Deerwood, MN Airbnb Market Data, Statistics, and Occupancy Rates

Deerwood Short-Term Rental Market Overview

Deerwood, MN is a lake-country micro-market where just 20 active Airbnb listings serve a heavily seasonal vacation-rental audience. With an average annual revenue of $45,614 and an above-average revenue-to-price ratio, the market rewards investors who can capitalize on a short but lucrative summer window—August alone averages $10,004 per listing. An 84% year-over-year jump in active listings signals growing investor interest, though the small overall supply means competition remains limited.

Key Market Statistics

According to Rabbu market data, the Deerwood short-term rental market shows:

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026.

Why Investors Consider Deerwood

Investors are drawn to Deerwood for its strong summer revenue potential relative to property costs, limited competition, and the enduring appeal of Minnesota's lake country.

Expert Market Assessment

"Deerwood presents an attractive but highly seasonal opportunity. Peak months—July and August—deliver revenue five to seven times higher than the winter trough, so investors need realistic cash-flow models that account for extended slow periods from November through April. The favorable supply/demand balance and above-average growth trajectory support the ROI score of 73 out of 100, placing the market firmly in the "Attractive Opportunity" tier. Properties with lake access and waterfront positioning are likely to outperform, given that 80–85% of current listings already offer these features as baseline expectations."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Deerwood

Average revenue by month in Deerwood

Deerwood's revenue is sharply seasonal, peaking in August at $10,004 and July at $9,759 while bottoming out in April at just $1,453—a roughly 7× spread between the best and worst months. Investors should expect the June-through-September window to generate the majority of annual income, with the remaining eight months serving primarily as holding periods.

Active Airbnb listings by property size in Deerwood

Supply is nearly evenly split across 2-bedroom (6 listings), 3-bedroom (5), and 4-bedroom (7) properties, with no studio or 1-bedroom options currently active. The absence of smaller units could represent an opportunity for investors targeting couples or solo travelers, though the lake-vacation market historically favors larger group accommodations.

Average daily rate (ADR) by property size in Deerwood

Two- and 3-bedroom properties both average $226 per night, while 4-bedroom homes command $372—a 65% premium that reflects the willingness of larger groups and families to pay more for additional space. The flat rate between 2- and 3-bedroom units suggests that adding a third bedroom alone doesn't move the needle on pricing; it's the jump to 4 bedrooms where rate premiums really kick in.

Average RevPAN by property size in Deerwood

RevPAN is remarkably tight across all sizes, ranging from $57 for both 2- and 4-bedroom properties to $61 for 3-bedroom homes. This indicates that while 4-bedroom units charge higher nightly rates, their lower occupancy (16%) erases the ADR advantage on a per-available-night basis, making 3-bedroom properties the most efficient earners.

Average occupancy rates by property size in Deerwood

Three-bedroom listings lead occupancy at 27%, followed by 2-bedrooms at 25%, while 4-bedroom properties trail at just 16%. The lower fill rate on larger homes suggests they're priced for premium stays rather than volume, which can work in a seasonal market but means extended vacancies during off-peak months.

Average monthly revenue by property size in Deerwood

Four-bedroom properties top monthly revenue at $4,351, roughly 44% more than the $3,029 averaged by 2-bedroom units, with 3-bedroom homes landing in between at $3,593. Despite lower occupancy, the 4-bedroom segment's premium nightly rate translates to the highest gross monthly income.

Average annual revenue by property size in Deerwood

Annual revenue scales predictably with size: 2-bedroom listings average $36,349, 3-bedrooms earn $43,124, and 4-bedroom properties lead at $52,216. Given that larger homes also carry higher acquisition and maintenance costs, investors should weigh the $16,000 annual revenue gap between 2- and 4-bedroom units against the incremental carrying expenses.

Most common amenities for Airbnb listings in Deerwood

Every active listing in Deerwood offers a backyard, parking, and a kitchen, while 95% include outdoor furniture and a BBQ grill—these are table stakes, not differentiators. Lake access (85%) and waterfront positioning (80%) dominate the top tier, signaling that proximity to water is the core value proposition guests expect; properties lacking these features will likely struggle to compete.

Understanding Deerwood's ROI Score: 73/100

Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.

How the ROI Score is Calculated

What This Means for Investors

Deerwood's ROI score of 73 out of 100 places it in the "Attractive Opportunity" band, driven primarily by an above-average revenue-to-price ratio and a favorable supply/demand balance with only 20 competing listings. Occupancy stability scores as average—expected for a market this seasonal—while the above-average market growth trend reflects the 84% year-over-year increase in active listings without signs of oversaturation. Investors should pair these metrics with local regulatory research and a realistic cash-flow model that accounts for the pronounced summer-winter revenue swing.

Short-Term Rental Regulations in Deerwood

Understanding local STR regulations is essential before investing in Deerwood. Here's the current regulatory landscape:

Permit Requirements

Short-term rental operators in Deerwood, Minnesota may need to register or obtain a permit through Crow Wing County or the city itself. Investors should verify current requirements directly with local planning and zoning offices before listing a property.

Key Restrictions

Common STR restrictions in Minnesota lake communities can include occupancy caps tied to septic capacity, minimum-stay requirements during certain seasons, noise and parking limits, and HOA covenants that may restrict or prohibit rentals entirely. Reviewing any lake-association or homeowner-association rules is especially important in this market.

Tax Obligations

Minnesota requires STR operators to collect state sales tax and any applicable local lodging taxes on short-term stays. Many booking platforms remit these taxes automatically, but hosts should confirm their specific obligations with the Minnesota Department of Revenue.

Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Deerwood can provide current regulatory guidance.

Future Outlook & Long-Term Forecast

"Deerwood's pronounced summer demand cycle is unlikely to shift materially over the next 12–18 months, so investors should plan cash reserves around four to five softer winter months when revenue dips below $2,000. Above-average market growth trends and a favorable supply/demand balance suggest ADR could edge up another 2–5% heading into peak season, especially for waterfront properties that command premium nightly rates. Occupancy during June through September is expected to remain the primary revenue driver, with shoulder months like May and October offering incremental upside as the Brainerd Lakes region continues attracting outdoor recreation visitors."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Deerwood, MN

What is the average Airbnb occupancy rate in Deerwood?

The average occupancy rate across active Airbnb listings in Deerwood is currently 23%, compared to the Minnesota state average of 40%. This lower figure reflects the market's strong seasonality—occupancy surges during the summer lake season and drops significantly in winter. Three-bedroom properties lead with 27% average occupancy, while 4-bedroom homes average 16%, suggesting larger properties are booked less frequently but at higher nightly rates.

How much do Airbnb hosts make in Deerwood?

On a trailing 12-month basis, the average Airbnb host in Deerwood earns approximately $45,614 per year, or about $3,801 per month. Revenue is heavily weighted toward summer: August averages $10,004 and July averages $9,759, while winter months like January and April come in closer to $1,450–$1,555. Four-bedroom properties earn the most at roughly $52,216 annually, while 2-bedroom units average around $36,349.

Is Deerwood a good market for Airbnb investment?

Deerwood scores 73 out of 100 on Rabbu's ROI Score, placing it in the "Attractive Opportunity" tier. Key strengths include an above-average revenue-to-price ratio and a favorable supply/demand balance, with only 20 active listings serving the area. The main consideration is seasonality—the bulk of income arrives between June and September. Investors who price competitively and offer lake-oriented amenities are well positioned to capture strong summer returns.

What is the average daily rate (ADR) for Airbnb in Deerwood?

The current average daily rate in Deerwood is $344, which is below the Minnesota state average of $429. ADR varies by property size: 2- and 3-bedroom listings both average around $226 per night, while 4-bedroom properties command a significant premium at $372 per night. This pricing structure reflects the lake-vacation market, where larger homes accommodating families and groups can charge meaningfully more.

Are short-term rentals legal in Deerwood?

Short-term rentals operate in Deerwood, MN, with 20 active Airbnb listings currently on the market. However, STR operators may need to obtain permits or register with local authorities in Crow Wing County. Regulations can vary, so prospective investors should check with the city of Deerwood and the county planning department for the most current rules regarding permits, zoning, occupancy limits, and tax obligations.

When is peak season for Airbnb in Deerwood?

Peak season in Deerwood runs from June through August, aligning with Minnesota's summer lake season. August is the top-earning month at $10,004 in average revenue, followed closely by July at $9,759. June marks the start of the surge at $5,415. Shoulder months like May ($2,931) and September ($4,140) also perform well compared to the winter lows of $1,453–$1,555 seen from November through April.

How many Airbnbs are there in Deerwood?

As of April 2026, there are 20 active Airbnb listings in Deerwood. The supply is fairly evenly distributed: 7 are 4-bedroom properties, 6 are 2-bedroom units, and 5 are 3-bedroom homes. Year-over-year listing growth of 84% indicates the market is expanding quickly, though the total supply remains small enough that individual properties can still capture meaningful market share.

How is Airbnb revenue calculated in Deerwood?

The annual and monthly revenue figures shown for Deerwood are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market—they are not forward-looking projections. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, remove regional outliers, and roll the results up to a market-level historical average. Because each month uses its own historical data, the figures naturally reflect seasonal peaks (like August's $10,004 average) and slower periods (like January's $1,469 average). Individual results can vary based on property quality, pricing strategy, and operational management.

About Rabbu Market Data

Rabbu provides Airbnb and short-term rental market data and statistics across the United States. Our mission is to empower investors with accurate insights and easy-to-use tools, so they can confidently identify and act on the best opportunities in the Airbnb market.

What this data includes

• Regularly updated active Airbnb and STR listing counts for Deerwood and surrounding markets
• Average daily rate, occupancy, and RevPAN metrics by property size
• Monthly and annual revenue trends based on trailing 12-month booking data
• Property value estimates sourced from the Zillow Home Value Index (ZHVI)
• Amenity prevalence data across active listings to benchmark guest expectations

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month historical averages as of April 2026 and may not capture recent market shifts. Local regulations, HOA rules, and tax obligations vary and should be independently verified before investing.