Is Dodgeville, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Dodgeville, Wisconsin, begin by researching local regulations through the Dodgeville City Hall (608-935-5424) and Iowa County zoning office, as Wisconsin municipalities often require short-term rental permits and may have occupancy limits or parking requirements. Obtain necessary permits including a business license from the city, sales tax permit from Wisconsin Department of Revenue, and potentially a conditional use permit if operating in residential zones. Find a suitable property by searching local real estate listings through companies like Coldwell Banker or Century 21, focusing on areas near Governor Dodge State Park or downtown attractions, with properties typically ranging $150,000-$300,000. Furnish the space with essential amenities including Wi-Fi, linens, kitchen supplies, and local guidebooks featuring attractions like House on the Rock (30 minutes away) and Taliesin (Frank Lloyd Wright's home), budgeting approximately $5,000-$15,000 for initial furnishing. List your property on Airbnb and VRBO platforms with professional photos highlighting unique features and proximity to outdoor recreation, setting competitive rates around $80-$150 per night based on local market analysis. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating with local cleaning services like those found through Dodgeville Chamber of Commerce, and maintaining compliance with Wisconsin's 5.5% sales tax collection requirements while keeping detailed records for tax purposes and potential Iowa County lodging tax obligations.

To identify profitable short-term rental properties in Dodgeville, Wisconsin, focus on locations within walking distance of Governor Dodge State Park and downtown attractions, as proximity to outdoor recreation drives demand in this rural market. Target 2-4 bedroom properties with rustic charm, modern amenities like WiFi and updated kitchens, outdoor spaces for gatherings, and parking for multiple vehicles since most guests drive from Madison or Milwaukee. Analyze pricing by researching comparable Airbnb listings in the $80-150 nightly range, accounting for seasonal fluctuations with peak demand during summer camping season and fall foliage periods. Competition research should examine existing STRs within a 10-mile radius, noting that limited inventory creates opportunities but also indicates smaller market size. Utilize AirDNA for market data specific to Iowa County, STRScore for property analysis, and local resources like the Dodgeville Chamber of Commerce for tourism trends, while monitoring Wisconsin Dells and Devil's Lake area pricing as regional benchmarks since Dodgeville serves as a quieter alternative to these busier destinations.

To obtain an Airbnb/STR permit in Dodgeville, Wisconsin, contact the Dodgeville City Clerk's office at City Hall located at 100 N Iowa Street or call (608) 935-5424 to begin the application process. You'll need to submit a completed short-term rental permit application, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, contact information for a local property manager if you're not local, and pay the application fee of approximately $150-200 annually. The city requires STR properties to comply with zoning regulations (typically allowed in residential zones with restrictions), maintain occupancy limits based on bedrooms and square footage, provide adequate parking spaces, install smoke and carbon monoxide detectors, and ensure the property meets all building and fire safety codes. Submit your complete application to the City Clerk's office and allow 30-45 days for review and approval, during which time city staff may conduct an inspection of the property. Once approved, you'll receive your permit which must be renewed annually, and you're required to collect and remit room taxes to Iowa County, maintain a guest registry, and ensure quiet hours are observed between 10 PM and 7 AM to comply with local noise ordinances.

Short-term rentals (STRs) are generally legal in Dodgeville, Wisconsin, as the city has not enacted specific prohibitions against them, though they must comply with existing zoning regulations and building codes. Properties used as STRs typically need to operate within residential zoning districts where such commercial activities are permitted, and operators must obtain proper business licenses and comply with state tax requirements including Wisconsin's room tax obligations. The city may require STR operators to register their properties and maintain compliance with fire safety codes, occupancy limits, and parking requirements. Recent trends in Wisconsin municipalities have seen increased regulation of STRs due to housing concerns, and Dodgeville may implement more specific STR ordinances in the future similar to other Wisconsin communities that have established registration requirements, noise restrictions, and limits on the number of STRs in residential neighborhoods. Property owners should verify current zoning compliance and check with the Dodgeville Planning Department for any recent ordinance changes, as local regulations can evolve quickly in response to community concerns about housing availability and neighborhood character.

The best areas for Airbnb investment in Dodgeville, Wisconsin are the Historic Downtown District near the Iowa County Courthouse, which attracts visitors to local shops, restaurants, and the annual Dodgeville Days festival, and properties within walking distance of Governor Dodge State Park (approximately 3 miles north), which draws outdoor enthusiasts year-round for hiking, camping, and cross-country skiing. The area near the Military Ridge State Trail is also promising as it serves cyclists and trail users traveling the 40-mile recreational path. Properties close to Lands' End headquarters and the University of Wisconsin-Platteville extension campus capture business travelers and visiting families. The residential neighborhoods along Highway 23 corridor offer good accessibility while maintaining quiet settings that appeal to families visiting the region's attractions including House on the Rock (20 minutes away) and Wisconsin's Driftless Area, making these locations ideal for longer stays and repeat visitors seeking authentic small-town Wisconsin experiences.

In Dodgeville, Wisconsin, Airbnb hosts are subject to Wisconsin state sales tax at 5% and room tax at 5%, totaling 10% on gross rental receipts. Iowa County may impose an additional room tax of up to 8%, though the specific rate varies by municipality. The City of Dodgeville likely imposes a local room tax of approximately 3-5%. These taxes apply to stays of less than 30 consecutive days and are collected from guests at the time of booking through Airbnb's automatic tax collection system for most jurisdictions, though hosts should verify coverage and may need to register directly with the Wisconsin Department of Revenue and local tax authorities. Remittance is typically due monthly or quarterly depending on volume, with returns filed online through the Wisconsin Department of Revenue portal and local municipal offices. Exemptions generally include stays of 30 days or longer, certain government and nonprofit travelers, and in some cases agricultural workers, though documentation requirements apply for claiming exemptions.

The total cost to start an Airbnb in Dodgeville, Wisconsin is approximately $185,000-$225,000. Property purchase costs around $150,000-$180,000 based on median home prices in rural Wisconsin communities. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for beds, linens, kitchen essentials, living room furniture, and decor. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$4,000. Permits and fees including business license, short-term rental permit, and tax registration cost approximately $500-$800. Insurance for short-term rental coverage adds $1,200-$1,800 annually. Utility deposits and connections for electricity, gas, water, internet, and cable cost $800-$1,200. First six months operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance ($200/month), marketing ($150/month), and property management software ($50/month) total approximately $6,600. Additional startup costs for linens replacement, welcome amenities, and emergency repairs add another $1,500-$2,500 to the initial investment.

Airbnb properties in Dodgeville, Wisconsin typically generate annual revenues between $8,000-$15,000 for entire home listings, with average daily rates ranging from $75-$120 depending on property size and amenities. Operating expenses generally consume 40-50% of gross revenue, including cleaning fees ($25-$40 per turnover), utilities ($150-$200 monthly), property management (10-15% of revenue), insurance ($800-$1,200 annually), and maintenance costs ($1,000-$2,000 yearly). Properties near Governor Dodge State Park and downtown historic district command premium rates, particularly during summer months and fall foliage season when occupancy rates peak at 65-75%. A typical 2-bedroom home generating $12,000 annually might incur $5,500 in expenses, yielding a net profit margin of approximately 54% or $6,500. Success factors include proximity to outdoor recreation areas, professional photography, responsive host communication, and amenities like hot tubs or fire pits that justify higher nightly rates. Properties within walking distance of downtown restaurants and shops on Iowa Street tend to maintain higher occupancy rates year-round, while rural properties rely heavily on seasonal tourism patterns tied to state park activities and hunting seasons.

Airbnb investments in Dodgeville, 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 Governor Dodge State Park and House on the Rock attractions which create steady seasonal demand from May through October. Properties in downtown Dodgeville or within 5 miles of major attractions tend to achieve occupancy rates of 45-60% annually, with average daily rates of $85-120 depending on property size and amenities. Initial profitability usually occurs within 18-24 months for well-positioned properties, with investors typically seeing positive cash flow after accounting for mortgage payments, property management fees of 15-25%, and maintenance costs. The market benefits from limited hotel inventory in the immediate area, though competition from other short-term rentals has increased since 2020, and seasonal fluctuations mean properties may experience 70-80% occupancy during peak summer months but drop to 20-30% during winter months, making year-round cash flow management critical for sustained profitability.

STRSearch is a national platform that helps investors identify profitable short-term rental properties in Dodgeville, Wisconsin, using data analytics to evaluate potential returns. Local real estate agents in the area who specialize in investment properties include Realty Executives Cooper Spransy and First Weber Realtors, with agents like those at Coldwell Banker Success also serving the Dodgeville market for vacation rental investments. National services include AirDNA for market analysis, Mashvisor for property investment analytics, and BiggerPockets for connecting with local investors and agents familiar with Wisconsin's short-term rental regulations. RedAwning and Vacasa provide property management services for Airbnb investments in the region, while companies like RentSpree and Awning offer comprehensive investment analysis tools. Local property management companies such as Wisconsin Dells-area vacation rental managers often extend services to nearby Dodgeville properties, and regional real estate investment groups through platforms like REI Network can connect investors with Dodgeville-specific opportunities in this growing Wisconsin tourism market near Governor Dodge State Park.