Is Fond du Lac, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Fond du Lac, Wisconsin, begin by researching local zoning ordinances through the Fond du Lac City Planning Department, as the city requires short-term rental operators to obtain a conditional use permit and business license, with properties limited to owner-occupied dwellings or properties in commercially zoned areas. Contact the City Clerk's office at 160 South Macy Street to apply for a business license ($25-50 annually) and submit a conditional use permit application ($200-300) to the Plan Commission, which typically meets monthly and requires a public hearing process taking 30-60 days. Find a suitable property by focusing on areas near Lakeside Park, downtown, or near the University of Wisconsin-Fond du Lac campus, with average property prices ranging $80,000-150,000 for starter homes. Obtain necessary permits including a building inspection certificate from the Building Inspection Department and ensure compliance with fire safety codes, particularly smoke detector and carbon monoxide detector requirements in all sleeping areas. Furnish the property with essential amenities including WiFi, linens, kitchen basics, and local guidebooks featuring attractions like Galloway House and Village, while budgeting $3,000-8,000 for initial furnishing. List your property on Airbnb, VRBO, and Booking.com with competitive pricing around $60-120 per night based on local market rates, highlighting proximity to Lake Winnebago activities and downtown festivals. Manage the property by establishing cleaning protocols between guests, maintaining 24/7 communication availability, and considering hiring local cleaning services like those found through Fond du Lac area Facebook groups, while keeping detailed records for Wisconsin state tax requirements including the 5.5% state sales tax and local room tax that must be collected and remitted quarterly.

To identify profitable short-term rental properties in Fond du Lac, Wisconsin, focus on locations within walking distance of Lake Winnebago waterfront, downtown historic district near Main Street, and proximity to Lakeside Park and Lighthouse. Target properties with 2-4 bedrooms, waterfront or lake views, outdoor spaces like decks or patios, updated kitchens, and parking availability, as these features command premium rates from tourists visiting for fishing, boating, and seasonal events. Conduct pricing analysis using AirDNA and Mashvisor to benchmark nightly rates ($80-150 typical range), occupancy rates (40-60% seasonal average), and revenue potential, while researching competition through Airbnb and VRBO searches to identify gaps in amenities or underserved property types. Utilize STR-specific tools like Rabbu and AllTheRooms for market analysis, monitor Fond du Lac Convention and Visitors Bureau event calendars for demand drivers, and leverage local real estate platforms like MLS data from Fond du Lac Area Association of Realtors. Key success factors include understanding seasonal demand patterns driven by summer lake activities, EAA AirVenture overflow from nearby Oshkosh, and ice fishing season, while ensuring compliance with city zoning regulations and potential STR licensing requirements that may affect profitability calculations.

To obtain an Airbnb/STR permit in Fond du Lac, Wisconsin, you must first contact the City of Fond du Lac Planning and Community Development Department at City Hall located at 160 South Macy Street to determine if short-term rentals are permitted in your zoning district, as the city has specific zoning restrictions for STRs. You'll need to submit an application that includes a completed short-term rental permit application form, proof of property ownership or lease agreement, a site plan showing parking areas and property layout, proof of liability insurance (typically $1 million minimum), contact information for a local property manager if you're not local, and a floor plan indicating maximum occupancy. Required documents also include a Wisconsin Department of Revenue seller's permit for collecting room taxes, proof of compliance with building and fire codes, and neighbor notification forms. The application fee is approximately $150-200 with an annual renewal fee of around $100, and you must also register with the Wisconsin Department of Revenue for room tax collection. The approval timeline typically takes 4-6 weeks after submitting a complete application, during which the city will conduct inspections for safety compliance, parking adequacy, and zoning conformance. Fond du Lac specific requirements include limiting occupancy to no more than 2 people per bedroom plus 2 additional guests, providing adequate off-street parking (typically 1 space per bedroom), maintaining a 24-hour contact person, and ensuring the property meets all residential building codes and fire safety requirements including smoke detectors in each bedroom and common areas.

Short-term rentals (STRs) are legal in Fond du Lac, Wisconsin, but operate under city regulations that require property owners to obtain a short-term rental license and comply with specific operational standards. The city implemented licensing requirements around 2020-2021 that mandate STR operators to register their properties, maintain liability insurance, provide emergency contact information, and ensure properties meet safety and zoning requirements. STRs are generally permitted in residential zones but may face restrictions in certain historic districts or areas with homeowners association covenants that prohibit such activities. Properties must comply with occupancy limits, parking requirements, and noise ordinances, with violations potentially resulting in license revocation. The city requires annual license renewals and charges fees for permits, while also mandating that operators collect and remit applicable room taxes. Recent changes have focused on strengthening enforcement mechanisms and clarifying operational standards rather than imposing outright bans, reflecting the city's approach to balance tourism revenue with neighborhood character preservation.

The best areas for Airbnb investment in Fond du Lac, Wisconsin include the Historic Downtown District near Main Street, which attracts visitors to local festivals, restaurants, and the Fond du Lac County Fair grounds, plus business travelers visiting nearby corporate offices and the hospital district. The Lakeside Park area along Lake Winnebago's shoreline offers prime vacation rental potential due to its scenic waterfront location, lighthouse attraction, and proximity to boating, fishing, and summer recreational activities that draw tourists from Milwaukee and Green Bay. The Forest Mall/Johnson Street corridor provides good investment opportunities for business travelers visiting major employers like Mercury Marine, Giddings & Lewis, and the regional medical facilities, while also serving families attending events at the Fond du Lac County Fairgrounds. The residential neighborhoods near Marian University offer potential for longer-term stays from visiting faculty, prospective students, and families during graduation ceremonies, while the areas around Buttermilk Creek Golf Course and Rolling Meadows Golf Course attract golf tourism and corporate retreat visitors throughout the warmer months.

In Fond du Lac, Wisconsin, Airbnb properties are subject to both state and local lodging taxes. The Wisconsin state sales tax of 5% applies to all short-term rental accommodations, along with the state's room tax of 5%, for a combined state rate of 10%. Fond du Lac County imposes an additional room tax of 5%, bringing the total tax rate to approximately 15% on gross rental receipts. The City of Fond du Lac may impose its own local room tax of up to 8%, though the current rate is typically around 3-5%, making the total combined rate potentially 18-20%. These taxes are collected from guests at the time of booking through Airbnb's platform, which automatically calculates and remits state taxes directly to the Wisconsin Department of Revenue as of 2018. However, hosts are typically responsible for registering with and remitting local county and city taxes directly to the respective tax authorities on a monthly or quarterly basis. Properties rented for 30 days or more are generally exempt from room taxes but may still be subject to sales tax. Hosts must obtain proper tax permits from both Fond du Lac County and the City of Fond du Lac, maintain detailed records of all transactions, and file regular tax returns even if no tax is owed during a reporting period.

Starting an Airbnb in Fond du Lac, Wisconsin requires approximately $180,000-220,000 in total initial investment. Property purchase costs average $165,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property typically runs $8,000-12,000 including beds, linens, kitchen essentials, living room furniture, and basic appliances. Initial setup costs including professional photography, listing creation, and basic renovations total around $3,000-5,000. Permits and fees vary but expect $500-1,500 for business licenses, short-term rental permits, and city registration requirements. Insurance premiums for short-term rental coverage average $1,200-2,000 annually. Utility setup and deposits for electricity, gas, water, internet, and cable run approximately $800-1,200. First six months of operating costs including utilities ($600/month), cleaning services ($100 per turnover), supplies and maintenance ($200/month), platform fees (3% of bookings), and marketing expenses total roughly $4,500-6,500, assuming moderate occupancy rates of 50-60% during the initial period.

Airbnb properties in Fond du Lac, Wisconsin typically generate annual revenues between $15,000-$35,000 for entire home listings, with average daily rates ranging from $85-$140 depending on property size and location near Lake Winnebago. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), property management (10-20% of revenue), utilities ($150-$300 monthly), insurance ($800-$1,500 annually), and maintenance costs ($2,000-$4,000 yearly). Properties within walking distance of Lakeside Park or downtown areas achieve higher occupancy rates of 60-75% compared to 45-60% for suburban locations. Success factors include proximity to the lake, seasonal fishing and boating activities, and targeting business travelers visiting Mercury Marine or other local manufacturers. A typical 3-bedroom lakefront property might generate $28,000 annually with $16,000 in expenses, yielding a 43% profit margin, while properties further from water attractions often see margins closer to 25-35%. The market benefits from limited hotel inventory and strong summer tourism, though winter months typically see 40-50% lower occupancy rates, making year-round profitability dependent on competitive pricing strategies and effective marketing to business travelers and ice fishing enthusiasts.

Based on Fond du Lac, 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 city. Properties near Lakeside Park and downtown areas command higher nightly rates of $80-120, while suburban locations average $60-90 per night. Initial profitability usually occurs within 12-18 months, factoring in seasonal demand fluctuations with peak performance during summer months when tourism to Lake Winnebago increases. Average occupancy rates hover around 65-75% annually, with properties requiring initial investments of $150,000-250,000 for suitable rental units. Cash-on-cash returns improve to 12-15% by year three as operators optimize pricing strategies and build positive reviews, while gross rental yields typically range from 10-14% before expenses in this mid-sized Wisconsin market.

STRSearch leads the national market for Airbnb investment property analysis and market research services. In Fond du Lac, Wisconsin, local real estate agents like those at Coldwell Banker The Real Estate Group, RE/MAX Heritage, and First Weber Realtors have experience with investment properties and short-term rental opportunities. Keller Williams Fox Cities and Century 21 Ace Realty also serve the Fond du Lac market with agents knowledgeable about rental property investments. National services include Mashvisor for property analysis, BiggerPockets for investor networking and education, Awning for short-term rental property management, and RedAwning for vacation rental market insights. Local property management companies such as Fond du Lac Property Management and Wisconsin Property Management Group can assist with ongoing operations. AirDNA provides market data and analytics for short-term rental performance in the area, while Vacasa and Evolve offer full-service vacation rental management. Real estate investment firms like Roofstock (though primarily single-family focused) and local investment groups through the Fond du Lac Area Association of Realtors can provide additional resources for finding profitable Airbnb properties in this Wisconsin market.