Bulletin - Duluth, MN News Today
Council vote replaces a one-year moratorium with a permanent bar on converting houses into full-time short-term rentals while room rentals in occupied homes continue
Duluth Ends New Whole-Home Vacation Rental Licenses for Single-Family Houses
Council vote replaces a one-year moratorium with a permanent bar on converting houses into full-time short-term rentals while room rentals in occupied homes continue
Photo by Andrew Ling on Unsplash
The Duluth City Council voted unanimously on September 14, 2026 to adopt Ordinance 26-038-O which bars the conversion of existing single-family homes into short-term rentals and moves all licensing under the fire department's Life Safety Division. The ordinance takes effect 30 days after passage and publication and puts the new rules in force in mid-October ahead of the one-year moratorium the council imposed in November 2025.
Homeowners who live on site can still rent rooms but operators holding whole-home permits in single-family houses now run on a clock tied to the expiry of those permits.
What the ordinance changes
Ordinance 26-038-O rewrites Chapters 29 and 29A of the city code so that every short-term rental passes through a single licensing entry point at the Life Safety Division instead of the planning department's interim use permit process. Permits last three years and every owner must complete a city-approved education course before applying while bedrooms capped at five and guests at ten.
Two categories stay open to new applicants:
New residential developments may set aside up to 10% of units for short-term rental with a hard ceiling of five per project. A companion zoning amendment, Ordinance 26-040-O, strips vacation dwelling units and accessory home shares out of the zoning code entirely.
Duluth's UDC Lodging & Short-Term Rental Zoning Amendments
Proposed amendments to Duluth’s Unified Development Chapter restructure lodging categories, remove vacation dwelling unit classifications, establish accessory home-share standards, and strengthen enforcement provisions for short-term rentals.
Duluth planning staff’s September 8 memorandum outlines proposed zoning reforms that consolidate lodging categories, remove short-term rentals from lodging classifications, and establish new standards for small and large commercial lodging operations. | Source: https://duluth-mn.legistar.com/
Who is affected
Single-family homes that held an interim use permit or an operational permit on November 10, 2025 may keep operating until the latest expiration of those permits provided nothing about the nonconforming use changes or expands and interim use permits already end on a sale.
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Council President Lynn Marie Nephew told the meeting that "nobody is going to lose their license if they are in" compliance, and Councilmember Arik Forsman pressed staff on "the folks who did play by the rules, who are currently licensed". Roughly 200 vacation rentals hold licenses and the council estimates that between 400 and 800 short-term rentals in Duluth operate illegally.
Enforcement and timeline
The ordinance hands inspectors a rebuttable presumption of violation whenever a dwelling is advertised in any medium for stays under 30 days. Violations are misdemeanors and each day counts as a separate offense. License fees will be set by council resolution and waived until January 1, 2027, and the staff memo flags higher fees later to fund enforcement.
Duluth's Short-Term Rental Regulations & Applications
Duluth’s official short-term rental portal explains rental types, eligibility and occupancy rules, permitting requirements, inspections, and application resources for property owners.
Ella Schoeberl
Nephew conceded "I do think there's holes in this" and Mayor Roger Reinert has said he will lobby the legislature to end a state tax exemption for rentals with 30 or fewer units.
⦾ Effective date: 30 days after passage and publication of the September 14, 2026 vote (mid-October 2026)
⦾ New whole-home rentals in existing single-family houses: Prohibited
⦾ Existing single-family permits (held on Nov 10, 2025): May continue until the permit expires or ownership changes, with no expansion
⦾ Still permitted: Owner-occupied homes with up to 5 guest rooms and a caretaker; detached owner-occupied ADUs up to 800 sq ft; up to 10% of units in new developments (max 5 per project)
⦾ Licensing authority: Life Safety Division; 3-year permits; education course required
⦾ Occupancy: Max 5 bedrooms, max 10 guests
⦾ Fees: Set by resolution; no short-term rental license fee before January 1, 2027
⦾ Penalties: Misdemeanor; each day a separate violation; advertising under 30 days creates a presumption of violation
⦾ Platform responsibility: None stated
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