Is Sister Bay, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Sister Bay, Wisconsin, begin by researching local regulations through the Door County Planning Department and Sister Bay Village Hall, as Door County requires short-term rental permits and Sister Bay has specific zoning restrictions limiting rentals to certain residential areas with a maximum occupancy typically around 10-12 people. Obtain necessary permits including a Door County short-term rental license ($200-400 annually), Wisconsin seller's permit for room tax collection, and ensure compliance with fire safety codes requiring smoke detectors, carbon monoxide detectors, and emergency egress plans. Find property within permitted zones, focusing on areas near Sister Bay's downtown waterfront or residential neighborhoods zoned for tourist accommodations, with properties typically ranging $300,000-800,000 depending on proximity to Green Bay waters and local attractions like Al Johnson's Swedish Restaurant. Furnish the property with durable, vacation-appropriate furniture emphasizing Door County's nautical theme, including quality linens, fully equipped kitchen, outdoor furniture for decks, and amenities like kayaks or bicycles that appeal to tourists visiting Peninsula State Park and local beaches. List your property on Airbnb, VRBO, and local rental sites like DoorCountyNavigator.com, highlighting proximity to Sister Bay Marina, local festivals, and seasonal attractions while pricing competitively with area rates of $150-400 per night depending on season and property size. Manage the property by establishing relationships with local cleaning services, maintenance contractors familiar with Door County's seasonal property challenges, implement a 24/7 guest communication system, collect and remit Wisconsin's 5.5% state sales tax plus Door County's 5.5% room tax, and maintain detailed records for tax purposes while ensuring compliance with noise ordinances and parking restrictions that are strictly enforced in Sister Bay's compact village center.

To identify profitable short-term rental properties in Sister Bay, Wisconsin, focus on locations within walking distance of the waterfront, downtown shops, and restaurants along Bay Shore Drive, as well as properties offering water views of Green Bay or proximity to Peninsula State Park. Target 2-4 bedroom homes or condos built after 1980 with modern amenities, full kitchens, outdoor spaces like decks or patios, and parking for multiple vehicles, as Door County attracts families and groups seeking vacation experiences. Analyze pricing by researching comparable STR properties on Airbnb and VRBO during peak summer months (June-August) when rates can reach $300-500+ per night, versus off-season rates of $150-250, while calculating potential annual revenue against purchase prices typically ranging from $400,000-800,000 for suitable properties. Study competition by examining occupancy rates, guest reviews, and amenities offered by existing rentals within a 2-mile radius, noting that Sister Bay has approximately 50-75 active short-term rentals competing for visitors. Utilize tools like AirDNA for market analytics, Mashvisor for investment analysis, and local resources including the Door County Visitor Bureau data, Sister Bay municipal regulations regarding STR permits, and networking with local property managers like Door County Vacation Rentals or Vacasa who understand seasonal demand patterns and can provide insights on the most profitable neighborhoods and property types in this popular Door County destination.

To obtain an Airbnb/STR permit in Sister Bay, Wisconsin, you must first contact the Sister Bay Village Hall at 10440 N Bay Shore Dr or call (920) 854-4118 to obtain the short-term rental license application, as Sister Bay requires all properties rented for less than 30 days to be licensed. Submit the completed application along with a property inspection form, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan showing maximum occupancy, septic system compliance certificate if applicable, and parking plan showing adequate off-street parking spaces. The application fee is approximately $200-300 annually, with additional inspection fees of around $100-150. Schedule a property inspection with the village building inspector, which typically occurs within 2-3 weeks of application submission. Once approved, you'll receive your STR license, and the entire process usually takes 4-6 weeks from application to approval. Sister Bay specific requirements include maximum occupancy limits based on bedrooms and septic capacity, mandatory posting of emergency contact information and house rules, compliance with noise ordinances particularly during evening hours, provision of adequate parking (typically 2 spaces minimum), and adherence to the village's rental registry system where you must report all bookings and collect the required room tax of approximately 8-12% which must be remitted quarterly to Door County and the state of Wisconsin.

Short-term rentals (STRs) are legal in Sister Bay, Wisconsin, but operate under Door County's comprehensive regulatory framework established around 2019-2020. The village requires STR operators to obtain proper permits and licenses, comply with occupancy limits typically based on septic capacity and bedrooms, maintain adequate parking (usually 2 spaces per unit), and follow noise ordinances and good neighbor policies. Properties must meet safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers, while operators must provide 24/7 contact information and respond to complaints within 30 minutes. STRs are generally prohibited in areas zoned exclusively residential, though many are permitted in mixed-use and commercial zones, as well as some residential areas with proper conditional use permits. Door County has implemented a registration system with annual renewals, inspection requirements, and penalties for violations, reflecting the region's effort to balance tourism revenue with community concerns about housing availability and neighborhood character. Recent changes have included stricter enforcement mechanisms and clearer guidelines for complaint resolution, as Sister Bay and surrounding Door County communities have seen significant growth in vacation rental properties serving the popular Wisconsin tourism market.

The most attractive areas for Airbnb investment in Sister Bay, Wisconsin are the waterfront districts along Green Bay's shoreline, particularly properties within walking distance of Sister Bay Beach and the marina, which draw summer tourists seeking lakefront access and water activities. The downtown Sister Bay area near Al Johnson's Swedish Restaurant and Goats on the Roof is highly desirable due to its proximity to the village's main tourist attractions, shops, and restaurants, creating year-round appeal especially during Door County's peak summer season and fall color tours. Properties near Sister Bay Park and the scenic bluffs offer panoramic water views that command premium rates from visitors attending the annual Fall Festival and summer concerts. The residential neighborhoods along Bay Shore Drive and Fieldcrest Road provide quieter alternatives while maintaining easy access to beaches and downtown attractions, appealing to families and groups seeking more space. Areas close to the Sister Bay Marina are particularly valuable for guests interested in boating, fishing charters, and water sports, while properties within a short drive of Peninsula State Park capture overflow demand from the park's camping restrictions and attract visitors to one of Wisconsin's most popular state parks.

Airbnb properties in Sister Bay, Wisconsin are subject to multiple lodging taxes including Wisconsin state sales tax at 5%, Wisconsin room tax at 5%, Door County room tax at 5.5%, and Sister Bay village room tax at 8%, totaling approximately 23.5% in combined taxes on short-term rental accommodations. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began operating in Wisconsin around 2018-2019. Airbnb remits the collected state and local taxes directly to the Wisconsin Department of Revenue and local municipalities on behalf of hosts on a monthly basis. Property owners must still register with the Wisconsin Department of Revenue and obtain necessary permits from Door County and Sister Bay village, and may need to file periodic returns even when Airbnb handles collection. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient lodging, and certain government or nonprofit organization bookings may qualify for exemptions with proper documentation.

The total cost to start an Airbnb in Sister Bay, Wisconsin is approximately $485,000-$565,000. Property purchase represents the largest expense at $350,000-$425,000 for a median-priced vacation rental property in this popular Door County destination. Furnishing costs range from $25,000-$35,000 to create an attractive, fully-equipped rental including furniture, appliances, linens, kitchenware, and decor suitable for the area's tourist market. Initial setup costs of $3,000-$5,000 cover professional photography, listing creation, welcome materials, and basic marketing. Permits and fees total approximately $1,500-$2,500 including business license, short-term rental permit, fire safety inspection, and potential HOA approvals. Insurance costs $2,000-$3,000 annually for short-term rental coverage including liability and property protection. Utility setup and deposits require $1,000-$1,500 for electricity, gas, water, internet, cable, and trash services. First six months of operating costs add $15,000-$25,000 covering utilities ($600-800/month), cleaning services ($150-200 per turnover), maintenance and repairs ($300-500/month), property management if outsourced (20-30% of revenue), marketing expenses, and supplies replenishment, with seasonal fluctuations typical in this lakeside tourist destination.

Airbnb properties in Sister Bay, Wisconsin, demonstrate strong seasonal profitability with average annual revenues ranging from $35,000-$65,000 for well-positioned properties, driven by the area's popularity as a Door County vacation destination. Properties within walking distance of Sister Bay's waterfront or downtown area typically achieve 65-75% occupancy rates during peak summer months (June-September) with nightly rates of $200-$400, while shoulder seasons see rates drop to $120-$180 with 35-45% occupancy. Operating expenses generally run 40-50% of gross revenue, including cleaning fees ($75-$125 per turnover), property management (15-25% if outsourced), utilities ($200-$400 monthly), insurance ($2,000-$3,500 annually), and maintenance costs averaging $3,000-$5,000 yearly. Successful properties like restored historic cottages near the Sister Bay Marina or modern lakefront condos have reported net profit margins of 25-35%, with annual profits of $15,000-$25,000 after expenses. Key success factors include proximity to water activities, unique property features like fireplaces or decks, professional photography, responsive guest communication, and strategic pricing during events like the Sister Bay Fall Festival, with properties that implement dynamic pricing and maintain 4.8+ star ratings consistently outperforming the market by 20-30%.

Airbnb investments in Sister Bay, Wisconsin typically generate annual ROI of 12-18% due to the area's strong tourism demand driven by Door County's popularity as a vacation destination. Cash-on-cash returns generally range from 8-14% annually, with properties near the waterfront or downtown area achieving the higher end of this range. Most investors reach profitability within 18-24 months, with peak earning potential during the summer months (June-August) when nightly rates can reach $200-400 for well-appointed properties. The market benefits from consistent year-round bookings due to fall foliage tourism, winter activities, and spring festivals, though occupancy rates typically drop to 40-50% in off-peak months compared to 80-90% during summer. Properties requiring minimal renovation and located within walking distance of Sister Bay's main attractions tend to achieve break-even faster, often within 12-15 months, while those requiring significant improvements may take 24-30 months to reach full profitability.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Sister Bay, Wisconsin. Local real estate agents in the Door County area who focus on investment properties include Coldwell Banker Real Estate Group, Shorewest Realtors, and Door County Real Estate, with agents like those at Peninsula Realty and Appraisal Services having expertise in vacation rental markets since 2018. National services that help investors find Airbnb properties include AirDNA for market analysis, Mashvisor for property analytics, BiggerPockets for investor networking, and Awning for short-term rental investment guidance. Regional companies like Wisconsin Vacation Rentals and Door County Property Management have been assisting investors since 2019 in identifying and managing profitable vacation rental properties. Additional services include Rabbu for Airbnb market research, RedAwning for vacation rental investment opportunities, and local property management companies like Door County Coastal Rentals and Fish Creek Property Management that also help investors identify lucrative properties in the Sister Bay market.