Montevideo, MN

  • Overview
  • Performance
  • Listings
  • Buy Box

Key Performance Metrics

Market snapshot

Performance indicators for the Montevideo short-term rental market based on reliable data.

Listings

6 / 23

Reliable / Active

Cap Rate

8%

Middle-Earners Gross Yield

Revenue

$16,738

Middle-Earners Revenue

Occupancy

51%

Middle-Earners Occupancy

Home Value

$216,625

Median Home Sale Price

Top Earners

$29,687

Top-Earners Revenue

Montevideo

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Montevideo.

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A

Very Investor friendly

Montevideo Regulations

Montevideo has exceptionally STR-friendly regulations with no city-specific permits, licenses, or caps required. STRs are clearly permitted citywide and investors only need to follow basic Minnesota state lodging requirements with a simple 3% local tax. The complete absence of local regulatory barriers makes this one of the most straightforward STR markets for investors.

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About Montevideo

Montevideo is a small, unhurried city in southwestern Minnesota, serving as the county seat of Chippewa County and home to roughly 5,200 residents. Set along the banks of the Minnesota River where the Chippewa River joins it, the community has the feel of a traditional Midwestern river town, with a walkable historic downtown, tree-lined streets, and an easygoing pace that reflects its agricultural roots. The city is best known as a gateway to the Lac qui Parle region, a popular destination for outdoor recreation, bird watching, and exploring the upper Minnesota River Valley. Montevideo sits about 130 miles west-southwest of Minneapolis, with most visitors reaching it via a roughly two-and-a-half-hour drive along U.S. Highway 212 or Interstate 12 to state highways.

Just north of the city, Lac qui Parle State Park is the area's marquee natural attraction. Roughly 15 to 20 minutes from downtown Montevideo, the park centers on a quiet reservoir of the Minnesota River and is known for excellent waterfowl viewing, especially during spring and fall migrations when tundra swans, pelicans, and bald eagles pass through. Visitors can hike a network of trails, fish for walleye and northern pike, and stay overnight in one of the park's well-regarded campgrounds or rental cabins, making it a natural anchor for a stay in the area.

The Minnesota River itself is woven into the identity of the region, and the Montevideo Riverfront is a focal point of local life. A short walk from the central business district leads to riverside trails, observation points, and overlooks where travelers can watch the slow current drift past. The riverfront is also part of the broader Lac qui Parle State Water Trail system, and paddlers often launch upstream or downstream of town for multi-day canoe and kayak trips through the surrounding bottomlands and prairies.

To the south and east of Montevideo, the rolling terrain climbs onto Buffalo Ridge, a glacial moraine that has become one of the most visible wind-energy landscapes in the country. Scattered across the ridgeline, towering wind turbines stretch toward the horizon, drawing energy enthusiasts, photographers, and curious travelers who want to see one of the earliest large-scale wind developments in the United States. Brief interpretive stops and roadside pull-offs make it easy to appreciate the scale of the installations.

Montevideo makes a compelling base for short-term rentals because it pairs small-town hospitality with surprisingly diverse surroundings. Travelers can spend the day on the river, in the state park, or simply wandering a historic downtown that still feels distinctly local, then return to comfortable lodging without the crowds of a larger destination. Its central position in western Minnesota, combined with access to both prairie and river ecosystems, gives the city a quiet, year-round appeal for guests seeking a slower pace and a genuine sense of place.

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