Wabasha, Minnesota Short Term Rental Regulations Guide for Airbnb hosts

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

Yes, short-term rentals are allowed in Wabasha, Minnesota, but with specific regulations and requirements. The City of Wabasha has established a registration system for short-term rentals, requiring all property owners who rent dwelling units for less than 30 consecutive days to register with the city. However, investors should note that as of August 2025, the city was considering a 12-month moratorium on new STRs while studying their impact on residential neighborhoods.

Key Points for STR Investors:

Existing STRs can continue operation with proper registration
A $200 one-time registration fee is required per dwelling unit
Lodging tax of 3% must be collected and remitted
State sales tax of 6.875% applies
The city may have implemented restrictions on new STRs during the moratorium period

What do Airbnb hosts actually earn in Wabasha?

Wabasha hosts earn a median $26,674/year with $228 ADR and 45% occupancy.

Top performers pull in $41,248+ per year.

See the full Wabasha market breakdown

How to Start a Short-Term Rental Business in Wabasha

Step 1: Verify Current Regulations

Contact City Hall at (651) 565-4568 to confirm:

Whether the moratorium on new STRs is still in effect
Current zoning requirements for your intended property location
Any recent updates to registration or licensing requirements

Step 2: Property Assessment

Confirm your property is in an appropriate zoning district for STRs
Ensure the dwelling unit meets safety and habitability standards
Consider seasonal demand patterns (peak season: late spring through summer)

Step 3: Registration Process

Complete the Short-Term Rental Registration Form
Pay the $200 registration fee
Submit required documentation (see next section)
Maintain registration compliance for ongoing operations

Step 4: Tax Setup

Register for state sales tax collection (6.875%)
Set up city lodging tax collection and remittance (3%)
Understand county tax implications (1.25% vs. 1% for residential homestead)

Required Documents, Permits, Licenses, and Guidelines

City of Wabasha Requirements

Registration Documents:

Completed Short-Term Rental Registration Form
Property ownership verification
Contact information for property owner and local responsible party
Property address and description
$200 registration fee per dwelling unit

Ongoing Compliance:

Monthly or quarterly lodging tax remittance (3% of lodging charges)
Property must remain registered with current owner
Registration is non-transferable between property owners

Minnesota State Requirements

State sales tax registration and remittance (6.875%)
Compliance with Minnesota Statutes 469.190 regarding lodging tax administration

County Requirements

Wabasha County property tax considerations (1.25% rate for STR properties vs. 1% for residential homestead)

Specific Regulations for Short-Term Rentals

City of Wabasha Regulations

Definition: A Short-Term Rental is defined as a dwelling unit rented for less than 30 consecutive days for tourist or transient use.

Registration Requirements:

Mandatory for all STR properties
One-time fee of $200 per dwelling unit
Non-transferable registration (new owners must re-register)
Registration must be completed before operation begins

Lodging Tax:

3% of lodging charges must be collected
Remitted to City of Wabasha
Monthly or quarterly payment options available
95% goes to Wabasha/Kellogg Convention and Visitors Bureau
5% retained by city for administration

Zoning Considerations:

Zoning laws may restrict STRs in certain residential areas
Investors should verify zoning compliance before purchase

Wabasha County Regulations

STR properties are taxed at 1.25% rate
Residential homestead properties are taxed at 1% rate
This higher tax rate should be factored into investment calculations

State of Minnesota Regulations

State sales tax of 6.875% applies to short-term rentals
Hosts are responsible for collecting and remitting this tax
Failure to comply can result in fines and penalties

Potential Moratorium

As of August 2025, the city was considering a 12-month moratorium on new STRs. Investors should verify the current status as this could affect new property acquisitions.

Contact Information

City of Wabasha - Primary Contact

City Hall Administration

Phone: (651) 565-4568
Fax: (651) 565-4569
Business Hours: Monday-Thursday 9 AM to 4 PM, Friday 9 AM to 11 AM
Physical Address: 900 Hiawatha Drive East, Wabasha, MN 55981
Mailing Address: PO Box 268, Wabasha, MN 55981

For Public Comments on Proposed Moratorium:

Email: clerk@wabasha.org

Planning & Zoning Department

Phone: (651) 565-4568
Purpose: Zoning compliance questions and property use verification

Wabasha County

Website: www.co.wabasha.mn.us/
Purpose: Property tax information and county-level regulations

Source Pages

Short-Term Rental Registration Page: www.wabasha.org/shorttermrentalregistration/
Moratorium Information: www.wabasha.org/moratorium/
Registration Form: www.wabasha.org/wp-content/uploads/Fillable-Form-Short-Term-Rental-5.pdf
Wabasha City Code Chapter 32 (Lodging Tax): codelibrary.amlegal.com/codes/wabashamn/latest/wabasha_mn/0-0-0-19170
Minnesota Statutes 469.190: www.revisor.mn.gov/statutes/cite/469.190
Interim Moratorium Draft Ordinance: www.wabasha.org/wp-content/uploads/Interim-Ordinance-Short-Term-Rental-Housing-071125.docx

Investment Considerations and Recommendations

Market Dynamics

Peak season runs late spring through summer
Fall offers moderate demand due to foliage and festivals
Winter months present challenges due to harsh Minnesota climate
Consider off-season strategies like long-term rentals or winter sports packages

Due Diligence Checklist

[ ] Verify current moratorium status
[ ] Confirm zoning compliance for specific property
[ ] Factor 1.25% county tax rate into financial projections
[ ] Assess seasonal demand patterns for your specific property type
[ ] Review insurance requirements for STR operations
[ ] Understand competition from existing registered STRs

Financial Planning

Registration fee: $200 per unit (one-time)
Ongoing lodging tax: 3% of gross revenues
State sales tax: 6.875% of gross revenues
County property tax: 1.25% (higher than residential homestead rate)
Potential impact of moratorium on new property acquisitions

This guide provides the essential regulatory framework for STR investment in Wabasha, Minnesota. Given the evolving regulatory environment, investors should maintain regular contact with city authorities and stay informed about any changes to ordinances or tax requirements.

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Ask the AI Advisor about Wabasha

Wabasha, Minnesota, the county seat of Wabasha County, sits along the Mississippi River in the southeastern corner of the state. The city has a population of approximately 2,500 residents and carries the easy pace of a small river town with a historic downtown and a working riverfront. Wabasha is best known as the home of the National Eagle Center and as a gateway to the Upper Mississippi River National Wildlife and Fish Refuge. It lies roughly 35 miles southeast of Rochester, the nearest major city, and about 90 minutes southeast of the Twin Cities of Minneapolis and St. Paul.

The National Eagle Center is Wabasha's marquee attraction, located in the heart of downtown overlooking the river. The center houses non-releasable bald eagles and other raptors that visitors can observe up close, and it serves as a hub for eagle-watching excursions during the winter months when thousands of bald eagles congregate along the open stretches of the Mississippi. Year-round programs, viewing decks, and educational exhibits make it a consistent draw for birders, families, and school groups.

Just outside of town, the Upper Mississippi River National Wildlife and Fish Refuge stretches for hundreds of miles along the river corridor and ranks among the largest river refuges in the country. The sloughs, backwaters, and bottomland forests near Wabasha provide habitat for herons, pelicans, tundra swans, and many other species, while also supporting hiking, paddling, fishing, and wildlife photography. Seasonal interpretive programs run by the U.S. Fish and Wildlife Service give visitors a richer window into this working landscape, and the refuge's presence extends the area's nature-based appeal well beyond eagle season.

A short drive north brings travelers to Lake Pepin, a wide natural lake formed by a sediment delta on the Mississippi River between Minnesota and Wisconsin. Communities such as Lake City and Pepin line its shores, and the lake is a favorite for sailing, fishing, and lakeside dining in warmer months. The scenic byway that traces the river between Wabasha and Red Wing is a popular route for cyclists and road-trippers, with bluffs, overlooks, and small marinas along the way.

Wabasha's blend of small-town character, riverfront setting, and proximity to wildlife-driven tourism gives it a distinctive identity in southeastern Minnesota. For short-term rental owners, the city offers a chance to host visitors who come for eagle watching in winter, river and lake recreation in warmer seasons, and the quiet charm of a historic Mississippi town, all within a comfortable drive of Rochester and the Twin Cities.