Lake City, MN Airbnb Market Data, Statistics, and Occupancy Rates

Lake City Short-Term Rental Market Overview

Lake City, MN sits along Lake Pepin on the Mississippi River, making it a natural draw for seasonal tourism and outdoor recreation. With just 32 active Airbnb listings and an average annual revenue of $22,328, the market is compact but offers an above-average revenue-to-price ratio that catches investor attention. ADR lands at $194—well below the $429 Minnesota state average—yet the favorable home values of roughly $514K help keep yield competitive for the right property type.

Key Market Statistics

According to Rabbu market data, the Lake City 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 Lake City

Investors look at Lake City for its strong revenue-to-price ratio and the seasonal tourism demand driven by Lake Pepin and the Mississippi River bluffs.

Expert Market Assessment

"Lake City presents a moderately attractive opportunity for STR investors who are comfortable with sharp seasonality. Revenue swings dramatically—from a low near $749 in February to a peak of $3,092 in July—so cash-flow planning around the warm-season window is critical. The market's small listing count and above-average revenue-to-price ratio work in favor of early movers, particularly those targeting 3-bedroom properties that deliver the strongest occupancy and RevPAN. However, the below-average occupancy stability means investors should budget conservatively for winter months and explore strategies to capture shoulder-season bookings."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Lake City

Average revenue by month in Lake City

Lake City's revenue profile is sharply seasonal: July leads at $3,092 per listing while February bottoms out at just $749, a 4:1 peak-to-trough ratio. The warm months from May through October consistently deliver $2,000+ in monthly revenue, making this six-month window the primary earnings period for investors.

Active Airbnb listings by property size in Lake City

Two-bedroom properties make up the bulk of Lake City's supply at 13 listings, followed by 10 one-bedrooms and just 5 three-bedrooms. The relatively thin inventory of 3-bedroom units—combined with their superior performance metrics—suggests a potential supply gap that investors could target.

Average daily rate (ADR) by property size in Lake City

ADR more than doubles from 1-bedroom ($121) to 3-bedroom ($266) properties, reflecting a strong premium for larger accommodations that can host families and groups. The step up from 2-bedroom ($179) to 3-bedroom adds roughly $87 per night, making the larger configuration particularly compelling if acquisition costs remain proportional.

Average RevPAN by property size in Lake City

RevPAN jumps dramatically with size—3-bedroom units generate $117 per available night compared to just $48 for 2-bedrooms and $13 for 1-bedrooms. This ninefold gap between the smallest and largest configurations underscores how both higher rates and stronger occupancy compound in favor of 3-bedroom properties.

Average occupancy rates by property size in Lake City

Occupancy scales steeply with bedroom count: 1-bedrooms fill only 11% of available nights, 2-bedrooms reach 27%, and 3-bedrooms achieve 44%. For investors prioritizing cash-flow consistency, the 3-bedroom segment offers meaningfully more reliable booking volume throughout the year.

Average monthly revenue by property size in Lake City

Three-bedroom listings top the monthly revenue chart at $2,071, edging out 2-bedrooms at $1,934, while 1-bedroom units trail at $1,103. The gap between 2- and 3-bedroom revenue is narrower than their occupancy and ADR differences might suggest, so investors should weigh acquisition and operating costs carefully.

Average annual revenue by property size in Lake City

Annual revenue ranges from $13,239 for 1-bedroom listings to $24,859 for 3-bedrooms, with 2-bedrooms landing at $23,215. The relatively close annual revenue between 2- and 3-bedroom properties means the best return configuration depends heavily on purchase price and renovation costs in each size category.

Most common amenities for Airbnb listings in Lake City

Parking is universal across Lake City listings (100%), and kitchen access, self check-in, and patio or balcony space each appear in 81–88% of properties—reflecting a guest base that expects home-like comfort and outdoor enjoyment. BBQ grills (75%) and washer/dryer (78%) are also near-standard, while lake access (19%) and waterfront location (16%) remain differentiators that could command premium pricing.

Understanding Lake City's ROI Score: 63/100

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

Lake City's ROI score of 63 out of 100 places it in the 'Attractive Opportunity' band, driven primarily by an above-average revenue-to-price ratio that makes the numbers work despite modest nightly rates. The below-average occupancy stability is the main drag on the score, reflecting the market's heavy reliance on summer tourism, while market growth trend and supply/demand balance both register as average. Pairing this data with on-the-ground regulatory research and a conservative cash-flow model for winter months will give investors the clearest picture of whether Lake City fits their portfolio.

Short-Term Rental Regulations in Lake City

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

Permit Requirements

Short-term rental operators in Lake City, Minnesota may need to obtain a local business or rental permit before listing a property. Investors should verify current registration and permitting requirements directly with the City of Lake City and Wabasha County offices.

Key Restrictions

Common restrictions that may apply include occupancy limits tied to bedroom count, minimum-stay requirements, noise and nuisance ordinances, and off-street parking mandates. HOA covenants can add additional layers of limitation, particularly for waterfront or resort-style developments, so reviewing any applicable association rules before purchasing is essential.

Tax Obligations

Minnesota imposes a state sales tax and a lodging tax on short-term rentals, and local jurisdictions may layer on additional tourism or hospitality taxes. Many booking platforms collect and remit these taxes on behalf of hosts, but operators 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 Lake City can provide current regulatory guidance.

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, expect Lake City's pronounced summer peak to remain the primary revenue engine, with July revenues likely hovering around $3,000+ per listing. The 50% year-over-year growth in active listings signals rising investor interest, though occupancy—currently at 24% versus the 40% state average—could face additional pressure if new supply outpaces demand. We estimate ADR may hold steady or tick up 1–3% as hosts refine pricing strategies, but meaningful occupancy improvement will depend on shoulder-season demand building through spring and fall events."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Lake City, MN

What is the average Airbnb occupancy rate in Lake City?

The average Airbnb occupancy rate in Lake City is currently 24%, which falls below the Minnesota state average of 40%. Occupancy varies significantly by property size—1-bedroom units average just 11%, while 3-bedroom properties reach 44%. The market's heavy seasonal demand means summer months drive most bookings, with winter seeing much lower activity.

How much do Airbnb hosts make in Lake City?

Based on trailing 12-month historical data, the average Airbnb host in Lake City earns approximately $1,860 per month or $22,328 per year. Earnings vary widely by property size: 1-bedroom listings average about $13,239 annually, 2-bedrooms around $23,215, and 3-bedrooms roughly $24,859. Peak-season months like July can bring in over $3,000, while winter months may yield under $800.

Is Lake City a good market for Airbnb investment?

Lake City scores a 63 out of 100 on Rabbu's ROI Score, placing it in the 'Attractive Opportunity' category. The market's above-average revenue-to-price ratio is its strongest asset, supported by a manageable supply of just 32 active listings. The main trade-off is below-average occupancy stability due to strong seasonality—investors who can manage cash flow through quieter winter months and target larger property sizes stand to benefit the most.

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

The average daily rate in Lake City is $194, considerably lower than the Minnesota state average of $429. ADR scales with property size: 1-bedroom listings average $121, 2-bedrooms $179, and 3-bedrooms $266. While rates are modest compared to statewide figures, Lake City's lower home values relative to many Minnesota resort markets help maintain competitive yields.

Are short-term rentals legal in Lake City?

Short-term rentals generally operate in Lake City, MN, but local permitting and zoning rules may apply. Prospective hosts should check with the City of Lake City and Wabasha County for current licensing, permit, and zoning requirements before listing a property. State-level lodging tax obligations also apply to short-term rentals in Minnesota.

When is peak season for Airbnb in Lake City?

Peak season in Lake City runs from May through October, with July generating the highest average revenue at $3,092 per listing. June, August, September, and October also perform well, each averaging $2,400 or more. The off-season stretches from November through April, with February being the slowest month at around $749 in average revenue.

How many Airbnbs are there in Lake City?

As of April 2026, there are 32 active Airbnb listings in Lake City. The supply breaks down to 10 one-bedroom, 13 two-bedroom, and 5 three-bedroom properties. Active listings have grown 50% year over year, indicating increasing investor interest in this market.

How is Airbnb revenue calculated in Lake City?

The annual and monthly revenue figures for Lake City 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 into a market-level historical average. Because each month uses its own historical performance data, seasonal peaks and slower months are naturally reflected in the figures. 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 the Lake City, MN market
• Average daily rates, occupancy rates, and RevPAN broken down by property size
• Monthly and annual revenue trends based on trailing 12-month historical booking data
• Popular amenity prevalence across active listings to guide property setup decisions
• Home value data sourced from the Zillow Home Value Index (ZHVI) for yield context

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; market conditions may have shifted since the last update. Local regulations, permitting requirements, and tax obligations vary and should be independently verified before investing.