Is Sussex, Wisconsin Good for Airbnb Investment?

To start an Airbnb in Sussex, Wisconsin, begin by researching local zoning laws and regulations through the Village of Sussex Planning Department, as short-term rentals may require conditional use permits or special zoning approval depending on the property's residential classification. Contact Waukesha County for any county-level requirements and obtain necessary permits including a business license from the Village of Sussex, which typically costs around $50-100 annually, and ensure compliance with Wisconsin Department of Safety and Professional Services building codes. Find a suitable property in Sussex's residential areas, focusing on single-family homes or condos that allow short-term rentals, with average property prices ranging from $250,000-400,000 in 2024. Furnish the property with quality furniture, linens, kitchen essentials, and amenities like WiFi, smart TV, and local guidebooks, budgeting approximately $10,000-15,000 for a complete setup. Create your Airbnb listing with professional photos highlighting Sussex's proximity to Milwaukee (20 miles), local attractions like the Waukesha County Museum, and outdoor activities at nearby Pewaukee Lake. Set competitive pricing around $80-150 per night based on local market rates, implement a thorough cleaning protocol between guests, establish clear house rules, and consider hiring a local property management company like Vacasa or RedAwning if you live outside the area. Ensure you have proper insurance coverage, collect and remit Wisconsin's 5.5% sales tax plus any local taxes, and maintain excellent guest communication to achieve Superhost status and maximize bookings in this suburban Milwaukee market.

To identify profitable short-term rental properties in Sussex, Wisconsin, focus on properties within 2-3 miles of major attractions like the Waukesha County Expo Center and near Highway 164 for easy access to Milwaukee (20 minutes away). Target 3-4 bedroom single-family homes or condos built after 1990 with modern amenities, full kitchens, outdoor spaces, and parking, as these appeal to business travelers and families visiting the greater Milwaukee area. Analyze pricing by researching comparable Airbnb listings in Sussex, Pewaukee, and Hartland, aiming for properties under $300,000 that can command $120-180 per night during peak seasons (summer festivals, business events). Study competition using AirDNA and Mashvisor to assess occupancy rates and revenue potential, noting that Sussex has limited STR inventory compared to downtown Milwaukee, creating opportunity. Utilize Zillow, Realtor.com, and local MLS data through Shorewest Realtors or Coldwell Banker Realty for property searches, while checking Waukesha County zoning regulations and Sussex municipal codes for STR compliance, and consider properties near corporate housing demand from companies in the Milwaukee metro area's business corridors.

To obtain an Airbnb/STR permit in Sussex, Wisconsin, you must first contact the Sussex Village Hall at 220 N Main Street or call (262) 246-5180 to inquire about their short-term rental ordinance requirements, as regulations were implemented around 2019-2020. You'll need to submit a completed short-term rental license application along with required documents including proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage naming the Village as additional insured, floor plan of the rental unit, contact information for a local property manager if you're not local, and a copy of your state tax ID number. The application fee is approximately $200-300 annually, with additional inspection fees of around $100. Required documents also include a site plan showing parking areas, trash collection locations, and emergency egress routes. Sussex requires STR properties to have adequate parking (typically 2 spaces per unit), proper smoke and carbon monoxide detectors, and compliance with all building and fire codes. The property must pass a safety inspection conducted by the Village's building inspector. The timeline for approval is typically 30-45 days after submitting a complete application, provided the property passes inspection and meets all zoning requirements. You must also register with the Wisconsin Department of Revenue for tax collection purposes and maintain current contact information with the Village, including a 24-hour emergency contact number for guests and neighbors.

Short-term rentals (STRs) are generally legal in Sussex, Wisconsin, but are subject to local zoning regulations and permit requirements established by the Village of Sussex. The village typically requires STR operators to obtain proper licensing and comply with zoning ordinances that may restrict operations in certain residential districts or require conditional use permits. Properties must meet safety standards, parking requirements, and noise ordinances, with some areas potentially prohibited from STR operations depending on their zoning classification. Recent years have seen increased scrutiny and potential regulatory updates as municipalities across Wisconsin, including Sussex, work to balance tourism revenue with neighborhood character preservation, though specific recent changes would require verification with current village ordinances as regulations have been evolving since 2020-2023 to address growing STR popularity in suburban communities.

The best areas for Airbnb investment in Sussex, Wisconsin include the downtown Sussex area near the Sussex Village Park and Main Street corridor, which attracts visitors for local events and festivals throughout the year. The neighborhoods near Lisbon Road (Highway 164) are prime due to their proximity to major business centers and easy highway access for corporate travelers visiting nearby companies like Quad/Graphics and Johnson Controls. Areas close to the Waukesha County Expo Center benefit from consistent event-driven demand, hosting trade shows, conventions, and community gatherings year-round. The residential districts near Sussex Hamilton School District draw families visiting for school events and sports tournaments. Properties within walking distance of the Ice Age Trail and Menomonee River Parkway appeal to outdoor enthusiasts and weekend recreational visitors. The neighborhoods around Templeton Woods and Sussex Outpatient Center attract medical tourism and visiting family members of patients, while areas near the Sussex Civic Center benefit from government-related business travel and municipal events.

Sussex, Wisconsin imposes a 5.5% state sales tax on short-term rental accommodations including Airbnbs, which is collected by the Wisconsin Department of Revenue. Additionally, Waukesha County levies a 0.5% county tax on lodging, bringing the total occupancy tax to approximately 6% on rental stays of less than 30 consecutive days. Airbnb typically collects and remits these taxes automatically for hosts through their platform as of 2019, though individual hosts remain responsible for ensuring compliance and may need to register with the Wisconsin Department of Revenue if collecting taxes independently. The Village of Sussex does not impose additional local room taxes beyond the state and county requirements. Rentals of 30 days or longer are generally exempt from these occupancy taxes, and certain agricultural or educational accommodations may qualify for exemptions under Wisconsin state law, though standard residential Airbnb rentals do not typically qualify for exemptions.

To start an Airbnb in Sussex, Wisconsin, expect total costs around $385,000-$425,000. Property purchase represents the largest expense at approximately $350,000 based on median home prices in the Sussex area as of 2023. Furnishing costs typically range $15,000-$25,000 for a complete 3-bedroom setup including beds, living room furniture, kitchen essentials, linens, and décor. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees in Wisconsin generally cost $500-$1,500 including business licenses and potential municipal short-term rental permits. Insurance premiums for short-term rental coverage run $2,000-$3,000 annually. Utility setup and deposits for electricity, gas, water, internet, and cable total approximately $1,000-$2,000. First six months operating costs including utilities ($1,200), cleaning supplies and services ($1,800), maintenance reserves ($1,500), marketing ($600), and platform fees on estimated bookings ($2,400) add roughly $7,500 to initial investment requirements.

Airbnb properties in Sussex, Wisconsin typically generate annual revenues between $15,000-$35,000 for entire home listings, with average daily rates ranging from $85-$150 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (10-20% of revenue), utilities ($150-300 monthly), insurance ($800-1,500 annually), and maintenance costs averaging $2,000-4,000 yearly. Profit margins for successful properties in the area typically range from 25-45%, with higher-end properties near Pewaukee Lake or those offering unique amenities like hot tubs or fire pits achieving the upper range. Success factors include proximity to Milwaukee (20 miles), seasonal demand from lake visitors and business travelers, professional photography, consistent 4.8+ star ratings, and strategic pricing during peak summer months and fall color season. Properties within walking distance of Sussex's downtown area or featuring modern amenities have shown occupancy rates of 65-80%, while basic listings average 45-60% occupancy, with companies like Vacasa and local property management firms reporting that well-managed Sussex Airbnbs can achieve 15-25% annual returns on investment when purchased specifically for short-term rental purposes.

Airbnb investments in Sussex, Wisconsin typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, depending on property type and location within the market. Single-family homes near Lisbon Road and downtown Sussex command higher nightly rates of $120-180, while condos and smaller properties average $80-120 per night. Initial profitability usually occurs within 12-18 months for well-positioned properties, with break-even points accelerated by Sussex's proximity to Milwaukee (30 minutes) and popular attractions like the Waukesha County Expo Center. Properties within walking distance of Sussex Village Park and local dining establishments see occupancy rates of 65-75% annually, contributing to gross rental yields of 10-14% before expenses. The market benefits from consistent demand from business travelers visiting nearby corporate facilities including Quad Graphics and leisure visitors exploring the Kettle Moraine area, with peak seasons during summer months and fall foliage periods driving premium pricing that can increase monthly returns by 15-25% during high-demand periods.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Sussex, Wisconsin and surrounding areas. Local real estate agents in the Sussex market who focus on investment properties include Shorewest Realtors, Coldwell Banker Realty, and RE/MAX Realty 100, with many agents in these firms having experience with Airbnb investment properties since around 2018-2020. National services that help investors find profitable Airbnb properties include Mashvisor (launched 2014), AirDNA (established 2015), Rabbu, and BiggerPockets marketplace, all of which provide market analysis and property identification tools for the Sussex area. Local property management companies that cater to Airbnb investors include Lake Country Property Management and Milwaukee-area firms like RedAwning and Vacasa that expanded into Wisconsin markets around 2019-2021. Additional services include AirbnbReady for property setup, HostGPO for investor resources, and local contractors and interior designers who specialize in short-term rental optimization, with many emerging in the Sussex market as Airbnb popularity grew between 2017-2022.