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Wisconsin
Milwaukee

Is Milwaukee, Wisconsin Good for Airbnb Investment?

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Milwaukee, Wisconsin market research

Milwaukee, Wisconsin Airbnb Investment Overview

$1,200–$2,800Typical monthly host earnings
8–15%Typical annual ROI
65–70%Average annual occupancy
VariesCombined taxes and local fees
Investment

Is Airbnb a Good Investment in Milwaukee, Wisconsin?

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

  • Presents a nuanced opportunity with several favorable factors.
  • The city's growing tourism, driven by its vibrant cultural scene, numerous festivals, and developing lakefront attractions, creates consistent demand for short-term rentals.
  • Current market conditions indicate a stable real estate market, with property values showing steady, albeit moderate, appreciation.
  • While local regulations on short-term rentals exist and should be carefully navigated, the overall investment potential is boosted by Milwaukee's increasing appeal as a destination for both leisure and business travelers, contributing to healthy occupancy rates and potential for solid rental income.
Earnings

How Much Does an Average Airbnb Earn in Milwaukee?

$1,200–$2,800 per month based on location, season, and property quality.

  • Average Airbnb earnings in Milwaukee range from $1,200 to $2,800 per month for typical properties, with entire homes averaging $2,100 monthly while private rooms generate approximately $900-$1,400 monthly.
  • Seasonal variations show peak earnings during summer months when revenue can increase by 40-60% due to festival season, baseball games, and tourism.
  • Properties near downtown, the Historic Third Ward, and lakefront areas command premium rates of $120-$180 per night compared to suburban locations averaging $75-$110 nightly.
  • Key factors affecting earnings include proximity to major attractions like the Harley-Davidson Museum and Miller Park, property size and amenities, professional photography and listing optimization.
  • Occupancy rates typically range from 55-75% annually, with successful hosts maintaining higher occupancy through dynamic pricing and exceptional guest experiences.
ROI Analysis

Airbnb Return on Investment in Milwaukee

Potentially strong, with a typical annual ROI of 8–15%.

  • Airbnb investments in Milwaukee typically generate ROI between 8-15% annually, with properties in popular neighborhoods like the Third Ward, Bay View.
  • The average payback period for initial investment ranges from 6-10 years, depending on property acquisition costs and renovation expenses.
  • Milwaukee's Airbnb market benefits from steady demand driven by business travelers, Brewers games, Summerfest, and lakefront tourism.
  • Compared to traditional long-term rentals in Milwaukee, which typically yield 6-9% ROI, short-term rentals can provide 2-6 percentage points higher returns but require significantly more active management.
  • Properties within walking distance of major attractions or the lakefront command premium rates and achieve faster payback periods.
Occupancy Rate

Average Airbnb Occupancy Rate in Milwaukee

Milwaukee, Wisconsin averages 65–70% annual occupancy, with seasonal variation.

  • Milwaukee's Airbnb occupancy rates average approximately 65-70% annually, with significant seasonal variation that peaks during summer months (June-August) at 75-85% due to festival season including Summerfest.
  • Spring and fall months typically see moderate occupancy around 60-65%, while winter months drop to 45-55% due to harsh weather conditions and reduced tourism activity.
  • Milwaukee's occupancy rates generally align closely with Wisconsin's statewide average of 68%.
  • Compared to national Airbnb averages of approximately 48-52%, Milwaukee performs significantly better due to its status as Wisconsin's largest city, diverse attractions including breweries and lakefront activities.
  • The city experiences secondary peaks during major events like the Wisconsin State Fair in August and holiday weekends.
Best Neighborhoods

Best Neighborhoods for Airbnb in Milwaukee

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

  • The Historic Third Ward stands out as Milwaukee's premier Airbnb investment neighborhood due to its cobblestone streets, upscale dining scene, proximity to the Harley-Davidson Museum.
  • Walker's Point offers excellent investment potential with its trendy restaurants, craft breweries, and growing arts scene.
  • The East Side near the University of Wisconsin-Milwaukee provides consistent demand from visiting families, academics, and students.
  • Riverwest appeals to creative travelers and artists with its bohemian atmosphere, affordable property acquisition costs, and proximity to downtown, though rental rates may be more moderate.
  • Bay View has emerged as a hip neighborhood with strong rental demand due to its local brewery scene, vintage shops, and young professional demographic, offering good appreciation potential.
  • Downtown Milwaukee, particularly near the Bradley Center and convention facilities, provides steady business traveler demand and proximity to major attractions.
  • Wauwatosa's proximity to the Medical College of Wisconsin and regional medical facilities creates consistent demand from medical professionals and visiting families.
Regulations

Short-term Rental Regulations in Milwaukee

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

  • Milwaukee requires short-term rental operators to obtain a business license and register with the city, with properties limited to a maximum of 8 guests and 4 bedrooms for rental purposes.
  • Owner-occupancy is not required for short-term rentals, but properties must be owner-occupied for at least 6 months per year if operating in residential zoning districts.
  • Short-term rentals are prohibited in certain residential zones and require conditional use permits in others, with stricter regulations in historic districts.
  • The registration process involves submitting an application with property details, proof of insurance, emergency contact information, and paying annual fees of approximately $150-300.
  • Properties must meet safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers, with inspections required every two years.
  • The city also established a complaint hotline and requires platforms to collect and remit room taxes.
Fees and Taxes

Short-term Rental Fees and Taxes in Milwaukee

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

  • Short-term rentals in Milwaukee, Wisconsin are subject to several fees and taxes including a 14.1% combined room tax consisting of Wisconsin's 5% state sales tax, Milwaukee County's 7.75% room tax.
  • Property owners must obtain an annual short-term rental license costing approximately $150-200 from the City of Milwaukee.
  • Additional costs include a one-time registration fee of roughly $75-100 for initial permit processing.
  • Properties may also be subject to standard property taxes and potential special assessments, while hosts must collect and remit the room taxes monthly to the Wisconsin Department of Revenue.
Common questions

Milwaukee, Wisconsin Airbnb investment FAQs

How to start an Airbnb in Milwaukee, Wisconsin?

To start an Airbnb in Milwaukee, Wisconsin, begin by researching local regulations as Milwaukee requires short term rental operators to obtain a license from the City Clerk's office, which costs approximately $75 to 100 annually and requires proof of insurance, property inspection.

Launch checklist

  • Next, secure necessary permits including a business license, occupancy permit, and ensure your property meets fire safety codes with proper smoke detectors, carbon monoxide detectors, and emergency exits as mandated by Milwaukee's building inspection department.
  • Find a suitable property in neighborhoods like Bay View, Riverwest, or Walker's Point that are zoned for short term rentals and consider proximity to attractions like the Harley Davidson Museum, lakefront, or downtown area.
  • Furnish the space with quality basics including comfortable bedding, kitchen essentials, WiFi, and local guidebooks while ensuring ADA compliance if required.
  • Create your Airbnb listing with professional photos, competitive pricing (typically $80 to 150 per night in Milwaukee depending on location and amenities), and detailed descriptions highlighting nearby attractions and transportation options.
  • Finally, manage your property by establishing check in procedures, maintaining cleanliness standards, responding promptly to guests, collecting the required 5.6% Wisconsin state tax plus Milwaukee's room tax.
What's the best way to identify good STR properties in Milwaukee, Wisconsin?

To identify profitable short term rental properties in Milwaukee, Wisconsin, focus on neighborhoods near major attractions like the Historic Third Ward, Walker's Point, and areas within 2 to 3 miles of downtown, Harley Davidson Museum, and lakefront properties along Lake Michigan.

What to prioritize

  • Target 2 to 4 bedroom properties built after 1950 with updated kitchens, multiple bathrooms, parking availability, and unique character features like exposed brick or historic charm that photograph well for listings.
  • Conduct pricing analysis using AirDNA and Mashvisor to evaluate average daily rates ($80 to 150 typical range), occupancy rates (aim for 65%+ annually), and seasonal demand patterns, particularly during summer months and Summerfest events.
  • Research competition by analyzing similar properties within a 1 mile radius on Airbnb and VRBO, noting their pricing, amenities, and guest reviews to identify market gaps.
  • Utilize Milwaukee specific resources including the city's STR licensing requirements, local property management companies like RedAwning or Vacasa for market insights.
How to get an Airbnb permit in Milwaukee, Wisconsin?

To obtain an Airbnb/STR permit in Milwaukee, Wisconsin, you must first register with the City of Milwaukee's Department of Neighborhood Services by submitting an application for a Short Term Rental License through their online portal or in person at 809 North Broadway.

Documents and approvals

  • Required documents include proof of property ownership or lease agreement with landlord consent, certificate of occupancy, proof of liability insurance (minimum $1 million), floor plan showing maximum occupancy, contact information for a local responsible party within 30 minutes of the property.
  • The application fee is approximately $150 to 200 with annual renewal fees of $100 to 150.
  • Milwaukee requires properties to be owner occupied or have the owner live within the city limits, maintain a maximum occupancy of 2 guests per bedroom plus 2 additional guests, provide adequate parking, install smoke and carbon monoxide detectors.
  • The approval timeline typically takes 4 to 6 weeks after submitting a complete application, though inspections may extend this period.
  • Properties must also comply with Wisconsin state tax requirements and register with the Department of Revenue for room tax collection, and hosts must maintain a guest registry and respond to complaints within 2 hours during operating hours.
Is it legal to operate a short-term rental in Milwaukee, Wisconsin?

Short term rentals (STRs) are legal in Milwaukee, Wisconsin, but operate under a comprehensive regulatory framework established in 2018 and refined through subsequent ordinances.

Core operating requirements

  • The city requires STR operators to obtain a license, pay annual fees, and comply with safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers.
  • Milwaukee prohibits STRs in certain residential zoning districts, particularly in some single family neighborhoods, while allowing them in mixed use and commercial areas.
  • The city limits the number of STR licenses issued and requires operators to maintain liability insurance, collect room taxes, and provide emergency contact information.
  • Recent changes include stricter enforcement mechanisms, increased penalties for violations, and enhanced neighbor notification requirements.
  • Properties must meet building code standards, and operators face restrictions on the number of guests and parking requirements.
  • The regulatory framework aims to balance tourism benefits with neighborhood preservation concerns, and violations can result in license revocation and significant fines.
What are the best places to invest in Airbnb in Milwaukee, Wisconsin?

The best Airbnb investment areas in Milwaukee include the Historic Third Ward, known for its upscale shopping, dining, and proximity to the Harley Davidson Museum and lakefront, attracting both tourists and business travelers year round.

Areas to research

  • Walker's Point offers excellent potential due to its trendy restaurants, nightlife, and growing tech scene, plus easy access to downtown corporate offices.
  • The East Side near the University of Wisconsin Milwaukee campus provides steady demand from visiting families, academics, and young professionals, while also being close to Bradford Beach and lakefront attractions.
  • Downtown Milwaukee, particularly near the Deer District around Fiserv Forum, benefits from major sporting events, concerts, and business conferences, with consistent corporate travel demand from companies like Northwestern Mutual and Johnson Controls.
  • Bay View has emerged as a hip neighborhood with craft breweries, local festivals, and more affordable property prices while still offering lakefront access.
Airbnb and lodging taxes in Milwaukee, Wisconsin

In Milwaukee, Wisconsin, Airbnb hosts are subject to multiple lodging taxes including the Wisconsin state sales tax of 5%, Milwaukee County's room tax of 7.75%, and the City of Milwaukee's room tax of 8.5%, totaling approximately 21.25% in combined taxes on short term rental stays.

Taxes and filing responsibilities

  • 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.
  • Milwaukee County's room tax is collected by the county and must be remitted monthly by the 20th of the following month, while the city's room tax follows similar collection and remittance procedures through the City Treasurer's office.
  • Airbnb may collect and remit some of these taxes automatically for hosts depending on current agreements with local jurisdictions, but hosts remain ultimately responsible for compliance.
  • Exemptions typically apply to stays exceeding 30 consecutive days, which are generally not subject to transient lodging taxes, and certain government or charitable organization bookings may qualify for exemptions with proper documentation.
  • Hosts must maintain detailed records of all bookings and tax collections, and failure to properly collect and remit these taxes can result in penalties, interest, and potential legal action by the respective tax authorities.
Total cost to purchase, furnish and operate an Airbnb in Milwaukee, Wisconsin

To start an Airbnb in Milwaukee, Wisconsin, the total initial investment would be approximately $285,000 to $320,000.

Cost breakdown

  • Property purchase costs around $200,000 to $220,000 based on Milwaukee's median home prices as of 2023.
  • Furnishing a 2 to 3 bedroom property typically requires $15,000 to $25,000 for quality furniture, appliances, linens, and decor that meets guest expectations.
  • Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total approximately $2,000 to $3,000.
  • Permits and fees vary by neighborhood but generally include short term rental permits ($150 to $300), business licenses ($50 to $100), and potential zoning compliance costs ($500 to $1,500).
  • Insurance for short term rentals runs $2,000 to $4,000 annually, with many hosts needing specialized Airbnb coverage beyond standard homeowner's policies.
  • Utility setup and deposits for electricity, gas, water, internet, and cable typically cost $500 to $800 initially, with monthly utilities averaging $200 to $350.
  • First six months of operating costs including utilities ($1,200 to $2,100), cleaning services ($1,800 to $3,600 assuming $75 to $150 per turnover), maintenance reserves ($1,000 to $2,000), platform fees, marketing.
Are Airbnb properties in Milwaukee, Wisconsin profitable?

Airbnb properties in Milwaukee, Wisconsin typically generate annual revenues ranging from $15,000 to $45,000 depending on location and property type, with downtown and lakefront properties commanding premium rates of $80 to 150 per night while suburban listings average $50 to 80 nightly.

Profitability indicators

  • Operating expenses generally consume 40 to 60% of gross revenue, including cleaning fees ($25 to 40 per turnover), property management (10 to 20% of revenue), utilities ($100 to 200 monthly), insurance ($800 to 1,500 annually).
  • Properties in popular neighborhoods like Third Ward, Bay View, and near Marquette University achieve occupancy rates of 60 to 75% with profit margins of 25 to 40%.
  • Success factors include proximity to major attractions like Harley Davidson Museum, American Family Field, and the lakefront, professional photography, competitive pricing during peak summer months and Brewers season.
  • Properties within walking distance of downtown entertainment districts and those offering unique Milwaukee experiences like brewery tours or lakefront access consistently outperform suburban listings by 30 to 50% in both occupancy and nightly rates.
What is the expected return on investment for an Airbnb in Milwaukee, Wisconsin?

Airbnb investments in Milwaukee, Wisconsin typically generate annual ROI of 8 to 12% with cash on cash returns ranging from 6 to 10% depending on property location and management efficiency. Properties in popular neighborhoods like Bay View, Walker's Point, and the Historic Third Ward can achieve higher returns of 10 to 15% annually, while suburban locations may see 6 to 9% returns.

Return planning figures

  • Initial profitability usually occurs within 12 to 18 months for well positioned properties, with average daily rates of $85 to 120 and occupancy rates of 65 to 75% throughout the year.
  • The Milwaukee market benefits from steady demand from business travelers visiting companies like Harley Davidson and Johnson Controls, plus leisure tourists attracted to the lakefront and brewery scene.
What company can help me find and buy a profitable Airbnb in Milwaukee, Wisconsin?

STRSearch is a national platform that specializes in identifying profitable short term rental properties for investors in Milwaukee, Wisconsin.

Companies and resources

  • Local Milwaukee real estate agents who focus on Airbnb investment properties include Shorewest Realtors with agents like Mike Ruzicka and First Weber Realtors with investment specialists such as Jennifer Johnson.
  • National services operating in the Milwaukee market include BiggerPockets for networking and deal analysis, Mashvisor for property analytics and ROI calculations, AirDNA for market data and revenue projections, and Awning for turnkey Airbnb investment properties.
  • Local property management companies that assist investors include RedAwning Milwaukee, Vacasa, and Milwaukee Short Term Rental Management.
  • Real estate investment firms like Milwaukee Investment Properties and Lake Country Real Estate specialize in identifying cash flowing rental properties in desirable neighborhoods like the Third Ward, Bay View, and Walker's Point.
  • Additional services include STR Helper for market analysis, Rabbu for property sourcing, and local mortgage brokers like Fairway Independent Mortgage who understand investment property financing for short term rentals in the Milwaukee metropolitan area.
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