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.
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Prince's famous former home Paisley Park is to become a permanent museum.