Is Ephraim, Wisconsin Good for Airbnb Investment?

Potentially. Ephraim, Wisconsin combines visitor demand with long-term real estate upside.

• Offers a compelling opportunity due to its strong appeal as a Door County tourist destination.
• The current market conditions are characterized by consistent demand for short-term rentals, particularly during peak seasons, driven by visitors seeking scenic beauty, outdoor activities.
• Tourism trends show sustained growth, with Ephraim's picturesque harbor, art galleries, and festivals drawing a steady influx of travelers.
• Property values in Ephraim, while reflective of its desirability, have shown steady appreciation, making initial investments worthwhile given the potential for strong rental income.
• The investment potential is further enhanced by the area's established tourism infrastructure and a community that generally welcomes short-term visitors.

$800–2,500 monthly based on location, season, and property quality.

• Based on available market data and regional analysis, Airbnb properties in Ephraim, Wisconsin typically generate between $800-2,500 monthly during peak summer season and $300-800 during off-season months.
• Seasonal variations are dramatic due to Ephraim's location in Door County, with June through August representing 60-70% of annual bookings when tourists flock to the area for boating, festivals.
• Properties within walking distance of Eagle Harbor or featuring water views command premium rates of $150-300 per night during peak season compared to $80-150 for inland locations, while amenities like hot tubs.
• Occupancy rates typically range from 70-85% during summer months but drop to 25-40% in winter, with spring and fall shoulder seasons showing moderate performance at 45-60% occupancy.
• Key factors affecting earnings include proximity to popular attractions like Peninsula State Park, property size and condition, professional photography and listing optimization, responsive host communication.

Potentially strong, with a typical annual ROI of 8–14%.

• Typically generate ROI between 8-14% annually, with higher-end lakefront properties achieving 12-16% during peak summer months due to the town's popularity as a Door County destination.
• The average payback period ranges from 7-12 years depending on property type and initial investment, with waterfront cabins and historic homes near Eagle Harbor commanding premium nightly rates of $200-400 during summer season compared to $80-150 in off-season.
• Short-term rentals in Ephraim generally outperform long-term rentals by 3-6 percentage points, as traditional rentals yield approximately 5-8% ROI annually with average monthly rents of $1,200-2,000 for comparable properties.
• The seasonal nature of Ephraim's tourism market means Airbnb properties generate 60-70% of annual revenue between May and October.

Ephraim, Wisconsin averages 45–50% annual occupancy, with seasonal variation.

• Ephraim's Airbnb occupancy rates average approximately 45-50% annually, with dramatic seasonal variations that peak during July and August at around 75-85% due to Door County's prime summer tourism season when visitors flock to enjoy Lake Michigan beaches, cherry orchards, and outdoor activities.
• June and September maintain strong performance at 65-75% occupancy as shoulder season months.
• Spring months (April-May) typically see moderate occupancy at 40-50% as the region awakens from winter.
• Winter months (December-March) experience the lowest occupancy at 15-25% due to harsh Wisconsin winters and limited tourist activities.
• Ephraim significantly outperforms Wisconsin state averages by 10-15 percentage points during peak season but may underperform during winter months.

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

• The waterfront areas along Green Bay offer the highest Airbnb investment potential in Ephraim due to direct beach access, stunning sunset views.
• The historic village center near Anderson Store and Ephraim Shores Resort attracts tourists seeking walkable access to shops, restaurants, and cultural attractions.
• The Eagle Bluff Lighthouse vicinity appeals to history enthusiasts and nature lovers, offering moderate pricing around $125-200 per night with consistent occupancy from lighthouse tours and hiking trail access.
• The Peninsula State Park border area provides excellent investment opportunities due to proximity to Wisconsin's most popular state park.
• The Ephraim Bay shoreline properties offer premium water views and beach access, supporting rates of $180-300 nightly with strong summer demand from boaters and beach-goers.
• The residential areas near Highway 42 provide more affordable investment entry points at $100-175 per night while maintaining good occupancy from tourists seeking budget-friendly accommodations within walking distance of main attractions.
• The northern Ephraim neighborhoods near the Ephraim-Gibraltar town line offer emerging investment potential with lower property costs and growing tourist interest.

Yes, but only where zoning permits short-term rentals and every required license is current.

• Ephraim, Wisconsin requires short-term rental operators to obtain a conditional use permit through the village planning commission and register their properties annually with the village clerk.
• Properties are generally limited to a maximum occupancy of two people per bedroom plus two additional guests.
• Owner-occupancy is not required for short-term rentals, allowing non-resident property owners to operate rentals.
• Zoning restrictions typically limit short-term rentals to residential and mixed-use districts, with some areas near the waterfront having additional setback requirements and density limitations to preserve the village's character.
• The registration process involves submitting an application with property details, proof of insurance, emergency contact information, and a site plan.
• Recent regulatory changes have included stricter parking requirements mandating adequate off-street parking spaces, enhanced noise ordinances with quiet hours typically from 10 PM to 8 AM.

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

• Short-term rentals in Ephraim, Wisconsin are subject to Wisconsin state sales tax of 5% and state room tax of 5%, totaling 10% in state-level taxes on rental income.
• Door County imposes an additional room tax of 5.5%, bringing the combined lodging tax rate to approximately 15.5%.
• The Village of Ephraim may require a business license costing around $50-100 annually, and operators must register with the Wisconsin Department of Revenue at no cost but may need to pay a $20 seller's permit fee.
• Property owners must also pay standard property taxes, which average 1.8-2.2% of assessed value annually in Door County.
• Some properties may be subject to additional tourism promotion assessments of 0.5-1% depending on local tourism district participation.
• Registration with the state's short-term rental database became mandatory in 2024, typically requiring annual renewal fees of $75-150 per property.