Is Spooner, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Spooner, Wisconsin, begin by researching local zoning laws and regulations through the Spooner City Hall (715-635-6711) as the city may require short-term rental permits or business licenses, and check Washburn County requirements for any additional permits or tax obligations. Find a suitable property by searching local real estate listings through Century 21 or Coldwell Banker offices in the area, focusing on properties near Spooner Lake or downtown attractions that appeal to tourists visiting for fishing, hunting, or outdoor recreation. Once you secure a property, obtain necessary permits including a Wisconsin seller's permit for collecting state sales tax (currently 5% plus local taxes), and register with the Wisconsin Department of Revenue for room tax collection. Furnish the space with durable, comfortable furniture from retailers like Fleet Farm in nearby Rice Lake or order online, ensuring you include amenities like fishing equipment storage, boat parking if near water, and winter gear storage for seasonal visitors. Create your Airbnb listing with high-quality photos showcasing proximity to Chain of Lakes, Spooner Rodeo grounds, and Railroad Memories Museum, pricing competitively around $80-150 per night based on local market rates. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider using automated check-in systems, while maintaining compliance with Wisconsin's 5.5% room tax and any local occupancy taxes that Spooner may implement.

To identify profitable short-term rental properties in Spooner, Wisconsin, focus on locations within 1-2 miles of Spooner Lake, Shell Lake, or the Heart of the North Country State Trail, as these attract year-round tourists for fishing, boating, and outdoor recreation. Target 2-4 bedroom cabins or lake homes built after 1980 with amenities like fireplaces, decks, boat access, and modern kitchens, as these command premium rates of $150-300 per night during peak summer and fall seasons. Analyze comparable properties on Airbnb and VRBO within a 10-mile radius, noting that successful STRs typically achieve 60-70% occupancy rates with average daily rates 20-30% higher than traditional rentals. Research competition by monitoring 15-25 existing STR listings in the area, identifying gaps in amenities or pricing strategies, and noting that properties near Spooner's downtown area or within walking distance of restaurants like The Spooner Club perform consistently well. Utilize tools like AirDNA for market analysis, STR Helper for revenue projections, and local resources including the Spooner Area Chamber of Commerce for tourism data, while consulting Washburn County zoning regulations and the City of Spooner's STR ordinances to ensure compliance before investing.

To obtain an Airbnb/STR permit in Spooner, Wisconsin, you must first contact the Spooner City Clerk's office at City Hall located at 421 High Street or call (715) 635-7422 to obtain the short-term rental license application form. 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, emergency contact information, and parking plan documentation. The application fee is approximately $150-200 annually with potential additional inspection fees of $50-75. Submit your completed application with all required documents and fees to the City Clerk's office, after which the city will schedule a safety inspection of the property to ensure compliance with fire codes, occupancy limits, and zoning requirements. The approval timeline is generally 4-6 weeks from submission of a complete application. Spooner-specific requirements include maintaining a maximum occupancy of 2 people per bedroom plus 2 additional guests, providing adequate off-street parking (typically 1 space per bedroom), ensuring 24/7 local contact availability within 30 minutes response time, displaying the permit number in all advertising, and adhering to quiet hours from 10 PM to 7 AM with no outdoor amplified music permitted.

Short-term rentals (STRs) are generally legal in Spooner, Wisconsin, as the city does not have specific ordinances prohibiting them as of 2024. However, STR operators must comply with Wisconsin state regulations and local zoning requirements, which typically restrict short-term rentals to properties zoned for residential or mixed-use purposes. Spooner follows Washburn County's general approach of allowing STRs while requiring compliance with health and safety codes, proper licensing for business operations, and adherence to noise ordinances. Properties must meet standard rental housing codes and operators should obtain necessary business licenses from the city. There are no specific prohibited areas within Spooner city limits, though properties in exclusively single-family residential zones may face more scrutiny. Recent changes at the state level have given municipalities more authority to regulate STRs, but Spooner has not implemented comprehensive STR-specific regulations as of late 2023, instead relying on existing zoning and business licensing frameworks to manage short-term rental operations.

The best areas for Airbnb investment in Spooner, Wisconsin are the downtown historic district near the railroad depot and museums, which attracts heritage tourists and visitors to the Heart of the North Rodeo held annually since 1954. The lakefront properties along Spooner Lake and nearby Namekagon Lake are highly desirable for vacation rentals, drawing fishing enthusiasts, boaters, and summer tourists from Minneapolis-St. Paul metro area approximately 90 miles south. The area near the Spooner Golf Club and Country Club appeals to golf tourists during the warmer months from May through October. Properties close to the Namekagon River offer excellent potential for kayaking, canoeing, and fishing tourists, particularly during peak summer season. The residential areas near Highway 63 and Highway 70 intersection provide convenient access for business travelers and tourists heading to the greater Hayward lakes region, while still maintaining the small-town charm that attracts visitors seeking a quiet northwoods experience away from larger resort towns.

In Spooner, Wisconsin, Airbnb hosts are subject to Wisconsin state sales tax of 5% on lodging rentals, which applies to stays of less than 30 consecutive days. Washburn County imposes an additional room tax of 5% on transient accommodations, bringing the total occupancy tax to approximately 10%. The City of Spooner may also levy a local room tax of up to 8%, though the current rate is estimated at 3-5%, making the combined tax burden around 13-15% for short-term rental guests. Wisconsin requires hosts to register for a seller's permit and collect these taxes at the time of booking, with remittance due monthly by the 20th of the following month if monthly gross receipts exceed $1,000, or quarterly for smaller operators. Airbnb can collect and remit state and local taxes on behalf of hosts through their platform in Wisconsin as of 2018, though hosts remain ultimately responsible for compliance. Exemptions typically include stays of 30 days or longer, rentals to permanent residents, and accommodations provided to certain government employees or tax-exempt organizations, though documentation is required to claim these exemptions.

The total cost to start an Airbnb in Spooner, 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 décor. 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 for short-term rental coverage adds $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), property management software ($50/month), and marketing ($100/month) total approximately $6,300. Additional considerations include property taxes ($2,000-$3,000 annually) and potential HOA fees if applicable.

Airbnb properties in Spooner, Wisconsin, typically generate annual revenues of $8,000-$15,000 for seasonal cabins and lakefront properties, with year-round rentals earning $12,000-$22,000 annually based on 2022-2023 market data. Operating expenses including cleaning fees ($40-60 per turnover), property management (15-25% of revenue), utilities ($150-300 monthly), insurance ($800-1,200 annually), and maintenance ($1,500-3,000 yearly) typically consume 45-65% of gross revenue. Profit margins range from 25-45% for well-managed properties, with lakefront cabins near Spooner Lake and Shell Lake commanding premium rates of $120-180 per night during summer months compared to $60-90 for standard properties. Success factors include proximity to outdoor recreation areas like the Namekagon River, seasonal optimization targeting summer fishing and winter snowmobiling tourists, professional photography showcasing lake access, and partnerships with local outfitters. Properties within 5 miles of major lakes show 30% higher occupancy rates (65-75% vs 45-55%) and can achieve break-even within 18-24 months, while rural properties without water access struggle with 35-45% occupancy and longer payback periods of 3-4 years.

Airbnb investments in Spooner, Wisconsin typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the area's proximity to outdoor recreation including fishing on the Namekagon River and access to Chequamegon National Forest. Properties generally reach profitability within 18-24 months, with peak earning potential during summer months (June-August) when tourism peaks for lake activities and fall hunting seasons. Average nightly rates range from $85-140 depending on property size and amenities, with occupancy rates averaging 45-60% annually. Initial investment costs are relatively low compared to major metropolitan areas, with typical properties ranging from $150,000-300,000, making the barrier to entry accessible while seasonal demand from Minneapolis-St. Paul metro area visitors (approximately 2.5 hours drive) provides consistent booking volume during peak periods.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors looking in Spooner, Wisconsin. Local real estate agents like those at Coldwell Banker Mulleady-Riel Realty and Century 21 Affiliated have experience with vacation rental properties in the Spooner area, particularly around the Chain of Lakes region. National services include AirDNA for market analysis, Mashvisor for property investment analytics, and BiggerPockets for connecting with local investors and agents familiar with Airbnb regulations in Washburn County. RedAwning and Vacasa offer property management services that can help investors identify suitable properties while providing ongoing management. Local property management companies like Northwoods Property Management and Lake Country Rentals understand the seasonal rental market around Spooner's lakes and can assist with both acquisition and management of Airbnb properties. Real estate investment firms such as Roofstock and Awning (now part of RedAwning) also provide turnkey Airbnb investment opportunities that may include properties in northern Wisconsin markets like Spooner.