Minneapolis vs Nashville

Minnesota Legal with Permit | Tennessee Legal but Limited

Disclaimer: General information only — not legal advice. Verify with your local government.

Minneapolis, Minnesota
Status Legal with Permit
Permit Fee $64 short-term rental registration fee
Tax Rate 6.875% state sales tax + up to 3% Minneapolis entertainment tax (~10% combined)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine Up to $2,000 per violation; license revocation for repeated offenses
Nashville, Tennessee
Status Legal but Limited
Permit Fee $313 permit fee
Tax Rate 6% Short-Term Rental Property Tax + state/local sales tax
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $50/day for operating without permit; civil penalties up to $500,000 for repeated violations

Minneapolis has more favorable STR regulations overall.

Permits & Licensing

Minneapolis charges $64 short-term rental registration fee for STR licensing, while Nashville charges $313 permit fee. Minneapolis renewal is annual, and Nashville renewal is annual. Overall, Minneapolis has a more permissive regulatory environment (Legal with Permit) compared to Nashville (Legal but Limited).

Tax Obligations

In Minneapolis, hosts pay 6.875% state sales tax + up to 3% Minneapolis entertainment tax (~10% combined). In Nashville, hosts pay 6% Short-Term Rental Property Tax + state/local sales tax. Both cities benefit from automatic platform tax collection through Airbnb and similar services, simplifying compliance for hosts.

Day Limits & Restrictions

Neither city imposes an annual day limit on short-term rentals, giving hosts year-round flexibility.

Fines & Enforcement

Hosts operating without a permit in Minneapolis face penalties including Up to $2,000 per violation; license revocation for repeated offenses. In Nashville, violations can result in $50/day for operating without permit; civil penalties up to $500,000 for repeated violations. Both cities actively enforce their STR regulations, so securing proper licensing before listing is essential in either market.

Minneapolis Overview

Owners limited to one STR property plus their homesteaded residence; buildings with 20+ units capped at 10% STR units. $300,000 liability insurance and neighbor notification required.

Contact: Inspections Services Division — (612) 673-3000

Full Minneapolis guide →

Nashville Overview

Owner-occupied permits allowed in all zones. Non-owner-occupied permits frozen — no new applications accepted in most residential zones since 2015. Existing non-owner permits are non-transferable.

Contact: Nashville Codes Department — (615) 862-6590

Full Nashville guide →

Frequently Asked Questions

Is it easier to Airbnb in Minneapolis or Nashville?
Minneapolis is classified as "Legal with Permit" while Nashville is "Legal but Limited." Minneapolis's permit fee is $64 short-term rental registration fee compared to $313 permit fee in Nashville. Overall, Minneapolis has a more host-friendly regulatory environment.
Which city has higher STR taxes — Minneapolis or Nashville?
Minneapolis charges 6.875% state sales tax + up to 3% Minneapolis entertainment tax (~10% combined), while Nashville charges 6% Short-Term Rental Property Tax + state/local sales tax.
Which city has stricter fines for illegal short-term rentals?
Minneapolis: Up to $2,000 per violation; license revocation for repeated offenses. Nashville: $50/day for operating without permit; civil penalties up to $500,000 for repeated violations. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Minneapolis and Nashville have day limits for Airbnb?
Minneapolis has no annual day limit. Nashville has no annual day limit.
Which city is better for first-time Airbnb hosts — Minneapolis or Nashville?
For new hosts, consider the total cost of entry: Minneapolis charges $64 short-term rental registration fee for permits with 6.875% state sales tax + up to 3% Minneapolis entertainment tax (~10% combined) in taxes. Nashville charges $313 permit fee with 6% Short-Term Rental Property Tax + state/local sales tax. Automatic tax collection in Minneapolis and Nashville makes compliance easier for beginners.