Rochester

As of June 2026, Rochester, Minneapolis, St. Paul, La Crosse have 1,063 active Airbnb and VRBO listings. This represents a 12% decrease from the previous year.

The average Airbnb or VRBO in Rochester generates $26K per year. High-performing properties earn $48K/year, while low-performing properties earn $10K/year. The substantial revenue spread suggests that market rewards are heavily concentrated, with top-tier assets maintaining profitability despite an overall 28% year-over-year revenue contraction.

Average home prices in Rochester vary by property size: 1-bedroom properties cost approximately $165K, 2-bedroom homes average $250K, 3-bedroom properties are around $286K, and 4+ bedroom homes average $354K. These prices reflect median home values across the Rochester, Minneapolis, St. Paul, La Crosse area.

Airbnb and VRBO can be profitable in Rochester, with an average gross yield of 9% across all properties. High-performing properties achieve yields up to 16%, which is considered top for short-term rental investment. This yield variance highlights that even as supply consolidates, top performers effectively capture a larger share of a shrinking revenue pool.

The average occupancy rate for Airbnbs and VRBOs in Rochester is 38%. This occupancy level, combined with an average nightly rate of $187, results in a RevPAR (revenue per available room) of $45 per day.

4+ bedroom properties demonstrate the strongest performance in Rochester, with an average gross yield of 11% and annual revenue of $42K. These properties balance purchase price ($354K), operating costs, and rental demand most effectively in the Rochester market.

Short-term rental regulations vary by jurisdiction in the Rochester area. Rochester MN: Moderate. License required, safety inspections, 2% lodging tax. Owner-occupancy required for short-term rentals. Standard enforcement through complaints. Minneapolis: Strict. License required, owner-occupancy mandatory, density limits by neighborhood, annual inspections. Active enforcement with fines and revocations. St. Paul: Strict. License required, owner-occupancy mandatory, one license per owner, 90-day cap for non-owner-occupied. Active enforcement. La Crosse WI: Lenient. Registration and permit required, safety standards. Light enforcement, complaint-based. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Rochester Airbnb and VRBO market is currently showing balanced conditions. Supply has declined 12% year-over-year, while RevPAR has decreased 28%. This indicates balanced supply-demand dynamics. This reduction in supply alongside falling revenue points to a market-wide adjustment where lower-performing listings may be exiting to find equilibrium.

Launch around April, 2-3 months before peak fall season (July peaks). This pre-peak timing lets you build reviews when competition is 42% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (March-January) when gaining traction is harder.

The most common amenities in Rochester listings include: Air Conditioning (97%), Kitchen (95%), Tv (85%), Washing Machine (84%), Heating (66%). Amenities that boost revenue the most include Hot Tub, Lake Access, Bbq, with Hot Tub properties earning approximately 43% more ($56K/year vs $39K/year).

Monthly estimated revenue per listing in Rochester over the last 12 months: May: $1K, June: $2K, July: $2K, August: $2K, September: $1K, October: $2K, November: $1K, December: $1K, January: $935, February: $853, March: $1K, April: $1K. These figures are based on RevPAR (revenue per available room) multiplied by the number of days in each month.

The overall average nightly rate in Rochester is $187, up 28% year-over-year. By property size: 1-bedroom properties average $126/night, 2-bedroom properties average $162/night, 3-bedroom properties average $210/night, 4+ bedroom properties average $302/night. Rates peak in July and are lowest in February.

Guests in Rochester book an average of 32 days in advance, down 15% from last year. By property size: 1-bedroom: 29 days, 2-bedroom: 32 days, 3-bedroom: 33 days, 4+ bedroom: 35 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Rochester Airbnb and VRBO market has seen the following changes: supply declined 12%, revenue per listing decreased 28%, occupancy fell 15%, average nightly rates increased 28%, and lead time decreased 15%. These metrics reveal a shift toward higher-priced bookings occurring closer to arrival, reflecting a more cautious booking environment.

In Rochester, Friday sees the highest booking demand while Monday has the lowest. Nightly rates peak on Saturday and are lowest on Tuesday. Weekends show 31% higher occupancy than weekdays.