Duluth Vacation Rental Cap Increases from 60 to 70 Units


DULUTH, Minn. — The city of Duluth will soon be allowing more vacation rental properties to pop up in neighborhoods, including short-term rental options while occupied by the homeowner.

“We are trying to make sure that the kind of regulations that we have function well in the community and most specifically in our single-family residential areas where you have vacation dwelling units, and you want to make sure they mesh well with their surroundings,” said Adam Fulton, the city’s Director of Planning & Economic Development.

The modified ordinance passed by the city council Monday night increases the vacation dwellings cap from 60 to 70 units, with up to 10 additional units every year until an ultimate cap of 120 units is reached down the road.

The ordinance also allows an unlimited number of homeowners to rent out bedrooms in their homes on a short-term basis for no more than 21 days a year, according to city officials.

“We will be announcing that we will have this new opportunity to submit your interests in becoming someone that’s on that list and we’ll do a drawing. So that people can throughout areas where there is a restriction and cap still in place people will be able to then apply and be on that list,” Fulton said.

The cost of a vacation dwelling license has also risen considerably from around $600 to $1,600.

Half of that price tag will go to the city’s new Housing Trust Fund, which is designed to help create new affordable housing in Duluth.

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