
Application Process:
Timeline: Plan for 2-4 weeks for application processing and inspection scheduling.
City of Alexandria:
Alexandria Township:
Required Documentation:
Inspections Required:
Ongoing Compliance:
Permitted Uses by District:
Rural Conservation Residential (RCR) & Rural Residential (RR):
Urban Residential (UR) & Residential Shoreland (RS):
Commercial Districts:
Lot Size Requirements (Shoreland Districts):
Building Standards:
General Requirements Include:
Horizon Environmental Health Handles licensing and inspections for private/vacation home rentals
Sanitarians:
Alicia Lang, Registered Sanitarian
Joey Steidl, Sanitarian
Public Health Supervisor:
Main Office:
Public Service Hours:
City of Alexandria
Alexandria Housing and Redevelopment Authority (HRA)
Alexandria Township
City of Alexandria Ordinance 793
Douglas County Private/Vacation Home Rental Zoning Ordinance
Key Takeaways for Investors:
Estimated Timeline: 3-6 weeks from initial application to operational approval, depending on inspection scheduling and any required improvements.
Ongoing Costs: Annual license renewal fees, compliance inspections, and municipal registration renewals.
This regulatory framework is designed to ensure short-term rental operations maintain community standards while supporting the growing tourism industry in the Alexandria area.
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Alexandria is a small city in Douglas County in central Minnesota, with an approximate population of around 14,000 residents. Often billed as the "Heart of Lakes," it sits amid a region of central Minnesota famous for its abundant lake country, with Douglas County alone home to more than 300 named lakes. The town has a relaxed, outdoorsy character shaped by its summer tourism trade, drawing families, anglers, boaters, and winter sports enthusiasts. Alexandria is roughly 130 miles northwest of the Twin Cities of Minneapolis and St. Paul, a drive of about two and a half hours, making it a popular getaway destination for residents of the metro area.
A short walk from downtown, the Kensington Runestone Museum is one of the most distinctive attractions in the region. The museum houses the controversial Kensington Runestone, a slab discovered in 1898 that bears carvings purporting to record a Norse exploration of the area in 1362. Beyond the runestone itself, the museum offers exhibits on local pioneer and Native American history, giving visitors a sense of how central Minnesota developed in the 19th and 20th centuries.
Just north of town, Lake Carlos State Park offers a classic northwoods outdoor experience with more than 2,000 acres of prairie, hardwood forest, and the namesake lake. The park features a swimming beach, canoe and kayak rentals, a fishing pier, miles of hiking trails, and a campground, making it a year-round destination for swimming, paddling, hiking, and in winter, cross-country skiing. It sits only about 10 miles from central Alexandria, an easy drive for day visitors and short-term rental guests alike.
Central Lakes State Trail, part of Minnesota's state trail system, runs through the Alexandria area and is a draw for cyclists, walkers, and snowmobilers. The paved and natural-surface trail links several small communities in the region and offers a scenic way to experience the rolling farmland and lake country of central Minnesota. In town itself, the Big Ole statue, a 28-foot-tall Viking figure standing in a local park, nods to the runestone's Norse mythology and has long served as a quirky photo stop for travelers passing through.
Alexandria is a natural fit for short-term rentals because it combines the small-town charm and lake recreation of a traditional Minnesota vacation destination with easy access from a major metropolitan area. Guests come for boating, fishing, and lake life in summer, snowmobiling and ice fishing in winter, and a steady stream of regional events throughout the year. Its mix of well-known attractions, abundant outdoor recreation, and proximity to the Twin Cities gives short-term rental owners a reliable, year-round base of visitors eager to experience central Minnesota's lake country.
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