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Albert Lea, MN rental property investing guide
The numbers, rules and risks behind rental investing in Albert Lea. Tell us what you're looking for and we'll look for an investor-focused agent who fits. Free for investors.
Tell us what you're looking forHow investors approach Albert Lea
Albert Lea is the hub of Freeborn County (about 30,000 people), where I-35 meets I-90, about 90 miles south of the Twin Cities. Homes are cheap by Minnesota standards: the typical value is about $200,000, up about 6% in a year. Typical rent is about $1,140, roughly 0.57% a month, which is far closer to working than the Twin Cities, though Zillow only started tracking rent here in March 2026. The tradeoff is a shrinking population and a thin market with few buyers, renters and contractors. Minnesota's landlord law is tenant-protective, and the city licenses and inspects rentals. Tell us what you're looking for in Albert Lea and we'll look for an investor-focused agent who fits your strategy.
The natural fit for a small, affordable market: typical home values around $200,000, with rents that make the math closer than in the Twin Cities.
Duplexes and small buildings spread one purchase price across several rents, which matters more when individual rents are modest.
Homes near Fountain Lake and Albert Lea Lake carry a premium. Possible as a seasonal rental, but demand is regional and summer-driven.
Is Albert Lea worth investing in? The long-term trends
People, jobs, rents and prices for the Albert Lea metro, straight from the Census Bureau, the Bureau of Labor Statistics and Zillow. Hover or tap a chart for exact values.
View data table
| Period | Value |
|---|---|
| 2020 | 30,899 |
| 2021 | 30,815 |
| 2022 | 30,696 |
| 2023 | 30,469 |
| 2024 | 30,430 |
| 2025 | 30,440 |
View data table
| Period | Value |
|---|---|
| 2011 | -145 |
| 2012 | -26 |
| 2013 | -169 |
| 2014 | -186 |
| 2015 | -167 |
| 2016 | -111 |
| 2017 | +146 |
| 2018 | -6 |
| 2019 | -147 |
| 2020 | +7 |
| 2021 | -33 |
| 2022 | -31 |
| 2023 | -107 |
| 2024 | +16 |
| 2025 | +102 |
View data table
| Period | Value |
|---|---|
| Dec 2012 | $85,778 |
| Dec 2013 | $88,312 |
| Dec 2014 | $89,399 |
| Dec 2015 | $96,025 |
| Dec 2016 | $103,185 |
| Dec 2017 | $110,304 |
| Dec 2018 | $117,479 |
| Dec 2019 | $126,571 |
| Dec 2020 | $138,166 |
| Dec 2021 | $157,555 |
| Dec 2022 | $170,184 |
| Dec 2023 | $179,965 |
| Dec 2024 | $185,460 |
| Dec 2025 | $191,964 |
| Sep 2026 | $197,426 |
Data retrieved October 16, 2026. Figures cover the Albert Lea metro area.
The numbers and rules that matter in Albert Lea
Zillow Home Value Index, Albert Lea area, Aug 2026. Up about 6% in a year.
Zillow Observed Rent Index, all home types, Aug 2026. The series only starts in March 2026.
Typical rent ÷ typical home value. Better than the Twin Cities, still under the 1% rule.
Census estimate for the Albert Lea micropolitan area, 2025. Down about 1.5% since 2020.
Minnesota landlord-tenant basics
Minnesota's landlord-tenant law is in Minn. Stat. ch. 504B, and it's more tenant-protective than most of the Midwest. The points investors ask about most:
- Nonpayment: since January 1, 2024, you must deliver a written notice with an itemized amount owed and give the tenant 14 days to pay or move before filing an eviction (§ 504B.321).
- Security deposit: return it with 1% simple annual interest, or give a written statement of deductions, within 21 days after the tenancy ends (§ 504B.178). Wrongful withholding costs the withheld amount plus an equal penalty.
- Late fees: only if the lease says so in writing, and never more than 8% of the overdue rent (§ 504B.177).
- Entry: a good-faith effort at 24 hours' notice, with a time window, and only between 8 a.m. and 8 p.m. unless the tenant agrees otherwise or there's an emergency (§ 504B.211).
- Rent control: Minnesota cities can regulate rent only with voter approval (§ 471.9996). Albert Lea has none.
- Rental license: Albert Lea licenses rental housing through its Inspection Department, and Albert Lea Fire Rescue inspects the units. Licenses must be posted and a copy given to tenants, and a license that lapses more than 30 days is cancelled.
Short-term rental rules in Albert Lea
We didn't find an Albert Lea ordinance written specifically for short-term rentals, such as caps or a ban. The city's rental licensing program does cover them:
- The city's rental license fee schedule includes a separate category for "air bed and breakfast" rentals, so expect to need a city license and inspection before hosting. Confirm with the Inspection Department.
- Stays under 30 days owe Minnesota sales tax plus any local lodging tax. Booking platforms that handle payment collect and remit it; if you take bookings directly, you collect it yourself.
- Demand is regional and seasonal, mostly summer lake visitors and travelers on I-35 and I-90. Underwrite an STR here conservatively.
- HOA rules and covenants can prohibit STRs, and properties outside city limits fall under Freeborn County or township rules.
Last reviewed October 15, 2026. General information, not legal or tax advice — rules and fees change, so confirm with the city, the statute, or your attorney before you rely on them. Sources: Zillow Research data (ZHVI, ZORI) — Albert Lea; Minn. Stat. § 504B.321 — Eviction complaint and 14-day notice; Minn. Stat. § 504B.178 — Security deposits; Minn. Stat. § 504B.177 — Late fees; Minn. Stat. § 504B.211 — Tenant's right to privacy (entry); Minn. Stat. § 471.9996 — Rent control; City of Albert Lea — Rental housing licensing program; City of Albert Lea — 2025 rental license fee schedule; Minnesota Department of Revenue — Short-term rentals.
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Questions investors ask about Albert Lea
How do I find an investor-friendly agent in Albert Lea?
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Tell us your strategy, budget and target area. We'll look for an investor-focused agent who works Albert Lea and fits what you're doing. It's free for investors. If you're open to the Twin Cities, we already work with vetted investor agents there.
Is Albert Lea a good market for cash-flowing rentals?
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It can be, for a careful buyer. Typical home values are about $200,000 and typical rent about $1,140, roughly 0.57% a month, much closer to working than the Twin Cities. But the population is shrinking slowly, rent data only goes back to March 2026, and a small market means longer vacancies and fewer buyers when you sell.
Do I need a rental license in Albert Lea?
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Yes. The city licenses rental housing through its Inspection Department, with inspections by Albert Lea Fire Rescue. Post the license and give tenants a copy, and renew on time: a license that lapses more than 30 days is cancelled.
Can I run an Airbnb in Albert Lea?
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We didn't find STR-specific caps or bans, but the city's rental licensing fee schedule includes an "air bed and breakfast" category, so plan on a city license and inspection. Stays under 30 days owe Minnesota sales tax. Demand is mostly seasonal lake and highway traffic.
Is Minnesota landlord-friendly?
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Less than most of the Midwest. Nonpayment evictions require a 14-day notice first, deposits are due back with interest within 21 days, late fees are capped at 8%, and entry needs a good-faith 24-hour notice.
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