Is Superior, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Superior, Wisconsin, begin by researching local zoning laws and regulations through the Superior Planning Department, as the city requires short-term rental operators to obtain a business license and comply with residential zoning restrictions that may limit rentals in certain neighborhoods. Contact the Douglas County Health Department for any health permits required for short-term lodging and ensure compliance with Wisconsin state tax requirements by registering with the Department of Revenue for sales tax collection. Find a suitable property by searching residential areas near popular attractions like the Richard I. Bong Veterans Historical Center or waterfront locations along Lake Superior, ensuring the property meets fire safety codes and has adequate parking as required by city ordinances. Furnish the space with essential amenities including Wi-Fi, heating suitable for Wisconsin winters, quality bedding, kitchen supplies, and local guidebooks highlighting Superior's attractions and nearby Duluth, Minnesota. Create your Airbnb listing with professional photos showcasing the property's proximity to the Great Lakes and outdoor recreation opportunities, setting competitive rates based on seasonal demand patterns typical of the region. Manage your property by establishing check-in procedures, maintaining regular cleaning schedules, responding promptly to guest communications, and keeping detailed records for tax purposes while ensuring compliance with Superior's noise ordinances and occupancy limits, typically requiring registration renewal annually with the city clerk's office.

To identify profitable short-term rental properties in Superior, Wisconsin, focus on locations within 2-3 miles of key attractions like the Richard I. Bong Veterans Historical Center, Fairlawn Mansion, and Lake Superior waterfront areas, as well as properties near the University of Wisconsin-Superior campus and downtown district. Target 2-4 bedroom single-family homes or duplexes built after 1950 with updated kitchens, reliable heating systems for harsh winters, parking spaces, and outdoor amenities like decks or lake views, as these features command premium rates of $80-150 per night during peak summer months. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against the 15-25 existing STR properties in the market, noting that occupancy rates typically range 45-65% annually with higher demand during summer tourism season and UW-Superior events. Research competition by analyzing listings within a 5-mile radius, identifying gaps in amenities or underserved price points between $60-120 nightly rates, while monitoring seasonal pricing fluctuations that can vary 40-60% between winter and summer months. Utilize tools like Rabbu for market analysis, STR Helper for performance tracking, and local resources including the Superior-Douglas County Chamber of Commerce for tourism data, Douglas County property records for acquisition costs averaging $80,000-180,000, and networking with local property managers familiar with Superior's zoning regulations and seasonal rental patterns.

To obtain an Airbnb/STR permit in Superior, Wisconsin, contact the Superior Planning and Community Development Department at City Hall located at 1316 North 14th Street or call (715) 395-7270 to begin the application process. You'll need to submit a completed short-term rental license application, provide proof of property ownership or lease agreement, submit a floor plan of the rental unit, obtain a certificate of occupancy if required, provide proof of liability insurance (typically $1 million minimum), and pass required safety inspections including smoke and carbon monoxide detectors. The application fee is approximately $150-200 with annual renewal fees around $100-150, and the process typically takes 4-6 weeks from submission to approval. Superior requires STR operators to register with the Wisconsin Department of Revenue for tax collection, maintain a local contact person available 24/7, limit occupancy based on bedroom count (usually 2 people per bedroom plus 2 additional), provide adequate parking spaces, and comply with noise ordinances and neighborhood compatibility standards. Properties must meet all building and fire codes, have proper egress windows in sleeping areas, and operators must collect and remit local room taxes to the city.

Short-term rentals (STRs) are legal in Superior, Wisconsin, but operate under specific municipal regulations established around 2019-2020. The city requires STR operators to obtain a business license and comply with zoning restrictions that generally limit short-term rentals to certain residential districts while prohibiting them in some neighborhoods to preserve long-term housing stock. Properties must meet safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers, with occupancy limits typically based on bedroom count plus two additional guests. Recent changes in 2022-2023 have included stricter enforcement of noise ordinances, parking requirements (usually one space per bedroom), and enhanced complaint procedures for neighbors. The city has implemented a registration system that requires annual renewal, proof of insurance, and compliance with state tax collection requirements, while some areas near the waterfront and downtown core have additional restrictions on density of STRs to maintain community character.

The best areas for Airbnb investment in Superior, Wisconsin include the Barkers Island district, which attracts tourists visiting the SS Meteor Maritime Museum and offers waterfront views of Superior Bay, making it ideal for summer visitors and maritime enthusiasts. The downtown Superior area near Tower Avenue provides access to restaurants, shops, and cultural attractions while serving business travelers visiting the port facilities and industrial operations. The Billings Park neighborhood offers a quieter residential setting that appeals to families visiting the area's parks and recreational facilities, while still being close to the Richard I. Bong Veterans Historical Center which draws history buffs and aviation enthusiasts. The areas near the University of Wisconsin-Superior campus attract visiting families during graduation ceremonies, prospective students, and academic conference attendees. Properties near the Superior Municipal Forest and Pattison State Park access points perform well due to outdoor recreation tourism, particularly during fall foliage season and winter sports activities, while the proximity to Duluth, Minnesota across the bay provides additional guest draw from visitors exploring the broader Twin Ports region.

In Superior, Wisconsin, Airbnb properties are subject to both state and local lodging taxes. The Wisconsin state sales tax of 5% applies to all short-term rental accommodations, along with an additional state room tax of 5%, for a combined state rate of 10%. Douglas County imposes a county room tax of 3%, and the City of Superior levies a local room tax of 8%, bringing the total tax rate to approximately 21% on gross rental receipts. These taxes are typically collected by Airbnb directly from guests at the time of booking for participating hosts, with Airbnb remitting payments monthly to the Wisconsin Department of Revenue and local tax authorities. Hosts not using Airbnb's collection service must register with the Wisconsin Department of Revenue and file monthly returns by the 20th of the following month, along with registering locally with Douglas County and the City of Superior for their respective room taxes. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient accommodations, and certain government or charitable organization bookings may qualify for exemptions with proper documentation.

The total cost to start an Airbnb in Superior, Wisconsin is approximately $185,000-$225,000. Property purchase represents the largest expense at $140,000-$170,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom property including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic marketing materials run $1,500-$3,000. Permits and fees in Wisconsin include business registration ($35), potential short-term rental permits ($100-$500 depending on local ordinances), and tax registration which varies by municipality. Insurance costs approximately $1,200-$2,000 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits for electricity, gas, water, internet, and cable typically cost $500-$800 initially, with monthly utilities averaging $200-$300. First six months of operating costs including utilities ($1,200-$1,800), cleaning supplies and services ($600-$1,200), maintenance reserves ($1,000), platform fees to Airbnb and VRBO (3% of bookings), and marketing expenses total approximately $4,000-$7,000, assuming moderate occupancy rates during the initial period.

Airbnb properties in Superior, Wisconsin typically generate annual revenues between $15,000-$35,000 for entire home listings, with average daily rates ranging from $80-$150 depending on property size and lakefront proximity. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25% if outsourced), utilities ($200-400 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties near Lake Superior or within walking distance to the University of Wisconsin-Superior command premium rates, particularly during summer months (June-August) and fall color season (September-October) when occupancy rates peak at 70-85% compared to winter lows of 25-40%. Successful operators in the area typically achieve net profit margins of 15-25% by focusing on waterfront or historic properties, maintaining high cleanliness standards, and targeting fishing enthusiasts, university visitors, and tourists exploring the Twin Ports region. Properties with 2-3 bedrooms, outdoor amenities like fire pits or lake access, and professional photography tend to outperform studio units or properties lacking distinctive features, with the most profitable listings generating $20,000-$25,000 in annual net income after all expenses.

Based on Superior, 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 proximity to Lake Superior attractions. Properties near Pattison State Park or downtown Superior waterfront areas command higher nightly rates of $80-140, while standard residential properties average $60-100 per night with 45-65% occupancy rates during peak summer months and 25-35% in winter. Initial investment recovery timeframes range from 7-10 years for cash purchases, with leveraged properties achieving positive cash flow within 12-18 months given Superior's growing tourism market driven by outdoor recreation and proximity to Duluth, Minnesota. Properties purchased in 2020-2022 for $150,000-250,000 are currently showing gross rental yields of 10-15% annually, with net returns after expenses, taxes, and management fees settling around 8-11% for well-positioned properties in this Lake Superior market.

STRSearch is a national platform that specializes in identifying profitable short-term rental investment opportunities and provides market analysis for Airbnb properties in Superior, Wisconsin. Local real estate agents who focus on investment properties in the Superior area include Coldwell Banker East West Realty, RE/MAX Results, and Edina Realty, with agents like those at Century 21 Land of Lakes often having experience with vacation rental properties near Lake Superior. National services that can assist with Superior Airbnb investments include BiggerPockets for networking and education, Mashvisor for property analysis and market data, AirDNA for short-term rental market insights and revenue projections, and Awning for end-to-end Airbnb investment services. Local property management companies such as Superior Property Management and Lake Superior Vacation Rentals can provide ongoing management services, while national companies like RedAwning and Vacasa also operate in the Wisconsin market. Real estate investment firms like Roofstock and Arrived Homes occasionally feature properties in smaller Wisconsin markets, and local mortgage brokers familiar with investment properties include those at Associated Bank and Charter Bank who understand the unique financing needs for short-term rental investments in the Superior area.