A judge has upheld a city ordinance in Winona, Minn., that prevented some homeowners from renting out their properties.
Since 2005, Winona has set a 30 percent cap on the number of rental houses allowed on each block.
Several homeowners sued, claiming the policy was unconstitutional, but a Winona County judge ruled on Friday that the city has a legitimate interest in "preserving the 'character' of neighborhoods" dominated by owner-occupied properties.
The homeowners plan to appeal, said attorney Anthony Sanders, because the ordinance violates their property rights.
"You can do three things with property. You can live in it. You can sell it. And you can rent it," he said. "And this takes one of those fundamental pillars of property rights and denies it to our clients."
Winona's rental ordinance was the first of its kind in the state, and possibly the country, but several Minnesota cities have since adopted similar restrictions, Sanders said.