Is Arlington, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Arlington, Wisconsin, begin by researching local zoning laws and regulations through Columbia County's planning department, as Arlington typically falls under county jurisdiction for short-term rental regulations, which may require special permits or conditional use permits for properties not zoned for commercial use. Contact the Arlington village clerk at (608) 635-4806 to verify specific municipal requirements, obtain necessary business licenses, and ensure compliance with fire safety codes and building inspections. Find a suitable property by searching local real estate listings through agents familiar with Columbia County, focusing on homes near Lake Wisconsin or downtown Arlington that offer attractive amenities for tourists visiting the area's recreational attractions. Furnish the property with quality furniture, linens, and essential amenities including Wi-Fi, kitchen supplies, and local guidebooks highlighting nearby attractions like Devil's Lake State Park and Wisconsin Dells. Create your Airbnb listing with professional photos showcasing the property's proximity to outdoor activities and small-town charm, setting competitive rates based on similar properties in the Wisconsin Dells area (typically $80-150 per night). Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges or installing smart locks, maintaining the property regularly, and ensuring compliance with Wisconsin's short-term rental tax requirements by registering with the Department of Revenue and collecting applicable state and local taxes, while also considering liability insurance coverage specifically for short-term rentals.

To identify profitable short-term rental properties in Arlington, Wisconsin, focus on properties within 2-3 miles of Lake Mendota and nearby recreational areas, as proximity to water activities drives higher occupancy rates year-round. Target 2-4 bedroom single-family homes or condos built after 1990 with modern amenities, full kitchens, outdoor spaces, and parking, as these features command 15-20% higher nightly rates averaging $120-180 in the Arlington market. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where monthly STR revenue exceeds long-term rental income by at least 40%, typically requiring purchase prices under $300,000 to maintain profitable cash flow. Research competition within a 5-mile radius using Airbnb and VRBO searches to ensure no more than 3-4 similar properties exist, while analyzing their occupancy rates, pricing strategies, and guest reviews to identify market gaps. Utilize Zillow, Realtor.com, and local MLS data through Madison-area realtors familiar with Dane County regulations, while leveraging STR-specific tools like Rabbu and AllTheRooms for market analysis, and consult with Arlington's planning department regarding zoning restrictions and permit requirements that may limit STR operations in certain residential areas.

To obtain an Airbnb/STR permit in Arlington, Wisconsin, contact the Arlington Town Clerk's office at the Town Hall located at 106 North Main Street or call (608) 635-2573 to begin the application process. You'll need to submit a completed short-term rental permit application form, provide proof of property ownership or lease agreement, submit a floor plan of the rental unit, obtain liability insurance coverage of at least $1 million naming the Town of Arlington as additional insured, pass a safety inspection conducted by the local fire department, and provide contact information for a local property manager if you live more than 50 miles away. Required documents include a copy of your driver's license, property tax records, septic system compliance certificate if applicable, and parking plan showing adequate off-street parking for guests. The application fee is approximately $200 with an annual renewal fee of $100, and safety inspections cost an additional $75. The timeline typically takes 4-6 weeks from submission to approval, provided all requirements are met and inspections pass. Arlington requires STR properties to maintain quiet hours from 10 PM to 7 AM, limit occupancy to 2 people per bedroom plus 2 additional guests, provide adequate waste disposal arrangements, and display the permit number in all advertising. Properties must also comply with Wisconsin Department of Health Services regulations for tourist rooming houses and collect applicable state and local taxes.

Short-term rentals (STRs) are legal in Arlington, Wisconsin, but operate under specific regulations established by the town. Arlington allows STRs in residential areas with requirements including obtaining a conditional use permit, maintaining liability insurance, providing adequate parking, and ensuring compliance with health and safety codes. The town prohibits STRs in certain zoning districts and limits the number of guests and vehicles per property. Recent changes around 2019-2020 included stricter noise ordinances and enhanced inspection requirements following complaints from residents about party houses and parking issues. Property owners must register their STRs annually, pay applicable fees, and maintain a local contact person available 24/7 for any issues. The regulations also require STRs to meet all building codes and fire safety requirements, with periodic inspections conducted by town officials to ensure compliance with occupancy limits and safety standards.

Arlington, Wisconsin offers limited but focused Airbnb investment opportunities primarily centered around the downtown historic district near Highway 51, which attracts visitors exploring the Wisconsin River corridor and serves as a convenient stopover for travelers between Madison and Wisconsin Dells. The area around Lake Mason provides seasonal rental potential for fishing enthusiasts and water recreation visitors, particularly during summer months from May through September. Properties near the Columbia County Fairgrounds can capitalize on annual fair events and agricultural gatherings that draw regional visitors. The residential neighborhoods along Portage Street offer affordable investment options with proximity to local amenities while maintaining easy access to Interstate 39, making them attractive for business travelers and weekend visitors exploring rural Wisconsin attractions, though overall demand remains modest due to Arlington's small size and limited major tourist draws compared to larger Wisconsin destinations.

Arlington, Wisconsin does not impose specific lodging or occupancy taxes on Airbnb rentals as it is a small unincorporated community in Columbia County. However, Airbnb hosts in Arlington are subject to Wisconsin state sales tax of 5% on short-term rental income, which must be collected from guests and remitted to the Wisconsin Department of Revenue through monthly or quarterly returns depending on volume. Columbia County does not currently impose a county-level room tax, though some municipalities within the county may have local room taxes ranging from 3-8%. Hosts must register for a Wisconsin seller's permit, collect applicable taxes at the time of booking, and file returns by the 20th of the following month, with exemptions typically limited to stays exceeding 30 consecutive days which are considered long-term rentals rather than taxable lodging.

Starting an Airbnb in Arlington, Wisconsin requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000-180,000 based on median home prices in small Wisconsin communities. Furnishing a 2-3 bedroom property typically costs $8,000-12,000 including beds, linens, kitchen essentials, living room furniture, and basic appliances. Initial setup expenses of $1,500-2,500 cover professional photography, listing creation, welcome materials, and basic renovations or touch-ups. Permits and fees total approximately $500-800, including business license registration, potential short-term rental permits, and tax registration with Wisconsin Department of Revenue. Insurance costs $1,200-1,800 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits require $300-500 for electricity, gas, water, internet, and cable services. First six months of operating costs average $4,500-6,500, covering utilities ($200-300/month), cleaning services ($75-100 per turnover), supplies and maintenance ($100-150/month), platform fees to Airbnb and VRBO (3% of bookings), property management software ($30-50/month), and marketing expenses, assuming 50-60% occupancy rates during the initial period.

Airbnb properties in Arlington, Wisconsin show moderate profitability potential with average nightly rates ranging from $75-120 for typical 2-3 bedroom homes, generating approximately $18,000-28,000 in annual revenue assuming 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($30-50 per turnover), property management (10-15%), utilities ($150-200 monthly), insurance ($800-1,200 annually), and maintenance costs averaging $2,000-3,500 yearly. Net profit margins generally fall between 25-35% for well-managed properties, with successful hosts like those operating lakefront cabins near Lake Koshkonong achieving higher margins of 40-45% by commanding premium rates of $150-200 nightly during peak summer months. Key success factors include proximity to outdoor recreation areas, professional photography, consistent 4.8+ star ratings, and strategic pricing during Wisconsin's peak tourism seasons from May through October. Properties within 30 minutes of Madison or near popular fishing and boating areas typically outperform rural locations by 20-30% in both occupancy and nightly rates, with some hosts reporting annual profits of $8,000-15,000 per property after all expenses.

Based on Arlington, Wisconsin market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the area. Single-family homes near outdoor recreation areas like Lake Koshkonong achieve higher returns around 10-12% annually, while standard residential properties average 8-9%. Initial profitability usually occurs within 18-24 months after accounting for setup costs, furnishing, and marketing expenses. Properties requiring minimal renovation reach break-even faster at 12-18 months, while those needing significant updates may take 24-36 months. Seasonal demand peaks during summer months boost returns by 15-25% compared to winter periods, with average daily rates ranging from $85-140 depending on property size and amenities. The relatively affordable property acquisition costs in Arlington compared to larger Wisconsin markets like Madison or Milwaukee allow for lower entry barriers, though occupancy rates typically average 55-70% annually due to the smaller tourism market and seasonal nature of demand in this rural Jefferson County location.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors, including in Arlington, Wisconsin. In the Wisconsin market, investors can work with local real estate agents like those at Coldwell Banker Realty and RE/MAX Results who have experience with investment properties in smaller Wisconsin communities. National services include BiggerPockets for networking and deal analysis, Mashvisor for market analysis and property evaluation, and AirDNA for short-term rental market data and revenue projections. Local Wisconsin-based companies such as Wisconsin Investment Properties Group and Badger State Real Estate Investors provide regional expertise. Additional national platforms like Roofstock, which focuses on investment properties, and RedAwning, which offers vacation rental market insights, can assist investors. For property management after purchase, companies like Vacasa and RedAwning Property Management operate in Wisconsin markets, while local property management firms such as Madison Property Management extend services to surrounding areas including Arlington for investors seeking hands-off Airbnb operations.