Is Edgerton, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Edgerton, Wisconsin, begin by researching local zoning laws and regulations through the City of Edgerton Planning Department, as Wisconsin municipalities typically require short-term rental permits and may have occupancy limits or parking requirements. Contact Rock County for any county-specific regulations and obtain necessary permits including a business license from the city clerk's office, which typically costs $25-50 annually, and ensure compliance with Wisconsin Department of Safety and Professional Services building codes. Find a suitable property by searching residential areas that allow short-term rentals, focusing on single-family homes or condos near downtown Edgerton or within 30 minutes of Madison for higher demand. Furnish the property with essential amenities including quality bedding, kitchen supplies, WiFi, and local guidebooks, budgeting approximately $3,000-8,000 for initial furnishing depending on property size. Create your Airbnb listing with professional photos highlighting unique features and proximity to attractions like the Tobacco Heritage Trail or Lake Koshkonong, setting competitive rates based on comparable properties in the area (typically $75-150 per night for Edgerton). Manage your property by establishing cleaning protocols between guests, maintaining responsive communication, and considering property management software or local cleaning services to handle turnovers, while ensuring compliance with Wisconsin's 5.5% state sales tax and any local lodging taxes that may apply.

To identify profitable short-term rental properties in Edgerton, Wisconsin, focus on properties within 2-3 miles of downtown Edgerton and near Lake Koshkonong, as waterfront or lake-view properties typically command 20-30% higher nightly rates ($120-180 vs $80-120 for standard properties). Target 2-4 bedroom single-family homes or cabins built after 1980 with modern amenities, full kitchens, outdoor spaces, and parking for 4+ vehicles, as these features attract families and groups visiting for lake activities, fishing tournaments, and seasonal events. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against comparable properties in nearby Lake Geneva and Wisconsin Dells markets, aiming for properties under $300,000 that can generate $2,000-4,000 monthly revenue during peak season (May-September). Research competition by analyzing existing STR listings within a 10-mile radius on Airbnb and VRBO, noting occupancy rates, pricing strategies, and guest reviews to identify market gaps. Utilize tools like Rabbu and AllTheRooms for local market data, consult Rock County tourism statistics, and monitor seasonal demand patterns tied to fishing seasons, summer recreation, and proximity to Madison (45 minutes) for business travelers, while ensuring compliance with Edgerton's zoning regulations and obtaining necessary permits through the city clerk's office.

To obtain an Airbnb/STR permit in Edgerton, Wisconsin, you must first contact the Edgerton City Clerk's office at City Hall located at 11 Albion Street to inquire about short-term rental regulations and obtain the necessary application forms. Required documents typically include a completed STR 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 a copy of your Wisconsin seller's permit for tax purposes. The application fee is estimated at $150-250 annually, with additional inspection fees of approximately $75-100. Submit your complete application package to the City Clerk's office and schedule a required safety inspection with the building department to verify smoke detectors, carbon monoxide detectors, fire extinguishers, and emergency egress compliance. The approval timeline is typically 4-6 weeks from submission of a complete application. Edgerton-specific requirements likely include maintaining a guest registry, posting emergency contact information prominently in the rental unit, ensuring adequate parking for guests without impacting neighbors, limiting occupancy to 2 people per bedroom plus 2 additional guests, maintaining quiet hours from 10 PM to 7 AM, and providing neighbors with a 24-hour contact number for complaints. Once approved, you must display your permit number in all online listings and renew annually by December 31st.

Short-term rentals (STRs) in Edgerton, Wisconsin are generally legal but subject to local regulations and zoning restrictions. The city of Edgerton, like many Wisconsin municipalities, has implemented ordinances governing STR operations that typically require property owners to obtain permits or licenses, comply with safety standards, maintain adequate parking, and limit occupancy numbers. Most STR regulations in Edgerton focus on residential zoning districts where such rentals must meet specific criteria including noise ordinances, trash management, and neighbor notification requirements. The city has likely prohibited STRs in certain residential areas or required conditional use permits in others, particularly in neighborhoods zoned for single-family homes. Recent changes in Wisconsin state law around 2021-2022 have given municipalities more authority to regulate STRs while preventing outright bans, leading Edgerton to refine its local ordinances to balance property rights with neighborhood preservation. Property owners must typically register their STRs with the city, provide emergency contact information, and ensure compliance with building codes and tax obligations including room taxes that support local tourism infrastructure.

The best areas for Airbnb investment in Edgerton, Wisconsin include the downtown historic district near Main Street, which attracts visitors interested in the city's railroad heritage and proximity to the Rock River State Trail, and neighborhoods close to Lake Koshkonong's eastern shore, approximately 10 miles southeast, which draw summer tourists for fishing, boating, and water recreation. The area near Highway 59 and Interstate 90 interchange offers strong potential for business travelers and those visiting nearby Madison (45 minutes away) or Milwaukee (90 minutes away) who prefer quieter, more affordable accommodations. Properties within walking distance of the Edgerton Historical Museum and near the annual Tobacco Heritage Days festival venues see increased demand during summer events, while homes close to the Sugar River State Trail attract cycling and outdoor enthusiasts year-round. The residential areas near Edgerton High School and community facilities also appeal to families visiting for sports tournaments and school events, making these neighborhoods viable for short-term rental investments.

Airbnb properties in Edgerton, Wisconsin are subject to Wisconsin state sales tax at 5% and room tax at 5%, totaling 10% on lodging stays, with Rock County potentially imposing an additional room tax of up to 8% bringing the total to approximately 18%. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system and remitted to the Wisconsin Department of Revenue and local authorities on behalf of hosts. Hosts who collect taxes independently must register with the Wisconsin Department of Revenue, file monthly returns by the 20th of the following month, and remit collected taxes electronically through the state's online portal. Stays of 30 days or longer are generally exempt from room taxes but may still be subject to sales tax, and certain nonprofit or government-related stays may qualify for exemptions with proper documentation. The City of Edgerton may have additional local lodging ordinances that require business licenses or permits for short-term rental operations, though specific municipal room tax rates would need verification with local authorities as smaller municipalities sometimes rely on county-level taxation.

The total cost to start an Airbnb in Edgerton, Wisconsin is approximately $185,000-$220,000. Property purchase costs around $150,000-$180,000 based on median home prices in the area. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for beds, linens, furniture, appliances, and decor. Initial setup including professional photography, listing creation, and basic renovations costs $2,000-$3,500. Permits and fees including business license, short-term rental permit, and tax registration total $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), property management software ($50/month), and marketing ($100/month) total approximately $6,300. Additional considerations include potential HOA fees, property taxes, and a 10-15% contingency fund for unexpected expenses.

Airbnb properties in Edgerton, Wisconsin typically generate modest profitability with average annual revenues ranging from $8,000-$15,000 for entire home listings, while expenses including mortgage payments, utilities, cleaning fees, and maintenance average $6,000-$12,000 annually, resulting in profit margins of 15-25% for well-managed properties. Success factors in this small Wisconsin city include proximity to Madison (30 miles), competitive pricing around $75-$95 per night, and targeting business travelers visiting local manufacturing facilities like Pepsi-Cola bottling plant and recreational visitors to nearby Lake Koshkonong. Properties with 2-3 bedrooms and modern amenities perform best, with occupancy rates averaging 45-60% during peak summer months and 25-35% in winter. A typical successful case involves a renovated 1950s ranch home that generates $12,500 annually with $9,200 in expenses, yielding a 26% profit margin, while properties lacking proper marketing or maintenance often struggle with occupancy rates below 30% and profit margins under 10%.

Based on Edgerton, 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 market. Properties in Edgerton generally reach profitability within 18-24 months, with average nightly rates of $85-120 for typical 2-3 bedroom properties and occupancy rates averaging 65-75% annually. The proximity to Madison (approximately 30 miles) and Lake Koshkonong recreational activities drive consistent demand, particularly during summer months when occupancy can reach 80-85%. Initial investment requirements typically range from $150,000-250,000 for suitable properties, with annual gross revenues averaging $18,000-28,000 after accounting for seasonal fluctuations, cleaning fees, and local tourism patterns centered around outdoor recreation and regional business travel.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Edgerton, Wisconsin. Local real estate agents specializing in investment properties include Realty Executives Cooper Spransy, Century 21 Affiliated, and Coldwell Banker Success, with agents like those at First Weber Group having experience in vacation rental investments in the Wisconsin Dells region that extends to smaller markets like Edgerton. National services include BiggerPockets for investor networking, Mashvisor for property analysis, AirDNA for market data, and Awning for Airbnb-focused real estate services. RedfinNow and Zillow Instant Offers occasionally serve investor clients, while specialized firms like Roofstock focus on turnkey rental properties. Local property management companies such as Vacasa and RedAwning can provide insights into profitable properties, and mortgage brokers like Movement Mortgage and Rocket Mortgage offer investor-friendly financing options for short-term rental acquisitions in the Edgerton area.