Is Kenosha, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Kenosha, Wisconsin, begin by researching local regulations as Kenosha requires short-term rental operators to obtain a business license and comply with zoning ordinances that typically allow rentals in residential areas with restrictions on occupancy and parking. Contact the Kenosha City Clerk's office to obtain the necessary business license (approximately $50-100 annually) and ensure your property meets fire safety codes and building requirements. Find a suitable property by purchasing or leasing in neighborhoods like downtown Kenosha, near the lakefront, or residential areas within city limits, ensuring the lease allows short-term rentals if renting. Furnish the space with essential amenities including quality bedding, kitchen supplies, WiFi, cleaning supplies, and safety equipment like smoke detectors and fire extinguishers, budgeting $3,000-8,000 for a complete setup. Create compelling listings on Airbnb, VRBO, and Booking.com with professional photos highlighting Kenosha's proximity to Lake Michigan and Chicago (90 minutes away), competitive pricing around $80-150 per night depending on size and location. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating check-ins/check-outs, maintaining the property regularly, and keeping detailed records for tax purposes including Wisconsin's 5.5% state sales tax and Kenosha County's additional room tax that applies to short-term rentals.

To identify profitable short-term rental properties in Kenosha, Wisconsin, focus on locations within 1-2 miles of Lake Michigan waterfront, downtown historic district near the harbor, and areas close to major employers like Snap-on Tools and Amazon fulfillment centers. Target 2-4 bedroom single-family homes or condos built after 1980 with modern amenities, parking, outdoor spaces, and lake views when possible, as these command premium rates of $150-250 per night during peak summer months. Analyze comparable STR properties using AirDNA and Mashvisor to identify gaps in the market, particularly targeting the $100-180 nightly rate range where demand exceeds supply. Research competition by monitoring occupancy rates of existing Airbnb and VRBO listings within 3-mile radius, noting that properties near Simmons Island and downtown average 65-75% occupancy during May-September peak season. Utilize tools like Rabbu and STR Helper for Kenosha-specific market data, monitor the Kenosha Area Convention and Visitors Bureau for event calendars that drive demand, and leverage local real estate platforms like MLS data through agents familiar with the Lake County market to identify properties under $200,000 that can generate 12-18% annual returns after expenses.

To obtain an Airbnb/STR permit in Kenosha, Wisconsin, you must first contact the Kenosha City Planning Department at City Hall located at 625 52nd Street to determine if short-term rentals are permitted in your specific zoning district, as the city has varying regulations by zone. Submit an application for a Conditional Use Permit (CUP) which typically requires a completed application form, property survey, site plan showing parking arrangements, proof of property ownership or lease agreement, and a $350-500 application fee. You'll also need to obtain a business license from the City Clerk's office for approximately $50-75 annually, provide proof of liability insurance (minimum $1 million coverage), and ensure the property meets all building and fire safety codes with current inspections. The process typically takes 6-8 weeks as it requires review by the Plan Commission and potentially the Common Council, with public notice requirements including notification to neighboring properties within 300 feet. Kenosha specifically requires adequate off-street parking (typically 2 spaces minimum), compliance with occupancy limits based on bedrooms and square footage, and adherence to noise ordinances with quiet hours typically from 10 PM to 7 AM, plus you must designate a local contact person available 24/7 for any issues that arise during guest stays.

Short-term rentals (STRs) are legal in Kenosha, Wisconsin, but operate under specific regulations established by the city. As of 2023, Kenosha requires STR operators to obtain a business license and comply with zoning restrictions that primarily allow STRs in commercial and mixed-use districts, while residential areas have more limited permissions. The city prohibits STRs in certain residential zones to preserve neighborhood character and requires operators to maintain liability insurance, provide emergency contact information, and ensure properties meet safety standards. Recent changes around 2022-2023 included stricter enforcement of noise ordinances and parking requirements, with the city implementing a complaint-based system for violations. Properties must also comply with occupancy limits based on square footage and bedroom count, and operators face penalties for repeated violations including potential license revocation.

The most promising Airbnb investment areas in Kenosha, Wisconsin include the Historic Downtown District near the harbor and Kenosha Public Museum, which attracts tourists visiting the Civil War Museum and scenic Lake Michigan waterfront activities. The Uptown neighborhood offers proximity to the University of Wisconsin-Parkside, generating consistent demand from visiting families, prospective students, and academic conferences. The HarborPark area is particularly attractive due to its location near Simmons Island Beach, the Kenosha Harbor, and summer festivals like the Kenosha Kingfish baseball games at Historic Simmons Field. The area around Highway 50 and I-94 provides excellent access for business travelers visiting major employers like Snap-on Tools headquarters and Amazon fulfillment centers, while also serving Chicago commuters seeking weekend lake retreats. The Southport corridor benefits from its proximity to the Illinois border, attracting visitors from the Chicago metropolitan area who prefer lower-cost accommodations while accessing Wisconsin's attractions, and the neighborhood around Library Park offers a quiet residential setting popular with families visiting local attractions like the Kenosha History Center and seasonal events at the farmers market.

In Kenosha, Wisconsin, Airbnb hosts are subject to both state and local lodging taxes that must be collected from guests and remitted to tax authorities. Wisconsin imposes a 5% state sales tax on short-term rental accommodations, while Kenosha County adds a 5% room tax, bringing the total occupancy tax rate to approximately 10% on gross rental receipts. The City of Kenosha may impose an additional local room tax of up to 8%, potentially making the combined rate as high as 18% depending on specific municipal ordinances. These taxes are collected by the host at the time of booking or check-in and must be remitted monthly to the Wisconsin Department of Revenue for state taxes and to Kenosha County for local room taxes, typically by the 20th of the following month. Hosts must register for a Wisconsin seller's permit and may need to obtain local permits or licenses to operate legally. Exemptions generally apply to stays of 30 days or longer, which are considered long-term rentals rather than transient accommodations, and certain government or charitable organization bookings may qualify for exemptions with proper documentation.

Starting an Airbnb in Kenosha, Wisconsin requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000 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 decor. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-3,000. Permits and fees in Kenosha include business license ($50), short-term rental permit ($200-500), and potential zoning compliance costs totaling approximately $1,000-2,000. Insurance for short-term rentals costs $1,200-2,000 annually, with the first year paid upfront. Utility deposits and connections for electricity, gas, water, internet, and cable run about $500-800. First six months of operating costs including utilities ($150/month), cleaning services ($75 per turnover), supplies and maintenance ($100/month), platform fees (3% of bookings), and marketing expenses total approximately $3,000-5,000, assuming 60% occupancy rates and $100 average nightly rates typical for the Kenosha market.

Airbnb properties in Kenosha, 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 $75-$140 depending on property type and location proximity to Lake Michigan. 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 averaging $2,000-$4,000 yearly. Properties within walking distance of downtown Kenosha or lakefront areas achieve occupancy rates of 55-70% with profit margins of 25-35%, while suburban locations typically see 35-50% occupancy and 15-25% margins. Success factors include professional photography, responsive communication, competitive pricing during peak summer months (May-September when lake activities drive demand), and targeting business travelers visiting companies like Snap-on Tools or Abbott Laboratories. A typical 3-bedroom home purchased for $180,000 and generating $28,000 annual revenue with $16,000 in expenses would yield approximately $12,000 net profit, representing a 6.7% return on investment before considering property appreciation, making Kenosha a moderately profitable market for short-term rentals compared to larger Wisconsin cities like Milwaukee or Madison.

Airbnb investments in Kenosha, Wisconsin typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties near the University of Wisconsin-Parkside and downtown lakefront areas command higher nightly rates of $80-120, while suburban properties average $60-90 per night with 65-75% occupancy rates throughout the year. Initial investment costs average $150,000-250,000 for suitable properties, with investors typically reaching profitability within 18-24 months after accounting for renovation costs, furnishing, and operational expenses. The market benefits from proximity to Chicago (90 minutes), Milwaukee (45 minutes), and Lake Michigan recreational activities, with peak seasons during summer months and university events driving occupancy rates up to 85%. Conservative projections show break-even occurring around month 20-26, with positive cash flow accelerating thereafter as mortgage principal reduction and potential property appreciation of 3-5% annually contribute to overall returns.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental investment opportunities in Kenosha, Wisconsin, using data analytics to evaluate potential Airbnb returns. Local real estate agents in the Kenosha area who focus on investment properties include Shorewest Realtors, Coldwell Banker Real Estate Group, and RE/MAX Newport Elite, with agents like those at First Weber Realtors having experience in vacation rental investments since around 2018. National services that assist Airbnb investors include Mashvisor (founded 2014), which provides rental property analysis tools, AirDNA for market data and revenue projections, Awning for turnkey Airbnb investments, Roofstock for rental property purchases, and BiggerPockets for investor networking and education. Local property management companies that cater to short-term rentals include Lake Geneva-based companies that extend services to Kenosha, while national management services like RedAwning, Vacasa, and AvantStay help investors optimize their Airbnb properties. Additional services include local contractors specializing in Airbnb renovations, accounting firms familiar with short-term rental tax implications, and insurance providers like Proper Insurance and CBIZ that offer coverage for vacation rental properties in the Wisconsin market.