Is Fort Atkinson, Wisconsin Good for Airbnb Investment?

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Fort Atkinson, Wisconsin market research

Fort Atkinson, Wisconsin Airbnb Investment Overview

$75–$150Typical monthly host earnings
8–12%Typical annual ROI
45–55%Average annual occupancy
VariesCombined taxes and local fees
Investment

Is Airbnb a Good Investment in Fort Atkinson, Wisconsin?

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

  • Presents a niche but potentially rewarding opportunity.
  • The local market is characterized by stable, rather than rapidly appreciating, property values, which can offer a solid foundation for long-term investment.
  • Tourism trends in Fort Atkinson are often driven by its natural beauty, particularly the Rock River and surrounding outdoor activities.
  • While not a major metropolitan tourist hub, this consistent, steady stream of visitors seeking a quieter getaway or attending specific events provides a reliable demand for short-term rentals.
  • The investment potential lies in catering to this specific demographic, offering unique experiences or amenities that attract visitors looking for alternatives to traditional lodging.
Earnings

How Much Does an Average Airbnb Earn in Fort Atkinson?

$75–$150 per month based on location, season, and property quality.

  • Based on available market data and regional analysis, Airbnb hosts in Fort Atkinson, Wisconsin typically earn between $75-$150 per month for shared rooms and $200-$450 per month for entire properties.
  • Properties near Lake Koshkonong or downtown areas command premium rates of $80-$120 per night during peak season versus $45-$75 during off-peak months.
  • Seasonal variations show strongest performance from May through September when tourism peaks, with occupancy rates averaging 60-70% during summer months compared to 25-40% in winter.
  • Revenue potential is also influenced by the property's distance from Madison (approximately 45 minutes away), local events at the Jefferson County Fair Park.
ROI Analysis

Airbnb Return on Investment in Fort Atkinson

Potentially strong, with a typical annual ROI of 8–12%.

  • Typically generate ROI between 8-12% annually, with payback periods averaging 7-10 years depending on property acquisition costs and renovation expenses.
  • Properties in Fort Atkinson's historic downtown area and near Lake Koshkonong tend to perform better, with occupancy rates around 60-70% during peak summer months and 40-50% in winter.
  • Compared to traditional long-term rentals in the area that yield approximately 6-8% ROI with more predictable monthly income of $800-1,200, Airbnb properties offer higher potential returns but require significantly more active management, higher operating expenses including cleaning fees, utilities, and marketing costs, and face seasonal demand fluctuations that can impact cash flow consistency throughout the year.
Occupancy Rate

Average Airbnb Occupancy Rate in Fort Atkinson

Fort Atkinson, Wisconsin averages 45–55% annual occupancy, with seasonal variation.

  • Fort Atkinson, Wisconsin Airbnb properties typically maintain an average occupancy rate of approximately 45-55% annually.
  • Spring and fall shoulder seasons generally maintain moderate occupancy rates of 40-50%, with slight upticks during autumn foliage season in October.
  • Fort Atkinson's occupancy rates tend to underperform compared to Wisconsin's statewide Airbnb average of approximately 60-65% and the national average of 65-70%.
Best Neighborhoods

Best Neighborhoods for Airbnb in Fort Atkinson

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

  • The downtown historic district offers the strongest Airbnb potential with its walkable access to Main Street shops, restaurants, and the Hoard Historical Museum.
  • The Koshkonong Creek area provides scenic waterfront appeal for guests seeking nature experiences and fishing access.
  • The Jefferson Street corridor near Blackhawk Technical College captures consistent demand from visiting families, prospective students, and business travelers.
  • The residential area around Jones Park attracts families and groups wanting quiet accommodations near recreational facilities while remaining close to downtown.
  • The neighborhoods near the Rock River offer outdoor recreation access for kayaking and fishing enthusiasts, commanding $85-125 nightly especially during summer months.
  • The area around Cambridge Road provides easy highway access for business travelers and those visiting nearby Madison or Milwaukee.
Regulations

Short-term Rental Regulations in Fort Atkinson

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

  • Fort Atkinson, Wisconsin requires short-term rental operators to obtain a business license and register with the city, with properties limited to a maximum occupancy of 2 people per bedroom plus 2 additional guests.
  • The city does not mandate owner-occupancy requirements, allowing both hosted and non-hosted rentals, but properties must be located in areas zoned for residential or mixed-use where such activities are permitted under the zoning ordinance.
  • Registration involves submitting an application with property details, proof of insurance, emergency contact information.
  • Properties must meet safety standards including smoke and carbon monoxide detectors, fire extinguishers, and emergency egress requirements.
  • Recent changes implemented in 2022-2023 include stricter noise ordinance enforcement with fines up to $500 for violations, mandatory posting of house rules and occupancy limits.
Fees and Taxes

Short-term Rental Fees and Taxes in Fort Atkinson

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

  • Short-term rentals in Fort Atkinson, Wisconsin are subject to Wisconsin's state lodging tax of 5% on gross receipts, plus Jefferson County's room tax of 5%.
  • The city of Fort Atkinson requires short-term rental operators to obtain a business license costing approximately $50-75 annually.
  • Operators must register with the Wisconsin Department of Revenue for sales tax purposes (no fee) and obtain a Wisconsin seller's permit.
  • Additional costs may include annual safety inspections at $75-100, and operators are responsible for collecting and remitting Wisconsin's 5% sales tax on rental income.
  • Property owners may also face increased property tax assessments if the property is reclassified from residential to commercial use.
Common questions

Fort Atkinson, Wisconsin Airbnb investment FAQs

How to start an Airbnb in Fort Atkinson, Wisconsin?

To start an Airbnb in Fort Atkinson, Wisconsin, begin by researching local zoning laws and regulations through the Fort Atkinson Planning Department.

Launch checklist

  • 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.
  • 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.
  • Manage the property by establishing check in procedures, maintaining cleanliness standards, responding promptly to guest inquiries.
What's the best way to identify good STR properties in Fort Atkinson, Wisconsin?

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.

What to prioritize

  • Target 2 to 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 to 150 per night depending on size and amenities, while calculating potential gross yields of 8 to 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 to 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.
How to get an Airbnb permit in Fort Atkinson, Wisconsin?

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 to 7769 to begin the application process.

Documents and approvals

  • 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.
  • The application fee is estimated to be between $100 to 300 annually, with additional inspection fees of approximately $50 to 150.
  • The timeline for approval is typically 30 to 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.
Is it legal to operate a short-term rental in Fort Atkinson, Wisconsin?

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.

Core operating requirements

  • 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 to 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.
  • Violations can result in fines ranging from $200 to $1,000, and the city has implemented a complaint driven enforcement system to address neighbor concerns about noise, parking, and occupancy violations.
What are the best places to invest in Airbnb in Fort Atkinson, Wisconsin?

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. The Koshkonong Creek area offers scenic waterfront appeal for outdoor enthusiasts and fishing tourists, while properties near the Rock River provide similar recreational draws.

Areas to research

  • 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.
Airbnb and lodging taxes in Fort Atkinson, Wisconsin

In Fort Atkinson, Wisconsin, Airbnb properties are subject to both state and local lodging taxes.

Taxes and filing responsibilities

  • 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 to 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 in preference to transient accommodations, and to certain government and nonprofit organization bookings with proper documentation.
Total cost to purchase, furnish and operate an Airbnb in Fort Atkinson, Wisconsin

To start an Airbnb in Fort Atkinson, Wisconsin, the total initial costs would be approximately $185,000 to $220,000.

Cost breakdown

  • Property purchase represents the largest expense at $150,000 to $180,000 based on median home prices in the area as of 2023 to 2024.
  • Furnishing costs typically range $8,000 to $12,000 for a complete 2 to 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 to $800.
  • Permits and fees vary but generally include business license ($50 to $100), short term rental permit if required ($100 to $300), and potential zoning compliance costs ($200 to $500).
  • Insurance for short term rentals costs approximately $1,200 to $2,000 annually, with the first year paid upfront.
  • Utility setup and deposits for electricity, gas, water, internet, and cable total around $300 to $500 initially.
  • First six months of operating costs including utilities ($150 to $200/month), cleaning supplies and services ($100 to $150/month), maintenance reserves ($100 to $200/month), platform fees (3% of bookings).
Are Airbnb properties in Fort Atkinson, Wisconsin profitable?

Airbnb properties in Fort Atkinson, Wisconsin typically generate annual revenues of $15,000 to $25,000 for entire home listings, with average daily rates ranging from $80 to $120 depending on property size and amenities.

Profitability indicators

  • Operating expenses generally consume 40 to 50% of gross revenue, including cleaning fees ($30 to $50 per turnover), utilities ($150 to $200 monthly), property management (10 to 15% of revenue), insurance ($800 to $1,200 annually).
  • Net profit margins typically range from 15 to 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 to 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.
  • 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.
What is the expected return on investment for an Airbnb in Fort Atkinson, Wisconsin?

Based on Fort Atkinson, Wisconsin market conditions, Airbnb investments typically generate annual ROI of 8 to 12% with cash on cash returns ranging from 6 to 10% depending on property type and location within the city.

Return planning figures

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

STRSearch is a national platform that specializes in identifying profitable short term rental properties for investors, including in Fort Atkinson, Wisconsin.

Companies and resources

  • 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.
  • 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.