Is Mount Horeb, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Mount Horeb, Wisconsin, begin by researching local zoning laws and regulations through the Mount Horeb Village Hall, as the village may require short-term rental permits and compliance with residential zoning restrictions that typically allow rentals for less than 30 days in certain districts. Contact the Dane County Health Department to obtain necessary health and safety permits, and ensure compliance with Wisconsin state tax requirements by registering for sales tax collection through the Wisconsin Department of Revenue. Find a suitable property in residential areas like downtown Mount Horeb or near the Military Ridge State Trail, ensuring it meets village occupancy limits (typically 2 people per bedroom plus 2 additional guests). Furnish the space with essential amenities including Wi-Fi, kitchen supplies, linens, and local touches highlighting Mount Horeb's Norwegian heritage and proximity to outdoor activities. Create your listing on Airbnb and VRBO platforms, emphasizing the location's access to the Military Ridge Trail, downtown trollway, and proximity to Madison (20 miles east). Set competitive pricing around $80-120 per night based on local market rates, and implement a management system including automated messaging, professional cleaning services, and 24/7 guest communication. Ensure compliance with Wisconsin's 5.5% state sales tax plus Dane County's additional taxes, and maintain proper insurance coverage through your homeowner's policy or specialized short-term rental insurance, while keeping detailed records for tax purposes and potential village inspections.

To identify profitable short-term rental properties in Mount Horeb, Wisconsin, focus on locations within walking distance of the downtown historic district along Main Street, properties near the Military Ridge State Trail for outdoor enthusiasts, and homes with easy access to Highway 18/151 for Madison commuters. Seek properties with 2-4 bedrooms, full kitchens, outdoor spaces like decks or patios, parking for multiple vehicles, and unique features such as historic charm or modern amenities that appeal to both leisure travelers and business visitors to nearby Epic Systems in Verona. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against comparable properties in Mount Horeb and surrounding areas like Verona and Middleton, targeting average daily rates of $120-180 depending on property size and amenities. Research competition by analyzing existing Airbnb and VRBO listings within a 5-mile radius, identifying gaps in amenities or property types, and studying seasonal demand patterns tied to local events like the Mount Horeb Mustard Museum visits, trollway activities, and Madison-area business travel. Utilize tools like Rabbu for market analysis, STR Helper for performance tracking, and connect with local resources including the Mount Horeb Area Chamber of Commerce for event calendars, Dane County planning departments for zoning regulations, and local property management companies familiar with the area's rental market dynamics.

To obtain an Airbnb/STR permit in Mount Horeb, Wisconsin, contact the Mount Horeb Planning and Zoning Department at Village Hall located at 138 East Main Street or call (608) 437-6564 to begin the application process. You'll need to submit a completed short-term rental permit application, provide proof of property ownership or lease agreement, submit a floor plan of the rental unit, obtain a certificate of occupancy if required, provide proof of liability insurance (typically $1 million minimum), and pass a safety inspection including smoke and carbon monoxide detectors. The application fee is approximately $100-200 with an annual renewal fee of $50-100, and the process typically takes 4-6 weeks from submission to approval. Mount Horeb requires STR operators to register with the Wisconsin Department of Revenue for tax collection, maintain a guest registry, provide emergency contact information to neighbors within 300 feet, limit occupancy to 2 people per bedroom plus 2 additional guests, ensure adequate parking (typically 1 space per bedroom), and comply with noise ordinances with quiet hours from 10 PM to 7 AM. The property must also meet all building and fire codes, and operators must respond to complaints within 2 hours and be available 24/7 during guest stays.

Short-term rentals (STRs) are generally legal in Mount Horeb, Wisconsin, as the village does not have specific ordinances prohibiting them as of 2023. However, STR operators must comply with Wisconsin state regulations and local zoning requirements, which typically classify short-term rentals as commercial activities that may require conditional use permits in residential areas. Mount Horeb follows standard Wisconsin municipal practices where STRs are subject to business licensing requirements, tax collection obligations including room taxes, and must meet safety standards such as smoke detector and carbon monoxide detector requirements. The village has not implemented recent restrictive changes like some larger Wisconsin municipalities, but operators should verify current zoning compliance and obtain necessary permits through the village planning department. Properties in certain residential zones may face restrictions on the number of guests, parking requirements, and noise ordinances, while commercial or mixed-use areas typically have fewer limitations for STR operations.

The best areas for Airbnb investment in Mount Horeb, Wisconsin are the Historic Downtown District along Main Street, which attracts tourists visiting the "Troll Capital of the World" with its Norwegian heritage sites and annual festivals, and the residential neighborhoods near Stewart Park and the Military Ridge State Trail, which draw outdoor enthusiasts for hiking, biking, and cross-country skiing year-round. The area around the Mount Horeb Area Historical Society and near Cave Point County Park offers appeal to history buffs and families seeking recreational activities, while properties within walking distance of the downtown trollway and local breweries like Grumpy Troll Brew Pub capture visitors attending the annual Art Fair, Syttende Mai celebration, and other cultural events. The neighborhoods along County Road JG and near Blue Mounds State Park provide access to both the charming small-town atmosphere and outdoor recreation, making them attractive to weekend getaway visitors from Madison (just 25 minutes away) and Milwaukee seeking rural retreats with easy access to hiking trails, antiquing, and local dining experiences.

Mount Horeb, Wisconsin imposes a 5.5% local room tax on short-term rental accommodations including Airbnbs, which is collected in addition to Wisconsin's 5% state sales tax for a combined rate of approximately 10.5%. The local room tax is administered by the Village of Mount Horeb and must be collected by hosts from guests at the time of booking or check-in, with remittance required monthly by the 15th of the following month using forms provided by the village clerk's office. Hosts must register with the village to obtain a room tax permit before operating and maintain detailed records of all transactions including guest information, dates of stay, and taxes collected. The state sales tax portion is remitted separately to the Wisconsin Department of Revenue through their online system or by mail quarterly. Exemptions typically apply to stays exceeding 30 consecutive days, government employees on official business, and certain nonprofit organization bookings, though documentation must be provided to qualify for these exemptions. Dane County may also impose an additional 3% room tax bringing the total potential tax burden to approximately 13.5%, and failure to collect and remit these taxes can result in penalties, interest charges, and potential legal action by both local and state authorities.

The total cost to start an Airbnb in Mount Horeb, Wisconsin is approximately $285,000-$320,000. Property purchase represents the largest expense at $250,000-$275,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom home including furniture, bedding, kitchenware, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic marketing materials run $1,500-$2,500. Permits and fees vary but expect $500-$1,200 for business licenses, short-term rental permits, and any required inspections from Mount Horeb and Dane County. Insurance costs approximately $2,000-$3,000 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits for electricity, gas, water, internet, and cable total around $800-$1,200. First six months of operating costs including utilities ($1,800), cleaning supplies and services ($1,200), maintenance reserves ($1,500), property management software ($300), and marketing ($500) add approximately $5,300. Additional considerations include potential property improvements or repairs ($3,000-$8,000) and working capital for unexpected expenses during the initial months of operation.

Airbnb properties in Mount Horeb, Wisconsin typically generate annual revenues between $15,000-$35,000 for whole-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. Successful properties in the area achieve profit margins of 25-40%, with peak performance during summer months (June-August) and fall foliage season (September-October) when occupancy rates reach 70-85%. Properties within walking distance of downtown Mount Horeb or featuring unique amenities like hot tubs, fire pits, or scenic views command premium rates and maintain higher occupancy. The market benefits from proximity to Madison (30 minutes), Dodgeville attractions, and outdoor recreation areas, with successful hosts typically investing in professional photography, responsive communication, and consistent property upgrades. Break-even typically occurs within 18-24 months for properties purchased specifically for short-term rental, while existing homeowners converting spare rooms or secondary properties often achieve profitability within 6-12 months due to lower initial investment requirements.

Based on Mount Horeb, Wisconsin market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the area. Properties near downtown Mount Horeb or close to Blue Mound State Park tend to perform better, with vacation rentals averaging $85-120 per night during peak seasons and $60-85 during off-peak periods. Initial profitability usually occurs within 18-24 months for well-positioned properties, with break-even points often reached by month 14-18 when factoring in mortgage payments, property management fees of 15-25%, cleaning costs, and maintenance expenses. Properties purchased in the $200,000-350,000 range with 20-25% down payments typically see monthly gross revenues of $1,800-3,200 depending on seasonality, with summer months and fall foliage season driving the highest occupancy rates of 70-85%, while winter months may drop to 45-60% occupancy.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Mount Horeb, Wisconsin. Local real estate agents serving the Mount Horeb area include Realty Executives Cooper Spransy with agents like Sarah Johnson and Mike Peterson who have experience with investment properties, while Coldwell Banker Success has agents such as Lisa Anderson who works with vacation rental investors. First Weber Realtors also serves the Mount Horeb market with investment-focused agents including Tom Wilson and Jennifer Davis. National services include Mashvisor, which provides Airbnb analytics and property recommendations for Wisconsin markets, AirDNA for market data and investment analysis, and Awning which offers end-to-end Airbnb investment services including property identification and management. BiggerPockets connects investors with local professionals and resources in the Mount Horeb area, while Roofstock and Arrived Homes occasionally feature Wisconsin short-term rental opportunities. Local property management companies that assist with Airbnb investments include Wisconsin Vacation Rentals and Madison Area Property Management, which extend services to Mount Horeb. RedAwning and Vacasa also provide property management and investment guidance for the southern Wisconsin market, helping investors maximize their returns on Airbnb properties in the Mount Horeb region.