Eden Prairie Short-Term Rental Regulations

Sources verified 2026-07-22 – 2026-07-23
TL;DR
Eden Prairie requires Rental Housing License ($110) with no primary-residence requirement. Combined tax rate is 8.525%. No annual day limit.
Disclaimer
This information is provided for general informational purposes only and does not constitute legal, tax, or regulatory advice. Short-term rental regulations change frequently. Always verify current requirements with your local government before listing your property or making investment decisions.
Key Requirements at a Glance
Permit ✓ RequiredRental Housing License ($110)
Primary Residence ✗ Not required
Annual Day Limit No limit
Tax Rate 8.525%
Max Penalty Misdemeanor criminal charge; license suspension up to 120 days for repeat Disorderly Use Violations within 12 months of a prior suspension + revocation risk
Insurance Not required

New to short-term rentals? Jump to the compliance checklist →

Permit & Licensing

Rental Housing License

FeeAmount
Initial cost$110
Renewal$110 / 1 year

This permit type does not require primary residence.

Application Process

Submit the Rental Housing License Online Inquiry Form, then complete the application via the City's online licensing portal (instructions sent after inquiry form submission), then complete a pre-licensing inspection confirming compliance with City Code §9.11 and State Building and Fire Codes — an application may be rejected if the inspection is not completed. License is annual, expiring Jan. 31; renewal application must be filed at least 60 days before expiration.

Tax Obligations

TaxRateAuthority
Minnesota State Sales Tax 6.875% State of Minnesota
Hennepin County Sales Tax 0.15% Hennepin County
Hennepin County Transit Sales Tax 0.50% Hennepin County
Metro Area Transportation Sales Tax (7-county metro) 0.75% Metropolitan Council / Minnesota Dept. of Revenue
Metro Area Housing Sales Tax (7-county metro) 0.25% Metropolitan Council / Minnesota Dept. of Revenue

Combined rate: 8.525% of gross rental income.

Collection: The property owner must register as a retailer to collect, report, and remit sales/lodging tax on the full sales price unless an accommodations intermediary (e.g., Airbnb, Vrbo) facilitates all sales of lodging at the property, in which case the intermediary must register and collect/remit instead.

Rental Limits

Eden Prairie does not impose an annual cap on the number of nights you can rent.

Zoning & Restrictions

Insurance & Safety

Insurance

Eden Prairie does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Safety & Operating Requirements

Penalties for Non-Compliance

Market Snapshot

Demand context for Eden Prairie from official government and tourism statistics — the latest published annual figures, not a projection of rental income.

MetricValueSource
Population (2025 est.) 63,075 (-1.7% since 2020) U.S. Census Bureau

Figures are the latest annual statistics published by the linked official sources (retrieved 2026-07-13). Visitor counts cover the geography stated by each source, which can be wider than the city itself. Regulations above — not market conditions — determine whether and how you may operate.

Compliance Checklist

Follow these steps to legally operate a short-term rental in Eden Prairie:

  1. Meet safety requirements. Heating facilities capable of maintaining 68°F in each habitable space, supplied Sept. 15–May 15 (City Code §9.11 Subd. 6.A). Smoke alarms installed on each floor of residential buildings, maintained in operative condition at all times (§9.11 Subd. 9). Bathroom equipped with toilet, sink, and bathtub or shower in every dwelling unit (§9.11 Subd. 5.B). Operable window or exterior door approved for emergency escape or rescue in every sleeping space (§9.11 Subd. 8). Pre-licensing inspection confirming compliance with §9.11 and State Building and Fire Codes (§5.72 Subd. 4.D).
  2. Apply for Rental Housing License… Submit application + $110 fee.
  3. Register for tax accounts. Set up lodging tax accounts with Minnesota Department of Revenue.
  4. Collect and remit taxes. 8.525% on all bookings.
  5. Renew annually. $110 renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Eden Prairie?
Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Eden Prairie requires a Rental Housing License.
How much does a short-term rental permit cost in Eden Prairie?
A Rental Housing License in Eden Prairie costs $110 per year.
Does Eden Prairie require a short-term rental to be your primary residence?
No. Eden Prairie allows non-owner-occupied short-term rentals, so investment properties can qualify provided you hold the required permit.
How many days a year can you short-term rent in Eden Prairie?
Eden Prairie does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.
What taxes do you pay on a short-term rental in Eden Prairie?
Short-term rental stays in Eden Prairie are subject to a combined 8.525% in lodging taxes. This combines 6.875% Minnesota State Sales Tax + 0.15% Hennepin County Sales Tax + 0.50% Hennepin County Transit Sales Tax + 0.75% Metro Area Transportation Sales Tax (7-county metro) + 0.25% Metro Area Housing Sales Tax (7-county metro). Hosts are legally responsible; many booking platforms collect and remit them automatically on the host's behalf.

Official Sources

  1. Rental Housing Licensing and Inspections | City of Eden Prairie
  2. Section 5.72. - Licensing of Rental Housing | Code of Ordinances | Eden Prairie, MN | Municode Library
  3. Section 9.11. - Rental Housing | Code of Ordinances | Eden Prairie, MN | Municode Library
  4. Sales – Residential Short-Term Rentals | Minnesota Department of Revenue
  5. Special Local Taxes | Minnesota Department of Revenue
  6. Metro Counties Sales and Use Tax Rate Guide (Effective 7/1/2026-9/30/2026) | Minnesota Department of Revenue
  7. Eden Prairie City Code, Chapter 5 (Section 5.72, Licensing of Rental Housing)