St. Paul's busiest nightly week is not in the summer tourist season most people imagine. It is the twelve days of the Minnesota State Fair, held at the fairgrounds in Falcon Heights right on the city's edge, when rooms across Como, St. Anthony Park and Hamline-Midway book out months ahead.
In short: LendingStreet finances St. Paul short-term rentals with DSCR loans that can qualify on projected short-term rental revenue on some programs, rather than a long-term lease. Loans start at $150,000, purchases go up to 80% LTV and LLC borrowers are standard. St. Paul licenses short-term rental hosts and its rules depend on zoning and building type, so confirm the address can legally operate as a nightly rental before you count that income.
St. Paul regulates short-term rentals through a city license for hosts, along with zoning and life-safety requirements, and nightly stays are subject to state sales tax and local lodging taxes. Whether a non-owner-occupied house or unit can be licensed depends on the zoning district and the type of building, and the rules have been revised since they were first adopted.
Before you buy, contact the city's Department of Safety and Inspections, confirm whether the specific address can be licensed for an investor-owned nightly rental, and ask what inspections are required. Condos and townhomes add another layer, since many associations prohibit rentals shorter than 30 days or cap the number of rented units. Neighboring cities such as Roseville, Maplewood and West St. Paul each have their own ordinances.
If the city's rules do not fit your plan at a given address, the east metro and greater Minnesota offer other options covered below.
Beyond the State Fair, St. Paul's calendar includes the Saint Paul Winter Carnival in late January and early February, Wild games and concerts at Xcel Energy Center, Minnesota United matches at Allianz Field in the Midway, and Saints baseball at CHS Field in Lowertown. The Twin Cities Marathon finishes near the State Capitol each fall.
Weekday and mid-term demand comes from Regions Hospital, United Hospital, the Capitol complex, and families visiting the University of St. Thomas, Macalester, Hamline and St. Catherine University. Furnished stays of a month or more for traveling nurses and relocating professionals can smooth out a winter calendar.
Interest concentrates where guests can walk to something. Cathedral Hill and Summit Hill offer Victorian homes near Selby Avenue and Grand Avenue. Highland Park and Mac-Groveland are close to the river and the colleges. Lowertown and downtown condos are near the Xcel Center and CHS Field, but building bylaws often rule out short stays. Como and St. Anthony Park are closest to the fairgrounds.
Each neighborhood has a different mix of zoning, housing type and guest profile, which changes both the rules and the revenue projection.
| Area | Guest draw | Typical property | Main check |
|---|---|---|---|
| Como / St. Anthony Park | State Fair, Como Park Zoo | Bungalows, duplexes | City license and zoning |
| Cathedral Hill / Summit Hill | Grand and Selby, Cathedral | Victorians, duplexes | Historic district, license |
| Highland Park / Mac-Groveland | River, colleges | Single-families, duplexes | License, student overlay rules |
| Lowertown / Downtown | Xcel Center, CHS Field | Condos and lofts | Condo bylaws on short stays |
| Stillwater | St. Croix River, historic downtown | Older homes, cottages | Separate city ordinance |
This example is illustrative and not a quote. An investor buys a four-bedroom home near Como Park for $435,000, after confirming the address can be licensed. A third-party projection shows about $47,000 a year in gross revenue, with a large share in late August. The example qualifies on a more conservative $3,500 a month.
At 75% LTV the loan is $326,250. Estimated principal and interest on a 30-year term is about $2,226 a month. Property taxes are budgeted at $520 and STR insurance at $170, for a total payment of about $2,916. DSCR is about 1.20x. A projection that leaned too heavily on the Fair would overstate the year, which is why the example uses a lower figure.
| Item | Monthly amount |
|---|---|
| Purchase price | $435,000 |
| Loan at 75% LTV | $326,250 |
| Estimated principal and interest | $2,226 |
| Property taxes | $520 |
| STR insurance | $170 |
| Total payment | $2,916 |
| Qualifying STR income | $3,500 |
| DSCR | About 1.20x |
January and February bring the Winter Carnival, but outside event weekends, nightly demand drops while heating bills, snow removal and ice-dam risk rise. St. Paul expects property owners to clear sidewalks promptly after snowfall, and an STR host has to arrange that for every storm.
A full-year projection captures these swings better than a summer snapshot. If the numbers are tight, consider a lower loan amount, a property with more bedrooms, or a mid-term furnished strategy for the winter months.
Minnesota classifies property by use. An investor-owned home does not receive the homestead classification, so it is taxed at a higher share of value than the same house owned by an occupant. If you underwrite using the seller's homestead bill, your payment will be understated.
Ask Ramsey County for the estimated non-homestead tax on the property, and include any special assessments for street or utility work, which are common in St. Paul.
Many Twin Cities investors run their nightly rentals outside the city. Stillwater and the St. Croix River valley are a short drive east. The Brainerd Lakes area, including Nisswa and Crosslake, and the North Shore of Lake Superior from Duluth to Grand Marais are Minnesota's big summer markets. Many lake-country counties and towns require their own STR permits, and some limit the number issued.
Rural lake homes can have wells, septic systems and few comparable sales, which affects valuation. The Minnesota STR page covers these markets in more depth.
Have these items ready when you request terms.
Our investor loans are business-purpose loans on non-owner-occupied property. We look at the projection, the event-driven seasonality and the property's long-term rent, then size the loan to work in an average month, not the State Fair. Use the form below or call (877) 298-1001.
St. Paul licenses short-term rental hosts, and whether an investor-owned property qualifies depends on zoning and building type. Confirm with the city before you buy.
On some programs, yes. A third-party revenue projection can replace a long-term lease. Projections that do not lean too heavily on the State Fair hold up best.
Very important for homes near the fairgrounds, but it lasts about twelve days. A sound plan works across the full year.
Investor-owned homes are classified as non-homestead and taxed at a higher share of value. Use a non-homestead estimate, plus any special assessments.
Yes, if it is non-owner-occupied and local rules allow nightly rentals. Wells, septic and limited comparables are part of the review.
Many association bylaws prohibit stays shorter than 30 days. Read the bylaws and rules before making an offer.
Yes. Booking history can support the income, and cash-out goes up to 75% LTV. Seasoning varies by program.
No. Our loans are business-purpose loans on non-owner-occupied investment property, not second homes.
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