Federal Court Upholds Minnesota Cities’ STR Restrictions

9/1/2026

A federal court in Minnesota has upheld short-term rental restrictions in Bloomington and Apple Valley, ruling that ordinances requiring residential rentals to last at least 30 days do not violate property owners’ constitutional rights. Property owner Constance Toupin argued the restrictions violated the Fifth Amendment Takings Clause because they prevented her from operating higher-paying STRs through platforms. She had invested more than $35,000 in one property and $45,000 in another. US District Judge Patrick Schiltz rejected her claims, finding that the regulations did not physically take or eliminate the economic value of her properties. Toupin can still occupy, sell, improve, or lease the homes for 30 days or longer. The court also ruled that reduced rental income does not by itself constitute a compensable regulatory taking under the Penn Central framework. The decision emphasized that STRs were already restricted when Toupin made her investments, weakening her expectation that regulations would change.

Minnesota Lawyer (08/27/27) Laura Brown

Why It Matters: The ruling strengthens local governments’ legal footing to impose minimum-stay requirements and other STR restrictions without triggering a constitutional taking.

Read More — May Require Paid Subscription