Is Janesville, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Janesville, Wisconsin, begin by researching local zoning laws and regulations through the City of Janesville Planning Department, as the city requires short-term rental operators to obtain a business license and comply with residential zoning restrictions that may limit rentals to owner-occupied properties or specific districts. Contact the Rock County Health Department for any health and safety permits, and ensure compliance with Wisconsin state tax requirements including sales tax registration with the Department of Revenue. Find a suitable property by searching MLS listings, working with local realtors familiar with Janesville's neighborhoods like the Historic District or areas near the Rock River, with average property prices ranging from $150,000-$300,000 for suitable rental homes. Furnish the property with quality furniture from retailers like Ashley HomeStore in nearby Madison or online suppliers, focusing on durable pieces, comfortable bedding, and essential amenities including high-speed internet, kitchen appliances, and local guidebooks featuring attractions like Rotary Botanical Gardens and Palmer Park. Create your Airbnb listing with professional photography highlighting unique features, set competitive pricing based on local market rates of $80-150 per night, and write compelling descriptions emphasizing proximity to University of Wisconsin-Whitewater extension programs and local businesses. Manage your property by establishing cleaning protocols with local services, implementing keyless entry systems, maintaining responsive guest communication, and tracking expenses for tax purposes while building positive reviews to increase bookings in this growing Wisconsin market.

To identify profitable STR properties in Janesville, Wisconsin, focus on locations within 2-3 miles of downtown Janesville near the Rock River, close to major employers like General Motors assembly plant and Mercy Health System, and properties with easy access to Highway 14 and Interstate 90 for business travelers. Target 2-4 bedroom single-family homes or duplexes built after 1980 with modern amenities, full kitchens, dedicated parking, outdoor spaces, and reliable WiFi, as these appeal to both leisure and business guests visiting this manufacturing hub. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against the 15-25 existing STR properties in Janesville, aiming for nightly rates between $80-140 depending on size and amenities, while analyzing seasonal demand patterns around Rock County Fair in July and UW-Whitewater Rock County campus events. Research competition by monitoring Airbnb and VRBO listings within a 5-mile radius, noting that most properties are owner-operated single units, creating opportunities for professional management and superior guest experiences. Utilize tools like Rabbu and STR Helper for Janesville-specific market data, connect with Rock County tourism boards for event calendars, and leverage the Wisconsin Department of Tourism resources while ensuring compliance with Janesville's STR regulations which require permits and adherence to residential zoning requirements.

To obtain an Airbnb/STR permit in Janesville, Wisconsin, contact the City of Janesville Community Development Department at 18 North Jackson Street or call (608) 755-3030 to begin the application process. You'll need to submit a completed short-term rental license application, provide proof of property ownership or lease agreement with landlord consent, submit a site plan showing the property layout, provide proof of liability insurance (typically $1 million minimum), pass a property inspection conducted by city staff, and include contact information for a local property manager if you're not local. The application fee is approximately $150-200 with an additional inspection fee of around $75-100, and you may need to pay annual renewal fees of $100-150. The timeline typically takes 4-6 weeks from application submission to approval, including scheduling and completing the required inspection. Janesville requires STR properties to maintain occupancy limits based on bedrooms (typically 2 people per bedroom plus 2 additional), provide adequate parking spaces, maintain quiet hours from 10 PM to 7 AM, display the permit number in all advertisements, and ensure compliance with zoning regulations which may restrict STRs in certain residential areas. You must also register with the Wisconsin Department of Revenue for tax collection purposes and maintain records of all bookings for city inspection upon request.

Short-term rentals (STRs) are legal in Janesville, Wisconsin, but operate under specific municipal regulations that the city has developed to balance tourism benefits with neighborhood preservation. The city requires STR operators to obtain a business license and comply with zoning restrictions that generally limit short-term rentals to certain residential districts while prohibiting them in some single-family neighborhoods to maintain community character. Properties must meet safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers, and operators are typically required to provide local contact information for guest issues. Janesville has implemented occupancy limits based on property size and parking requirements to address neighbor concerns about noise and traffic. The city has been refining its STR ordinances over the past few years, with recent changes around 2021-2022 that clarified licensing procedures and enforcement mechanisms, including potential fines for non-compliance and provisions for revoking licenses for repeat violations.

The best areas for Airbnb investment in Janesville, Wisconsin include the Historic Downtown District near the Rock River, which attracts visitors to the Janesville Performing Arts Center and various festivals throughout the year, plus business travelers visiting local corporate offices. The Riverside Park area offers scenic waterfront appeal for leisure travelers and families visiting the popular Ice Age Trail segments. The University of Wisconsin-Whitewater Rock County campus vicinity provides steady demand from visiting families, prospective students, and academic conference attendees. The Highway 14/26 corridor near major retailers and the Janesville Mall captures overflow from nearby Wisconsin Dells tourists (45 minutes away) seeking more affordable accommodations, while also serving business travelers to local manufacturing facilities like General Motors components suppliers and Blain's Farm & Fleet corporate operations. The Palmer Park neighborhood offers a quiet residential setting attractive to extended-stay visitors and medical tourists accessing Mercy Hospital and SSM Health St. Mary's Janesville Hospital.

In Janesville, Wisconsin, Airbnb hosts are subject to Wisconsin state sales tax of 5% on lodging rentals, which applies to stays of less than 30 consecutive days. Additionally, hosts must collect the Wisconsin room tax of 5%, bringing the total state-level tax burden to 10% on short-term rental income. Rock County imposes a local room tax of 8%, and the City of Janesville adds its own room tax of 8%, resulting in a combined local rate of 16% on top of the state taxes, for a total tax rate of approximately 26% on Airbnb rentals. These taxes are typically collected from guests at the time of booking through Airbnb's automated tax collection system, which remits payments directly to the Wisconsin Department of Revenue on a monthly basis for state taxes, while local taxes may require separate registration and remittance by hosts to Rock County and the City of Janesville. Hosts must register for a Wisconsin seller's permit and may need separate local tax permits, with remittance generally due monthly by the 20th of the following month. Exemptions may apply for rentals exceeding 30 consecutive days, certain disabled veteran organizations, and specific religious or charitable organizations, though documentation is typically required to claim these exemptions.

To start an Airbnb in Janesville, Wisconsin, expect total costs around $180,000-220,000. Property purchase costs approximately $150,000 based on median home prices in the area as of 2023-2024. Furnishing a 2-3 bedroom property runs $8,000-12,000 including beds, linens, kitchen essentials, living room furniture, and décor. Initial setup costs $2,000-3,000 covering professional photography, listing creation, welcome materials, and basic supplies. Permits and fees total $500-800 including business license, short-term rental permit, and any required inspections. Insurance adds $1,200-1,800 annually for landlord and short-term rental coverage. Utility deposits and connections cost $300-500. First six months operating expenses include utilities ($900), cleaning supplies ($300), maintenance reserves ($1,000), marketing ($500), and platform fees on bookings ($1,500), totaling approximately $4,200. Additional considerations include potential property improvements ($3,000-5,000) and working capital for vacancy periods, bringing the comprehensive startup investment to roughly $180,000-220,000 depending on property condition and furnishing quality chosen.

Airbnb properties in Janesville, Wisconsin typically generate annual revenues between $15,000-$35,000 for entire homes and $8,000-$18,000 for private rooms, with average daily rates ranging from $65-$120 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), utilities ($150-$300 monthly), property management (10-20% of revenue), insurance ($800-$1,500 annually), and maintenance costs ($2,000-$4,000 yearly). Properties near the University of Wisconsin-Whitewater extension campus and downtown historic district achieve higher occupancy rates of 60-75% compared to suburban locations at 45-60%, with successful hosts like those operating renovated Victorian homes on Main Street reporting net profit margins of 25-35% after all expenses. Key success factors include professional photography, responsive communication, competitive pricing during peak seasons (summer months and university events), and maintaining properties within walking distance of Rock County attractions, with the most profitable properties being 2-3 bedroom homes priced 10-15% below Madison market rates while offering unique local experiences that differentiate them from chain hotels in the area.

Airbnb investments in Janesville, Wisconsin typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, based on average property acquisition costs of $120,000-180,000 and monthly rental income of $1,200-1,800 for 2-3 bedroom properties. The market benefits from proximity to University of Wisconsin-Whitewater (15 miles) and business travelers visiting local manufacturers like General Motors' former assembly plant area and Blain's Farm & Fleet corporate headquarters. Investors can expect to reach profitability within 18-24 months, with occupancy rates averaging 65-75% annually due to seasonal demand from university events, business travel, and recreational visitors to nearby Rock Cut State Park. Properties in downtown Janesville or near the Rock River tend to command premium rates of $80-120 per night, while suburban locations average $60-90 per night, with higher performance during summer months and university calendar events driving peak occupancy periods.

STRSearch is a national platform that helps investors identify profitable short-term rental properties in Janesville, Wisconsin, providing market analysis and investment metrics. Local real estate agents like Coldwell Banker Success and RE/MAX Preferred in Janesville have experience with investment properties and understand the local rental market dynamics. Mashvisor and AirDNA offer national data analytics services for Airbnb investment properties, providing occupancy rates and revenue projections for the Janesville market. BiggerPockets connects investors with local professionals and provides educational resources for short-term rental investments. Local property management companies such as Rock County Property Management can assist with ongoing operations once properties are acquired. Roofstock specializes in turnkey rental properties and occasionally features Wisconsin markets including areas near Janesville. RedAwning offers vacation rental market analysis and can provide insights into the southern Wisconsin tourism market that affects Janesville's short-term rental potential.