Two Harbors, MN Airbnb Market Data, Statistics, and Occupancy Rates

Two Harbors Short-Term Rental Market Overview

Two Harbors, MN earns an ROI score of 76 out of 100, placing it in the "Standout Opportunity" tier for short-term rental investors. With an average annual revenue of $49,774 across just 94 active listings and an above-average revenue-to-price ratio, this North Shore destination offers compelling income potential driven by seasonal tourism along Lake Superior. The average daily rate of $268 sits well below Minnesota's $429 state average, yet the market's strong summer revenue — peaking above $7,400 per month in July — demonstrates significant earning power during peak travel season.

Key Market Statistics

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

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026.

Why Investors Consider Two Harbors

Investors are drawn to Two Harbors for its favorable revenue-to-price ratio and the strong seasonal tourism appeal of Minnesota's North Shore.

Expert Market Assessment

"Two Harbors presents a solid opportunity for investors comfortable with seasonal revenue patterns. The market's peak months of July and August generate roughly $7,400 per month — more than double the shoulder season and nearly three times winter lows around $2,300 in February. With occupancy stability rated above average and 3-bedroom properties delivering standout RevPAN of $101, there's a clear path to healthy returns for well-positioned listings. That said, the rapid 149% growth in active listings signals increasing supply, so new entrants should differentiate through amenities, waterfront access, or superior guest experiences to maintain competitive occupancy."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Two Harbors

Average revenue by month in Two Harbors

Two Harbors shows sharp seasonality, with July ($7,417) and August ($7,341) generating more than triple the revenue of February ($2,298), the quietest month. Investors should plan cash flow around a concentrated summer earning window from June through September, which accounts for the bulk of annual income.

Active Airbnb listings by property size in Two Harbors

Two- and 3-bedroom properties dominate supply with 29 and 28 listings respectively, together representing over 60% of the market. Studios (7 listings) and 4-bedroom homes (9 listings) are comparatively scarce, potentially offering less competition for investors targeting those segments.

Average daily rate (ADR) by property size in Two Harbors

Three-bedroom properties command the highest ADR at $333, a significant premium over 2-bedrooms at $216 and 1-bedrooms at $226. Interestingly, 4-bedroom listings average only $273 — below 3-bedrooms — suggesting that the premium-to-cost trade-off may be strongest for 3-bedroom configurations in this market.

Average RevPAN by property size in Two Harbors

Three-bedroom properties deliver the strongest RevPAN at $101, well ahead of 1-bedrooms ($73) and studios ($67). Four-bedroom homes lag at just $61 despite their higher nightly rates, indicating that lower occupancy significantly erodes their per-night revenue efficiency.

Average occupancy rates by property size in Two Harbors

Studios lead occupancy at 37%, followed by 1-bedrooms at 32%, while 4-bedroom properties sit at the bottom with just 22%. This pattern suggests smaller, more affordable units attract steadier bookings, though larger properties compensate through higher nightly rates during peak periods.

Average monthly revenue by property size in Two Harbors

Three-bedroom listings are the top monthly earners at $5,183, followed by 4-bedrooms at $4,911, demonstrating that larger properties capture more total revenue despite lower occupancy. Studios trail at $2,829 per month, and 2-bedrooms earn a modest $3,063, making them the weakest performers relative to their supply dominance.

Average annual revenue by property size in Two Harbors

At $62,207 annually, 3-bedroom properties offer the best revenue potential in Two Harbors, outpacing 4-bedrooms ($58,932) and 1-bedrooms ($49,029). Two-bedroom units — despite being the most common listing size — generate only $36,764 per year, suggesting investors may find stronger returns by targeting 3-bedroom properties where both ADR and RevPAN align favorably.

Most common amenities for Airbnb listings in Two Harbors

Parking (100%) and kitchens (97%) are near-universal, reflecting guest expectations for self-sufficient cabin-style stays on the North Shore. Outdoor amenities like BBQ grills (73%), patios (71%), and backyards (66%) are also highly prevalent, while standout differentiators like sauna (34%) and lake access (27%) could help listings command premium rates in a competitive market.

Understanding Two Harbors's ROI Score: 76/100

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

Two Harbors' ROI score of 76 out of 100 places it in the "Standout Opportunity" band, driven primarily by an above-average revenue-to-price ratio and solid occupancy stability. However, both market growth trend and supply/demand balance score below average, reflecting the rapid 149% increase in listings that could intensify competition. Investors should pair these metrics with on-the-ground regulatory research and a realistic seasonal cash-flow model before committing to this market.

Short-Term Rental Regulations in Two Harbors

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

Permit Requirements

Short-term rental operators in Two Harbors, Minnesota may need to obtain a permit or register their property with the city or county before hosting guests. Investors should verify current requirements directly with Two Harbors city offices and Lake County, as local rules can change.

Key Restrictions

Common restrictions in Minnesota communities like Two Harbors can include occupancy limits, minimum stay requirements, noise ordinances, parking mandates, and HOA rules that may prohibit or restrict short-term rentals. Some jurisdictions also impose caps on the number of STR permits issued, so checking availability early in the investment process is advisable.

Tax Obligations

Short-term rental hosts in Minnesota are generally subject to state sales tax and local lodging or tourism taxes on rental income. Many booking platforms collect and remit these taxes automatically, but operators should confirm their obligations with the Minnesota Department of Revenue to ensure full compliance.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Two Harbors is likely to see continued summer-driven demand, with July and August revenues estimated to remain in the $7,000–$7,500 range. However, with year-over-year listing growth at 149% and supply/demand balance rated below average, investors should anticipate increased competition that could put modest downward pressure on occupancy rates, currently at 30%. ADR may hold steady or see incremental gains of 1–3% as the market matures, though off-season months from November through March will likely continue to generate below $3,200 per month — underscoring the importance of pricing strategies that account for pronounced seasonality."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Two Harbors, MN

What is the average Airbnb occupancy rate in Two Harbors?

The average occupancy rate for Airbnb listings in Two Harbors is currently 30%, which sits below the Minnesota state average of 40%. Occupancy varies by property size — studios lead at 37%, while 4-bedroom properties see the lowest rates at 22%. The market's seasonal nature means occupancy concentrates heavily in summer months, so annual averages reflect quieter winter periods.

How much do Airbnb hosts make in Two Harbors?

On average, Airbnb hosts in Two Harbors earn approximately $4,147 per month and $49,774 per year based on trailing 12-month booking data. Earnings vary significantly by property size: 3-bedroom listings lead with about $5,183 per month ($62,207 annually), while studios average around $2,829 per month ($33,952 annually). Peak summer months like July can push monthly revenue above $7,400.

Is Two Harbors a good market for Airbnb investment?

Two Harbors scores 76 out of 100 on Rabbu's ROI Score, earning a "Standout Opportunity" rating. The market benefits from an above-average revenue-to-price ratio and stable occupancy patterns driven by North Shore tourism. Investors should be aware that supply has grown significantly (149% year-over-year) and that revenue is heavily seasonal, so budgeting for slower winter months is essential.

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

The average daily rate in Two Harbors is $268, which is notably lower than the Minnesota state average of $429. ADR varies by property size — 3-bedroom listings command the highest rate at $333, while studios average $183. Despite the lower-than-state-average ADR, the market's revenue-to-price ratio remains above average due to relatively affordable home values.

Are short-term rentals legal in Two Harbors?

Short-term rentals are generally permitted in Two Harbors, MN, though operators may need to obtain local permits or registrations. Regulations can vary and may include requirements around occupancy limits, parking, noise, and tax collection. We recommend verifying current rules with Two Harbors city government and Lake County before purchasing an investment property.

When is peak season for Airbnb in Two Harbors?

Peak season in Two Harbors runs from June through August, with July being the highest-earning month at an average of $7,417 in revenue. August follows closely at $7,341. The shoulder months of September ($4,919) and October ($4,247) also perform well. The slowest period is February, when average revenue drops to about $2,298.

How many Airbnbs are there in Two Harbors?

There are currently 94 active Airbnb listings in Two Harbors as of April 2026. The supply is distributed across sizes, with 2-bedroom (29 listings) and 3-bedroom (28 listings) properties making up the majority. The market has experienced significant growth, with a 149% year-over-year increase in active listings.

How is Airbnb revenue calculated in Two Harbors?

The annual and monthly revenue figures shown for Two Harbors 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 performance, the figures naturally reflect seasonal peaks and slower periods. Individual results can vary based on property quality, pricing strategy, and how actively the listing is managed.

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 by market and property size
• Occupancy rates, average daily rates, and RevPAN trends across bedroom configurations
• Monthly and annual revenue estimates based on trailing 12-month booking performance
• Home value data sourced from Zillow Home Value Index (ZHVI) for investment cost context
• Amenity prevalence data across active listings to inform property setup decisions

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Market data is current as of April 2026 and may not reflect recent regulatory or market changes. Individual property results will vary based on location, quality, pricing strategy, and management.