Is Sussex, Wisconsin Good for Airbnb Investment?

Potentially—Sussex, Wisconsin combines visitor demand with long-term real estate upside.

• Presents a more modest but potentially stable opportunity given the city's suburban character and proximity to Milwaukee.
• Sussex's market is characterized by its family-friendly residential environment, access to outdoor recreation areas like the Kettle Moraine State Forest.
• While tourism demand is significantly lower than major destination cities, the area attracts visitors for outdoor activities, local events.
• Property values in Sussex remain relatively affordable compared to urban markets, offering lower barriers to entry for investors.
• However, occupancy rates may be seasonal and less consistent, with peak demand during summer months and fall foliage season.
• Investors should carefully evaluate the limited tourism infrastructure and consider targeting longer-term stays or business travelers.

$800–$1,500 per month based on location, season, and property quality.

• Based on available market data and regional analysis, Airbnb hosts in Sussex, Wisconsin typically earn between $800-$1,500 per month.
• Seasonal variations show peak earnings during summer months (June-August) when revenue can increase by 25-40% due to Wisconsin's lake activities and outdoor tourism.
• Spring and fall maintain moderate occupancy rates around 60-65%.
• Key factors affecting earnings include proximity to Pewaukee Lake and other recreational areas, property size (with 3-4 bedroom homes performing best), professional photography and listing optimization.
• Properties offering unique amenities like hot tubs, fire pits, or lake access command premium rates of $130-$180 per night, while basic accommodations typically range $70-$100 nightly.
• The average occupancy rate hovers around 55-70% annually, with successful hosts maintaining higher occupancy through competitive pricing strategies and excellent guest reviews.

Potentially strong—typical annual ROI is 8–12%.

• Typically generate ROI between 8-12% annually, with higher-end properties near Pewaukee Lake achieving up to 15% returns during peak summer months.
• The average payback period ranges from 8-12 years depending on initial investment and occupancy rates.
• Properties averaging $250,000-$350,000 can generate $2,000-$3,500 monthly during peak seasons (May-September) but drop to $800-$1,500 in winter months.
• Compared to traditional long-term rentals in Sussex that yield 6-8% ROI with more stable $1,400-$2,200 monthly income.
• The Sussex market benefits from its location within 30 minutes of Milwaukee, access to lake recreation, and lower property taxes than neighboring Waukesha County communities.

Sussex, Wisconsin averages 55–65% annual occupancy, with seasonal variation.

• Airbnb occupancy rates in Sussex, Wisconsin typically average around 55-65% annually, with significant seasonal variations that peak during summer months (June-August) at approximately 75-80% occupancy due to increased tourism and outdoor activities around nearby lakes and recreational areas.
• Winter months generally see the lowest occupancy rates at around 35-45%, while spring and fall maintain moderate levels of 50-60%.
• Peak booking periods align with local festivals, summer lake activities, and fall foliage season, with weekends consistently outperforming weekdays by 15-20 percentage points.
• Sussex's occupancy rates tend to be slightly below Wisconsin's state average of approximately 60-68% annually.

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

• The downtown Sussex area near Main Street offers excellent Airbnb potential due to its walkable historic charm, proximity to local restaurants and shops, and appeal to visitors seeking small-town Wisconsin experiences.
• The neighborhoods around Lisbon Road provide strong investment opportunities given their proximity to major employers like GE Healthcare and easy highway access.
• Areas near Sussex Hamilton School District boundaries are highly desirable for families visiting prospective students or attending school events.
• The Templeton Hills and Woodfield subdivisions offer upscale housing stock that appeals to affluent visitors and corporate executives.
• Neighborhoods within walking distance of Lisbon Community Park and the Ice Arena attract sports families and tournament participants.
• The areas near Pewaukee Lake access points, though technically Sussex addresses, benefit from lake proximity and summer recreation demand, commanding seasonal premiums of $160-220 per night.
• Properties along or near the Bugline Trail system appeal to outdoor enthusiasts and cyclists, particularly during warmer months.

Yes, but only where zoning permits short-term rentals and every required license is current.

• Sussex, Wisconsin does not currently have comprehensive short-term rental regulations in place as of 2023, operating under general zoning and business licensing requirements.
• Property owners typically need to obtain a general business license from the village and comply with existing residential zoning restrictions.
• Occupancy limits generally follow standard residential occupancy codes of approximately 2 persons per bedroom plus 2 additional occupants.
• There are no specific owner-occupancy requirements mandating hosts to live on-site during rentals.
• Zoning restrictions primarily limit short-term rentals to residential districts, with some potential restrictions in certain neighborhood zones depending on homeowner association rules or deed restrictions.
• The registration process involves standard business licensing through the village clerk's office.

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

• Short-term rentals in Sussex, Wisconsin are subject to Wisconsin's state lodging tax of 5% on gross receipts, plus Waukesha County's room tax of 8%.
• Property owners must register for a Wisconsin seller's permit (free) and obtain a Wisconsin lodging establishment license which costs approximately $75-$150 annually depending on the number of rooms.
• Sussex may require a local business license costing around $25-$50 annually, and some properties may need a conditional use permit ranging from $200-$500 depending on zoning requirements.
• Additional costs may include fire safety inspections ($50-$100), health department permits if applicable ($75-$150), and potential homeowner association fees or special assessments.
• Property owners must also pay standard property taxes, and rental income is subject to Wisconsin state income tax rates ranging from 3.54% to 7.65% plus federal income taxes.