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View PropertiesAs of Apr, 27 2026
Rabbu ROI Score
Isle offers attractive short-term rental potential, with a balance of healthy demand and revenue relative to property values.
Isle, MN is a small lakeside market with just 25 active Airbnb listings that delivers a notable revenue-to-price ratio for investors willing to embrace its pronounced seasonality. With an average annual revenue of $39,710 against average home values of $466,737, the market earns an ROI score of 66 out of 100 — placing it in "Attractive Opportunity" territory. Peak summer months drive the bulk of income, with July alone averaging $6,498 in revenue, making this a compelling destination-driven play for investors who can manage seasonal cash flow swings.
According to Rabbu market data, the Isle short-term rental market shows:
| Metric | Context | Value |
|---|---|---|
| Active Airbnb Listings | As of Apr, 27 2026 | 25 |
| Average Daily Rate (ADR) | vs. $429 state avg. | $383 |
| Average Occupancy Rate | vs. 40% state avg. | 21% |
| RevPAN | ADR * Occupancy Rate | $79 |
| Average Monthly Revenue | Historical 12-month average | $3,309 |
| Average Annual Revenue | Historical 12-month average | $39,710 |
Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026.
Investors are drawn to Isle for its favorable revenue-to-property-cost ratio and lake-driven vacation demand that supports premium nightly rates during peak season.
Key investment factors
"Isle presents a moderately attractive investment opportunity driven by its lakefront appeal and favorable property economics, though the market's sharp seasonality requires careful financial planning. Revenue swings dramatically from a low of $1,064 in March to a high of $6,498 in July — a roughly 6x spread that underscores the vacation-dependent nature of demand. Occupancy at 21% sits well below the Minnesota state average of 40%, which reflects the reality that this is a warm-weather destination rather than a year-round performer. For investors who structure their finances around the concentrated summer earning season and keep carrying costs manageable during quieter months, Isle's above-average revenue-to-price ratio and limited competition make it a market worth serious consideration."
— Rabbu Market Analysis Team
Isle's revenue is sharply seasonal, peaking in July at $6,498 and bottoming out in March at just $1,064 — a roughly 6:1 ratio that highlights the summer lake season as the primary revenue engine. The June–September window alone accounts for the majority of annual income, so investors should plan cash reserves for the November–April shoulder and off-season months.
| Month | Trend | Revenue |
|---|---|---|
| January |
|
$1,896 |
| February |
|
$2,495 |
| March |
|
$1,064 |
| April |
|
$1,233 |
| May |
|
$2,835 |
| June |
|
$5,544 |
| July |
|
$6,498 |
| August |
|
$6,421 |
| September |
|
$4,890 |
| October |
|
$3,372 |
| November |
|
$1,350 |
| December |
|
$2,108 |
Supply in Isle is concentrated among 2-bedroom (7 listings) and 3-bedroom (8 listings) properties, with 5-bedroom homes making up a notable share at 5 listings. The absence of 1-bedroom and 4-bedroom listings in the data could signal either limited demand for those configurations or a potential niche opportunity for investors.
| Size | Trend | Value |
|---|---|---|
| 2 bedrooms |
|
7 |
| 3 bedrooms |
|
8 |
| 5 bedrooms |
|
5 |
ADR scales substantially with size in Isle, jumping from $225 for 2-bedroom properties to $304 for 3-bedrooms and $426 for 5-bedrooms. The nearly 2x premium between 2- and 5-bedroom homes reflects the group and family vacation demand that lakefront destinations typically attract.
| Size | Trend | Value |
|---|---|---|
| 2 bedrooms |
|
$225 |
| 3 bedrooms |
|
$304 |
| 5 bedrooms |
|
$426 |
Three-bedroom properties deliver the strongest RevPAN at $73 per available night, outpacing both 2-bedrooms ($43) and 5-bedrooms ($46). The 5-bedroom category's lower RevPAN despite its high ADR reflects its 11% occupancy rate, suggesting that larger homes command top dollar when booked but sit empty more often.
| Size | Trend | Value |
|---|---|---|
| 2 bedrooms |
|
$43 |
| 3 bedrooms |
|
$73 |
| 5 bedrooms |
|
$46 |
Occupancy ranges from a high of 24% for 3-bedroom units down to just 11% for 5-bedroom properties, with 2-bedrooms in between at 19%. The 3-bedroom sweet spot — combining the best occupancy with a strong ADR — translates to more predictable cash flow compared to the larger, less frequently booked 5-bedroom homes.
| Size | Trend | Value |
|---|---|---|
| 2 bedrooms |
|
19% |
| 3 bedrooms |
|
24% |
| 5 bedrooms |
|
11% |
Three-bedroom listings lead monthly revenue at $3,708, followed by 5-bedrooms at $2,877 and 2-bedrooms at $2,235. The 3-bedroom advantage comes from its combination of solid occupancy and respectable nightly rates, making it the most balanced configuration for consistent monthly earnings in this market.
| Size | Trend | Value |
|---|---|---|
| 2 bedrooms |
|
$2,235 |
| 3 bedrooms |
|
$3,708 |
| 5 bedrooms |
|
$2,877 |
At $44,498 per year, 3-bedroom properties generate roughly 66% more annual revenue than 2-bedrooms ($26,823) and about 29% more than 5-bedrooms ($34,525). For investors weighing acquisition and operating costs against income, the 3-bedroom configuration offers the clearest path to stronger annual returns in Isle.
| Size | Trend | Value |
|---|---|---|
| 2 bedrooms |
|
$26,823 |
| 3 bedrooms |
|
$44,498 |
| 5 bedrooms |
|
$34,525 |
Lake access (92%) and waterfront (64%) amenities dominate Isle's listings, reinforcing that water-oriented recreation is the core draw for guests. Kitchens appear in 100% of listings and parking in 92%, while BBQ grills (84%) and outdoor living spaces like patios and backyards signal that guests expect a full lakeside vacation experience — investors who deliver these amenities are matching the established market standard.
| Amenity | Trend | Value |
|---|---|---|
| Kitchen |
|
100% |
| Parking |
|
92% |
| Lake Access |
|
92% |
| BBQ Grill |
|
84% |
| Patio or Balcony |
|
84% |
| Backyard |
|
76% |
| Washer |
|
72% |
| Self Check-in |
|
72% |
| Waterfront |
|
64% |
| Outdoor Furniture |
|
64% |
| Dryer |
|
60% |
| Pets |
|
56% |
| Workspace |
|
48% |
| Beach Access |
|
32% |
Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.
| Factor | Isle Performance | Weight |
|---|---|---|
| Revenue-to-Price Ratio | Above average | 40% |
| Occupancy Stability | Below average | 30% |
| Market Growth Trend | Average | 15% |
| Supply/Demand Balance | Above average | 15% |
Isle's ROI score of 66 out of 100 places it in the "Attractive Opportunity" band, driven primarily by its above-average revenue-to-price ratio and favorable supply/demand balance — meaning the market generates meaningful income relative to property costs without being oversaturated. The below-average occupancy stability score reflects the sharp seasonal swings inherent to a Minnesota lake market, while the average market growth trend suggests steady but not explosive expansion. Investors should pair these metrics with local regulatory research and a realistic seasonal cash flow model to determine whether Isle fits their portfolio goals.
Understanding local STR regulations is essential before investing in Isle. Here's the current regulatory landscape:
Short-term rental operators in Isle, Minnesota may need to obtain local permits or register their property with the city before hosting guests. Investors should verify current requirements directly with Isle city officials and Mille Lacs County, as STR regulations in smaller Minnesota communities can vary and change.
Common restrictions that may apply to STRs in this area include occupancy limits, minimum stay requirements, noise ordinances, and parking regulations. HOA covenants on lakefront properties can be particularly relevant, so investors should review any deed restrictions or association rules before purchasing. Some Minnesota municipalities also impose caps on the number of STR permits issued in a given area.
Short-term rental hosts in Minnesota are generally subject to state sales tax and local lodging taxes, which platforms like Airbnb often collect and remit on behalf of hosts. Investors should confirm whether Isle or Mille Lacs County levies any additional tourism or occupancy taxes that may apply to stays of fewer than 30 days.
Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Isle can provide current regulatory guidance.
Financing an Airbnb investment in Isle requires lenders who understand STR income. Rabbu partner lenders offer:
"Over the next 12–18 months, Isle's short-term rental market is expected to maintain its strong summer demand cycle, with June through September continuing to account for the majority of annual revenue. The 47% year-over-year growth in active listings signals rising investor interest, though the market's small base of 25 listings means even a handful of new entrants can shift competitive dynamics. ADR may hold steady or see modest pressure in the $370–$390 range as supply grows, while occupancy — currently at 21% versus the 40% state average — could tighten slightly during peak months but is unlikely to shift dramatically in shoulder and winter seasons."
— Rabbu Market Analysis Team
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.
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 averages as of April 2026 and may not capture very recent market shifts. Local regulations, HOA rules, and tax obligations vary — investors should verify all requirements with Isle city officials and Mille Lacs County before purchasing.
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