Short-Term Rentals in Rochester, MN

If you live in Rochester or are thinking about moving there, short-term rentals are one of those things you probably won't think about until they affect you directly. Rochester has 3 specific rules on the books covering different aspects of short-term rentals, and some of them might surprise you.

Occupancy Limits

Rochester's short-term rental table in section 7-10-2(b) caps how many units in a building may operate as short-term rentals by property type, and assumes occupancy in two-unit buildings does not exceed 10 people total. A structure renting five or more beds crosses into lodging or hotel territory and needs a separate health department license.

Key details: Single-family/duplex/triplex/fourplex: 1 STR unit allowed. Buildings over 4 units: Up to 25% of units. Occupancy assumption: Max 10 total (2-unit buildings). Lodging trigger: 5+ beds needs separate license. Enforcement: Section 7-9-12 daily violation penalty.

Exceeding the unit-count cap for a property type, or the 25 percent threshold for larger buildings, without going through the required change-of-use review is enforced the same as any unregistered rental use, through section 7-9-12's daily-violation penalty. Operating a five-or-more-bed short-term rental without the separate lodging license required by section 7-10-2(b) is a violation subject to adverse license action under section 7-9-17.

Short-Term Rental Permits

Rochester requires anyone operating a short-term rental, a dwelling rented for under 30 days, to hold a registration certificate under Code section 7-10-2(a). Owner-occupied units only need to register; every other short-term rental must be both registered and inspected, and multi-family buildings with three or more units can't operate as short-term rentals at all.

Key details: Definition: Rental under 30 days. Owner-occupied: Registration only. Non-owner-occupied: Registration + inspection required. Buildings with 3+ units: Prohibited as STR primary use. 5+ beds: Requires separate lodging license.

Operating a short-term rental in the city without a registration certificate is a violation of chapter 7-9, the same as any unregistered rental; each rented day without a certificate on file is a separate offense under section 7-9-12. A building with three or more units operating short-term rentals as a hotel without the required reclassification and, where applicable, a lodging license, faces the same adverse-action process as other unlicensed lodging operations.

This is not one of those rules that cities tend to ignore. Rochester actively enforces its short-term rental permits requirements.

Taxes & Fees

Rochester charges an annual license fee for short-term rental hosting platforms under Code section 7-10-3, discounted for platforms listing 150 units or fewer, and layers a 7 percent lodging tax on rent for any stay under 30 days under section 10-4-2, collected by the operator from the guest.

Key details: Lodging tax rate: 7% of rent. Effective: Stays after January 1, 2014. Tax return: Due monthly, 25 days after month end. Late penalty: 10% plus 8% annual interest. Willful evasion penalty: 50% of tax due.

Operating a short-term rental hosting platform without paying the required license fee under section 7-10-3, or renting lodging without the permit required by section 10-4-16, is a misdemeanor under section 10-4-18. Failing to remit collected lodging tax draws a 10 percent late penalty plus 8 percent annual interest under section 10-4-10, rising to a 50 percent penalty for willful evasion or a false return.

The Bottom Line

Rochester's short-term rentals rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Rochester is broadly strict or permissive.

This guide is based on Rochester's current municipal code. Local rules can and do change, so check the individual ordinance pages for the latest details, penalties, and FAQs.