Olmsted County, MN Short-Term Rentals: Permit Requirements (2026)

Minnesota does not have a statewide STR permit law - regulation is handled locally. Olmsted County does not operate a county-wide STR licensing program; zoning compliance and any STR-specific permits are determined by the underlying jurisdiction (City of Rochester for incorporated parcels; the county or contracting township for unincorporated). In the City of Rochester, a short-term rental permit is required from the Community Development Department. Rochester treats STRs with 5 or more sleeping rooms as lodging/hotel use, which triggers a state-level lodging license under Minn. Stat. §157.16 and Minnesota Department of Health inspection. Statewide, all Minnesota lodging stays of less than 30 days are subject to the Minnesota sales tax of 6.875% under Minn. Stat. §297A.61 subdiv. 3(g)(2) (the lodging definition). Cities and counties may also impose a local lodging tax of up to 3% under Minn. Stat. §§469.190 and 469.191, and Rochester levies an additional local lodging tax (administered by the City). STR operators who fail to register with the Minnesota Department of Revenue for sales tax collection face assessments, penalties, and interest. Building, fire, and zoning codes still apply regardless of STR licensing status.