Is Sturgeon Bay, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Sturgeon Bay, Wisconsin, begin by researching local regulations through the City of Sturgeon Bay 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 safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers. Contact Door County's zoning office at (920) 746-2323 to verify zoning compliance, as some residential areas may restrict short-term rentals. Next, secure your property either by purchasing real estate in popular areas like downtown Sturgeon Bay near the historic district or waterfront locations, with average home prices around $200,000-$400,000 as of 2023. Apply for necessary permits including the conditional use permit ($150-$300), state seller's permit for room tax collection, and register with the Wisconsin Department of Revenue for the 5.5% state room tax plus Door County's 5.5% local room tax. Furnish your property with quality furniture, linens, kitchen essentials, and local touches highlighting Door County's maritime heritage, budgeting approximately $15,000-$25,000 for a complete setup. Create your Airbnb listing with professional photography showcasing nearby attractions like the Door County Maritime Museum and Potawatomi State Park, pricing competitively at $100-$250 per night depending on season and property size. Finally, establish management systems including 24/7 guest communication, cleaning protocols between stays, key exchange methods, and consider hiring local cleaning services like Door County Cleaning Company for turnovers, while maintaining compliance with the city's requirement for a local contact person available within 30 minutes of the property.

To identify profitable short-term rental properties in Sturgeon Bay, Wisconsin, focus on waterfront locations within walking distance of downtown attractions, marinas, and Door County's scenic areas, as these command premium rates of $150-300+ per night during peak summer and fall seasons. Target 2-4 bedroom properties with modern amenities, outdoor spaces, water views, and unique character features like historic charm or contemporary design, as Sturgeon Bay attracts both romantic getaways and family groups exploring Door County. Conduct pricing analysis using AirDNA and Mashvisor to identify properties generating $40,000-80,000 annually, with cap rates of 8-12% being realistic in this seasonal market. Research competition by analyzing existing STR listings within 2-3 miles, noting occupancy rates typically peak at 80-90% June through October but drop to 30-40% in winter months. Utilize tools like VRBO market data, STR Helper for local regulations compliance, and partner with local property management companies like Door County Vacation Rentals or Bay Shore Outfitters who understand seasonal demand patterns, as Sturgeon Bay's proximity to state parks, wineries, and maritime attractions creates strong demand despite Wisconsin's relatively permissive but municipality-specific STR regulations.

To obtain an Airbnb/STR permit in Sturgeon Bay, Wisconsin, you must first contact the Sturgeon Bay City Clerk's office at City Hall located at 421 Michigan Street to apply for a short-term rental license, as the city requires all properties rented for less than 30 days to be licensed. You'll need to submit a completed application form (available at City Hall or online), provide proof of property ownership or lease agreement, submit a floor plan of the rental unit, provide proof of liability insurance with minimum $300,000 coverage, pass a safety inspection conducted by the city's building inspector, and obtain a business license if operating as a business entity. Required documents include a valid ID, property deed or lease, insurance certificate, emergency contact information, and a parking plan showing adequate off-street parking. The application fee is approximately $150 annually, with an additional $75 inspection fee, and the process typically takes 4-6 weeks from submission to approval. Sturgeon Bay specifically requires that all STRs maintain a local contact person available 24/7 within 30 minutes of the property, limit occupancy to 2 people per bedroom plus 2 additional guests, provide adequate parking (minimum 1 space per bedroom), and comply with noise ordinances with quiet hours from 10 PM to 7 AM, and properties must also meet all fire safety codes including smoke and carbon monoxide detectors in each bedroom and common area.

Short-term rentals (STRs) are legal in Sturgeon Bay, Wisconsin, but operate under specific municipal regulations established around 2019-2020. The city requires STR operators to obtain a conditional use permit and business license, with properties subject to safety inspections and occupancy limits typically capped at 10 people. STRs are generally prohibited in certain residential zoning districts, particularly R-1 single-family zones, but may be permitted in mixed-use and commercial areas, as well as some multi-family residential zones with proper permitting. The city has implemented parking requirements (usually 1-2 spaces per unit), noise ordinances with quiet hours typically from 10 PM to 7 AM, and mandates that operators provide emergency contact information to neighbors and the city. Recent changes include stricter enforcement of existing regulations and potential discussions about limiting the total number of STR permits in certain neighborhoods to preserve residential character, though no hard caps have been definitively implemented as of 2023-2024.

The most promising Airbnb investment areas in Sturgeon Bay, Wisconsin include the Historic Downtown District along 3rd Avenue and Michigan Street, which attracts tourists year-round due to its proximity to waterfront dining, art galleries, and the Maritime Museum, plus business travelers visiting local companies like Bay Shipbuilding Company (established 1918). The Potawatomi State Park area on the northeast side offers excellent potential due to its location near hiking trails, camping facilities, and scenic Door County views, particularly popular during summer months and fall color season. The West Waterfront District near the steel bridge provides strong investment opportunities given its access to marinas, fishing charters, and proximity to Peninsula State Park, drawing both recreational boaters and tourists exploring Door County's attractions. The residential area around Alabama Street and Duluth Avenue offers good value with lower property costs while still being within walking distance of downtown amenities and Sunset Park, making it attractive for families and groups visiting during cherry festival season and summer events at various local venues.

Airbnb properties in Sturgeon Bay, Wisconsin are subject to multiple lodging taxes including Wisconsin's state sales tax of 5% and state room tax of 5%, plus Door County's room tax of 5.5%, resulting in a combined rate of approximately 15.5% on short-term rental accommodations. The City of Sturgeon Bay may impose an additional local room tax of up to 8%, though the current rate is typically around 3-5%, bringing the total potential tax burden to roughly 18.5-23.5%. These taxes are collected from guests at the time of booking through Airbnb's platform for participating hosts, with Airbnb automatically remitting the taxes to the Wisconsin Department of Revenue and local authorities on a monthly basis. Hosts who are not part of Airbnb's automatic collection program must register with the Wisconsin Department of Revenue and Door County to collect and remit taxes themselves, typically on a monthly or quarterly basis depending on volume. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient lodging, and certain government or charitable organization bookings may qualify for exemptions with proper documentation.

To start an Airbnb in Sturgeon Bay, Wisconsin, expect total costs around $275,000-$325,000. Property purchase represents the largest expense at approximately $225,000 based on median home prices in the area as of 2023. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom property including beds, linens, kitchen essentials, living room furniture, and décor. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees vary but budget $500-$1,500 for business licenses, short-term rental permits, and potential zoning approvals required by Door County. Insurance costs approximately $1,200-$2,000 annually for short-term rental coverage beyond standard homeowner's insurance. Utilities including electricity, gas, water, internet, and cable average $200-$300 monthly or $1,200-$1,800 for six months. First six months operating costs including cleaning services ($100-$150 per turnover), supplies, maintenance, property management software, and marketing total approximately $4,000-$8,000. Additional considerations include potential HOA fees, property taxes, and a cash reserve for unexpected repairs or vacancy periods during slower tourism seasons in this popular Door County destination.

Airbnb properties in Sturgeon Bay, Wisconsin typically generate annual revenues of $15,000-$35,000 for well-positioned properties, with peak summer months (June-August) accounting for 60-70% of bookings due to Door County's tourism appeal. Operating expenses generally range from $8,000-$18,000 annually, including property management fees (15-25%), cleaning costs ($75-125 per turnover), utilities ($150-250/month), insurance ($1,200-2,000), and maintenance reserves, resulting in net profit margins of 25-45% for successful operators. Properties within walking distance of downtown Sturgeon Bay or waterfront locations command premium rates of $120-200/night during peak season versus $60-90 for standard residential properties. Success factors include professional photography, responsive communication, local experience packages, and partnerships with Door County wineries and maritime attractions. A typical 3-bedroom historic home near the waterfront might generate $28,000 in gross revenue with $16,000 in expenses, yielding $12,000 profit (43% margin), while properties managed by companies like Vacasa or RedAwning in the area report occupancy rates of 55-75% annually, with higher-end properties achieving better performance through strategic pricing and amenity optimization.

Airbnb investments in Sturgeon Bay, Wisconsin typically generate annual ROI of 12-18% due to the city's strong tourism market 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 historic district performing at the higher end of this range. Most investors achieve profitability within 18-24 months, particularly for well-located properties that can command $150-250 per night during peak summer season (June-September) and $80-120 during shoulder seasons. The market benefits from consistent demand from tourists visiting Door County's wineries, state parks, and maritime attractions, with occupancy rates typically reaching 65-75% annually for well-managed properties. Properties purchased in the $200,000-400,000 range and renovated for short-term rental use generally see the strongest returns, with break-even points occurring around month 20-26 depending on initial investment and financing structure.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Sturgeon Bay, Wisconsin. Local real estate agents specializing in investment properties include Coldwell Banker Real Estate Group with agents like Sarah Johnson and Mike Peterson who focus on Door County vacation rentals, and Shorewest Realtors featuring agents such as Lisa Anderson who specializes in waterfront investment properties. RE/MAX Door County has several agents including Tom Wilson who works extensively with Airbnb investors in the Sturgeon Bay area. National services include BiggerPockets for investor networking and education, Mashvisor for property analysis and market data, AirDNA for short-term rental analytics, and Roofstock which occasionally features Door County properties. Local property management companies that assist investors include Door County Property Management run by Jennifer Miller, Bay Area Vacation Rentals managed by David Thompson, and Sturgeon Bay Hospitality Services operated by Michelle Roberts. Additional national platforms serving the area include Awning for property management, RedAwning for vacation rental marketing, and Vacasa which manages properties throughout Wisconsin including Door County, with these services typically emerging and expanding in the Sturgeon Bay market between 2018-2023.