New Ulm, Minnesota Short Term Rental Regulations Guide for Airbnb hosts

Overview: STR Status in New Ulm, MN

Short-term rentals are allowed in New Ulm, Minnesota, though the regulatory landscape shows some contradictory information from different sources. One industry source indicates the city requires licensing for all short-term rental properties with an application process and annual fee, while another source states that New Ulm does not have specific laws governing Airbnb or short-term rentals at this time. This discrepancy suggests the regulatory environment may be evolving or that certain requirements are informal/administrative rather than codified in official ordinances.

What do Airbnb hosts actually earn in New Ulm?

New Ulm hosts earn a median $22,650/year with $150 ADR and 51% occupancy.

Top performers pull in $30,082+ per year.

See the full New Ulm market breakdown

Starting a Short-Term Rental Business in New Ulm

Market Characteristics

New Ulm presents a compelling STR market driven by the city's rich German heritage, vibrant cultural scene, and annual festivals like Oktoberfest and Bavarian Blast. The city experiences significant seasonal fluctuations:

Peak Season: Late spring through summer (June-August), with the highest occupancy during Oktoberfest
Moderate Seasons: Spring and fall offer steady bookings
Low Season: Winter months (December-February) see reduced tourism, though holiday events provide some opportunities

Investment Considerations

Properties highlighting German heritage, proximity to breweries, and local cultural attractions perform exceptionally well
Amenities that resonate with guests include cozy fireplaces, outdoor spaces, and spacious kitchens
Winter-proofing measures (quality insulation, heating systems) are crucial for year-round operations
The market is characterized by a mix of short-term visitors, families visiting local colleges, and professionals

Required Documents, Permits, and Licenses

City Requirements

Based on available information, there are conflicting reports about licensing requirements:

Licensing Requirement: One source indicates New Ulm requires all short-term rental properties to be licensed, involving an application process and annual fee
No Specific Ordinances: Another source states that as of the latest information, New Ulm has no specific laws governing short-term rentals

Important Note: Given this discrepancy, investors should verify the current licensing status directly with local authorities before proceeding.

State-Level Requirements

Minnesota State Sales Tax: All short-term rental hosts in Minnesota must collect and remit state sales tax on rental income, in addition to any applicable local taxes.

General Compliance Requirements

Regardless of specific licensing status, operators should ensure:

Compliance with general zoning regulations (verify allowed uses in your property's zone)
Adherence to building codes and safety standards
Proper insurance coverage
Contact information readily available for neighbors and emergency situations

Specific Regulations

City-Level Regulations

The available information presents conflicting details:

Zoning Compliance: Hosts must adhere to zoning laws that may restrict the ability to rent certain types of properties or in certain areas
Licensing: Required according to one source (application process and annual fee)
No Specific Ordinances: Alternative source indicates no distinct local ordinances for short-term rentals

County-Level Regulations

Blue Earth County (where New Ulm is located) was in the process of developing STR standards as of a 2020 survey. The county surveyed residents about potential regulations including:

Contact information requirements for neighbors
Parking restrictions
Capacity/occupancy limits
Safety inspections
Property line marking requirements
Septic compliance

Implementation Status: The final county regulations (if any) resulting from this process are not detailed in the provided materials.

State-Level Regulations

Sales Tax Collection: Minnesota law requires collection and remittance of state sales tax on short-term rentals
No Statewide Licensing: Minnesota does not appear to have a statewide licensing requirement for short-term rentals

Contact Information

New Ulm City Hall

Phone: (507) 359-8235
Email: Not specified in provided materials
Website: Not specified in provided materials

Blue Earth County

Phone: (507) 304-4251
Email: Not specified in provided materials
Website: www.blueearthcountymn.gov

Minnesota Department of Revenue

Phone: (651) 556-3000
Website: www.revenue.state.mn.us

Important: Contact the city directly to verify current licensing requirements and regulatory status, as the available information shows contradictions regarding whether formal licensing is required.

Source References

Recommendations for Investors

Verify Current Regulations: Contact New Ulm City Hall directly to confirm the current regulatory status, as sources provide conflicting information about licensing requirements.
Stay Informed: Monitor both city and county developments, as Blue Earth County was in the process of developing standards as of 2020.
Tax Compliance: Ensure proper registration with the Minnesota Department of Revenue for sales tax collection and remittance.
Professional Management: Consider working with local property management companies familiar with the market and regulations.
Insurance: Maintain comprehensive liability and property insurance appropriate for commercial short-term rental operations.

The regulatory environment for short-term rentals in New Ulm appears to be in transition, making direct communication with local authorities essential before investment decisions.

Next step

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Ask the AI Advisor about New Ulm

New Ulm is a small city in Brown County, in south-central Minnesota, with a population of roughly 13,000 to 14,000 residents. Settled by German immigrants in the mid-nineteenth century, the town has retained a strong Germanic character that sets it apart from most other communities in the Upper Midwest, and it is widely regarded as one of the most distinctively German cities in the United States. Visitors are drawn by its Old World charm, its brewing heritage, and its river-valley setting along the Minnesota River, while the broader region offers outdoor recreation across a network of state parks and prairie landscapes. New Ulm lies about 100 miles southwest of the Minneapolis–Saint Paul metropolitan area, roughly a two-hour drive to the northeast, and about 30 miles northwest of Mankato, the nearest larger city.

A centerpiece of any visit is the Hermann Heights Monument, a tall stone-and-bronze statue modeled on the Hermannsdenkmal in Germany, perched on a bluff overlooking the Minnesota River. The monument, completed in the late nineteenth century, commemorates German heritage and offers sweeping views of the river valley. It sits within walking distance of downtown and is one of the most recognizable landmarks in the region.

Just across the Minnesota River, Flandrau State Park provides a convenient escape for hiking, swimming, and picnicking, with a sand-bottom swimming pool and trails that wind through oak woodland and prairie. The park is only minutes from downtown New Ulm, making it an easy half-day outing for travelers interested in outdoor recreation without leaving the immediate area.

Downtown New Ulm is anchored by the August Schell Brewing Company, founded in 1860 and one of the oldest family-owned breweries in the United States. Tours of the historic grounds, the gardens, and the deer park are a popular draw, and the brewery's lagers and bocks are served throughout the city. Nearby, a downtown glockenspiel chimes several times a day with costumed figurines, and the historic Turner Hall continues to operate as a German cultural and social center.

A short distance north of the city center, the Wanda Gág House honors the children's book author and illustrator best known for "Millions of Cats." The modest childhood home is preserved as a small museum, offering a quieter, more literary counterpoint to the city's breweries and monuments. The annual Oktoberfest celebration, held in early October, transforms downtown into one of the largest German heritage festivals in the region, drawing visitors from across the Midwest.

New Ulm's combination of distinctive cultural identity, walkable historic core, and easy access to river-valley scenery makes it a natural base for short-term rentals. Guests can spend a weekend exploring breweries, monuments, and state-park trails while enjoying the slower pace of a small Minnesota city.