Is La Crosse, Wisconsin Good for Airbnb Investment?

To start an Airbnb in La Crosse, Wisconsin, begin by researching local regulations as the city 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 La Crosse City Clerk's office to obtain the necessary permits, which include a general business license ($25-50 annually) and potentially a conditional use permit depending on your property's zoning classification. Find a suitable property in neighborhoods like the Historic District, Grandad Bluff area, or near the University of Wisconsin-La Crosse campus, ensuring it meets safety requirements including smoke detectors, carbon monoxide detectors, and adequate egress windows. Furnish the space with essential amenities including Wi-Fi, linens, towels, kitchen basics, and local guidebooks highlighting attractions like Riverside Park and the Mississippi River, while ensuring compliance with Wisconsin's landlord-tenant laws regarding furnished rentals. Create your Airbnb listing with high-quality photos showcasing views of the bluffs or river, competitive pricing around $75-150 per night depending on size and location, and highlight proximity to local attractions like Grandad Bluff State Park and downtown La Crosse's restaurants and breweries. Manage your property by establishing cleaning protocols between guests, maintaining responsive communication, coordinating with local cleaning services, and keeping detailed records for tax purposes as Wisconsin requires collection of state sales tax (5.5%) plus La Crosse County tax (0.5%) on short-term rentals, while also budgeting for ongoing expenses including utilities, maintenance, insurance, and platform fees.

To identify profitable short-term rental properties in La Crosse, Wisconsin, focus on locations within walking distance of the University of Wisconsin-La Crosse campus, downtown historic district near the Mississippi River, and areas close to Grandad Bluff Park and the Great River State Trail. Target 2-4 bedroom properties built after 1950 with updated kitchens, multiple bathrooms, parking spaces, and outdoor amenities like decks or patios that can accommodate families and university visitors. Analyze pricing by researching comparable Airbnb and VRBO listings in La Crosse, aiming for properties under $200,000 that can generate $100-150 per night during peak seasons (graduation weekends, summer months, and fall football season). Conduct competition research using AirDNA and Mashvisor to identify supply gaps, particularly focusing on properties that can serve both university visitors and outdoor recreation tourists visiting the Mississippi River corridor. Utilize local resources including the La Crosse Area Convention & Visitors Bureau for tourism data, Realtor.com and Zillow for property searches, STR Helper for permit requirements, and connect with local property management companies like Vacasa or RedAwning to understand market dynamics and occupancy rates in different neighborhoods.

To obtain an Airbnb/STR permit in La Crosse, Wisconsin, you must first contact the La Crosse Planning Department at City Hall (400 La Crosse Street) or visit their website to apply for a Short-Term Rental License, which requires submitting a completed application form, proof of property ownership or lease agreement, a site plan showing the property layout, proof of liability insurance (minimum $1 million coverage), a fire safety inspection certificate from the La Crosse Fire Department, and a business license from the City Clerk's office. The application fee is approximately $150-200 with an annual renewal fee of $100-125, and you must also pay for the required fire inspection which costs around $75-100. The process typically takes 4-6 weeks from submission to approval, during which the city will review your application, conduct inspections, and verify compliance with zoning requirements. La Crosse-specific requirements include maintaining a maximum occupancy limit based on bedroom count, providing adequate parking spaces (typically one space per bedroom), ensuring the property meets all building and fire codes, maintaining a local contact person available 24/7 if you're not local, and adhering to noise ordinances and neighborhood compatibility standards. You must also register with the Wisconsin Department of Revenue for tax collection purposes and may need to obtain additional permits if making structural modifications to accommodate guests.

Short-term rentals (STRs) are legal in La Crosse, Wisconsin, but operate under specific regulations established by the city. La Crosse requires STR operators to obtain a conditional use permit and business license, with properties subject to safety inspections and compliance with zoning requirements. The city limits STRs to certain zoning districts and prohibits them in some residential areas to preserve neighborhood character. Operators must maintain liability insurance, provide emergency contact information, and ensure properties meet building and fire safety codes. Recent changes around 2019-2020 included stricter enforcement of existing regulations and enhanced inspection requirements following complaints about noise and parking issues. The city also requires STR operators to collect and remit room taxes, and there are occupancy limits based on property size and parking availability. While not banned outright, La Crosse maintains relatively strict oversight compared to some Wisconsin municipalities, balancing tourism revenue with resident concerns about housing availability and neighborhood impacts.

The best Airbnb investment areas in La Crosse, Wisconsin include the Historic Downtown District, which attracts business travelers visiting major employers like Gundersen Health System and tourists exploring the Mississippi River waterfront, particularly during Oktoberfest and Riverfest events. The Grandad Bluff area offers scenic views and proximity to hiking trails, appealing to outdoor enthusiasts and couples seeking romantic getaways. The University of Wisconsin-La Crosse campus vicinity provides consistent demand from visiting families during graduation, parents' weekends, and sporting events, with peak seasons during fall football and spring commencement. The French Island neighborhood offers unique waterfront properties that command premium rates from visitors seeking Mississippi River experiences and water activities. The Riverside Park area benefits from its proximity to the riverfront trail system, boat launches, and summer festivals, while the Copeland Park district attracts families visiting for youth sports tournaments and outdoor recreation, with properties here experiencing strong occupancy rates during summer months and fall color season.

In La Crosse, Wisconsin, Airbnb hosts are subject to multiple lodging taxes including the Wisconsin state sales tax of 5%, La Crosse County room tax of 5%, and the City of La Crosse room tax of 8%, totaling approximately 18% in combined taxes on short-term rental accommodations. The Wisconsin Department of Revenue requires hosts to register for a seller's permit and collect state sales tax, which must be remitted monthly if collections exceed $200 or quarterly for smaller amounts. The La Crosse County room tax is administered by the La Crosse County Tourism Bureau and must be collected by hosts and remitted monthly by the 15th of the following month, with proceeds supporting tourism promotion and convention facilities. The City of La Crosse room tax is collected through the city's finance department and also requires monthly remittance, with funds typically supporting local tourism marketing and municipal services. Airbnb may collect and remit some of these taxes automatically depending on agreements with local jurisdictions, but hosts remain ultimately responsible for compliance and should verify which taxes are being handled by the platform versus those requiring direct remittance. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient lodging, and certain government or nonprofit organization bookings may qualify for exemptions with proper documentation.

Starting an Airbnb in La Crosse, Wisconsin requires approximately $180,000-220,000 in total initial investment. Property purchase costs average $165,000 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 basic appliances. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations total around $2,000-3,000. Permits and fees vary but expect $300-800 for business licenses, short-term rental permits, and city registration requirements. Insurance premiums for short-term rental coverage average $1,200-1,800 annually, with the first year paid upfront. Utility setup and deposits for electricity, gas, water, internet, and cable services cost approximately $500-800 initially. First six months of operating expenses including utilities ($150/month), cleaning services ($75 per turnover), supplies and maintenance ($100/month), platform fees (3% of bookings), and marketing total roughly $2,500-4,000 depending on occupancy rates and seasonal demand in the La Crosse market.

Airbnb properties in La Crosse, 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 the University of Wisconsin-La Crosse and Mississippi River attractions. 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 downtown and the riverfront achieve higher occupancy rates of 65-75% compared to 45-60% for suburban locations, with peak demand during summer months, university events, and Oktoberfest celebrations driving premium pricing. Successful operators in the La Crosse market typically achieve net profit margins of 15-25% by focusing on properties within walking distance of major attractions, maintaining high cleanliness standards, and offering amenities like parking and river views, while properties in less desirable locations or those with poor management often struggle to exceed 5-10% profit margins due to lower occupancy and pricing power.

Airbnb investments in La Crosse, Wisconsin typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, driven by the city's proximity to the University of Wisconsin-La Crosse and Mississippi River tourism attractions. Properties near downtown or the riverfront command premium rates of $80-120 per night with 65-75% occupancy rates during peak seasons (May-October), while university area properties maintain steady demand during the academic year. Initial investment costs average $150,000-250,000 for suitable properties, with renovation expenses of $15,000-30,000 to meet short-term rental standards. Most investors achieve profitability within 18-24 months, factoring in mortgage payments, property management fees of 15-25%, cleaning costs, and La Crosse's short-term rental licensing requirements. The market benefits from consistent demand from university visitors, outdoor recreation enthusiasts visiting the Great River Road, and business travelers, though winter months typically see 40-50% occupancy drops that impact overall returns.

STRSearch is a national platform that specializes in identifying profitable short-term rental investment properties and provides market analysis for Airbnb investments in La Crosse, Wisconsin. Local real estate agents like those at Coldwell Banker River Valley Realtors, RE/MAX Preferred, and Century 21 Affiliated have experience with investment properties in the La Crosse market since around 2015-2018. Mashvisor, a national real estate analytics platform founded in 2014, offers Airbnb rental analysis and property search tools for Wisconsin markets including La Crosse. AirDNA provides short-term rental data and market insights for the La Crosse area, helping investors identify profitable neighborhoods near the University of Wisconsin-La Crosse and downtown riverfront areas. BiggerPockets, the national real estate investment community, connects investors with local La Crosse market experts and provides educational resources. Local property management companies like Bluff Country Property Management and River City Property Services have expanded into Airbnb management services since 2017-2019. National services like Awning and RedAwning offer turnkey Airbnb investment solutions and can source properties in the La Crosse market, while Roofstock focuses on single-family rental investments that can be converted to short-term rentals in Wisconsin markets.