Red Wing, Minnesota Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Red Wing?

YES, short-term rentals are allowed in Red Wing, MN, but with specific regulations and permit requirements. As of November 4, 2023, Red Wing has implemented a comprehensive regulatory framework for short-term rentals through Ordinance No. 203 and No. 204. The city distinguishes between owner-occupied and non-owner-occupied units, with different permit requirements for each category. There are also caps on the number of non-owner-occupied units allowed citywide.

What do Airbnb hosts actually earn in Red Wing?

Red Wing hosts earn a median $24,285/year with $223 ADR and 46% occupancy.

Top performers pull in $39,949+ per year.

See the full Red Wing market breakdown

How to Start a Short-Term Rental Business in Red Wing

Step 1: Determine Your Permit Type

Owner-occupied units: Require a Certificate of Compliance
Non-owner-occupied units: Require an Interim Use Permit (limited to 50 total citywide)

Step 2: State-Level Licensing

All short-term rentals must obtain a Minnesota Department of Health (MDH) lodging license regardless of ownership status.

Step 3: Local Application Process

Submit applications to the Community Development Department at 419 Bush St. Applications can be:

Submitted by fax: 651.388.4782
Emailed to Planning Manager Steve Kohn (steve.kohn@redwingmn.gov) or Permits & License Manager Lisa Acker (lisa.acker@redwingmn.gov)
Dropped off in person Monday-Friday, 8 AM - 4:30 PM

Required Documents, Permits, Licenses, and Guidelines

City of Red Wing Requirements

For All Units:

Short-Term Rental Application Form
Hotel and Motel Sales Tax Return Form (required for all approved STRs)
MDH Lodging License (must be submitted prior to operation)

For Owner-Occupied Units:

Certificate of Compliance
Must include proof of owner occupancy
Administered administratively

For Non-Owner-Occupied Units:

Interim Use Permit (IUP)
Valid for 5 years from approval
Renewable per Section 90-045 (G)
Expires upon property sale, use cessation, or owner/operator change

State of Minnesota Requirements

Minnesota Department of Health (MDH):

New Construction Plan Review Application (complete pages 1, 2, and 4)
Lodging License
Initial state inspection (conducted at least 2 weeks before opening)
Tax ID Number from Minnesota Department of Revenue

Fee Structure:

MDH plan review fee: $375
Annual MDH license fee (prorated for remainder of year)
Licenses run January-December annually

Specific Regulations for Short-Term Rentals

City of Red Wing Zoning Districts

Owner-Occupied Units Allowed With Certificate of Compliance:

A – Agriculture zoning district
AR – Agriculture residential district
R-1 – Single family residential district
R-2 – Two family residential district
RM-1 – Multiple family residential district
RM-2 – Multiple family residential district

All Districts Require Interim Use Permit (Owner-Occupied or Non-Owner-Occupied):

B-2 - General Business district
B-2a - Mixed General Business & Central Business district
B-3 - Central Business district
Civic District
MC - Mixed use Industrial/Office Commercial district
MCT – Mixed Use Commercial Tourism district
Riverfront district

Capacity and Parking Requirements

Occupancy Limits:

Total occupancy = 1 + (number of bedrooms × 2)
Example: 2-bedroom unit = maximum 5 guests

Parking Requirements:

Residential districts: 1 off-street space per 2 guest rooms + 2 spaces per permanent residence
All districts: Guest parking must be on improved driveway or parking surface on-site
Must comply with Chapter 11 Zoning Code, Division 60

Distance and Concentration Limits

Non-Owner-Occupied Units:

Maximum 50 total units citywide (currently 25 licensed as of January 14, 2025)
Maximum 2 non-owner-occupied units within 400 feet of each other
Multi-family building limits per Section 55-119 (Q):
- 12 or fewer units: up to 33% can be STRs
- 13-24 units: up to 25% can be STRs
- More than 25 units: up to 10% can be STRs

Owner-Occupied Units:

No count toward maximum citywide limit
Not subject to distance requirements

Operational Restrictions

Events and Gatherings:

Events (more than 3 unregistered guests) not allowed unless approved in IUP
Outdoor activities must cease by 10 PM

Grandfathered Operations:

Existing conditional use permits remain valid
Exempt from new requirements until permit revocation under existing guidelines

Tax Obligations

Hotel/Motel Tax:

3% tax on lodging charges (Ordinance No. 153, effective November 1, 1993)
Must file monthly returns by 15th of following month
Late fees apply for late payments
Applies to all STR types (owner-occupied and non-owner-occupied)

State and County Regulations

Minnesota Department of Health (State Level)

All lodging units require MDH licensing regardless of duration
Units rented for less than one week are considered hotels/motels
Initial inspections required before operation
Ongoing compliance with building code, fire code, and public health regulations

Goodhue County

No additional county-specific regulations identified
MDH local contact: Andrea Kieffer, Health Sanitarian III (507.206.2721, andrea.kieffer@state.mn.us)

Contact Information

City of Red Wing - Community Development Department

Physical Address: 419 Bush St., Red Wing, MN 55066
Phone: 651.385.3623
Office Hours: M-Thursday 7 AM-4:30 PM, Friday 7-11 AM

Key Contacts:

Lisa Acker, Permits and License Manager
Phone: 651.385.5113
Email: lisa.acker@redwingmn.gov
Steve Kohn, Planning Manager
Phone: 651.385.3622
Email: steve.kohn@redwingmn.gov

Minnesota Department of Health

Local Contact: Andrea Kieffer, Health Sanitarian III
Phone: 507.206.2721
Email: andrea.kieffer@state.mn.us

Minnesota Department of Revenue

Required for business tax ID number
Website: revenue.state.mn.us

Links to Source Pages

Official City Documents

State Resources

Municipal Websites

Important Note for Investors: Given the 50-unit cap on non-owner-occupied STRs and the concentration limits, interested buyers should verify property eligibility before purchase. Contact the Community Development Department to confirm if prospective properties meet current regulatory requirements.

Next step

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Ask the AI Advisor about Red Wing

Red Wing sits in Goodhue County in southeastern Minnesota, perched along the Mississippi River where the river widens into Lake Pepin. The city has a population of roughly 16,000 residents and carries the easy pace of a small river town, with limestone storefronts in the historic downtown and dramatic bluffs rising behind the rooftops. It is perhaps best known as the home of the Red Wing Shoe Company and for a long tradition of Red Wing stoneware and pottery, and it serves as a gateway to the Driftless Area of the Upper Midwest. Red Wing is located about 55 miles southeast of the Minneapolis–Saint Paul metropolitan area, roughly an hour's drive via U.S. Highway 61.

One of the city's most recognizable landmarks is Barn Bluff, a roughly 340-foot bluff that rises directly above the river and the downtown area. Known to the Dakota as He Mni Can, the hill offers hiking trails that climb to sweeping overlooks of the Mississippi, Lake Pepin, and the surrounding bluffs. It sits just a short walk from the city center and is popular with both casual visitors and serious hikers looking for a quick but rewarding climb.

Just west of town, the Cannon Valley Trail follows a former Chicago Great Western railway corridor from Red Wing to Cannon Falls. The roughly 20-mile paved route is a favorite for cyclists and runners, winding through woodlands, prairies, and along the Cannon River. Trailheads are within a short drive of most parts of the city, and the trail connects to a growing network of regional paths.

A short drive east of Red Wing brings visitors to Frontenac State Park, where additional bluffs overlook Lake Pepin and where hiking and camping opportunities abound. The park's trails pass through restored prairie and oak savanna and offer some of the most photographed vistas along the Upper Mississippi River.

The Mississippi itself anchors much of the area's recreation, and the riverfront parks in town provide room to stroll, picnic, and watch the steady flow of barge traffic. Seasonal riverboat cruises depart from the harbor during warmer months, and the Great River Shakespeare Festival brings live theater to the community each summer.

Red Wing makes a compelling base for short-term rentals because it offers a small-town feel with an unusually rich mix of natural and cultural attractions within easy reach. Its proximity to the Twin Cities, combined with the river, the bluffs, and the regional trail network, means guests can fill a long weekend with bluff hikes, bike rides, historic downtown exploring, and seasonal performances without ever needing to leave the immediate area.