Is Marshall, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Marshall, Wisconsin, begin by researching local zoning laws and regulations through the Village of Marshall clerk's office, as Wisconsin municipalities typically require short-term rental permits and may have specific occupancy limits or safety requirements. Contact Dane County (where Marshall is located) for any county-level regulations and obtain necessary permits, which may include a business license, short-term rental permit, and potentially a conditional use permit depending on your property's zoning. Find a suitable property by searching local real estate listings through companies like Coldwell Banker or RE/MAX, focusing on properties near Marshall's downtown area or close to attractions like the Sugar River State Trail, with typical property prices ranging from $200,000-$400,000 as of 2023. Furnish the property with essential amenities including quality bedding, kitchen supplies, Wi-Fi, and local guidebooks, budgeting approximately $5,000-$15,000 for initial furnishing depending on property size. Create your Airbnb listing with professional photos highlighting Marshall's small-town charm and proximity to Madison (about 20 miles), setting competitive rates around $80-$150 per night based on local market analysis. Manage your property by establishing cleaning protocols between guests, maintaining responsive communication, and considering property management services if needed, while ensuring compliance with Wisconsin's 5.5% state sales tax and any local lodging taxes that Marshall may impose.

To identify profitable short-term rental properties in Marshall, Wisconsin, focus on locations within 1-2 miles of Devil's Lake State Park and Lake Wisconsin, as these natural attractions drive consistent tourism demand year-round. Target 2-4 bedroom properties built after 1980 with modern amenities, full kitchens, outdoor spaces, and parking for 4+ vehicles, as families and groups comprise the primary visitor demographic. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against comparable properties in nearby Wisconsin Dells (typically $150-300/night) and Baraboo ($100-200/night), aiming for properties that can command $120-180/night with 60-70% occupancy rates. Research competition by analyzing existing STRs within a 5-mile radius on Airbnb and VRBO, noting gaps in amenities like hot tubs, fire pits, or pet-friendly options that could provide competitive advantages. Utilize tools like Rabbu and STR Helper for local market analysis, monitor Dane County tourism data through the Wisconsin Department of Tourism, and leverage the Marshall Chamber of Commerce for insights on seasonal events and visitor patterns, while ensuring compliance with local zoning ordinances and potential STR regulations in this small community of approximately 3,800 residents.

To obtain an Airbnb/STR permit in Marshall, Wisconsin, contact the Village of Marshall Clerk's office at 608-655-3393 or visit their office at 508 Elm Street to request a short-term rental license application, as Marshall requires STR operators to obtain a business license and comply with zoning regulations. Required documents typically include a completed application form, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan showing maximum occupancy, emergency contact information, and parking plan documentation. The application fee is approximately $100-200 annually with possible additional inspection fees of $50-75. Submit your complete application to the Village Clerk along with required fees, and the approval process typically takes 2-4 weeks including a property inspection by the building inspector or fire marshal. Marshall-specific requirements include maintaining maximum occupancy limits based on bedroom count and square footage, providing adequate off-street parking (typically 2 spaces minimum), ensuring smoke and carbon monoxide detectors are installed and functional, maintaining a 24-hour local contact person, and complying with noise ordinances and residential zoning restrictions that may limit the number of STR permits issued per neighborhood.

Short-term rentals (STRs) are generally legal in Marshall, Wisconsin, but are subject to local regulations and zoning restrictions. As a small community in Dane County, Marshall likely follows county-wide STR regulations which typically require permits, safety inspections, and compliance with occupancy limits. Properties must usually be owner-occupied or meet specific licensing requirements, and STRs are often prohibited in certain residential zones or require conditional use permits. Recent changes in Wisconsin have given municipalities more authority to regulate STRs, with many communities implementing stricter rules around noise, parking, and neighborhood compatibility since 2020-2022. Marshall may restrict STRs in purely residential areas while allowing them in mixed-use or commercial zones, and operators typically must register with the state for tax purposes and maintain liability insurance.

The best areas for Airbnb investment in Marshall, Wisconsin include the downtown historic district near Main Street, which attracts visitors interested in small-town charm and local events like the annual Marshall Fun Days festival. The lakefront areas around Lake Marshall offer strong rental potential due to fishing, boating, and summer recreation activities that draw tourists from Madison and Milwaukee, approximately 30-45 minutes away. Properties near the Marshall Community Park and recreational facilities perform well during youth sports tournaments and family gatherings. The residential neighborhoods within walking distance of local restaurants and the Marshall Brewing Company tap into the growing agritourism and craft beverage tourism market. Areas close to Highway 19 provide convenient access for business travelers visiting nearby agricultural operations and small manufacturing facilities, while properties near the Marshall School District can capture demand from visiting families during school events and activities throughout the year.

Marshall, Wisconsin imposes a 5.5% state sales tax on short-term rental accommodations including Airbnbs, along with a local room tax that typically ranges from 3-8% depending on the specific municipality within Marshall. The Wisconsin Department of Revenue requires hosts to register for a seller's permit and collect these taxes from guests at the time of booking or check-in, with monthly remittance due by the 20th of the following month for properties with regular bookings. Local room taxes are collected by the municipality and must be remitted quarterly or monthly depending on volume, with forms typically due 30 days after the end of each reporting period. Airbnb may collect and remit these taxes automatically for hosts in some Wisconsin jurisdictions through their tax collection service, but hosts remain ultimately responsible for compliance. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient accommodations, and some municipalities may exempt rentals under a certain number of days per year or rooms per property, though these vary significantly by local ordinance.

To start an Airbnb in Marshall, Wisconsin, expect total costs around $285,000-$320,000. Property purchase will be the largest expense at approximately $220,000-$250,000 based on median home prices in rural Wisconsin communities. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom property including beds, linens, kitchen essentials, living room furniture, and decor. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees vary but budget $500-$1,500 for business licenses, short-term rental permits, and potential zoning approvals from Columbia County. Insurance premiums for short-term rental coverage run $1,200-$2,000 annually. Utility deposits and connections cost approximately $500-$800. First six months operating costs including utilities ($150-$200 monthly), cleaning services ($75-$100 per turnover), supplies and maintenance ($200-$300 monthly), Airbnb platform fees (3% host fee), and marketing expenses total roughly $4,000-$6,000. Additional considerations include potential property management fees if outsourced (20-30% of revenue) and maintaining 10-15% of gross revenue as a reserve fund for unexpected repairs and maintenance.

Airbnb properties in Marshall, Wisconsin typically generate annual revenues between $15,000-$35,000 for entire home listings, with average daily rates ranging from $85-$150 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 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. Profit margins for successful properties range from 25-45%, with higher-end lakefront or rural retreat properties near Lake Mendota achieving the upper range due to premium pricing during summer months and fall foliage season. Success factors include proximity to outdoor recreation areas, professional photography, consistent 4.8+ star ratings, and strategic pricing during University of Wisconsin events and regional festivals. Properties within 30 minutes of Madison perform significantly better, with occupancy rates of 65-80% compared to 45-60% for more remote locations. A typical 3-bedroom home purchased for $180,000 and generating $28,000 in annual Airbnb revenue with $16,000 in expenses would yield approximately $12,000 net profit, representing a 6.7% return on investment before considering property appreciation.

Airbnb investments in Marshall, Wisconsin typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on the rural market dynamics and seasonal tourism patterns in the area. Properties in Marshall, located near Madison and popular lake recreation areas, can expect to reach profitability within 18-24 months, with average nightly rates of $85-120 during peak summer months and $60-85 during off-season periods. The market benefits from proximity to Devil's Lake State Park and Lake Wisconsin recreational activities, driving consistent bookings from May through October, though winter occupancy typically drops to 40-50% compared to 75-85% summer occupancy rates. Initial investment costs are relatively low compared to urban markets, with median property prices around $180,000-250,000, allowing investors to achieve positive cash flow within the first year when factoring in mortgage payments, maintenance, and Airbnb management fees of approximately 15-20% of gross rental income.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors in Marshall, Wisconsin and surrounding areas. Local real estate agents in the Marshall area who focus on investment properties include Coldwell Banker Realty agents and RE/MAX professionals who understand the vacation rental market dynamics in Wisconsin. National services like AirDNA provide market analysis and revenue projections for Airbnb properties in Marshall, while Mashvisor offers investment property analysis tools specifically for short-term rentals. RedAwning and Vacasa provide property management services for investors who purchase Airbnb properties in the region. Local Wisconsin-based companies such as Wisconsin Dells Realty Group and Lake Country Realty have agents experienced with vacation rental investments, particularly given Marshall's proximity to recreational areas. BiggerPockets connects investors with local real estate professionals familiar with the Marshall market, and HostGPO offers purchasing and setup services for new Airbnb investors. Additionally, local property management companies like Northwoods Property Management and Wisconsin Vacation Rentals can assist investors with both acquisition advice and ongoing management of profitable short-term rental properties in Marshall and the greater Wisconsin market.