Is Red Cliff, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Red Cliff, Wisconsin, begin by researching local zoning laws and regulations through the Red Cliff Band of Lake Superior Chippewa tribal government offices, as Red Cliff is located on tribal land, which may require special permits or approvals beyond standard Wisconsin state requirements. Contact the Red Cliff tribal administration at (715) 779-3201 to understand specific short-term rental regulations, business licensing requirements, and any cultural sensitivity guidelines. Obtain necessary permits including a Wisconsin seller's permit, business license, and any required tribal permits, while ensuring compliance with Bayfield County health and safety codes. Find a suitable property by searching local real estate listings through companies like Edina Realty or Century 21, focusing on properties near Lake Superior or with scenic views that appeal to tourists visiting the Apostle Islands area. Furnish the property with durable, comfortable furniture from retailers like Fleet Farm in nearby Ashland or order online, emphasizing a rustic, lakeside aesthetic with Native American cultural elements where appropriate. Create your Airbnb listing with high-quality photos showcasing the property's proximity to outdoor activities like fishing, hiking, and the Apostle Islands National Lakeshore, pricing competitively with similar properties in the region (typically $80-150 per night in 2024). Manage the property by establishing relationships with local cleaning services in Bayfield or Ashland, creating a guidebook highlighting local attractions like the Red Cliff Cultural Center and nearby casinos, and maintaining responsive communication with guests while respecting the cultural significance of the area.

To identify profitable short-term rental properties in Red Cliff, Wisconsin, focus on waterfront locations near Lake Superior or properties within walking distance of the Apostle Islands National Lakeshore, as this area attracts tourists seeking outdoor recreation and scenic beauty. Target 2-4 bedroom cabins or homes with amenities like fireplaces, decks with lake views, hot tubs, and boat access, as these features command premium rates of $150-300 per night during peak summer months (June-September). Analyze pricing by researching comparable Airbnb and VRBO listings in nearby Bayfield and Washburn, noting that Red Cliff properties can charge 10-20% more due to proximity to tribal casino and cultural attractions. Competition research should include monitoring occupancy rates of existing STRs within a 5-mile radius, with particular attention to properties near the Red Cliff Band's casino and marina facilities. Utilize tools like AirDNA for market analysis, STR Helper for revenue projections, and local resources including the Bayfield County Tourism Bureau data, Red Cliff Tribal Council regulations, and Wisconsin Department of Tourism statistics to understand seasonal demand patterns, with winter months typically seeing 40-60% lower occupancy but potential for ice fishing and winter sports clientele.

To obtain an Airbnb/STR permit in Red Cliff, Wisconsin, you must first contact the Red Cliff Band of Lake Superior Chippewa tribal offices at (715) 779-3201 or visit their administrative building at 88385 Pike Road, as Red Cliff operates under tribal jurisdiction rather than typical municipal regulations. Required documents typically include a completed short-term rental application, proof of property ownership or lease agreement, liability insurance certificate (minimum $1 million coverage), floor plan of the rental unit, emergency contact information, and tribal member identification if applicable. The application fee is estimated at $150-250 with an annual renewal fee of approximately $100-150. You must also obtain a business license from the Red Cliff tribal government (additional $75-125 fee) and comply with tribal tax requirements including occupancy taxes. The property must meet safety standards including smoke detectors, carbon monoxide detectors, fire extinguishers, and clearly marked exits. The approval timeline is typically 4-6 weeks from submission of complete application. Red Cliff-specific requirements include respecting cultural sites and traditions, adhering to noise ordinances that protect the community's quiet residential character, maintaining maximum occupancy limits (usually 2 people per bedroom plus 2), and providing guests with information about local tribal customs and environmental protection guidelines for Lake Superior shoreline properties.

Short-term rentals (STRs) in Red Cliff, Wisconsin are generally legal but subject to local regulations and tribal jurisdiction considerations, as Red Cliff is home to the Red Cliff Band of Lake Superior Chippewa reservation. The Red Cliff tribal government and Bayfield County both have authority over different aspects of STR operations in the area, with properties on tribal land subject to tribal ordinances and those off-reservation following county and state regulations. Bayfield County requires STR operators to obtain permits and comply with safety standards, zoning requirements, and tax obligations, while the Red Cliff tribal government has implemented its own permitting process for properties within reservation boundaries. Recent changes around 2022-2023 have included stricter enforcement of existing regulations and enhanced coordination between tribal and county authorities to address concerns about housing availability and community impact. Properties must meet building codes, maintain adequate parking, and operators must collect applicable taxes, with some areas near sensitive cultural or environmental sites potentially having additional restrictions on commercial lodging activities.

The best areas for Airbnb investment in Red Cliff, Wisconsin are concentrated around the Apostle Islands National Lakeshore waterfront districts, particularly properties within walking distance of the Red Cliff Marina and ferry terminals that provide access to Madeline Island and other Apostle Islands destinations. The Red Cliff Reservation cultural district offers strong potential due to increasing cultural tourism and visitors interested in Ojibwe heritage experiences, especially near the Red Cliff Community Center and traditional gathering areas. Properties along Highway 13 with lake views command premium rates during peak summer months (June-September) when tourists flock to the area for kayaking, sailing, and island hopping adventures. The residential areas near Red Cliff Bay provide excellent investment opportunities as they offer proximity to both water activities and the growing eco-tourism market, with visitors drawn to the area's pristine wilderness, fishing opportunities, and outdoor recreation activities that generate consistent demand from May through October, plus winter visitors for cross-country skiing and ice fishing.

Red Cliff, Wisconsin imposes a 5% room tax on short-term rental accommodations including Airbnbs, which is collected by the Bayfield County Tourism and Recreation Department. The tax applies to all lodging stays of less than 30 consecutive days and is typically collected directly from guests by the host at the time of booking or check-in. Hosts must register with Bayfield County, obtain a tax collection permit, and remit collected taxes monthly by the 15th of the following month along with required reporting forms. Wisconsin state sales tax of 5.5% also applies to short-term rentals and must be collected and remitted separately to the Wisconsin Department of Revenue through their online system. Exemptions include stays of 30 days or longer, certain government employee lodging, and accommodations for religious or charitable purposes. Failure to collect and remit these taxes can result in penalties and interest charges, with the county and state having authority to audit rental operations for compliance.

The total cost to start an Airbnb in Red Cliff, Wisconsin is approximately $285,000-$335,000. Property purchase costs around $200,000-$250,000 based on the median home price in the Bayfield County area near Lake Superior. Furnishing a 2-3 bedroom property with quality furniture, appliances, linens, and decor runs $15,000-$25,000. Initial setup including professional photography, listing creation, welcome materials, and basic supplies costs $2,000-$3,000. Permits and fees including business license, short-term rental permit, and potential zoning approvals total $500-$1,500. Insurance for short-term rental coverage adds $2,000-$3,000 annually. Utilities including electricity, water, sewer, internet, and heating average $300-$500 monthly or $1,800-$3,000 for six months. First six months operating costs including cleaning services, maintenance, supplies, platform fees, and marketing total $8,000-$12,000. Additional considerations include potential property improvements, emergency fund for repairs, and seasonal heating costs given Wisconsin's climate, which could add another $10,000-$20,000 to the initial investment.

Airbnb properties in Red Cliff, Wisconsin, a small lakeside community on Lake Superior, typically generate modest seasonal revenues of $8,000-$15,000 annually due to the area's limited tourism season from May through October. Properties near the lake or with water views command higher nightly rates of $120-$180, while inland cabins average $80-$120 per night, with occupancy rates around 45-60% during peak season. Operating expenses including property taxes ($2,000-$4,000), utilities ($1,800-$2,500), cleaning fees ($40-$60 per turnover), maintenance ($1,500-$3,000), and Airbnb fees (3% host + guest fees) typically consume 60-70% of gross revenue. Net profit margins generally range from 15-25% for well-managed properties, with successful hosts like those operating renovated fishing cabins near the Apostle Islands ferry terminal achieving higher margins by targeting outdoor enthusiasts visiting the nearby national lakeshore. Key success factors include proximity to Lake Superior, offering amenities for fishing and hiking activities, maintaining consistent 4.8+ star ratings, and strategic pricing during peak summer months and fall color season, though the short tourism window and harsh winters limit year-round profitability compared to more established vacation rental markets.

Based on Red Cliff, Wisconsin's remote location along Lake Superior and limited tourism infrastructure, Airbnb investments in this small community of approximately 300 residents would likely generate modest returns of 4-7% annual ROI due to seasonal demand concentrated in summer months (June-September) when visitors come for fishing, hiking, and scenic lake access. Cash-on-cash returns would typically range from 3-6% given the need for significant upfront investment in property acquisition and renovation to meet vacation rental standards, with limited year-round occupancy rates of approximately 25-35% due to harsh winters and minimal winter tourism activities. Properties would likely require 8-12 years to reach full profitability, with average daily rates of $80-120 during peak season dropping to $40-60 in shoulder seasons, while winter months may see occupancy rates below 10%, making this market more suitable for investors seeking long-term appreciation rather than immediate cash flow returns.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking to enter the Airbnb market in Red Cliff, Wisconsin. Local real estate agents serving the Red Cliff area include Coldwell Banker Real Estate Group and RE/MAX Northwoods, both of which have experience with vacation rental properties in the Bayfield County region. National services like Mashvisor, AirDNA, and BiggerPockets provide market analysis and investment property identification tools for the Lake Superior shoreline area. Vacasa and RedAwning offer property management services that can help investors maximize their Airbnb returns in Red Cliff, while companies like Awning and AvantStay specialize in short-term rental optimization. Local property management companies such as Apostle Islands Property Management and Superior Shores Vacation Rentals provide hands-on management for Airbnb properties in the Red Cliff market. Investment-focused platforms like Roofstock and HomeUnion occasionally feature properties in northern Wisconsin markets, and services like RentSpree and Furnished Finder can assist with property setup and guest acquisition in the Red Cliff tourism market.