Is Rhinelander, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Rhinelander, Wisconsin, begin by researching local regulations through the City of Rhinelander Planning Department, as the city requires short-term rental operators to obtain a conditional use permit and business license, with properties needing to meet specific zoning requirements and safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers. Contact Oneida County for additional county-level requirements and register for Wisconsin state tax collection through the Department of Revenue for the 5.5% state sales tax plus local room taxes. Find a suitable property in residential or mixed-use zones, ensuring it complies with the city's occupancy limits (typically 2 people per bedroom plus 2 additional) and parking requirements of one space per bedroom. Furnish the property with quality basics including comfortable beds, linens, towels, kitchen essentials, WiFi, and local amenities information, considering Rhinelander's outdoor recreation focus by providing items like fishing guides, hiking maps, and winter sports equipment storage. Create your listing on Airbnb and VRBO with professional photos highlighting proximity to the Wisconsin River, Hodag Country Festival grounds, and Nicolet National Forest, pricing competitively around $80-150 per night depending on season and property size. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges or installing smart locks, maintaining the property year-round considering harsh Wisconsin winters, and building relationships with local cleaning services and maintenance contractors familiar with short-term rental needs.

To identify profitable short-term rental properties in Rhinelander, Wisconsin, focus on locations within 1-2 miles of Hodag Lake, the Wisconsin River, or downtown's historic district, as these areas attract tourists year-round for fishing, boating, and seasonal activities like the Hodag Country Festival. Target 2-4 bedroom properties with lake access, docks, fire pits, and modern amenities like updated kitchens and Wi-Fi, as outdoor recreation drives demand from families and fishing groups. Analyze pricing by researching comparable Airbnb and VRBO listings in the $150-300 nightly range, with peak rates during summer months (June-August) and winter snowmobile season (December-February). Study competition using AirDNA and STR analytics tools to identify occupancy rates averaging 60-75% for well-positioned properties, while monitoring listings within 5 miles for pricing gaps and amenity differentiation opportunities. Utilize local resources like the Rhinelander Chamber of Commerce for tourism data, Oneida County property records for acquisition costs, and connect with local property management companies like Vacasa or smaller regional operators who understand seasonal demand patterns driven by the area's proximity to the Northwoods and chain of lakes that attract Chicago and Milwaukee visitors seeking weekend getaways.

To obtain an Airbnb/STR permit in Rhinelander, Wisconsin, you must first contact the Rhinelander City Clerk's office at City Hall located at 135 South Stevens Street to apply for a short-term rental license, as the city implemented STR regulations around 2019-2020. 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 of the rental unit, contact information for a local property manager if you're not local, and a signed affidavit acknowledging compliance with city ordinances. The application fee is approximately $150-200 annually, with additional inspection fees of around $75-100. You must also register with the Wisconsin Department of Revenue for tax collection purposes and obtain any necessary state business licenses. The timeline for approval is typically 30-45 days after submitting a complete application, provided the property passes the required safety inspection which checks for smoke detectors, carbon monoxide detectors, fire extinguishers, and adequate egress windows. Rhinelander-specific requirements include maintaining a guest registry, posting emergency contact information prominently in the rental, ensuring adequate parking for guests, and adhering to the city's noise ordinance and occupancy limits based on bedroom count, with most properties limited to 2 guests per bedroom plus 2 additional guests.

Short-term rentals (STRs) are legal in Rhinelander, Wisconsin, but operate under specific municipal regulations that the city has implemented to balance tourism benefits with neighborhood preservation. The city requires STR operators to obtain a business license and comply with zoning restrictions that typically limit short-term rentals in certain residential districts while allowing them more freely in commercial and mixed-use areas. Properties must meet safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers, and operators are generally required to maintain liability insurance and collect applicable taxes. Rhinelander has implemented occupancy limits based on property size and parking requirements, while also establishing quiet hours and behavioral standards for guests to minimize impacts on permanent residents. The city prohibits STRs in some exclusively residential zones and requires operators to designate a local contact person available 24/7 for addressing complaints. Recent changes around 2020-2022 have included stricter enforcement mechanisms and clearer definition of what constitutes a short-term rental versus traditional lodging, with the city working to ensure STRs contribute positively to the local tourism economy while protecting the character of residential neighborhoods.

The best areas for Airbnb investment in Rhinelander, Wisconsin include the downtown historic district near the Wisconsin River, which attracts tourists visiting the Rhinelander Logging Museum and attending events at the Oneida County Fair, and the lakefront areas around Lake George and Boom Lake where visitors come for fishing, boating, and water sports during summer months. The neighborhoods near the Nicolet National Forest entrance points are highly desirable for outdoor enthusiasts seeking hiking, hunting, and snowmobiling access, particularly during peak seasons from June through August and December through February. Properties within walking distance of the downtown business district benefit from corporate travelers visiting local businesses and government offices, while areas near the Rhinelander-Oneida County Airport capture business travelers and tourists flying in for extended stays. The residential neighborhoods around Pioneer Park and near the Holiday Acres Resort area offer good investment potential due to their proximity to recreational facilities and family-friendly attractions, making them appealing to vacation rental guests seeking longer stays for family reunions and outdoor recreation trips.

In Rhinelander, Wisconsin, Airbnb hosts are subject to both state and local lodging taxes. The Wisconsin state sales tax of 5% applies to short-term rental accommodations, along with the state's room tax of 5%, for a combined state rate of 10%. Oneida County imposes an additional room tax of 5%, bringing the total tax rate to approximately 15% on gross rental receipts. The City of Rhinelander may impose its own local room tax of up to 8%, though the current rate is typically around 3-5%, making the total combined rate potentially 18-20%. These taxes are collected from guests at the time of booking and must be remitted monthly to the Wisconsin Department of Revenue for state taxes and to Oneida County for county taxes, with returns due by the last day of the following month. Airbnb may collect and remit some of these taxes automatically through their platform agreements with Wisconsin, but hosts remain ultimately responsible for compliance. Exemptions typically include stays of 30 days or longer, which are considered long-term rentals rather than transient accommodations, and rentals to certain government employees on official business, though documentation requirements apply for exemptions.

The total cost to start an Airbnb in Rhinelander, Wisconsin is approximately $185,000-$225,000. Property purchase costs around $150,000-$180,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for beds, linens, kitchen essentials, living room furniture, and decor. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$4,000. Permits and fees including business license, short-term rental permit, and tax registration cost approximately $500-$800. Insurance for short-term rental coverage adds $1,200-$2,000 annually. Utility setup and deposits for electricity, water, internet, and cable cost $800-$1,200. First six months of operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance reserves ($200/month), property management software ($50/month), and marketing ($100/month) total approximately $6,300. Additional considerations include potential HOA fees, property taxes, and emergency repair funds which could add $3,000-$8,000 to initial startup costs.

Airbnb properties in Rhinelander, Wisconsin typically generate annual revenues between $15,000-$35,000 for well-positioned properties, with average daily rates ranging from $85-$150 depending on proximity to the Northwoods lakes and seasonal demand. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($40-60 per turnover), property management (15-25% of revenue), utilities ($200-400 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties near popular fishing lakes like Lake George or Boom Lake command premium rates during summer months (June-August) and fall hunting season, with occupancy rates reaching 70-85% during peak periods but dropping to 25-40% in winter months. Successful operators in the area report net profit margins of 15-25% by focusing on outdoor recreation amenities, partnering with local fishing guides, and maintaining properties that cater to families and hunting groups. A typical 3-bedroom lakefront cabin purchased for $180,000-250,000 can generate $8,000-15,000 in annual net profit after all expenses, representing a 4-7% cash-on-cash return, with properties featuring boat access, fire pits, and modern amenities consistently outperforming basic accommodations by 30-40% in both occupancy and nightly rates.

Airbnb investments in Rhinelander, Wisconsin typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, driven by the area's strong tourism market centered around the Northwoods lake region and seasonal recreational activities. Properties near popular lakes like Lake George or Boom Lake command premium rates of $150-250 per night during peak summer months (June-August) and winter snowmobile season (December-February), while shoulder seasons see rates of $80-120 per night with approximately 60-70% occupancy rates year-round. Initial investment costs average $200,000-350,000 for suitable vacation rental properties, with most investors reaching profitability within 18-24 months after accounting for furnishing, marketing, and operational expenses. The market benefits from consistent demand from Milwaukee, Madison, and Twin Cities visitors seeking outdoor recreation, with successful properties typically generating $25,000-45,000 in annual gross rental income, resulting in net returns of $8,000-18,000 annually after expenses including property management fees of 15-25%, cleaning costs, utilities, and maintenance reserves.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Rhinelander, Wisconsin. Local real estate agents in the Rhinelander area who specialize in investment properties include Coldwell Banker Mulleady-Er Realty, Century 21 Burkett & Associates, and RE/MAX North Winds Realty, with agents like those at First Weber and Redman Realty Group also serving the Northwoods region for vacation rental investments. National services that assist with Airbnb property acquisition include Mashvisor for market analysis, AirDNA for short-term rental data, Awning for full-service STR investing, Roofstock for turnkey rental properties, and BiggerPockets for investor networking and deal sourcing. Additional local services in the Rhinelander market include Northwoods Property Management for ongoing STR management, local contractors specializing in vacation rental renovations, and regional property management companies like Vacasa and RedAwning that also help identify acquisition opportunities in the Wisconsin Northwoods tourism market.