Stillwater, MN STR Market Report for Independent Hosts

Thomas Garner
Aug 8
9 min read

Updated: 15 hours ago

The historic Stillwater Lift Bridge spanning the St. Croix River between Stillwater, Minnesota and Houlton, Wisconsin

A Historic River Town, Not a Twin Cities Suburb

Stillwater, Minnesota sits roughly 27 miles east of Minneapolis, a 32-to-35-minute drive that puts it closer to the Twin Cities than most satellite markets in this pilot are to their nearest metro. That proximity could easily make it read as a bedroom suburb. It isn't one. Stillwater sits directly on the St. Croix River, a federally designated National Scenic Riverway whose protected status limits shoreline commercial development and has preserved a genuinely historic, walkable downtown rather than letting it sprawl into strip malls. The city brands itself "the birthplace of Minnesota," a real claim rooted in its lumber-industry and territorial history, not marketing filler: Stillwater was the site of the 1848 convention that helped organize the Minnesota Territory.

The city itself runs a population of roughly 19,336, inside a Washington County of about 286,895 , a larger, more built-out town than most satellites ranked in this pilot's tier. That matters for how a host or investor should frame the opportunity here. This is a historic-river-town day-and-weekend-trip market, anchored by a genuinely distinct downtown and a fixed, scarce STR license pool, not a wilderness-scarcity play like a lake-cabin market three hours from the nearest city.

Downtown Stillwater carries more than 50 boutique shops and was rated one of Fodor's Top 10 Best Antiquing Towns in the United States , a national, sourced credential most competing Twin Cities-area content simply doesn't cite by name. Add a real local beverage-tourism layer (Lift Bridge Brewery and St. Croix Vineyards) and the annual Lumberjack Days festival, and Stillwater has more named, bookable demand anchors than most towns its size.

The Numbers: AirDNA, AirROI, and a Revenue Figure to Treat Carefully

AirDNA cites 54 active short-term rental listings in the Stillwater market, a named-town occupancy pins as of 2026-07-31 rate, and a $413 average daily rate. A separately reported figure of " monthly revenue" is also circulating for this market, and it should not be used as-is: at a $413 ADR and named-town occupancy pins as of 2026-07-31, monthly revenue works out closer to roughly (413 × 0.46 × 30), meaning does not hold up as a monthly number. It almost certainly represents a mislabeled annual figure, and any host or investor citing it should re-verify and correct the Keep before using it in underwriting.

AirROI's tier-level pricing data tells a more useful story for positioning: top-10% listings in the Stillwater market command $618 or more per night, against a $317-per-night median. That is a real, sourced spread, not a marketing estimate, and it says plainly that a differentiated, well-marketed listing in this market has genuine room to outperform the middle of the pack. A generic listing competing at the median leaves a meaningful amount of achievable rate on the table.

Ordinance 1093 and a 50-License Cap That May Be Down to 1

The single most important current fact about the Stillwater STR market is regulatory. Before 2017, short-term rentals were not permitted in the city at all. Ordinance 1093, passed that year, legalized STRs in Stillwater under a license system for the first time , and it capped total licenses at 50 outside the Central Business District. One source reports that as of its snapshot, only 1 license remained unclaimed outside downtown. That specific count is exactly the kind of number that goes stale fast: the currency of "1 remaining" is unclear from this research and should be re-verified directly with the City of Stillwater before anyone relies on it to make a buying or licensing decision.

What isn't in question is the shape of the constraint itself: a hard, numeric cap, passed nearly a decade ago, sitting at or near exhaustion. That is a materially different regulatory story than most markets in this pilot, where the risk is usually that a city might tighten rules in the future. In Stillwater, the tightening already happened, years ago, and the cap has had years to fill. A licensed Stillwater property isn't just compliant , depending on how close the cap truly is to full, it may be sitting on inventory the city effectively cannot reproduce for new entrants.

The Operating Rules That Come With a License

Two rules apply on top of the license itself, and both are specific enough to matter for how a host actually runs the property, not just whether they can get licensed. Guest events and parties are banned outright , this is not a noise-complaint-triggered rule but a standing condition of the license. And all guest parking must be on-site, which is a real design constraint in a dense, historic downtown where street parking is limited and contested with the district's retail and restaurant traffic. Any buyer evaluating a Stillwater property should confirm the lot or driveway can genuinely accommodate the guest count being marketed, not assume street parking will absorb the overflow.

Stillwater's geography reinforces the cap rather than working against it. Because the city sits on a federally protected National Scenic Riverway, shoreline commercial development is already limited independent of the STR ordinance. That is a structural reason to expect the city has little appetite to loosen the 50-license cap even if demand continues to hold , the same protected-river identity that makes Stillwater marketable is also what keeps new STR supply from expanding to meet that demand.

A Fragmented, Independent-Host Market

This research found no confirmed dominant property-management brand operating in Stillwater. The market reads as likely fragmented and independent, consistent with its boutique-inn character , but that conclusion is an absence of evidence rather than a confirmed absence, and it's worth stating that distinction plainly rather than overclaiming it. For a host evaluating whether to self-manage or bring in professional help, the practical takeaway is the same either way: there isn't an entrenched national brand with pricing-power advantages a small operator has to out-market. The field is genuinely open to whoever positions and prices their listing best.

The Demand Anchors: Antiquing, Breweries, and a Festival Named for a Timber Legend

Stillwater's differentiation case rests on naming its demand anchors specifically rather than describing the town generically. The antiquing district alone is a national credential: more than 50 boutique shops earned the town a spot on Fodor's Top 10 Best Antiquing Towns in the U.S. list, a browsing-and-shopping draw that pulls a slower-paced, higher-dwell-time traveler distinct from a typical day-tripper. Lift Bridge Brewery and St. Croix Vineyards add a real beverage-tourism layer that gives a listing near either venue a specific, bookable reason to lead with proximity in its copy rather than generic "charming downtown" language.

Lumberjack Days, revived in recent years under the Stillwater Log Jam name, anchors the calendar with log racing and chainsaw wood carving that trace directly back to the town's lumber-baron history , a rare case of a festival that isn't just entertainment but a direct extension of the "birthplace of Minnesota" origin story the whole market is built on. Together, these anchors give Stillwater a broader, more repeatable draw than a single-attraction market: a host isn't dependent on one event weekend to carry the calendar.

A Genuine Second Season: What Winter Actually Looks Like Here

It would be easy to assume Stillwater follows a typical lake-market pattern , a strong summer peak, a hard winter dead zone. That assumption doesn't hold up against Stillwater's own event calendar. The city hosts the World Snow Sculpting Championships in mid-January, drawing international teams to turn snow into competitive art over roughly a two-week run, and follows it in mid-to-late February with Stillwater Winterfest, a multi-day, community-wide celebration with its own lineup of events. Add a free public ice-skating rink on the riverfront, organized ice fishing on the frozen St. Croix, a fat bike rally, and a broomball tournament, and winter in Stillwater reads as a genuine second season with named, dateable draws , not the ice-fishing-and-snowmobile default assumed for a generic Midwest lake town, and not dead time either. A host marketing a Stillwater listing in January and February has real, specific events to build positioning around, not just a discount.

A Research Note: This Is Stillwater, Minnesota , Not Stillwater, Oklahoma

Worth flagging directly for anyone else researching this market: Stillwater is also the name of a city in Oklahoma, home to Oklahoma State University, and a meaningful share of generic web search results for "Stillwater" surface that unrelated city rather than this one. It's a real, easy-to-fall-into research trap , market data, event listings, and even population figures for the wrong Stillwater can end up mixed into an underwriting file if a researcher isn't careful to filter for "Stillwater, Minnesota" or "Stillwater, MN" specifically. Every figure in this report was verified against Minnesota-specific sources for that reason.

Who This Market Is Built For

Stillwater rewards a host who can tell a specific story: proximity to the antiquing district for the history-and-shopping traveler, proximity to Lift Bridge Brewery or St. Croix Vineyards for the beverage-tourism guest, and the easy Minneapolis drive time for the Twin Cities day-tripper or weekender comparing Stillwater against other close-in options. It is not a market built on wilderness scarcity or a single trophy attraction , it's built on a dense cluster of genuine, nameable reasons to visit, compounded by a regulatory scarcity story most competing content doesn't cover with this level of specificity. For a buyer who can secure one of the last available licenses, or an existing owner sitting on one already, that combination of fixed supply and broad, repeatable demand is the real investment case.

For comparison, Brainerd Lakes , the region's other major satellite market covered in this pilot , runs on a larger, more sprawling lake-cabin identity with a different demand pattern entirely. Stillwater's case is narrower and more concentrated: a historic downtown, a protected river, and a hard cap on how many listings can ever compete for that demand.

Frequently Asked Questions

Is Stillwater, Minnesota still a good place to buy a short-term rental in 2026?

It's a market defined by scarcity more than growth. Ordinance 1093 caps STR licenses at 50 outside the Central Business District, with one source reporting as few as 1 remaining at the time of that snapshot - verify the current count directly with the city before relying on it. Combined with a protected National Scenic Riverway that limits new commercial shoreline development, a licensed Stillwater property sits on genuinely scarce, hard-to-reproduce inventory against broad, multi-anchor demand.

How many short-term rental licenses does Stillwater, Minnesota allow?

Ordinance 1093, adopted in 2017, caps STR licenses at 50 outside the city's Central Business District. One source reported only 1 license remaining unclaimed at the time of its snapshot, but that count's currency is unclear and should be re-verified directly with the City of Stillwater before it factors into any buying or licensing decision.

What is the average daily rate for a Stillwater, MN Airbnb?

AirDNA reports a $413 average daily rate across 54 active listings as of its most recent pull. AirROI's tier data shows a wider spread within that: top-10 percent listings command $618 or more per night against a $317-per-night median, indicating real upside for a well-positioned, professionally marketed listing.

What operating rules apply to a licensed Stillwater short-term rental?

Two rules apply on top of the license itself: guest events and parties are banned outright, and all guest parking must be on-site. In a dense historic downtown with limited street parking, a host should confirm their property's lot or driveway genuinely accommodates the guest count being marketed, not assume overflow street parking will cover it.

Does Stillwater, Minnesota have a dominant property management company?

This research found no confirmed dominant PM brand operating in Stillwater. The market reads as likely fragmented and independent, consistent with its boutique-inn character, though that conclusion is an absence of evidence rather than a confirmed absence - worth a direct check before treating it as settled.

Is Stillwater, Minnesota only a summer tourism market?

No. Summer is the strongest season, built around the river, the antiquing district, and Lumberjack Days, but winter carries genuine, named demand of its own: the World Snow Sculpting Championships in mid-January, a roughly two-week international competitive event, and Stillwater Winterfest in late February, plus riverfront ice skating and organized ice fishing.

Is Stillwater, Minnesota the same as Stillwater, Oklahoma?

No, and it's a genuinely easy mix-up. Stillwater, Oklahoma is home to Oklahoma State University and is unrelated to Stillwater, Minnesota, the historic river town on the St. Croix covered in this report. Anyone researching this market should specifically filter for 'Stillwater, MN' to avoid pulling in Oklahoma data.

How far is Stillwater, Minnesota from Minneapolis?

Roughly 27 miles east of Minneapolis, about a 32-to-35-minute drive - close enough to draw genuine single-night and weekend day-tripper demand from the Twin Cities metro, while still functioning as a self-contained destination rather than a bedroom suburb.

Why is new short-term rental supply limited in Stillwater?

Two structural constraints work together: Ordinance 1093's 50-license citywide cap outside the Central Business District, and the St. Croix's status as a federally protected National Scenic Riverway, which limits new commercial shoreline development. That combination means the licensed inventory that exists today is genuinely hard to reproduce, not just currently underbuilt.

Work with Crest & Cove Creative

Stillwater's STR license cap under Ordinance 1093 makes this a scarcity market, not a growth story, and listing copy that promises easy expansion misreads what's actually happening here.

We help Stillwater hosts write copy around the town's antiquing-district identity and license scarcity instead of a generic Twin Cities suburb pitch. Bring your listing to crestcove.co or call (256) 998-7502.

Reach out at crestcove.co or (256) 998-7502.