Monticello, Minnesota Short Term Rental Regulations Guide for Airbnb hosts

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

Based on available evidence, short-term rentals appear to be permitted in Monticello, MN under the city's existing rental unit licensing framework, though the city is currently evaluating specific regulations for short-term rentals as part of their Planning Commission workplan for 2025.

The city has established a comprehensive rental housing ordinance that requires all rental properties to be licensed annually, with inspections every other year. While specific short-term rental regulations are under development, investors can operate under the current rental licensing requirements until more specific STR rules are implemented.

What do Airbnb hosts actually earn in Monticello?

Monticello hosts earn a median $27,815/year with $258 ADR and 47% occupancy.

Top performers pull in $38,600+ per year.

See the full Monticello market breakdown

How to Start a Short-Term Rental Business in Monticello

Step 1: Property Compliance Verification

Before establishing your STR, ensure your property meets all local rental housing standards:

Property must comply with the International Property Maintenance Code
Property must meet Minnesota State Building Code requirements
Property must pass required safety inspections

Step 2: Obtain Required Rental License

Monticello requires all rental properties to obtain an annual rental license:

Submit complete application to the Building Safety Department
Application must be signed prior to submission
License will be issued upon receipt of completed application, payment of required fee, and passing of required inspections
Note: 2026 Residential Rental License Applications are now past due and fees are doubled - plan accordingly for 2027

Step 3: Schedule Required Inspections

Inspections are required every other year for licensed rental properties
Schedule inspections by calling Building Safety Department at (763) 295-3060
Inspections cannot be scheduled until application and fee have been received
Appointments require 24-hour notice

Step 4: Ongoing Compliance

Maintain current rental license status
Comply with all inspection schedules
Address any nuisance or code enforcement issues promptly

Required Documents, Permits, Licenses, and Guidelines

Primary Licensing Requirements

Residential Rental License Application (updated annually)
Property must pass required inspections
Compliance with City Rental Housing Ordinance
Compliance with International Property Maintenance Code

Key Regulatory Documents

City International Property Maintenance Code Ordinance
City Rental Housing Ordinance
Rental Property Checklist

Application Submission Requirements

Completed and signed application
Required fee payment
Scheduled inspection appointment
Property compliance verification

Specific Regulations for Short-Term Rentals

Current Status: Under Development

The Monticello Planning Commission is currently evaluating specific regulations for short-term rentals as part of their 2025 workplan activities. This suggests that comprehensive STR-specific regulations are being developed but may not yet be finalized.

Current Applicable Regulations

City-Level Requirements:

All rental properties must be licensed annually
Properties must pass inspections every other year
Properties must comply with International Property Maintenance Code
Properties must comply with Minnesota State Building Code

Zoning Considerations:

STR operations must comply with existing zoning district requirements
Commercial lodging is permitted in certain zoning districts (as evidenced by approved hotel developments)

Safety and Code Requirements:

Minnesota State Building Code compliance
International Property Maintenance Code compliance
Fire code compliance
Public nuisance ordinance compliance

Pending Regulations

The Planning Commission has identified "Evaluation of regulation on short term rentals" as an active topic for 2025, indicating that specific STR regulations are being developed and may include:

Potential permit requirements specific to STR operations
Safety and occupancy standards
Operating hour restrictions
Parking requirements
Noise limitations
Length-of-stay restrictions

State-Level Considerations

Minnesota State Requirements:

Minnesota State Building Code compliance
Minnesota Fire Code compliance
State tax obligations (sales tax and lodging tax may apply)
Consumer protection requirements

Contact Information for Local Authority

Primary Contact: Building Safety and Code Enforcement Department

Phone: (763) 295-3060
Email: buildingdepartment@MonticelloMN.gov
Address:
City Hall
505 Walnut St, Suite 1
Monticello, MN 55362

Hours: Contact department directly for current hours of operation

Additional City Contacts

Main City Line: (763) 295-2711
Fax: 763-295-4404
Email: info@ci.monticello.mn.us
Address:
City of Monticello
505 Walnut Street
Monticello, MN 55362

Planning and Development

Community Development Department:
Contact through main city line (763) 295-2711
Email: info@ci.monticello.mn.us

County Contacts (Wright County)

Administration:
3650 Braddock Avenue NE
Buffalo, MN 55313
Phone: (763) 682-3900
Alternative: (800) 362-3667

Source Pages and References

City of Monticello Official Resources

Rental Unit Licensing: www.monticellomn.gov/250/Rental-Unit-Licensing
Planning Commission Meeting Minutes: www.monticellomn.gov/AgendaCenter/ViewFile/Item/1086?fileID=16700

County-Level Resources

Wright County Ordinances: www.wrightcountymn.gov/817/Ordinances

Important Considerations for STR Investors

Monitor Regulatory Development

Given that the Planning Commission is actively evaluating STR regulations in 2025, investors should:

Monitor Planning Commission meeting agendas and minutes
Contact the Community Development Department for updates on STR regulation development
Be prepared for potential additional requirements once regulations are finalized

Compliance Strategy

Until specific STR regulations are implemented:

Operate under existing rental licensing framework
Ensure full compliance with current building and safety codes
Maintain excellent property standards to avoid nuisance violations
Consider proactive consultation with city officials regarding your STR plans

Market Position

Monticello is experiencing significant development activity, with several commercial lodging projects approved and under development, suggesting a growing hospitality market. The city's location along Interstate 94 and near regional attractions makes it a viable STR market, though investors should be prepared for evolving regulatory requirements.

Next step

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Ask the AI Advisor about Monticello

Monticello is a small city in Wright County, Minnesota, situated along the Mississippi River roughly forty miles northwest of Minneapolis. With a population of approximately fourteen thousand residents, it functions as a quiet suburban community that retains a small-town atmosphere despite its position within commuting distance of the Twin Cities. The town serves as a convenient gateway to central Minnesota's lake country and the wooded landscapes of the upper Mississippi watershed, and its blend of riverfront scenery, local parks, and easy highway access makes it a practical stop for travelers exploring the region.

The Mississippi River is the defining geographic feature of Monticello, and the community's riverfront parks offer direct access to the waterway. Montissippi River Park, located along the river in town, provides walking trails, picnic areas, and a boat launch that draw locals and visitors interested in fishing, kayaking, or simply watching the barges move along one of America's great rivers. The park's bluff-top vantage points make it a popular gathering spot during the warmer months.

Just southwest of town lies Bertram Chain of Lakes Regional Park, a Wright County park centered on a series of interconnected lakes surrounded by oak and hardwood forest. The park offers swimming beaches, paved and natural-surface trails, a disc golf course, and seasonal programming, making it a favorite destination for families looking to spend a day outdoors without venturing far from town. It sits only a short drive from central Monticello and pairs well with the city's own riverfront amenities.

A bit farther afield, Lake Maria State Park offers a more immersive wilderness experience in the rolling hardwood forests of southern Wright County. The park features miles of hiking trails, a quiet lake for non-motorized boating, and well-maintained campsites that attract campers year-round. For travelers willing to make the drive, the Twin Cities themselves — with their museums, professional sports venues, shopping districts, and restaurants — are easily reached via Interstate 94 in under an hour, giving Monticello visitors the best of both small-town quiet and big-city variety.

Monticello's appeal as a base for short-term rentals comes from this very balance. Guests can settle into a relaxed Mississippi River community with genuine small-town character, yet remain within easy reach of lakes, regional parks, and the full slate of Twin Cities attractions. Its central location in Minnesota's lake-and-river corridor, combined with straightforward highway access, makes it a versatile home base for families, outdoor enthusiasts, and anyone looking to explore the north-central part of the state.