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.

How to Start a Short-Term Rental Business in Winona

Step-by-Step Process

1. 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)

2. 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)

3. Inspection Scheduling

   • Property must pass safety and health inspections
   • Ensure compliance with building codes and safety standards
   • Address any identified deficiencies before operating

4. License Acquisition

   • Obtain required business licensing
   • Register for tax collection obligations
   • Display permits as required by city ordinance

5. 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

1. Lodge Compliance Winona County Overview: www.lodgecompliance.com/local-jurisdiction/winona-county-mn
2. City of Winona Short-Term Rentals: www.cityofwinona.com/187/Short-Term-Rentals
3. Winona County Planning Services: www.co.winona.mn.us/275/Planning-Environmental-Services
4. Winona Post STR Debate Coverage: www.winonapost.com/news/winona/winona-debates-new-rules-for-airbnbs/article_4c758bc3-0a4d-4475-9919-620c3a6bd402.html
5. 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.