Park Rapids, Minnesota Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Park Rapids, MN?

Yes, short-term rentals are explicitly allowed in Park Rapids, Minnesota, but they are heavily regulated. Both the City of Park Rapids and Hubbard County have established comprehensive regulatory frameworks for short-term rentals. STRs are permitted uses under Hubbard County's Shoreland Management Ordinance and require both city and county licensing to operate legally. The city requires an annual permit ($100 fee), while the county requires an annual license for properties within shoreland areas.

What do Airbnb hosts actually earn in Park Rapids?

Park Rapids hosts earn a median $23,489/year with $256 ADR and 48% occupancy.

Top performers pull in $38,706+ per year.

See the full Park Rapids market breakdown

How to Start a Short-Term Rental Business in Park Rapids

Step 1: Determine Your Regulatory Requirements

Your property's regulatory requirements depend on its location:

Within City Limits: You need both a City of Park Rapids STR permit and potentially a County STR license if your property is in a shoreland area
Outside City Limits but in Hubbard County Shoreland: You need only a County STR license
Outside Shoreland Areas: County STR license may not be required, but verify with local authorities

Step 2: Obtain Required Permits and Licenses

City of Park Rapids STR Permit (if within city limits)
Hubbard County STR License (if within shoreland areas)
Rental Registration License (if not already registered as a rental property)
Rental Property Inspection (if not already completed)

Step 3: Complete the Application Process

Submit applications to the appropriate authorities
Pay applicable fees
Provide all required documentation
Pass any required inspections
Display permits conspicuously on-site during rentals

Step 4: Ongoing Compliance

Submit monthly lodging tax reports (even if no rentals occurred)
Maintain current certifications and licenses
Post required information in your STR
Enforce quiet hours and occupancy limits
Respond to complaints and county inquiries within 120 hours

Required Documents, Permits, Licenses, and Guidelines

City of Park Rapids Requirements

Short-Term Rental Permit Application (Annual)

Application fee: $100 (or $50 if applied after October 1)
Valid rental registration license with current inspection
Written consent from property owner (if different from applicant)
Certification of compliance with city codes
Proof of linear street density compliance

Additional City Requirements:

Display permit conspicuously on-site during all rentals
Submit monthly lodging tax remittance forms
Provide monthly rental activity reports (standard form or own format)
Maintain property in full conformity with rental requirements
No outstanding corrections from previous inspections

Hubbard County Requirements

Annual STR License (Required for shoreland properties)

Current SSTS (septic) certificate of compliance
Property tax payment verification (no delinquencies)
Passing water test for nitrate and coliform (within one year)
Minnesota Department of Health license or certification that license not required
Color photos of the STR structure
Aerial image showing STR on property
Contact information for responsible party
Good Neighbor Brochure acknowledgment

Documentation to Maintain and Provide Upon Request:

Name, current phone number, and email of responsible contact person
Map showing property boundaries
Emergency contact information
Maximum overnight guest occupancy figures
Solid waste compliance documentation

State-Level Requirements

Minnesota Sales Tax

Collect 6.875% state sales tax on rental amounts
Any applicable local sales taxes
Monthly remittance required

Specific Regulations by Jurisdiction

City of Park Rapids STR Regulations

Permitting Process:

Administratively approved permit
City Planner reviews applications for completeness, zoning compliance, and standards
Conditions may be imposed to protect health, safety, and welfare
Planning Commission hearing required for revocations

Operational Requirements:

No STR may operate without a valid annual permit
Permit must be displayed conspicuously on-site
Property must meet linear street density requirements
Compliance with Chapter 152 (STR Regulations) and Chapter 151 (Zoning Regulations)

Revocation and Enforcement:

City Council may revoke permits following Planning Commission hearing
Civil enforcement costs, disbursements, and attorney fees may be assessed
Violations of permit conditions or other laws/regulations may result in penalties

Hubbard County Shoreland STR Regulations

Licensing Requirements:

Separate license required for each STR unit on a lot
License cannot be transferred to different parties
Annual renewal required
License required before May 1, 2022, and ongoing

Occupancy Limits:

Overnight guests limited to one person per 75 gallons daily sewer system design flow
Holding tank properties: one person per 200 gallons tank capacity
Occupancy limits must be included in all web-based advertisements

Property Standards:

Current SSTS certificate of compliance required
Septic systems must be designed with 75 gallons flow per person
Passing water test for nitrate and coliform (within one year)
Sufficient vehicle parking (onsite or legal public parking)

Operational Requirements:

Quiet hours: 10:00 PM to 7:00 AM (enforcement by property owner)
Property boundary map provided to renters
Required information posted visibly in STR unit:
- Owner/operator contact information
- Local contact person information
- Emergency contact information
- Maximum overnight guest occupancy
- Hubbard County Good Neighbor Brochure
Solid waste collection and disposal compliance
Guest formal acknowledgment of compliance requirements

Structural Limitations:

No more than one STR structure on lots not meeting duplex lot size criteria
No more than two STR structures on lots meeting or exceeding duplex lot size criteria
STR regulations only apply when property is actively used as STR

State-Level Regulations (Minnesota)

Taxation:

6.875% state sales tax on rental amounts
Local sales taxes may apply
Monthly remittance requirements

Health and Safety:

Minnesota Department of Health licensing requirements for certain accommodations
Written certification required if MDH license not needed

Contact Information for Local Authorities

City of Park Rapids

City Planner

Address: 212 Second Street West, Park Rapids, MN 56470
Phone: (218) 732-3163
Fax: (218) 237-2754
Website: www.ci.park-rapids.mn.us
Email: Contact through city website or phone

Permit Applications:

Submit to City Planner with application fee
Applications may be submitted with new rental registration license and inspection request

Hubbard County Environmental Services Office (ESO)

Bryan Haugen, Environmental Services

Address: 301 Court Ave., Park Rapids, MN 56470
Phone: (218) 732-3890
Email: bryan.haugen@co.hubbard.mn.us

County Administrator: Jeff Cadwell (for policy questions)

For STR Licensing: Hubbard County Environmental Services Office

Links to Source Pages

City of Park Rapids Official Documents

Hubbard County Official Documents

News and Analysis

Park Rapids Enterprise - Short-term rentals face new regulations in Hubbard County

Critical Compliance Notes for STR Investors

Dual Jurisdiction: Properties within Park Rapids city limits require compliance with both city and county regulations
Shoreland Focus: Hubbard County regulations are specifically designed for shoreland properties and focus heavily on septic capacity and environmental protection
Proactive Licensing: All STRs in shoreland areas required licensing by May 1, 2022, and annually thereafter
Tax Compliance: Monthly lodging tax reporting is mandatory even for properties with no rental activity
Documentation Burden: Significant documentation requirements including water tests, septic certifications, and contact information maintenance
Enforcement Mechanisms: Both jurisdictions have revocation powers and may assess enforcement costs
Neighbor Relations: Good Neighbor Brochures and posted information requirements reflect community focus on maintaining neighborhood character

This regulatory framework represents a mature approach to STR regulation that balances economic opportunities with community protection and environmental stewardship. Investors should budget additional time and costs for compliance compared to less regulated markets.

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Ask the AI Advisor about Park Rapids

Park Rapids is a small city in north-central Minnesota and serves as the county seat of Hubbard County. With a population of roughly 4,000 residents, it has the feel of a classic northern Minnesota town: tree-lined streets, a walkable historic Main Avenue, and an economy and social calendar shaped by the surrounding forests and lakes. It is best known as a gateway to the Itasca State Park region and the broader lake country of the Upper Midwest, drawing outdoor enthusiasts year-round. Park Rapids sits approximately 220 miles northwest of the Minneapolis–Saint Paul metro area, a drive of roughly three and a half hours, and is also within about an hour of larger regional centers like Bemidji and Detroit Lakes.

Just to the north of town, Itasca State Park is the area's marquee draw, located about 20 miles from Park Rapids and reachable in roughly 25 minutes by car. The park is home to the headwaters of the Mississippi River, where visitors can wade across the famous stepping stones at the river's source, and it encompasses more than 30,000 acres of old-growth pine forest, clear lakes, and miles of hiking and biking trails. As Minnesota's oldest state park, it anchors much of the regional tourism economy and gives the area a strong year-round identity that extends well beyond summer visits.

The Paul Bunyan State Trail passes directly through Park Rapids, offering a paved, multi-use path that stretches more than 100 miles across the region toward Brainerd and beyond. The trail draws cyclists, walkers, runners, and snowmobilers in winter, and its in-town segment has become a defining feature for visitors who want a car-free way to explore the community and its lakeshore. Combined with the nearby Heartland State Trail, the network gives Park Rapids an outsized reputation among trail-based travelers in the upper Midwest.

Downtown Park Rapids itself, with its preserved early-twentieth-century commercial buildings along Main Avenue, anchors the local experience with small shops, cafés, and a year-round calendar of community events. The town also sits amid a dense constellation of more than 300 surrounding lakes, and the Fish Hook River flows through the area, giving visitors ample opportunities for fishing, paddling, and quiet water access just minutes from the city center.

For short-term rental investors, Park Rapids offers an appealing combination of a recognizable regional destination in Itasca State Park, an established trail tourism scene, and a four-season outdoor economy that supports stays in both peak summer months and quieter winter shoulder seasons. Its distance from the Twin Cities, paired with steady demand from cabin-goers, anglers, cyclists, and leaf-peepers, gives the market a resilient rhythm that well-located rentals can capture throughout the year.