Is Solon Springs, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Solon Springs, Wisconsin, begin by researching local zoning laws and regulations through the Douglas County Planning Department and Solon Springs Village Hall, as short-term rentals may require special permits or have restrictions in residential areas. Contact the Wisconsin Department of Revenue to understand state tax obligations including sales tax registration for lodging services, and check if Solon Springs has implemented any local rental taxes or registration requirements. Find a suitable property by searching real estate listings in the area, considering proximity to attractions like the Brule River and nearby lakes, ensuring the property meets safety codes and has adequate parking. Obtain necessary permits which may include a business license from the village, building permits for any renovations, and potentially a conditional use permit depending on zoning. Furnish the property with quality furniture, linens, kitchen essentials, and amenities that appeal to outdoor enthusiasts visiting the area for fishing, hiking, and water activities. Create compelling listings on Airbnb and other platforms like VRBO, highlighting nearby attractions such as Amnicon Falls State Park and Lake Superior, using professional photography to showcase the space. For management, establish check-in procedures, cleaning protocols between guests, maintain responsive communication, and consider hiring local cleaning services or property management companies if you live far from Solon Springs, while keeping detailed records for tax purposes and monitoring guest reviews to maintain high ratings.

To identify profitable short-term rental properties in Solon Springs, Wisconsin, focus on waterfront locations near Gordon Flowage, Lucius Lake, or other area lakes, as these command premium rates year-round with peak demand during summer months and fall hunting seasons. Target 2-4 bedroom cabins or homes with amenities like docks, fire pits, hot tubs, and modern kitchens, as properties with these features typically achieve 15-25% higher occupancy rates and can command $150-300 per night depending on size and lakefront access. Analyze comparable properties within a 10-mile radius using AirDNA and Mashvisor to identify average daily rates ($80-250), occupancy rates (typically 45-65% annually), and seasonal demand patterns, while researching competition through Airbnb and VRBO searches to identify gaps in amenities or pricing. Utilize STR-specific tools like Rabbu and PriceLabs for dynamic pricing, monitor local regulations through Douglas County zoning requirements, and leverage tourism data from Wisconsin Department of Tourism showing the Northwoods region attracts over 2 million visitors annually, with Solon Springs benefiting from proximity to Superior National Forest and numerous fishing tournaments that drive consistent demand for quality vacation rentals.

To obtain an Airbnb/STR permit in Solon Springs, Wisconsin, contact the Solon Springs Village Hall at 715-378-4765 or visit their office at 9394 E County Road A to inquire about short-term rental licensing requirements, as the village may require a business license and zoning compliance verification. Required documents typically include a completed business license application, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan showing maximum occupancy, septic system inspection if applicable, and fire safety compliance documentation. Application fees are estimated at $50-150 for the initial license plus potential inspection fees of $75-200, with annual renewal fees around $25-100. The approval timeline is approximately 4-8 weeks depending on inspections and zoning review. Specific Solon Springs requirements likely include compliance with residential zoning ordinances, maximum occupancy limits based on septic capacity and square footage, adequate parking provisions, noise ordinance compliance, and potential restrictions on the number of rental days per year or requirement for owner occupancy, though you should verify current regulations directly with the village clerk as requirements may have changed or been updated since small municipalities frequently modify their STR policies.

Short-term rentals (STRs) are generally legal in Solon Springs, Wisconsin, as the small city in Douglas County does not appear to have specific municipal ordinances prohibiting them as of 2024. However, operators must comply with Wisconsin state regulations including obtaining proper business licenses, collecting applicable taxes, and meeting safety requirements. The city likely follows Douglas County zoning regulations which typically allow STRs in residential areas with basic operational standards such as occupancy limits, parking requirements, and noise restrictions. Recent trends in Wisconsin have seen increased local regulation of STRs, with some municipalities implementing registration requirements, inspection protocols, and stricter zoning controls, though Solon Springs has not enacted comprehensive STR-specific legislation. Property owners should verify current zoning compliance and may need to obtain general business permits, but there are no known prohibited areas or recent legal changes specifically targeting short-term rentals in this small lakeside community of approximately 600 residents.

The best areas for Airbnb investment in Solon Springs, Wisconsin are primarily concentrated around the lakefront districts near Lake Superior and the St. Croix River corridor, particularly properties within walking distance of the Solon Springs State Forest and the popular swimming beach area on Lake St. Croix. The downtown historic district along Highway 53 offers excellent potential due to its proximity to local restaurants, antique shops, and the annual Solon Springs Fun Days festival that draws visitors each summer. Properties near the Gordon Dam Road area are attractive for fishing enthusiasts and outdoor recreation tourists who visit for musky fishing, kayaking, and hiking in the nearby state forest lands. The residential areas along Elm Street and Pine Street provide good investment opportunities as they offer quiet, family-friendly accommodations while remaining close to the main recreational attractions. These locations benefit from year-round tourism including summer lake activities, fall hunting seasons, winter snowmobiling and ice fishing, and spring fishing opener events, with additional demand from business travelers visiting the local lumber and manufacturing operations in the region.

In Solon Springs, Wisconsin, Airbnb hosts are subject to Wisconsin state sales tax at 5% on lodging rentals, which applies to stays of less than 30 consecutive days, and this tax must be collected from guests and remitted monthly to the Wisconsin Department of Revenue if gross receipts exceed $4,000 annually. Douglas County imposes an additional room tax of approximately 5% on transient accommodations, which hosts must collect and remit quarterly to the county treasurer's office. The City of Solon Springs may impose a local room tax of up to 8% under Wisconsin Statute 66.0615, though the actual rate is typically around 3-5%, collected by hosts and remitted to the city clerk's office on a quarterly basis. Hosts must register with the Wisconsin Department of Revenue for a seller's permit and may need to register separately with Douglas County and the City of Solon Springs for local room tax collection. Exemptions generally apply to stays of 30 days or longer, which are considered residential rather than transient, and certain government or charitable organization bookings may be exempt from local room taxes but still subject to state sales tax.

The total cost to start an Airbnb in Solon Springs, Wisconsin is approximately $185,000-$225,000. Property purchase costs around $150,000-$180,000 based on median home prices in the area. 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 $300-$800. Insurance including liability and property coverage runs $1,200-$2,000 annually. Utility setup and deposits for electricity, water, internet, and cable cost $500-$800. First six months operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance ($200/month), marketing ($150/month), and property management software ($50/month) total approximately $6,600. Additional considerations include potential HOA fees, property taxes, and a 10-15% contingency fund for unexpected expenses.

Airbnb properties in Solon Springs, Wisconsin typically generate modest profitability due to the area's seasonal tourism patterns and proximity to outdoor recreation areas like the Brule River and nearby lakes. Properties in this small town of approximately 600 residents can expect average daily rates of $80-120 during peak summer and fall seasons, with occupancy rates ranging from 40-60% annually, translating to gross revenues of $12,000-25,000 per year for a typical 2-3 bedroom cabin or home. Operating expenses including property taxes ($1,200-2,500), utilities ($2,400-3,600), cleaning fees ($150-200 per turnover), maintenance ($1,500-3,000), insurance ($800-1,200), and Airbnb fees (3% host + guest fees) typically consume 60-70% of gross revenue, leaving net profit margins of 30-40% or approximately $4,000-10,000 annually. Success factors include properties with lake access, fishing amenities, or winter sports proximity, with waterfront cabins commanding premium rates of $150-200 per night during summer months. Properties targeting ice fishing enthusiasts, hunters, and summer lake visitors tend to perform best, while those offering unique amenities like hot tubs, fire pits, or boat access see occupancy rates 15-20% higher than basic accommodations, though the limited population base and seasonal demand create challenges for year-round profitability compared to larger Wisconsin tourism destinations.

Based on Solon Springs, 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 Gordon Dam County Park and Lucius Woods County Park tend to perform better due to recreational tourism demand. Initial profitability usually occurs within 18-24 months for well-positioned properties, with seasonal variations showing peak performance during summer months (June-August) and winter snowmobile season (December-February). Average daily rates range from $85-$140 depending on property size and amenities, with occupancy rates typically reaching 45-65% annually. Properties requiring minimal renovation show faster paths to profitability, while those needing significant updates may extend the breakeven timeline to 30-36 months but potentially achieve higher long-term returns of 12-15% annually.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Solon Springs, Wisconsin. Local real estate agents in the area such as Coldwell Banker Mulleady-Er Realty and Century 21 Affiliated serve the Douglas County market and can assist with Airbnb investment properties. National services like Awning, RedAwning, and Vacasa provide market analysis and property management for short-term rentals in smaller Wisconsin markets. AirDNA and Mashvisor offer data analytics specifically for Airbnb investment properties and can provide market insights for the Solon Springs area. Local property management companies such as Northwoods Property Management and regional firms like Vacasa and RedAwning can handle day-to-day operations of Airbnb properties in this lake region market. Real estate investment platforms like Roofstock and BiggerPockets also provide resources and connections for investors looking at vacation rental properties in Wisconsin's Northwoods region, though direct inventory in Solon Springs may be limited given the town's small size of approximately 600 residents.