Tofte

As of May 2026, Duluth, Grand Marais, Two Harbors have 1,037 active Airbnb and VRBO listings. This represents a 2% decrease from the previous year.

The average Airbnb or VRBO in Tofte generates $54K per year. High-performing properties earn $97K/year, while low-performing properties earn $27K/year. This wide earnings variance suggests that despite a 25% revenue decline, top-tier units maintain significant pricing power compared to the broader market average.

Average home prices in Tofte vary by property size: 1-bedroom properties cost approximately $227K, 2-bedroom homes average $185K, 3-bedroom properties are around $209K, and 4+ bedroom homes average $318K. These prices reflect median home values across the Duluth, Grand Marais, Two Harbors area.

Airbnb and VRBO can be profitable in Tofte, with an average gross yield of 21% across all properties. High-performing properties achieve yields up to 38%, which is considered top for short-term rental investment. These yield figures reflect a market where asset selection remains the primary driver of ROI amidst shrinking overall demand.

The average occupancy rate for Airbnbs and VRBOs in Tofte is 38%. This occupancy level, combined with an average nightly rate of $345, results in a RevPAR (revenue per available room) of $102 per day.

3-bedroom properties demonstrate the strongest performance in Tofte, with an average gross yield of 27% and annual revenue of $67K. These properties balance purchase price ($209K), operating costs, and rental demand most effectively in the Tofte market.

Short-term rental regulations vary by jurisdiction in the Tofte area. Duluth: Moderate. License required, safety inspections, zoning compliance. Some enforcement through complaints and inspections. Grand Marais: Lenient. Business license required, basic zoning rules. Minimal enforcement, many operate informally in tourist area. Two Harbors: Lenient. Business license needed, minimal regulations. Light enforcement, complaint-driven only in small tourism market. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Tofte Airbnb and VRBO market is currently showing balanced conditions. Supply has declined 2% year-over-year, while RevPAR has decreased 25%. This indicates balanced supply-demand dynamics, suggesting that the current revenue contraction is driven by lower consumer spending rather than an oversaturated inventory.

Launch around April, 2-3 months before peak summer season (July peaks). This pre-peak timing lets you build reviews when competition is 48% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (December-April) when gaining traction is harder.

The most common amenities in Tofte listings include: Kitchen (96%), Tv (74%), Heating (63%), Balcony (58%), Air Conditioning (51%). Amenities that boost revenue the most include Lake Access, Bbq, Washing Machine, with Lake Access properties earning approximately 45% more ($94K/year vs $65K/year).

Monthly estimated revenue per listing in Tofte over the last 12 months: May: $2K, June: $4K, July: $5K, August: $5K, September: $4K, October: $4K, November: $2K, December: $2K, January: $2K, February: $3K, March: $3K, 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 Tofte is $345, up 7% year-over-year. By property size: 1-bedroom properties average $235/night, 2-bedroom properties average $292/night, 3-bedroom properties average $419/night, 4+ bedroom properties average $600/night. Rates peak in August and are lowest in April.

Guests in Tofte book an average of 46 days in advance, down 17% from last year. By property size: 1-bedroom: 38 days, 2-bedroom: 44 days, 3-bedroom: 53 days, 4+ bedroom: 58 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Tofte Airbnb and VRBO market has seen the following changes: supply declined 2%, revenue per listing decreased 25%, occupancy fell 10%, average nightly rates increased 7%, and lead time decreased 17%. The combination of higher rates and shorter lead times points to a shift toward more impulsive, price-sensitive booking behavior.

In Tofte, Saturday sees the highest booking demand while Tuesday has the lowest. Nightly rates peak on Friday and are lowest on Tuesday. Weekends show 66% higher occupancy than weekdays.