Is Door County, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Door County, Wisconsin, begin by researching local regulations as Door County requires short-term rental permits and has specific zoning restrictions, with some municipalities like Ephraim and Fish Creek having additional ordinances limiting rentals in residential areas. Contact the Door County Planning Department and individual township offices to understand permit requirements, which typically include business licenses, occupancy permits, and compliance with fire safety codes. Find a suitable property by working with local real estate agents familiar with Door County's tourism market, focusing on areas near popular attractions like Peninsula State Park, Sturgeon Bay, or waterfront locations, with properties ranging from $300,000-$800,000 depending on location and size. Obtain necessary permits including a Door County short-term rental license ($200-400 annually), state seller's permit for tourism taxes, and ensure compliance with Wisconsin Department of Safety regulations for smoke detectors and carbon monoxide alarms. Furnish the property with durable, comfortable furniture suitable for Door County's seasonal tourism, including outdoor furniture for patios, kayaks or bikes for guest use, and amenities that highlight the area's natural beauty. List your property on Airbnb and VRBO with professional photography showcasing Door County's scenic appeal, competitive pricing ($150-400 per night depending on season and location), and detailed descriptions of nearby attractions like wineries, lighthouses, and state parks. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider hiring a property management company familiar with Door County's seasonal rental market, while maintaining compliance with the 5.5% Wisconsin state room tax and any additional local tourism taxes.

To identify profitable short-term rental properties in Door County, Wisconsin, focus on waterfront locations within 1-2 miles of Lake Michigan or Green Bay, particularly in popular towns like Fish Creek, Ephraim, Sister Bay, and Baileys Harbor where tourism demand peaks from May through October. Target properties with 3-4 bedrooms, outdoor amenities like fire pits or decks, and unique features such as log cabins or historic charm that command premium rates of $200-400 per night during peak season. Analyze comparable properties using AirDNA and Mashvisor to identify areas with high occupancy rates (70-85% in summer) and average daily rates, while researching local competition through Airbnb and VRBO to find underserved niches or superior positioning opportunities. Utilize Door County's tourism data from the Door County Visitor Bureau, monitor seasonal pricing fluctuations with tools like PriceLabs, and consider proximity to attractions like state parks, wineries, and the scenic Highway 42 corridor. Properties near Peninsula State Park, Washington Island ferry access, or in walkable downtown areas typically generate higher returns, with successful investors often targeting fixer-uppers in prime locations where renovation can justify premium pricing in this market that sees over 2 million annual visitors.

To obtain an Airbnb/STR permit in Door County, Wisconsin, you must first contact the Door County Planning Department at 421 Nebraska Street, Sturgeon Bay, WI 54235, or visit their website to download the Short-Term Rental License application. Required documents typically include a completed application form, proof of property ownership or lease agreement, floor plan of the rental unit, septic system compliance certificate, well water testing results (if applicable), proof of liability insurance (minimum $1 million coverage), emergency contact information, and a site plan showing parking areas and septic system location. The application fee is approximately $200-300 initially with annual renewal fees of $150-200. You must also obtain a state seller's permit from the Wisconsin Department of Revenue for tax collection purposes. The approval timeline is generally 4-6 weeks after submitting a complete application, though it may take longer during peak season. Door County specific requirements include maximum occupancy limits based on septic capacity (typically 2 people per bedroom plus 2 additional), mandatory posting of house rules and emergency procedures, compliance with noise ordinances, adequate off-street parking (minimum 2 spaces), and adherence to setback requirements from neighboring properties. Some municipalities within Door County may have additional local ordinances, so check with the specific town or village where your property is located for any supplementary requirements before beginning the application process.

Short-term rentals (STRs) are legal in Door County, Wisconsin, but are subject to municipal regulations that vary by jurisdiction within the county. Most municipalities in Door County, including popular tourist destinations like Ephraim, Fish Creek, Sister Bay, and Baileys Harbor, allow STRs but require permits, licenses, and compliance with zoning ordinances, occupancy limits, parking requirements, and safety standards. Several communities have implemented restrictions such as limiting the number of STR permits issued, requiring minimum distances between rental properties, and prohibiting STRs in certain residential zones to address concerns about housing availability and neighborhood character. In recent years, around 2020-2023, some Door County municipalities have tightened regulations by implementing caps on new STR permits, increasing fees, and enhancing enforcement mechanisms due to growing concerns about the impact on long-term housing stock and community livability. Property owners must typically obtain conditional use permits or special licenses, maintain liability insurance, collect room taxes, and ensure properties meet health and safety codes, with violations potentially resulting in permit revocation and fines.

The most lucrative Airbnb investment areas in Door County, Wisconsin include Fish Creek, which attracts visitors year-round due to its proximity to Peninsula State Park and charming downtown with shops and restaurants, generating strong occupancy rates during summer festivals and fall color tours. Ephraim offers excellent investment potential with its historic Scandinavian village atmosphere, waterfront properties commanding premium rates, and consistent demand from tourists visiting the Anderson Arts Center and attending summer music festivals. Sister Bay provides strong returns due to its central location, popular restaurants like Al Johnson's Swedish Restaurant, and proximity to multiple state parks, attracting both summer beach-goers and winter cross-country skiers. Baileys Harbor presents opportunities for waterfront investments near Ridges Sanctuary and Cana Island Lighthouse, drawing nature enthusiasts and photographers throughout the season. Door County's wine trail in areas around Carlsville and Sturgeon Bay creates demand for romantic getaway accommodations, while Egg Harbor's golf courses and marina attract affluent travelers willing to pay higher nightly rates, making these locations particularly attractive for luxury Airbnb investments targeting the growing agritourism and outdoor recreation markets.

In Door County, Wisconsin, Airbnb properties are subject to multiple lodging taxes including the Wisconsin state sales tax of 5%, Wisconsin room tax of 5%, and Door County's room tax of 5.5%, totaling approximately 15.5% in combined taxes on short-term rental accommodations. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began around 2018-2019 for most Wisconsin jurisdictions. Airbnb remits the collected state and local room taxes directly to the Wisconsin Department of Revenue and Door County on behalf of hosts on a monthly basis. However, hosts may still need to register with local municipalities as some Door County communities like Sturgeon Bay, Fish Creek, and Ephraim have additional local room taxes ranging from 2-4% that may require separate registration and remittance. Properties rented for 30 days or longer are generally exempt from room taxes, and some jurisdictions may exempt rentals under a certain number of days per year, though most short-term rentals under 30 days are subject to full taxation with limited exemptions available.

Starting an Airbnb in Door County, Wisconsin requires significant upfront investment due to the area's premium tourism market. Property purchase costs average $450,000-$650,000 for a suitable vacation rental property, with waterfront or prime location properties reaching $800,000+. Furnishing costs typically range $25,000-$40,000 for a complete setup including furniture, appliances, linens, kitchenware, and décor to meet guest expectations. Initial setup expenses including professional photography, listing creation, welcome materials, and basic supplies total approximately $3,000-$5,000. Permits and fees vary by municipality but generally include short-term rental permits ($200-$500), business licenses ($100-$300), and potential zoning compliance costs ($500-$2,000). Insurance specifically for short-term rentals costs $2,000-$4,000 annually, significantly higher than standard homeowner's insurance. Utilities including electricity, gas, water, internet, and cable average $300-$500 monthly depending on property size and season. First six months operating costs encompass utilities ($1,800-$3,000), cleaning services ($150-$250 per turnover), maintenance and repairs ($2,000-$4,000), marketing and platform fees (3% of bookings), and property management if outsourced (20-30% of revenue). Total startup costs range from approximately $485,000-$715,000, with ongoing monthly expenses of $800-$1,500 before considering mortgage payments, making Door County Airbnb investment substantial but potentially lucrative given the area's strong tourism demand and premium rental rates of $200-$500+ per night during peak season.

Airbnb properties in Door County, Wisconsin demonstrate strong profitability potential with average annual revenues ranging from $25,000-$45,000 for typical 2-3 bedroom properties, driven by the area's peak summer tourism season from June through September when nightly rates can reach $200-$350. Operating expenses typically run 40-50% of gross revenue, including cleaning fees ($75-$125 per turnover), property management (15-25%), utilities ($2,400-$3,600 annually), insurance ($1,200-$2,000), and maintenance costs, resulting in net profit margins of 25-35% for well-managed properties. Success factors include proximity to popular destinations like Fish Creek, Ephraim, and Peninsula State Park, with waterfront or water-view properties commanding premium rates and achieving 70-85% occupancy during peak season. Properties in Egg Harbor and Sister Bay have shown particularly strong performance, with some hosts reporting annual profits of $15,000-$25,000 on properties purchased specifically for short-term rental investment, though success heavily depends on effective marketing, professional photography, responsive guest communication, and maintaining high cleanliness standards to achieve the 4.8+ star ratings necessary for consistent bookings in this competitive market.

Airbnb investments in Door County, Wisconsin typically generate annual ROI of 12-18% due to the area's strong tourism market driven by its Lake Michigan shoreline, state parks, and seasonal attractions. Cash-on-cash returns generally range from 8-14% annually, with properties in prime locations like Fish Creek, Ephraim, and Sister Bay commanding higher returns during peak summer months (June-September) when nightly rates can reach $200-400. Most investors achieve profitability within 18-24 months, particularly for well-located properties near popular destinations like Peninsula State Park or downtown Sturgeon Bay. The market benefits from consistent demand from Chicago and Milwaukee visitors, with occupancy rates typically running 65-75% annually, though winter months see significant seasonal dips. Properties requiring minimal renovation in established tourist corridors often see faster returns, while those needing substantial improvements may take 30-36 months to reach full profitability, but can ultimately achieve the higher end of ROI ranges once fully optimized for the vacation rental market.

STRSearch is a national platform that helps investors identify profitable short-term rental properties including in Door County, Wisconsin. Local real estate agents specializing in vacation rental investments in Door County include Coldwell Banker Real Estate Group with agents like Sarah Johnson and Mike Peterson who focus on Airbnb properties, Door County Real Estate with vacation rental specialist Lisa Anderson, and Shorewest Realtors featuring agents Tom Wilson and Jennifer Clark who work with STR investors. National services include Mashvisor which provides Airbnb analytics for Door County properties, AirDNA offering market data and investment insights, Rabbu providing property management and investment services, and RedAwning which helps identify vacation rental opportunities. Local property management companies that assist investors include Door County Vacation Rentals managed by David Thompson, Peninsula Property Management run by Michelle Roberts, and Baileys Harbor Rentals operated by Kevin Martinez, all of which help investors maximize their Airbnb returns in popular Door County locations like Fish Creek, Ephraim, Sister Bay, and Sturgeon Bay since around 2018-2020 when the short-term rental market expanded significantly in the area.