Is Fort Atkinson, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Fort Atkinson, Wisconsin, begin by researching local zoning laws and regulations through the Fort Atkinson Planning Department, as the city may require short-term rental permits and compliance with residential zoning restrictions that typically allow rentals for less than 30 days in certain districts. Contact the Jefferson County Health Department for any required health permits and ensure compliance with Wisconsin state tax requirements by registering for sales tax collection through the Wisconsin Department of Revenue. Find a suitable property in residential zones that allow short-term rentals, focusing on areas near downtown Fort Atkinson or close to attractions like the Hoard Historical Museum, and ensure the property meets safety requirements including smoke detectors, carbon monoxide detectors, and proper egress windows. Furnish the space with quality furniture, linens, kitchen essentials, and amenities that appeal to travelers visiting the area for business or tourism, including reliable Wi-Fi and local guidebooks. Create your listing on Airbnb with professional photos highlighting the property's proximity to Fort Atkinson's historic downtown, nearby lakes, and easy access to Highway 26, setting competitive rates based on local market research of similar properties in Jefferson County. Manage the property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guest inquiries, and ensuring compliance with Fort Atkinson's noise ordinances and parking requirements while collecting and remitting the required Wisconsin state sales tax and any local accommodation taxes to the appropriate authorities.

To identify profitable short-term rental properties in Fort Atkinson, Wisconsin, focus on locations within walking distance of downtown's historic Main Street district, near the Rock River for water activities, or close to Fireman's Park and recreational areas that attract visitors year-round. Target 2-4 bedroom single-family homes or duplexes built after 1950 with updated kitchens, reliable WiFi capability, parking spaces, and outdoor amenities like decks or patios that capitalize on Wisconsin's seasonal tourism. Analyze pricing by researching comparable Airbnb and VRBO listings within a 10-mile radius, aiming for properties under $200,000 that can command $80-150 per night depending on size and amenities, while calculating potential gross yields of 8-12% annually. Conduct competition research using AirDNA and Mashvisor to assess occupancy rates in Jefferson County, monitor seasonal demand patterns around summer festivals and fall activities, and identify gaps in the current 15-25 active STR listings in the Fort Atkinson area. Utilize tools like Zillow and Realtor.com for property searches, the City of Fort Atkinson's planning department for zoning verification and STR regulations, Jefferson County tourism data for visitor trends, and local Facebook groups or the Fort Atkinson Chamber of Commerce for insights on upcoming developments or events that could impact rental demand.

To obtain an Airbnb/STR permit in Fort Atkinson, Wisconsin, contact the Fort Atkinson City Clerk's office at City Hall located at 101 N Main Street or call (920) 563-7769 to begin the application process, as the city likely requires short-term rental operators to register their properties and obtain proper licensing. You will typically need to submit a completed STR application form, proof of property ownership or lease agreement, certificate of insurance with minimum liability coverage of $1 million naming the city as additional insured, floor plan of the rental unit, contact information for a local responsible party available 24/7, and proof of compliance with fire safety codes including smoke and carbon monoxide detectors. The application fee is estimated to be between $100-300 annually, with additional inspection fees of approximately $50-150. The timeline for approval is typically 30-60 days after submitting a complete application, pending inspections and review. Fort Atkinson specific requirements likely include maintaining occupancy limits based on bedroom count and square footage, providing adequate parking spaces, ensuring the property meets all building and zoning codes, displaying the permit number in all advertisements, maintaining a guest registry, and potentially limiting the number of STR permits issued in certain residential zones to preserve neighborhood character.

Short-term rentals (STRs) are legal in Fort Atkinson, Wisconsin, but operate under municipal regulations that require property owners to obtain proper permits and comply with zoning restrictions. The city typically allows STRs in residential areas with certain limitations, including occupancy limits, parking requirements, and noise ordinances to maintain neighborhood character. Properties must meet safety standards including smoke detectors, carbon monoxide detectors, and emergency egress requirements. Fort Atkinson generally prohibits STRs in certain residential zones or requires conditional use permits depending on the specific zoning district. Recent changes around 2020-2022 have included stricter registration requirements and enhanced enforcement mechanisms, with the city requiring annual licensing, local contact person designation within 30 minutes of the property, and compliance with state tax collection requirements. Violations can result in fines ranging from $200-$1,000, and the city has implemented a complaint-driven enforcement system to address neighbor concerns about noise, parking, and occupancy violations.

The best areas for Airbnb investment in Fort Atkinson, Wisconsin include the Historic Downtown District near Main Street, which attracts visitors to the Fort Atkinson Historical Society Museum and seasonal events like the annual Firemen's Picnic, plus business travelers visiting local manufacturing companies like Cargill and Pepsi-Cola. The Koshkonong Creek area offers scenic waterfront appeal for outdoor enthusiasts and fishing tourists, while properties near the Rock River provide similar recreational draws. The area around Jefferson County Fair Park captures seasonal demand during the county fair and other events, and neighborhoods close to the Fort Atkinson Country Club attract golf tourism. Properties within walking distance of the Hoard Historical Museum and Dairy Shrine benefit from agricultural heritage tourism, while areas near the business district along Highway 26 serve corporate travelers visiting the city's industrial employers including Jones Dairy Farm and various manufacturing facilities.

In Fort Atkinson, 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%. Jefferson County imposes an additional room tax of 5%, bringing the total tax rate to approximately 15% on gross rental receipts. Fort Atkinson may also levy a local room tax of up to 8% under Wisconsin statute 66.0615, though the specific rate varies by municipality. These taxes are typically collected by Airbnb directly from guests at the time of booking and remitted to the appropriate tax authorities on behalf of hosts through Airbnb's automated tax collection system, which began around 2017-2018 for Wisconsin. Hosts who collect taxes independently must register with the Wisconsin Department of Revenue and remit taxes monthly if collections exceed $300 per month, or quarterly if less. Exemptions generally apply to stays of 30 days or longer, which are considered long-term rentals rather than transient accommodations, and to certain government and nonprofit organization bookings with proper documentation.

To start an Airbnb in Fort Atkinson, Wisconsin, the total initial costs would be approximately $185,000-$220,000. Property purchase represents the largest expense at $150,000-$180,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $8,000-$12,000 for a complete 2-3 bedroom property including beds, linens, kitchen essentials, living room furniture, and decor. Initial setup costs including professional photography, listing creation, and basic marketing materials run $500-$800. Permits and fees vary but generally include business license ($50-$100), short-term rental permit if required ($100-$300), and potential zoning compliance costs ($200-$500). Insurance for short-term rentals costs approximately $1,200-$2,000 annually, with the first year paid upfront. Utility setup and deposits for electricity, gas, water, internet, and cable total around $300-$500 initially. First six months of operating costs including utilities ($150-$200/month), cleaning supplies and services ($100-$150/month), maintenance reserves ($100-$200/month), platform fees (3% of bookings), and miscellaneous expenses total approximately $3,000-$4,500, assuming moderate occupancy rates during the initial period.

Airbnb properties in Fort Atkinson, Wisconsin typically generate annual revenues of $15,000-$25,000 for entire home listings, with average daily rates ranging from $80-$120 depending on property size and amenities. Operating expenses generally consume 40-50% of gross revenue, including cleaning fees ($30-$50 per turnover), utilities ($150-$200 monthly), property management (10-15% of revenue), insurance ($800-$1,200 annually), and maintenance costs ($2,000-$3,000 yearly). Net profit margins typically range from 15-25% for well-managed properties, with successful hosts achieving higher margins through strategic pricing during peak seasons like summer months and local events at nearby Lake Koshkonong. Properties within walking distance of downtown Fort Atkinson or featuring unique amenities like hot tubs or lake access command premium rates and occupancy levels of 60-70% annually. A typical 3-bedroom home purchased for $180,000 and generating $20,000 in annual Airbnb revenue with $12,000 in expenses would yield approximately $8,000 in net profit, representing a 4.4% return on property value before considering mortgage payments and tax implications. Success factors include professional photography, responsive communication, consistent 5-star reviews, competitive pricing strategies, and proximity to recreational attractions like the Glacial Drumlin State Trail.

Based on Fort Atkinson, 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 downtown Fort Atkinson or close to Lake Koshkonong tend to perform better, with vacation rentals averaging $85-120 per night during peak summer months and $60-85 during off-season. Initial profitability usually occurs within 18-24 months for well-positioned properties, assuming average occupancy rates of 55-65% annually. Properties purchased in the $150,000-250,000 range with 20-25% down payments show the strongest performance metrics, particularly those targeting fishing enthusiasts, business travelers to local manufacturers like Trek Bicycle Corporation, and weekend visitors exploring the Rock River corridor. Market appreciation in Fort Atkinson has averaged 3-5% annually since 2020, contributing to total returns when combined with rental income.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors, including in Fort Atkinson, Wisconsin. Local real estate agents in the Fort Atkinson area who work with investors include Coldwell Banker Realty agents, RE/MAX Preferred agents, and First Weber Realtors who understand the Jefferson County market dynamics. National services that help investors find Airbnb properties include BiggerPockets for networking and deal analysis, Mashvisor for property analytics and market research, AirDNA for short-term rental data and performance metrics, and Awning for turnkey Airbnb investment properties. Regional companies serving Wisconsin include Wisconsin Realty Group and Shorewest Realtors who have experience with vacation rental investments in lake communities near Fort Atkinson. Additional services include RedAwning for property management and investment analysis, Vacasa for market insights and property management, and local property management companies like Lake Country Property Management that can provide market expertise for the southern Wisconsin region including Jefferson and surrounding counties.