How to Legally Host an Airbnb in Red Wing, Minnesota (2025 Compliance Guide)

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Nestled along the Mississippi River, Red Wing may look like a postcard-perfect town, but if you're planning to turn your property into a short-term rental (STR), you’ll need more than just curb appeal. This city doesn't take a “list it and forget it” approach, it has one of the most structured STR licensing systems in Minnesota.

Whether you're a property investor, homeowner, or Airbnb host looking to tap into Red Wing’s tourism scene, there’s a detailed regulatory roadmap to follow. From zoning restrictions to state lodging rules, you’ll need to get everything in order before welcoming your first guest.

Let’s walk through exactly what you need to stay compliant and profitable in 2025.

Is Airbnb Legal in Red Wing, MN?

I know the question about legality is the first question that comes to every compliant host mind. The answer is yes, but with conditions.

As of November 4, 2023, vacation rentals are fully legal in Red Wing under Ordinance Nos. 203 and 204. However, they’re tightly regulated with zoning limitations, permit caps, and health inspection requirements.

STRs are defined as any property rented for less than one week, aligning with Minnesota Statute §157.15, which classifies them under lodging rules. That means STRs must meet both city and state health department standards.

Two Types of STRs & Two Different Paths

Red Wing divides STR into two categories, each with different requirements:

1. Owner-Occupied Units

  • Must apply for a Certificate of Compliance
  • The host must live on the property during the guest’s stay
  • Allowed in most residential zones

2. Non-Owner-Occupied Units

  • Must obtain an Interim Use Permit (IUP)
  • Only allowed in certain commercial/mixed-use zones
  • Subject to a city-wide cap of 50 non-owner-occupied units

Both owner-occupied and non-owner-occupied hosts must complete an application form. If you're not living in the property, you'll need to clear additional zoning hurdles.

Zoning & Proximity Restrictions

Red Wing’s zoning map isn’t just a formality—it determines whether your property is eligible for short-term rental (STR) use.

Owner-Occupied STRs

Allowed in Agricultural and Single-Family Dwelling zones without special approval.

Non-Owner-Occupied STRs

Only permitted with an Interim Use Permit (IUP) and must meet specific zoning criteria.

There’s also a proximity rule: STRs must be spaced out, you can’t have too many clustered in one area. The city actively enforces these spacing and zoning limits.

Need clarity? Contact Steve Kohn, Planning Manager at (651) 385-3622 before purchasing or listing.

State-Level Lodging Requirements (Minnesota Department of Health)

Red Wing STRs are classified as lodging establishments under Minnesota law, meaning you’ll also need to comply with state rules in addition to local ones.

What the MDH Requires:

  • A lodging license under Chapter 4625
  • Plan review for new or renovated STR units ($375 fee)
  • Pre-opening inspection scheduled at least 2 weeks before launching

Tax Compliance: What You Need to File

Short-term rental hosts in Red Wing must:

  • Register for a Minnesota tax ID
  • File Hotel and Motel Sales Tax Returns
  • Remit state and local taxes as required

📎 Minnesota Department of Revenue – Sales Tax Info

How to Apply for a STR License in Red Wing

You can submit your application by email, by fax at (651) 388-4782, or in person at 419 Bush St., Red Wing, MN, during office hours (Monday to Friday, 8:00 AM to 4:30 PM).

Note:

  1. If your owner-occupied short-term rental remains inactive for more than 12 months, the certificate will be void and you’ll need to reapply.
  2. Download the STR Application Form (PDF)

Licensing Timelines and Inspection Expectations

Red Wing provides two separate timelines for licensing:

All STRs must pass a health inspection before operating, meeting state standards for safety, sanitation, and ventilation.

Fees and Costs

  • Plan Review Fee: $375 (for MDH lodging review)
  • Annual Licensing Fees: Prorated by calendar year
  • City Permit Fees: Vary

Enforcement & Public Registry

Operating without a valid license  or ignoring local rules can result in:

  • License denial or revocation
  • Fines or citations
  • Removal from the STR registry

View the city’s Public STR Registry (PDF

Final Thoughts: Hosting in Red Wing the Right Way

If Red Wing’s short-term rental rules feel complex, that’s because they are, but that doesn’t mean you need to tackle them alone.

Whether you're applying for the first time or trying to make sense of zoning limits and health inspections, Lodge Compliance can help you get (and stay) fully compliant. From permit applications to tax registration and STR setup, we handle the hard stuff, so you can focus on happy guests and steady bookings. Click here to get started.