Winona, Minnesota Short Term Rental Regulations Guide for Airbnb hosts

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

Yes, short-term rentals are explicitly allowed in Winona, Minnesota. The city classifies these operations as "Tourist Homes" and permits them under a structured regulatory framework. Since 2017, Winona has operated under an interim use permit (IUP) system, with the city having issued 41 permits to date. Currently, 22 active IUPs exist for non-owner-occupied, single-family properties in residential districts, along with additional permits for owner-occupied and multi-unit buildings.

The market has grown steadily since 2017, but recent discussions indicate the city is considering additional restrictions to balance property rights with housing stock preservation concerns. Notably, short-term rental units currently represent approximately 0.6% of Winona's total housing stock.

What do Airbnb hosts actually earn in Winona?

Winona hosts earn a median $27,116/year with $138 ADR and 58% occupancy.

Top performers pull in $33,761+ per year.

See the full Winona market breakdown

How to Start a Short-Term Rental Business in Winona

Step-by-Step Process

Zoning Verification
- Confirm your property is in an appropriate zoning district
- Verify compliance with the city's 30% rule (rentals cannot exceed 30% of properties on any residential block)
- Check if your proposed location meets buffer requirements (if proposed regulations are adopted)
Permit Application
- Submit an Interim Use Permit (IUP) application to the Planning and Environmental Services Department
- Include detailed property information and operational plans
- Pay applicable fees (specific amounts not detailed in provided materials)
Inspection Scheduling
- Property must pass safety and health inspections
- Ensure compliance with building codes and safety standards
- Address any identified deficiencies before operating
License Acquisition
- Obtain required business licensing
- Register for tax collection obligations
- Display permits as required by city ordinance
Ongoing Compliance
- Maintain guest registration records
- Collect and remit applicable taxes
- Respond to inspections and compliance monitoring
- Renew permits as required

Business Considerations

The Winona market is primarily tourism-driven, with peak activity during seasonal events and summer months. Properties catering to leisure travelers and event visitors perform best. Consider the city's existing housing stock dynamics—422 rental unit permits have been issued since 2017, significantly exceeding projected needs, while only 55 single-family home permits were issued despite a projected need of 261 units by 2031.

Required Documents, Permits, Licenses, and Guidelines

Essential Documentation

Interim Use Permit (IUP) - Primary operational authorization
Business License - Standard municipal business registration
Property Insurance - Liability coverage documentation
Guest Registration Records - Maintain detailed guest logs
Safety Inspection Reports - Fire, health, and building compliance documentation

Application Requirements

Detailed property information and site plans
Operational management plans
Proof of property ownership or lease authorization
Safety and maintenance protocols
Guest communication and complaint resolution procedures

Compliance Guidelines

Adherence to zoning restrictions
Maintenance of community standards
Noise and disturbance mitigation
Waste management protocols
Emergency contact information posting

Specific Regulations for Short-Term Rentals

City-Level Regulations (Current)

Owner vs. Non-Owner Occupied Classifications

Owner-occupied properties: Host resides on premises during guest stays
Non-owner-occupied properties: Owner absent during guest stays
Separate regulatory pathways for each classification

Existing Limitations

30% rule: Rentals cannot exceed 30% of properties on any residential block
Zoning compliance required
Inspection and licensing mandatory

Current Permit Status

41 total IUPs issued since 2017
7 IUPs no longer active
6 owner-occupied permits
6 multi-unit building permits
22 active non-owner-occupied, single-family permits

Proposed Regulatory Changes

Under Consideration (Planning Commission Level)

500-foot buffer zones between short-term rentals in residential districts
Total cap on rental numbers (proposals range from 1-3% of total dwelling units)
Enhanced neighborhood notification requirements
Additional operational restrictions

Policy Rationale Planning Commission discussions reveal concerns about neighborhood cohesion and housing stock preservation, particularly for non-owner-occupied single-family properties in lower-density residential districts. The proposed measures aim to prevent clustering and preserve community character.

County-Level Regulations

Winona County provides oversight through the Planning and Environmental Services Department, which coordinates with city-level regulations and ensures compliance with broader land use policies.

State-Level Regulations (Minnesota)

State regulations apply in addition to local requirements, particularly regarding taxation, business licensing, and safety standards. Hosts must comply with Minnesota's lodging tax requirements and any applicable state business regulations.

Contact Information

Primary Regulatory Authority

City of Winona - Planning and Environmental Services Department

Website: City of Winona STR Information
Website: Winona County Planning Services

Planning Commission

Meeting Schedule: Regular meetings with public comment periods
Current Focus: Reviewing proposed STR restrictions and buffer requirements
Public Participation: Citizens can provide input during scheduled public hearings

Key Planning Staff

Senior Planner Carlos Espinosa (referenced in public discussions)
Planning Commission members actively involved in policy development

Market Analysis and Investment Implications

Current Market Dynamics

Limited scale: Only 22 active non-owner-occupied STRs in residential districts
Concentrated geography: Most properties located north of Highway 61
Low market penetration: 0.6% of total housing stock
Steady growth: Consistent permit issuance since 2017

Regulatory Trends

Movement toward greater restrictions
Community-driven policy changes
Balancing act between property rights and neighborhood preservation
Focus on non-owner-occupied single-family properties

Investment Risk Factors

Proposed buffer zones could limit available locations
Potential cap on total rental numbers
Existing 30% rule restricts density
Active community engagement in regulatory discussions

Links to Source Pages

Lodge Compliance Winona County Overview: www.lodgecompliance.com/local-jurisdiction/winona-county-mn
City of Winona Short-Term Rentals: www.cityofwinona.com/187/Short-Term-Rentals
Winona County Planning Services: www.co.winona.mn.us/275/Planning-Environmental-Services
Winona Post STR Debate Coverage: www.winonapost.com/news/winona/winona-debates-new-rules-for-airbnbs/article_4c758bc3-0a4d-4475-9919-620c3a6bd402.html
News8000 Planning Commission Coverage: www.news8000.com/news/local-news/winona-planning-commission-to-review-restrictions-on-short-term-rentals-next-month/article_6e6c2f4f-e6e4-4b36-8ffe-b8516fbc6fa7.html

Disclaimer: This guide reflects information available as of the provided sources. Regulations may change through ongoing Planning Commission discussions and City Council actions. Investors should verify current requirements with official city sources before making investment decisions.

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Ask the AI Advisor about Winona

Winona is a small city in southeastern Minnesota and serves as the seat of Winona County. With a population of roughly 25,000, it has the feel of a classic Midwestern river town, set among the limestone bluffs of the upper Mississippi River valley. The community has a strong college-town identity, anchored by Winona State University and Saint Mary's University of Minnesota, and it is widely known as a gateway to the Driftless Area, a region of the upper Midwest that escaped glaciation and is distinguished by its steep ridges, deep river valleys, and small farming communities. Winona sits about 120 miles southeast of the Twin Cities, Minneapolis and Saint Paul, a drive of roughly two and a half hours along the Mississippi.

One of the most popular local destinations is Garvin Heights Park, a city park perched on the bluffs overlooking the Mississippi. From the lookout, visitors can see for miles up and down the river, with the water bending around wooded islands and the bluffs rising on the Wisconsin side just across the channel. The park is only minutes from downtown Winona and is a favorite spot at sunset.

A short drive south of the city brings visitors to Great River Bluffs State Park, which stretches along the Minnesota side of the river bluffs. The park offers hiking trails through oak savanna and prairie, overlooks with sweeping river vistas, and seasonal camping, making it a strong draw for travelers who want to combine a small-city stay with easy access to hiking and scenic driving.

In the heart of the city, the Minnesota Marine Art Museum houses an unexpectedly large collection of American and international art with a focus on works inspired by water and the natural world, including paintings by major American artists. The downtown itself is a compact, walkable stretch of locally owned shops, restaurants, and historic buildings along the riverfront, with the levee and the riverwalk providing a pleasant place to stroll.

Just across the Mississippi, Perrot State Park in Trempealeau, Wisconsin, is about a 30-minute drive from Winona and offers additional bluff-top hiking, camping, and access to the Trempealeau National Wildlife Refuge, a major stopover for migratory birds along the Mississippi Flyway.

Winona makes a compelling base for short-term rentals because it offers an unusual combination: a walkable, historic small city with a lively college-town atmosphere, immediate access to the Mississippi River, and a surrounding landscape of bluffs, state parks, and small river towns that reward day trips in any direction. Visitors who come for the scenery, the outdoor recreation, or the regional road trip through the Driftless Area tend to find that Winona provides both the amenities and the setting to anchor a memorable stay.