Is Cumberland, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Cumberland, Wisconsin, begin by researching local zoning ordinances through the Cumberland City Hall as the city may require short-term rental permits and compliance with residential zoning restrictions. Contact Barron County for any county-level regulations and obtain necessary business licenses, which typically cost $25-50 annually in Wisconsin municipalities. Find a suitable property by searching local real estate listings through companies like Edina Realty or Century 21, focusing on homes near Cumberland's downtown area or near Beaver Dam Lake for tourist appeal, with properties typically ranging $150,000-300,000. Ensure the property meets Wisconsin's fire safety codes and install required smoke and carbon monoxide detectors. Furnish the space with essential amenities including Wi-Fi, basic kitchen supplies, linens, and local guidebooks featuring Cumberland's attractions like the Island City Music Festival venue. Create your Airbnb listing with professional photos highlighting the property's proximity to Cumberland's historic downtown and outdoor recreation opportunities. Set competitive pricing around $75-125 per night based on local market rates. For management, establish check-in procedures, coordinate cleaning services (local companies like Cumberland Cleaning Services), and maintain communication with guests. Register for Wisconsin state taxes and collect the 5.5% state sales tax plus any local room taxes, remitting payments quarterly to the Wisconsin Department of Revenue, while keeping detailed records of all rental income and expenses for tax purposes.

To identify profitable short-term rental properties in Cumberland, Wisconsin, focus on locations within walking distance of Cumberland's downtown area, near Beaver Dam Lake, or close to the Ice Age Trail system, as these attract tourists year-round for outdoor recreation and the annual Rutabaga Festival. Target 2-4 bedroom properties with lake views, outdoor spaces, fireplaces, and modern amenities that can accommodate families and groups visiting for fishing, hiking, and seasonal activities. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties in the area, aiming for nightly rates between $120-200 depending on size and amenities, with higher rates during summer months and fall foliage season. Research competition by examining existing STR listings within a 5-mile radius on Airbnb and VRBO, noting occupancy rates, guest reviews, and pricing strategies of successful properties. Utilize tools like Rabbu and STR Helper for market analysis, check Cumberland's municipal regulations for STR compliance requirements, and leverage local resources such as the Cumberland Chamber of Commerce for tourism data and seasonal demand patterns, while considering properties near the Cumberland Nordic Ski Trail for winter bookings.

To obtain an Airbnb/STR permit in Cumberland, Wisconsin, contact the Cumberland City Clerk's office at City Hall located at 950 1st Avenue or call (715) 822-2752 to begin the application process. You'll need to submit a completed short-term rental license application, provide proof of property ownership or lease agreement, submit a floor plan of the rental unit, obtain a state tax ID number from the Wisconsin Department of Revenue, and provide proof of liability insurance with minimum $1 million coverage. Required documents also include a safety inspection certificate from the local fire department, contact information for a local property manager if you're not residing within 50 miles, and a site plan showing parking availability. The application fee is typically $150-200 annually with an additional $75 inspection fee. Cumberland requires STR properties to have working smoke and carbon monoxide detectors, fire extinguishers, emergency contact information posted prominently, and adequate off-street parking for guests. The approval timeline is generally 4-6 weeks after submitting a complete application, pending successful safety inspection and zoning compliance review. Properties must comply with residential zoning requirements and maintain quiet hours from 10 PM to 7 AM, with occupancy limits based on bedroom count plus two additional guests.

Short-term rentals (STRs) are generally legal in Cumberland, Wisconsin, but are subject to local zoning regulations and state requirements. As a small city in Barron County, Cumberland likely regulates STRs through its zoning ordinances, typically requiring operators to obtain proper permits and comply with safety standards including smoke detectors, carbon monoxide detectors, and maximum occupancy limits. Wisconsin state law requires STR operators to collect and remit room taxes, and many municipalities have implemented additional local taxes ranging from 3-8%. Cumberland may restrict STRs in certain residential zones or require conditional use permits, particularly for properties that are not owner-occupied. Recent changes across Wisconsin have seen increased local regulation since 2020, with many communities implementing registration requirements, noise ordinances, and parking restrictions in response to neighborhood concerns. Property owners in Cumberland should verify current zoning compliance with the city clerk's office and ensure they meet both state tax obligations and any local licensing requirements before operating an STR.

The best areas for Airbnb investment in Cumberland, Wisconsin include the downtown historic district near Main Street, which attracts visitors to the annual Rutabaga Festival and offers proximity to local restaurants and shops. The lakefront areas around Cumberland Lake and nearby Beaver Dam Lake are highly desirable for vacation rentals, drawing summer tourists for fishing, boating, and water recreation from May through September. Properties near the Ice Age Trail segments attract hiking enthusiasts and outdoor recreation visitors year-round. The residential neighborhoods within walking distance of Cumberland Elementary and Middle School can capture family visitors during school events and sports tournaments. Areas close to the Cumberland Golf Club appeal to golf tourism, particularly during the peak season from April to October. The vicinity around Island Lake County Park offers strong rental potential due to camping overflow and family reunion gatherings. Properties near the Cumberland Arts Center and Cumberland Theatre benefit from cultural event attendees and performing arts visitors. The neighborhoods adjacent to Highway 63 provide convenient access for business travelers and weekend visitors from the Twin Cities metro area, approximately 90 minutes away.

Cumberland, Wisconsin imposes a 5% room tax on short-term rental accommodations including Airbnbs, which is collected by the Wisconsin Department of Revenue as part of the state's transient accommodation regulations. Property owners must register for a seller's permit and collect the tax directly from guests at the time of booking or check-in, then remit payments quarterly to the state along with required documentation. The city of Cumberland may also impose an additional local room tax of up to 8% under Wisconsin Statute 66.0615, bringing the total potential tax burden to approximately 13% on gross rental receipts. Hosts must file returns by the last day of the month following each quarter (April 30, July 31, October 31, and January 31), and failure to comply can result in penalties and interest charges. Exemptions typically apply to rentals of less than 10 days per year or accommodations rented for more than 30 consecutive days to the same guest, though hosts should verify current local ordinances as Cumberland's specific regulations may have been updated since 2023.

To start an Airbnb in Cumberland, Wisconsin, the total estimated costs would be approximately $185,000-$220,000. Property purchase represents the largest expense at $150,000-$180,000 based on median home prices in rural Wisconsin markets. Furnishing costs typically range $8,000-$12,000 for a complete 2-3 bedroom setup including beds, linens, kitchen essentials, and living room furniture from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$3,000. Permits and fees in Wisconsin small towns generally cost $300-$800 covering business licenses and potential short-term rental permits. Insurance premiums for short-term rental coverage run $1,200-$2,000 annually through companies like Proper Insurance or CBIZ. Utility setup and deposits for electricity, gas, water, internet, and cable total approximately $500-$800. First six months operating costs including utilities ($150/month), cleaning supplies ($100/month), maintenance reserves ($200/month), platform fees to Airbnb and VRBO ($300/month average), and marketing expenses ($100/month) total roughly $5,100. Additional considerations include property taxes averaging $2,000-$3,000 annually and potential HOA fees if applicable, bringing the comprehensive startup investment to the upper end of the estimated range.

Airbnb properties in Cumberland, Wisconsin, typically generate annual revenues between $15,000-$35,000 for well-positioned lakefront or cabin-style properties, with average daily rates ranging from $80-$150 depending on seasonality and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25% if outsourced), utilities ($200-400 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties near the Turtle Lake Chain or those offering fishing access command premium rates during summer months (June-August), while winter bookings drop significantly, creating seasonal cash flow challenges. Successful operators in the area typically achieve 12-18% net profit margins by focusing on outdoor recreation amenities, maintaining high cleanliness standards, and targeting weekend getaway markets from Minneapolis-St. Paul metro area. Properties with hot tubs, fire pits, or boat access consistently outperform basic accommodations, with some lakefront cabins achieving 65-75% occupancy rates during peak season, though annual occupancy typically averages 35-45% due to Wisconsin's harsh winters limiting tourism demand.

Airbnb investments in Cumberland, Wisconsin typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the area's proximity to outdoor recreation activities around Cumberland Lake and seasonal tourism from Minneapolis-St. Paul metro area visitors. Properties in Cumberland generally reach profitability within 18-24 months, with average daily rates of $85-120 during peak summer and fall seasons, though occupancy rates fluctuate significantly between 45-65% annually due to the seasonal nature of tourism in this small northwestern Wisconsin community. The market benefits from limited hotel inventory and strong demand from fishing, hunting, and lake recreation enthusiasts, with properties requiring initial investments of $150,000-250,000 for suitable vacation rental homes generating gross rental yields of 10-15% before expenses.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Cumberland, Wisconsin. Locally, Coldwell Banker Becker Realty and Century 21 Affiliated serve the Cumberland area and can assist with investment property searches, while RE/MAX Northwoods Realty has agents familiar with vacation rental markets in northwestern Wisconsin. National services include Awning (formerly RedAwning) which provides end-to-end Airbnb investment services, Mashvisor for property analysis and market data, BiggerPockets for investor networking and deal sourcing, and AirDNA for short-term rental market analytics. Vacasa offers property management services that can help investors evaluate potential returns, while local property management companies like Northwoods Property Management understand the seasonal rental dynamics of the Cumberland lake region. Real estate agents specializing in investment properties such as those at Edina Realty and Keller Williams Premier Realty in nearby markets also serve investors looking at Cumberland's vacation rental potential near area lakes and recreational attractions.