Is Superior, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Superior, Wisconsin, begin by researching local zoning laws and regulations through the City of 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 to understand any health and safety requirements, and check with your insurance provider about liability coverage for short-term rentals. Find a suitable property by searching residential areas near popular attractions like the Richard I. Bong Veterans Historical Center or Lake Superior waterfront, ensuring the property meets fire safety codes and has adequate parking. Obtain necessary permits including a City of Superior business license (approximately $25-50 annually), register for Wisconsin state tax ID for collecting sales tax, and ensure compliance with Americans with Disabilities Act requirements if applicable. Furnish the property with essential amenities including Wi-Fi, linens, towels, basic kitchen supplies, and local guidebooks highlighting Superior's attractions like the SS Meteor Museum and Pattison State Park. Create your listing on Airbnb and other platforms like VRBO, using high-quality photos and highlighting proximity to Duluth-Superior area attractions, the Great Lakes Aquarium, and outdoor activities. Manage your property by establishing cleaning protocols between guests, maintaining competitive pricing (typically $75-150 per night in Superior depending on season and property size), responding promptly to guest inquiries, and keeping detailed records for tax purposes including the Wisconsin state sales tax of 5% plus local taxes that must be collected and remitted quarterly.

To identify profitable short-term rental properties in Superior, Wisconsin, focus on locations within 1-2 miles of key attractions like the Richard I. Bong Veterans Historical Center, Fairlawn Mansion, and waterfront areas along Lake Superior, as well as properties near the Duluth-Superior bridge for easy access to Minnesota attractions. Target 2-4 bedroom properties built after 1950 with updated kitchens, reliable WiFi capability, parking spaces, and outdoor amenities like decks or patios that can showcase lake or forest views. Conduct pricing analysis by researching comparable Airbnb and VRBO listings in the $80-150 per night range, accounting for seasonal fluctuations with peak rates during summer months (June-August) and fall foliage season. Research competition using AirDNA and STR analytics tools to identify supply gaps, with particular attention to properties serving visitors to nearby Duluth attractions, outdoor recreation enthusiasts, and business travelers to the Twin Ports area. Utilize resources like the Douglas County property records, Superior Chamber of Commerce market data, local real estate agents familiar with investment properties, and platforms like Mashvisor or BiggerPockets for market analysis, while monitoring occupancy rates through tools like AllTheRooms and tracking local events that drive demand such as summer festivals and winter recreation activities.

To obtain an Airbnb/STR permit in Superior, Wisconsin, you must first contact the Superior Planning and Community Development Department at City Hall located at 1316 North 14th Street to determine if short-term rentals are permitted in your zoning district, as the city requires a conditional use permit for most STR operations. You'll need to submit an application including a completed conditional use permit form, site plan showing parking and property layout, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, and a management plan detailing how the property will be operated and maintained. The application fee is approximately $350-500, and you may need additional fees for inspections and public hearings. The process typically takes 60-90 days and includes a public hearing before the Planning Commission, followed by City Council approval if recommended. Superior requires STR operators to maintain local contact information available 24/7, provide adequate parking (typically 1 space per bedroom), ensure compliance with fire safety codes including smoke and carbon monoxide detectors, limit occupancy based on square footage and bedrooms, and register with the Wisconsin Department of Revenue for tax collection purposes. Once approved, you must display your permit number in all advertising and renew annually with the city while maintaining compliance with all zoning, building, and safety requirements.

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, liability insurance, and local contact information for a responsible party available 24/7. Superior's approach balances tourism revenue with neighborhood stability, requiring STR operators to maintain properties in good condition and respond promptly to any community concerns, with violations potentially resulting in license suspension or revocation.

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 appeal with proximity to the Duluth-Superior harbor activities. The downtown Superior area near Tower Avenue provides access to business travelers working at the port facilities and visitors to the Richard I. Bong Veterans Historical Center. The neighborhoods near Pattison State Park, particularly around Big Manitou Falls, are highly attractive for nature tourism and outdoor enthusiasts visiting Wisconsin's highest waterfall. The Billings Park area offers appeal to families and tourists seeking recreational activities along Lake Superior's shoreline. The residential areas near UW-Superior campus provide opportunities for visiting families, prospective students, and academic conference attendees. Properties near the Superior Entry and harbor district benefit from maritime tourism, fishing enthusiasts, and visitors to the Great Lakes Aquarium across the bay in Duluth. The Allouez Bay area attracts water sports enthusiasts and offers scenic lake views that command premium rates during summer months.

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 the state's room tax of 5%, for a combined state rate of 10%. Douglas County imposes an additional room tax of 3%, and the City of Superior levies a local room tax of 8%, bringing the total occupancy 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 to the appropriate tax authorities on a monthly basis. Hosts who are not part of Airbnb's automatic tax collection program must register with the Wisconsin Department of Revenue and local authorities, collect taxes from guests, and remit payments quarterly for state taxes and monthly for local taxes. Properties rented for 30 days or longer are generally exempt from room taxes, and certain nonprofit or government-related stays may qualify for exemptions with proper documentation.

Starting an Airbnb in Superior, Wisconsin requires approximately $180,000-220,000 in total initial investment. Property purchase represents the largest expense at $140,000-160,000 based on median home prices in the area as of 2023. Furnishing costs typically range $15,000-25,000 for a complete setup including beds, linens, kitchen essentials, living room furniture, and décor to create an attractive rental space. Initial setup expenses including professional photography, listing creation, welcome materials, and basic supplies cost around $2,000-3,000. Permits and fees in Superior include business license ($100-200), potential zoning permits ($200-500), and any required inspections totaling approximately $500-1,000. Insurance costs for short-term rental coverage average $1,500-2,500 annually, with the first year paid upfront. Utility setup and deposits for electricity, gas, water, internet, and cable services require $1,000-1,500 initially. First six months of operating costs including utilities ($300-400/month), cleaning supplies and services ($200-300/month), property maintenance ($150-250/month), platform fees, and marketing expenses total approximately $4,000-6,000, bringing the complete startup investment to the estimated range.

Airbnb properties in Superior, Wisconsin typically generate annual revenues between $15,000-$35,000 for well-positioned properties, with average daily rates ranging from $75-$120 depending on proximity to Lake Superior and seasonal demand. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (10-20%), utilities ($150-300 monthly), insurance ($1,200-2,000 annually), and maintenance costs. Properties near Barker's Island and the waterfront command premium rates during summer months (June-August) when tourism peaks, with occupancy rates reaching 70-85%, while winter months typically see 30-45% occupancy. Successful operators in the area focus on properties with lake views, outdoor amenities like fire pits or decks, and proximity to attractions such as the Richard I. Bong Veterans Historical Center or Fairlawn Mansion. Net profit margins for well-managed properties typically range from 15-25% annually, with break-even points occurring around 45-55% annual occupancy rates. Properties purchased below $200,000 and generating over $25,000 annually in gross revenue tend to achieve the strongest returns, particularly those targeting fishing enthusiasts, leaf-peepers in fall, and summer lake visitors who drive demand in this market of approximately 27,000 residents.

Airbnb investments in Superior, Wisconsin typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by seasonal tourism from nearby Duluth, Minnesota and outdoor recreation activities around Lake Superior. Properties near the waterfront or downtown area command higher nightly rates of $80-120, while standard residential properties average $60-90 per night with occupancy rates of 45-65% annually. Initial profitability usually occurs within 18-24 months for well-positioned properties, with investors seeing break-even on cash invested by month 20-30 depending on property acquisition costs averaging $150,000-250,000 and renovation expenses of $15,000-35,000. The market benefits from consistent demand during summer months (June-September) when occupancy can reach 75-85%, though winter months see significant drops to 25-40% occupancy, making year-round cash flow management critical for sustained 9-11% annual returns.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Superior, Wisconsin, by providing data analytics on occupancy rates, revenue potential, and market trends. Local real estate agents in Superior who specialize in investment properties include Coldwell Banker East West Realty, RE/MAX Results, and Keller Williams Realty, with agents like those at Edina Realty also serving the Duluth-Superior market area. National services that assist Airbnb investors include AirDNA for market analysis, Mashvisor for property investment analytics, and BiggerPockets for networking and deal sourcing. Regional property management companies such as Superior Property Management and Lake Superior Vacation Rentals can help with ongoing operations, while national platforms like Awning, RedAwning, and Vacasa provide comprehensive Airbnb management services. Investment-focused real estate companies like Roofstock and Arrived Homes occasionally feature properties in the Superior market, and local mortgage brokers specializing in investment properties include First National Bank of Omaha and Bremer Bank, which have branches serving the Superior area and understand the unique financing needs of short-term rental investors.