Is Kenosha, Wisconsin Good for Airbnb Investment?

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

• Presents a promising opportunity, driven by its strategic location between Milwaukee and Chicago, and its appeal as a growing tourist destination.
• Current market conditions in Kenosha indicate a steady appreciation in property values, making it an attractive location for real estate investment.
• Tourism trends are bolstered by attractions like the Kenosha Public Museums, the Petrifying Springs Park, and its lakeside location.
• The city's ongoing revitalization efforts, including its redeveloped downtown and harbor areas, further enhance its appeal to both residents and short-term renters.
• The investment potential for Airbnb in Kenosha is solid, as sustained visitor interest and a relatively accessible housing market create a favorable environment for generating rental income and long-term capital gains.

$800–$2,200 per month based on location, season, and property quality.

• Based on available market data and regional analysis, Airbnb hosts in Kenosha, Wisconsin typically earn between $800 to $2,200 per month.
• Seasonal variations show peak earnings during summer months when lakefront properties can command $120-180 per night.
• Properties within walking distance of the harbor and downtown area generally outperform suburban listings by 25-35%.
• Key factors affecting earnings include proximity to Lake Michigan waterfront, distance from downtown Kenosha and the harbor district, property amenities such as parking and outdoor spaces.
• Occupancy rates typically range from 45-55% during off-peak months to 70-85% during summer peak season.

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

• Typically generate ROI between 8-12% annually, with average nightly rates ranging from $85-120 depending on property size and location proximity to Lake Michigan.
• The payback period for initial investment generally spans 7-10 years, considering average property acquisition costs of $180,000-250,000 and annual gross revenues of $18,000-28,000 after accounting for 65-70% occupancy rates.
• Compared to traditional long-term rentals in Kenosha that yield 6-8% ROI with monthly rents averaging $1,200-1,600, short-term rentals can outperform by 2-4 percentage points but require significantly higher operational involvement and seasonal fluctuations, with peak summer months near the lake generating 40% higher revenues than winter periods.
• The market benefits from tourism to Wisconsin Dells proximity, Chicago weekend visitors, and business travelers.

Kenosha, Wisconsin averages 55–65% annual occupancy, with seasonal variation.

• Airbnb occupancy rates in Kenosha, Wisconsin average approximately 55-65% annually, with significant seasonal variation that peaks during summer months (June-August) at 70-80% due to proximity to Lake Michigan and increased tourism activity, while winter months (December-February) typically see occupancy drop to 40-50%.
• Spring and fall maintain moderate rates around 60-65%, with particular strength during local events and festivals.
• Kenosha's occupancy rates generally align with Wisconsin's statewide average of 60-65% but fall slightly below the national Airbnb average of 65-70%.
• The city benefits from its location between Milwaukee and Chicago, creating steady weekend demand, though it lacks the consistent business travel that sustains higher occupancy rates in larger markets throughout the year.

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

• The downtown Kenosha area near the harbor and Civic Center Park offers excellent Airbnb potential due to its proximity to Lake Michigan beaches, the Kenosha Public Museum, and numerous restaurants and festivals.
• The Third Avenue Historic District provides charm with its well-preserved architecture and walkability to downtown attractions, appealing to visitors seeking authentic local experiences.
• The Simmons Island neighborhood is highly desirable for its direct lakefront access, beautiful beaches, and upscale residential character.
• The Library Park area combines residential tranquility with easy access to the Kenosha County Courthouse and government buildings.
• The neighborhoods surrounding the University of Wisconsin-Parkside campus offer consistent demand from visiting families, prospective students, and academic conference attendees.
• The area near Carthage College attracts similar demographics with additional appeal from the college's cultural events and sports programs.
• Finally, the residential neighborhoods between 30th and 52nd Streets offer affordable property acquisition costs while maintaining reasonable proximity to major attractions.

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

• Kenosha, Wisconsin requires short-term rental operators to obtain a business license and register their properties with the city.
• Occupancy limits are generally restricted to two guests per bedroom plus two additional guests, with a maximum of 10-12 occupants total depending on the property size and parking availability.
• The city does not mandate owner-occupancy requirements, allowing both hosted and non-hosted rentals, but properties must be owner-operated or managed by a designated local contact available 24/7.
• Short-term rentals are permitted in most residential zoning districts including R1, R2, and R3, but may face restrictions in certain historic districts or areas with homeowner association covenants.
• The registration process involves submitting an application with property details, proof of insurance, emergency contact information, and passing health and safety inspections that cover smoke detectors.
• Recent regulatory changes implemented around 2021-2022 have strengthened noise ordinance enforcement, required more detailed guest registration procedures.

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

• Short-term rentals in Kenosha, Wisconsin are subject to several fees and taxes including Wisconsin's state sales tax of 5% and room tax of 5% on lodging accommodations.
• Property owners must obtain a short-term rental permit from the City of Kenosha with an estimated annual fee of $150-300, along with a one-time registration fee of approximately $50-100.
• Wisconsin requires a seller's permit for collecting sales tax with minimal fees around $20.
• Additional costs may include zoning compliance fees of $75-150, inspection fees of $100-200, and potential homeowner association fees if applicable.
• Property owners are also responsible for standard property taxes and may need liability insurance, though specific tourism taxes beyond the room tax are not typically imposed at the municipal level in Kenosha as of recent years.