The house and recording studio complex, where the pop star died in April, will open to the public after Chanhassen City Council in Minnesota approved plans to change its status.
Mayor Denny Laufenburger told The Star Tribune newspaper it would be a "big benefit for the community".
But local resident Shelia Claytor, one of 30 people to attend Monday's meeting, said it was "a rush job".
Paisley Park opened to the public for three days earlier this month as part of a temporary agreement with the city.
The museum's website said tours would begin again on Friday and bookings are being taken until December.
Tour dates for 2017 are expected to go on sale next month.
"Prince's museum is going to outlive us all," said Joel Weinshanker of Graceland Holdings, which is overseeing the museum.
The museum, which displays Prince's guitars, the Purple Rain motorcycle and his ashes in a decorative urn, is expected to attract 600,000 people a year.
Follow us on Twitter @BBCNewsEnts, on Instagram, or if you have a story suggestion email entertainment.news@bbc.co.uk.

Sussex could have taken third place had they won at Hampshire, but rain forced their match to be abandoned.
Somerset's fixture at Middlesex was also called off, meaning Somerset finish second in the South Group.
Essex finished top of the group after beating Kent by 57 runs on the Duckworth-Lewis method at Canterbury.
They are joined by North Group winners Worcestershire in going straight through to the semi-finals.
Somerset will host Nottinghamshire in the quarter-final on 13 June with the winner to face Essex at Chelmsford three days later.
Yorkshire play Surrey at Headingley in the other quarter-final, also on 13 June. The winner travels to Worcestershire on 17 June.
At Canterbury on Wednesday, Varun Chopra scored 83 from 98 deliveries, while England Test opener Alastair Cook made 54 as the visitors reached 307-6 from their 50 overs.
Kent lost three early wickets before rain caused play to be stopped after 11 overs had been bowled, with the hosts on 50-3 - well short of their adjusted target.
Surrey captain Gareth Batty told BBC Radio London:
"It was 100% the right decision [to call the game off], the water's coming over your shoes out there.
"There's nothing you can do, you just move on to the next game."

The National Enquirer and RadarOnline reported a 35-minute recording, apparently of the actor, making threats about former porn star Scottine Ross.
Ms Ross has taken legal action against Sheen, claiming he physically abused her and had sex with her without disclosing his HIV positive status.
Sheen has not commented on the reports.
Earlier this week, police officers served a search warrant on the New York headquarters of American Media Inc, the parent company of both RadarOnline and the Enquirer.
According to the warrant, the Los Angeles police investigation was triggered when Ms Ross made a complaint on 31 March saying she feared for her life after reading the reports.
On Thursday, the publications - neither of which have published the audio alleged to contain the star saying he would like to see a former fiancee "have her head kicked in" - refused to hand over the material to police.
Dylan Howard, the Enquirer's editor-in-chief and editorial director of RadarOnline, told Reuters the outlets had no plans to turn over documents or identify their sources.
He said the search warrant, signed by an LA County Superior Court judge, was illegal under both state and federal law preventing the use of such warrants against media organisations relating to "newsworthy" information.
He said: "We do believe that a judge did issue this order against the law, and that's why we will not be complying with its order."
In a televised interview in November 2015, Sheen said he had been diagnosed with HIV four years earlier.
The former star of Two and Half Men and films including Wall Street and Platoon admitted his history of drink and drug abuse was a "bad decision" but said it was "impossible" he would have passed HIV on to anyone else.
In December, Ms Ross - who was engaged to Sheen in 2014 before the relationship was broken off - filed a legal action against him accusing him of "physical, psychological and emotional abuse".
Prince's famous former home Paisley Park is to become a permanent museum.
[NEXT_CONCEPT]
Surrey qualified for the One-Day Cup knockout stages despite rain causing their game at Gloucestershire to be called off without a ball being bowled.
[NEXT_CONCEPT]
Actor Charlie Sheen is facing a police investigation over claims he made threats against an ex-girlfriend, who is suing him for assault and battery.