Is Ephraim, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Ephraim, Wisconsin, begin by researching local zoning laws and short-term rental regulations with the Door County Planning Department and Ephraim Village Hall, as Door County has specific ordinances requiring permits for vacation rentals with fees typically ranging $200-500 annually. Obtain necessary permits including a business license from Wisconsin Department of Revenue, sales tax permit, and Door County room tax certificate (5.5% county tax plus 3% state tax). Find a suitable property in Ephraim's residential or commercial zones, ensuring it meets fire safety codes and has adequate parking for guests, with properties near Eagle Harbor or the waterfront commanding premium rates of $150-400 per night seasonally. Furnish the space with durable, comfortable furniture emphasizing the area's maritime charm, including essential amenities like WiFi, linens, kitchen supplies, and local guidebooks highlighting Door County attractions like Peninsula State Park and local fish boils. List your property on Airbnb, VRBO, and local rental sites, using professional photography showcasing lake views and seasonal beauty, with competitive pricing reflecting Ephraim's peak summer season (June-August) and lower winter rates. Manage the property by establishing check-in procedures, hiring local cleaning services familiar with short-term rental turnovers, partnering with Door County maintenance providers, and maintaining responsive communication with guests while ensuring compliance with noise ordinances and occupancy limits typically set at 2 people per bedroom plus 2 additional guests.

To identify profitable short-term rental properties in Ephraim, Wisconsin, focus on waterfront or water-view locations within walking distance of Eagle Harbor and the village center, as proximity to Door County's scenic coastline and local attractions drives highest occupancy rates. Target 2-4 bedroom properties with updated kitchens, outdoor spaces like decks or patios, and parking for multiple vehicles, as families and groups visiting Door County prefer these amenities. Analyze pricing using AirDNA and STR data for Door County market, comparing similar properties in Fish Creek, Sister Bay, and Baileys Harbor to establish competitive nightly rates typically ranging $150-400 depending on season and property size. Research competition by examining existing STR listings on Airbnb and VRBO within 5-mile radius, noting occupancy patterns, amenities offered, and guest reviews to identify market gaps. Utilize tools like Mashvisor, AirDNA, and local MLS data while consulting Door County tourism statistics and working with local real estate agents familiar with STR regulations, as Ephraim's seasonal tourism patterns from May through October significantly impact profitability, with peak earnings during summer months and fall color season.

To obtain an Airbnb/STR permit in Ephraim, Wisconsin, you must first contact the Ephraim Village Clerk's office at 9996 Moravia Street or call (920) 854-5144 to begin the application process. Required documents typically include a completed short-term rental license application, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, septic system inspection certificate, and contact information for a local property manager if you're not residing within 25 miles of the property. The application fee is estimated at $200-300 annually, with additional fees for inspections around $100-150. You'll need to submit your application to the Village Clerk and schedule a property inspection with the building inspector to ensure compliance with fire safety codes, occupancy limits, and parking requirements. Ephraim specifically requires STR properties to maintain quiet hours from 10 PM to 8 AM, provide adequate parking for guests, display the rental license number in all advertisements, and limit occupancy to no more than 2 people per bedroom plus 2 additional guests. The approval timeline typically takes 4-6 weeks from submission, provided all documentation is complete and the property passes inspection. Once approved, you must renew the license annually and maintain compliance with all village ordinances including noise regulations and waste management requirements.

Short-term rentals (STRs) are legal in Ephraim, Wisconsin, but are subject to local regulations and zoning restrictions implemented by the village. Ephraim, located in Door County, allows STRs in certain zoning districts but requires property owners to obtain proper permits and licenses before operating. The village has implemented occupancy limits, parking requirements, and noise ordinances that STR operators must follow. Properties must meet safety standards and fire codes, and operators are typically required to provide emergency contact information and maintain liability insurance. Recent changes around 2020-2022 have included stricter enforcement of existing regulations and enhanced permit requirements to address community concerns about housing availability and neighborhood character. STRs are generally prohibited in certain residential zones to preserve long-term housing stock, and the village has established maximum occupancy limits based on property size and septic capacity. Operators must also comply with state tax requirements and local room tax collections, with violations potentially resulting in fines or permit revocation.

The best areas for Airbnb investment in Ephraim, Wisconsin are the waterfront districts along Eagle Harbor and Green Bay shoreline, particularly properties within walking distance of Anderson Dock and the Ephraim Village Center, as these locations attract summer tourists seeking quintessential Door County experiences with easy access to sailing, kayaking, and the historic Moravian settlement atmosphere. The residential areas near Peninsula State Park's entrance on Highway 42 offer excellent potential due to proximity to one of Wisconsin's most popular state parks, drawing year-round visitors for hiking, cross-country skiing, and the famous Eagle Bluff Lighthouse. Properties along Moravia Street and in the historic village core benefit from Ephraim's reputation as a charming New England-style village with white buildings and scenic harbor views, appealing to couples and families seeking peaceful retreats. The areas near Ephraim Shores Resort and surrounding residential streets capture overflow demand during peak summer months (June-August) and fall color season (September-October) when established accommodations fill up, while winter properties near cross-country ski trails serve the growing winter recreation market.

Airbnb properties in Ephraim, Wisconsin are subject to Wisconsin state sales tax at 5% and state room tax at 5%, totaling 10% in state-level taxes on short-term rental accommodations. Door County, where Ephraim is located, imposes an additional room tax of 5.5%, bringing the combined rate to approximately 15.5%. The City of Ephraim may impose its own local room tax of up to 8%, potentially resulting in total lodging taxes of around 18-23.5% depending on local ordinances enacted since 2020. These taxes are typically collected from guests at the time of booking through Airbnb's platform, which automatically calculates and remits state and county taxes to the Wisconsin Department of Revenue on behalf of hosts. However, hosts may need to register separately with local municipalities to collect and remit city-specific room taxes directly. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient lodging. Hosts should register for a Wisconsin seller's permit and may need additional local permits, with remittance typically required monthly or quarterly depending on the jurisdiction and volume of bookings.

The total cost to start an Airbnb in Ephraim, Wisconsin is approximately $485,000-$635,000. Property purchase costs around $400,000-$550,000 based on median home prices in Door County lakefront communities like Ephraim. Furnishing costs range $15,000-$25,000 for quality furniture, bedding, kitchenware, and decor suitable for vacation rental guests. Initial setup including professional photography, listing creation, and marketing materials costs $2,000-$3,500. Permits and fees including business license, short-term rental permit, and potential zoning approvals total $500-$1,200 annually. Insurance for short-term rental coverage runs $2,500-$4,000 per year. Utilities including electricity, water, sewer, internet, and cable average $300-$500 monthly or $1,800-$3,000 for six months. First six months operating costs including cleaning services, supplies, maintenance, property management software, and marketing total $8,000-$12,000. Additional considerations include potential HOA fees, property taxes averaging $6,000-$10,000 annually, and seasonal fluctuations in this popular Door County tourist destination.

Airbnb properties in Ephraim, Wisconsin, demonstrate strong seasonal profitability due to the town's prime location on Door County's scenic coastline, with average nightly rates ranging from $150-300 during peak summer months (June-August) and $80-150 during shoulder seasons. Properties typically generate $25,000-45,000 in annual revenue, with waterfront cabins and historic homes near Eagle Harbor commanding premium rates up to $400 per night during Door County's cherry festival and fall foliage season. Operating expenses including cleaning fees ($75-100 per turnover), property management (15-25% of revenue), insurance ($2,000-3,500 annually), utilities ($3,000-5,000), and maintenance average 40-50% of gross revenue, resulting in net profit margins of 25-35% for well-managed properties. Success factors include proximity to Peninsula State Park, waterfront access, authentic Door County charm with features like stone fireplaces and nautical decor, and professional photography showcasing sunset views over Green Bay. A typical 3-bedroom historic cottage near the harbor generates approximately $38,000 annually with $18,000 in expenses, yielding $20,000 profit (53% margin), while inland properties without water views typically see 20-30% lower revenues but maintain similar expense ratios, making Ephraim's Airbnb market particularly attractive for investors willing to invest in premium properties that capture the area's tourism appeal.

Airbnb investments in Ephraim, Wisconsin typically generate annual ROI of 12-18% due to the town's prime Door County location and strong seasonal tourism demand from Chicago and Milwaukee markets. Cash-on-cash returns generally range from 8-14% annually, with properties near Eagle Harbor and Peninsula State Park commanding premium rates of $200-350 per night during peak summer months (June-September) and fall color season (October). Most investors achieve profitability within 18-24 months, with waterfront cabins and historic properties performing strongest. The market benefits from Ephraim's reputation as a charming Scandinavian-themed village, limited hotel inventory, and consistent demand from repeat visitors seeking authentic Door County experiences. Properties typically maintain 65-75% occupancy rates during peak season and 25-35% during winter months, with average daily rates dropping to $120-180 in off-season periods.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Ephraim, Wisconsin. Local real estate agents in the Door County area such as Coldwell Banker The Real Estate Group and Door County Real Estate have extensive knowledge of Ephraim's vacation rental market and waterfront properties that perform well as Airbnb investments. National services like Mashvisor, AirDNA, and Rabbu provide market analysis and property identification tools specifically for short-term rental investments in Wisconsin markets. BiggerPockets connects investors with local Door County real estate professionals who understand the seasonal rental dynamics of Ephraim's tourism market. Local property management companies such as Door County Coastal Rentals and Fish Creek Vacation Rentals offer turnkey services for investors, while national companies like RedAwning and Vacasa provide comprehensive Airbnb management services in the area. Real estate investment firms like Roofstock and Arrived Homes occasionally feature Door County properties, and local mortgage brokers such as Associated Bank and Nicolet National Bank offer financing options tailored to investment properties in Wisconsin's vacation rental markets.