Saint Paul, MN Accessory Structures: ADU Rental Restrictions (2026)

Saint Paul regulates residential rentals through Legislative Code Chapter 40 (Certificate of Occupancy) — every unit rented to a non-owner must hold a current Certificate, and properties with three or more rental units must annually register. ADUs are licensed as separate units. The Saint Paul Rent Stabilization Ordinance (Legislative Code Ch. 193A) was adopted by voter initiative in November 2021 — among the strictest municipal rent control ordinances in the U.S. The original ordinance capped annual rent increases at 3% with no new-construction exemption; the City Council adopted amendments in September 2022 (effective January 1, 2023) creating: (1) a 20-year exemption for new construction completed after the ordinance's effective date — meaning new ADUs are exempt from the 3% cap for 20 years; (2) banking provisions allowing landlords to apply forgone increases in future years; (3) self-certification of reasonable return between 3% and 8% with limited additional administrative process. Long-term rentals (30+ days) fall under Chapter 40 + Chapter 193A. Short-term rentals (under 30 days) require a Chapter 331A lodging license, platform registration (Airbnb/VRBO must verify license numbers), and collection of Minnesota Sales Tax (6.875%) + Saint Paul Lodging Tax (3%) + Ramsey County tax. Minnesota Stat. §504B generally preempts further municipal rent regulation beyond what the Legislature has authorized.