STR Study Recommendations for Duluth, MN, Released

8/18/2026

Duluth, Minnesota, city staff have completed a yearlong study of short-term rental regulations and recommended changes as the city’s moratorium approaches its October 2026 expiration. The proposals aim to prevent the loss of single-family housing, reduce rental concentrations in neighborhoods, and strengthen enforcement against illegal operations. Rather than maintaining a numerical cap on STRs, officials recommend regulating where and how they can operate. Existing single-family homes could not be converted into STRs, although owner-occupied homes could offer homesharing, and homeowners could operate rentals in accessory dwelling units if they live in the main residence. New developments would be permitted to include STRs in no more than 10% of units. Staff also want clearer distinctions between STRs, hotels, motels, and bed-and-breakfasts, along with additional technology and resources to identify illegal rentals. The City Council will review the recommendations and consider regulatory changes before the moratorium expires.

Why it matters: Duluth’s recommendations would replace a numerical cap with significant restrictions on where new STRs can operate. The proposal could materially limit future inventory while offering a regulatory model other cities may consider as they address housing concerns.

WDIO-TV (MN) (08/12/2026)