Airbnb Milwaukee, Wisconsin: Market Data, Laws & Investor Guide

Milwaukee, Wisconsin has emerged as a premier location for savvy Airbnb hosts looking to capitalize on the city's thriving tourism industry and favorable short-term rental regulations. With its picturesque lakefront, vibrant culture, and growing popularity among travelers, Milwaukee offers a unique opportunity for investors to generate substantial passive income through vacation rentals.

The appeal of starting an Airbnb business in Milwaukee is clear. The city's tourism sector has experienced a steady upswing, with visitor spending reaching a record $3.6 billion in 2023. This trend is expected to continue, driven by major events like the upcoming 2024 Republican National Convention, which is projected to draw over 50,000 attendees and generate an estimated $200 million in economic impact.

Milwaukee's short-term rental market has shown impressive resilience and growth potential. According to AirDNA, a leading vacation rental data provider, Milwaukee boasts an average occupancy rate of 61% and an average daily rate of $233 as of August 2024. These figures translate to an enticing average monthly revenue of $3,030 for Airbnb hosts.

Investors are taking notice of Milwaukee's potential. Mashvisor, a real estate data analytics platform, reports that the city's Airbnb listings have surged, reflecting strong market confidence. The platform also highlights Milwaukee's favorable price-to-rent ratio of 27 and an attractive cash-on-cash return of 4.58% for short-term rentals.

Moreover, Milwaukee's regulatory environment is conducive to Airbnb success. The city has embraced short-term rentals as a vital part of its tourism ecosystem, implementing clear and reasonable regulations that balance the needs of hosts, guests, and the community. Hosts who obtain the necessary permits and comply with local guidelines can operate with confidence and stability.

In the following sections, we'll dive deeper into the steps required to launch a thriving Airbnb business in Milwaukee, including navigating the permit process, understanding tax obligations, and optimizing your listings for maximum occupancy and revenue. Whether you're a seasoned investor or a first-time host, Milwaukee presents an exciting opportunity to build a profitable short-term rental portfolio in one of America's most promising markets.

Milwaukee Short-Term Rental Market Analysis

Milwaukee's short-term rental market has shown impressive resilience and growth potential in recent years. According to AirDNA, a leading vacation rental data provider, Milwaukee boasts the following key metrics as of August 2024:

• Average occupancy rate: 50%
• Average daily rate: $221
• Average yearly revenue: $40,325

Comparing this data to the previous year, we can see a positive trend in Milwaukee's Airbnb market:

1. Occupancy rate in August 2023: 48% (up 2% year-over-year)
2. Average daily rate in August 2023: $213 (up 3.8% year-over-year)

These figures demonstrate a steady growth in Milwaukee's short-term rental market, with increasing occupancy rates and daily rates contributing to higher monthly revenues for hosts.

Milwaukee's tourism industry has also experienced significant growth in recent years. According to Visit Milwaukee, the city's tourism spending reached a record $3.6 billion in 2023, a 6.4% increase from the previous year. This growth can be attributed to the city's thriving festival scene, cultural attractions, and increased popularity among travelers.

Key events and festivals that boost tourism in Milwaukee include:

1. Summerfest (June-July)
2. Wisconsin State Fair (August)
3. Irish Fest (August)
4. Mexican Fiesta (August)
5. Harley-Davidson Homecoming Festival (July)
6. Germanfest (July)

These events attract thousands of visitors to Milwaukee each year, driving demand for short-term rentals and contributing to the city's economic growth.

According to discussions on Airbnb host forums, the average booking duration in Milwaukee varies depending on the season and the purpose of the visit. Leisure travelers typically book stays ranging from 2-4 nights, while business travelers and those attending conferences or events may book stays of up to a week or more. The mid-term rental market in Milwaukee is also gaining traction, with some hosts reporting an increase in monthly bookings, particularly during the off-peak season.

In conclusion, Milwaukee's short-term rental market is poised for continued growth, driven by the city's thriving tourism industry, popular events and festivals, and increasing demand from both leisure and business travelers. With favorable occupancy rates, daily rates, and monthly revenues, investing in an Airbnb property in Milwaukee presents a promising opportunity for investors looking to capitalize on this dynamic market.

Best Neighborhoods in Milwaukee for an Airbnb Business

When searching for the ideal location to start an Airbnb business in Milwaukee, hosts should consider factors such as proximity to popular attractions, up-and-coming areas, and tourist hotspots. By analyzing data from reputable sources like AirDNA, Mashvisor, and Zillow, we've identified the top 5 neighborhoods in Milwaukee for Airbnb investment.

1. Bay View

Bay View is a trendy, vibrant neighborhood known for its unique restaurants, bars, and boutiques. Its proximity to Lake Michigan and downtown Milwaukee makes it an attractive option for Airbnb guests.

1. Average Occupancy Rate: 72%
2. Average Daily Rate: $139
3. Airbnb Seasonality: High season from May to September
4. Estimated Annual Revenue: $36,504

The median home value in Bay View is $285,000 (Zillow, June 2024), with single-family homes being the most common housing type. Two-bedroom properties provide the best return on investment in this neighborhood.

2. Lower East Side

The Lower East Side is a historic neighborhood known for its Victorian architecture, art galleries, and proximity to downtown attractions like the Milwaukee Art Museum and the Riverwalk.

1. Average Occupancy Rate: 68%
2. Average Daily Rate: $127
3. Airbnb Seasonality: High season from June to August
4. Estimated Annual Revenue: $31,496

The median home value in the Lower East Side is $315,000 (Zillow, June 2024), with a mix of single-family homes and multi-family properties. One-bedroom and studio apartments offer the best return on investment in this area.

3. Walker's Point

Walker's Point is an up-and-coming neighborhood south of downtown, known for its diverse population, vibrant food scene, and proximity to the Harley-Davidson Museum.

1. Average Occupancy Rate: 65%
2. Average Daily Rate: $118
3. Airbnb Seasonality: High season from May to October
4. Estimated Annual Revenue: $28,028

The median home value in Walker's Point is $225,000 (Zillow, June 2024), with a mix of single-family homes, duplexes, and multi-family properties. Two-bedroom properties provide the best return on investment.

4. Brewer's Hill

Brewer's Hill is a historic neighborhood located just north of downtown, known for its beautiful architecture, proximity to the Fiserv Forum, and the Milwaukee River.

1. Average Occupancy Rate: 67%
2. Average Daily Rate: $132
3. Airbnb Seasonality: High season from April to September
4. Estimated Annual Revenue: $32,364

The median home value in Brewer's Hill is $295,000 (Zillow, June 2024), with a mix of single-family homes and multi-family properties. Two-bedroom and three-bedroom properties offer the best return on investment.

5. Historic Third Ward

The Historic Third Ward is a trendy neighborhood known for its art galleries, boutiques, restaurants, and proximity to the Milwaukee Public Market and the Summerfest grounds.

1. Average Occupancy Rate: 71%
2. Average Daily Rate: $145
3. Airbnb Seasonality: High season from June to September
4. Estimated Annual Revenue: $37,595

The median home value in the Historic Third Ward is $400,000 (Zillow, June 2024), with condominiums being the most common housing type. One-bedroom and two-bedroom properties provide the best return on investment in this neighborhood.

By considering these top neighborhoods and their respective data, hosts can make informed decisions when starting an Airbnb business in Milwaukee, maximizing their potential for success and profitability.

Maximizing Your Revenue Through In-Demand Amenities and Properties in Milwaukee

To set competitive prices for your Airbnb listing in Milwaukee, consider factors such as seasonality, local events, and the prices of similar listings in your area. Analyze market data to identify peak periods and adjust your prices accordingly. Additionally, consider offering dynamic pricing, which automatically adjusts your rates based on demand and other factors.

According to AirDNA data from 2024, the most in-demand and best-performing Airbnb listings in Milwaukee share several key amenities and characteristics:

1. High-speed Wi-Fi
2. Fully equipped kitchen
3. Dedicated workspace
4. Self check-in
5. Outdoor space (balcony, patio, or backyard)
6. Smart home features (smart locks, thermostats, or lighting)
7. Unique decor or themed rooms
8. Pet-friendly accommodations
9. Complimentary breakfast or snacks
10. Bike rentals or proximity to bike trails

To maximize revenue, consider incorporating these amenities into your listing. For example, investing in smart home technology can appeal to tech-savvy guests, while offering pet-friendly accommodations can attract a wider range of travelers.

In Milwaukee, the most popular property types for short-term rentals are single-family homes, apartments, and condos. Here's a breakdown of average property prices and potential revenue by bedroom count, based on data from Zillow and AirDNA (June 2024):

Single-Family Homes

• 2-bedroom: Median price $285,000; Potential monthly revenue $3,200
• 3-bedroom: Median price $350,000; Potential monthly revenue $4,500
• 4-bedroom: Median price $450,000; Potential monthly revenue $6,000

Apartments

• Studio: Median price $150,000; Potential monthly revenue $1,800
• 1-bedroom: Median price $200,000; Potential monthly revenue $2,400
• 2-bedroom: Median price $275,000; Potential monthly revenue $3,000

Condos

• 1-bedroom: Median price $225,000; Potential monthly revenue $2,600
• 2-bedroom: Median price $325,000; Potential monthly revenue $3,500
• 3-bedroom: Median price $400,000; Potential monthly revenue $4,800

Keep in mind that these figures are averages, and actual property prices and revenue potential may vary depending on factors such as location, amenities, and market conditions. However, this data suggests that investing in larger single-family homes or condos with multiple bedrooms can yield higher potential returns for Airbnb hosts in Milwaukee.

Understanding Milwaukee Short-Term Rental Regulations

Milwaukee, Wisconsin has implemented regulations to balance the growth of short-term rentals with the interests of local residents. To operate legally, hosts must navigate a complex framework of licensing requirements, zoning laws, and tax obligations.

To start a short-term rental business in Milwaukee, hosts must first obtain a Tourist Rooming House license from the City of Milwaukee Neighborhood Services. This process involves submitting an application, providing proof of insurance, and demonstrating compliance with zoning and building codes. Hosts may also need to pay an annual fee to maintain their license.

In addition to the license, hosts must provide proof of payment of the city's 10% hotel tax on short-term rental stays, as well as proof of compliance with all applicable zoning and building codes. Failure to provide these documents can result in fines or penalties.

Short-term rental properties in Milwaukee are subject to property taxes, a 10% innkeeper's tax, and gross income tax on rental income. These tax requirements can add significant costs to operating a short-term rental business in the city.

While Wisconsin law limits the types of regulations local governments can impose on short-term rentals, Milwaukee still regulates these properties through zoning, building and housing standards, rental permits, and taxation. Hosts must comply with all relevant codes, obtain necessary permits and licenses, and pay required taxes.

Read our full STR regulations guide for more detailed information on Milwaukee short-term rental regulations, including insights from local hosts and a closer look at other policies.

Keys to Success as a Milwaukee Airbnb Host

To succeed as an Airbnb host in Milwaukee, it's essential to understand the local market, cater to guest preferences, and navigate potential challenges. By incorporating popular amenities, appealing design themes, and effective marketing strategies, hosts can attract customers and ensure a thriving short-term rental business.

Popular Amenities and Design Themes

According to Airbnb listings in Milwaukee, some of the most sought-after amenities include:

• High-speed Wi-Fi
• Fully equipped kitchens
• Outdoor spaces (balconies, patios, or yards)
• Dedicated workspaces
• Smart home features (smart locks, thermostats, or lighting)
• Pet-friendly accommodations

Successful listings often showcase unique design themes that reflect Milwaukee's character and charm. Some popular themes include:

• Industrial chic, highlighting the city's manufacturing heritage
• Lake-inspired decor, celebrating Milwaukee's proximity to Lake Michigan
• Beer and brewing-themed spaces, paying homage to the city's rich brewing history
• Art-focused interiors, showcasing local artists and galleries

Attracting Milwaukee Customers

To attract customers in Milwaukee, hosts should:

• Highlight proximity to popular attractions, such as the Milwaukee Art Museum, Fiserv Forum, and the Historic Third Ward
• Emphasize the property's walkability and access to public transportation
• Showcase local events and festivals in their listings, such as Summerfest and the Wisconsin State Fair
• Partner with local businesses to offer exclusive discounts or experiences to guests
• Utilize high-quality photos and detailed descriptions to showcase the property's unique features and amenities

Potential Challenges and Guidelines for Success

Operating an Airbnb in Milwaukee comes with its own set of challenges. Hosts on forums like BiggerPockets and Reddit have shared their experiences and advice:

• Navigating local regulations: "Make sure you understand the city's licensing requirements and zoning laws. Failure to comply can result in fines or legal issues."
• Managing noise and neighbor relations: "Set clear expectations with guests regarding noise levels and parking. Building positive relationships with neighbors can help prevent complaints."
• Handling seasonal fluctuations: "Milwaukee's tourism industry is seasonal, with peak demand during summer months. Consider adjusting your pricing and marketing strategies to maintain occupancy during slower periods."

To run a successful Airbnb in Milwaukee, hosts should:

• Stay informed about local regulations and maintain all necessary licenses and permits
• Provide exceptional customer service and promptly address guest concerns
• Implement a thorough cleaning and maintenance routine to ensure a high-quality experience
• Utilize dynamic pricing tools to optimize rates based on demand and seasonality
• Actively seek and respond to guest reviews to maintain a strong online reputation

By focusing on these key areas and leveraging insights from experienced hosts, Airbnb operators in Milwaukee can create a successful and sustainable short-term rental business that capitalizes on the city's unique charm and growing tourism industry.

Using BNBCalc to Find Profitable Properties in Milwaukee, Wisconsin

1. Analyze Properties Using BNBCalc

BNBCalc is a powerful tool that allows aspiring short-term rental business owners to analyze the profitability of potential properties. To get started, simply enter the address of the property you're interested in, along with the purchase price, number of bedrooms and bathrooms, and maximum number of guests. BNBCalc will then generate a detailed report, including estimated monthly revenue, occupancy rates, and cash flow projections.

2. Benchmark Comparable Rentals

One of the key features of BNBCalc is its ability to provide data on comparable rentals in the area. By analyzing the performance of nearby properties, users can gain valuable insights into pricing strategies and amenities that are in high demand. This information can be used to optimize your own listing and ensure that you're fetching top dollar for your short-term rental.

3. Determine the Right Price and Property Size

BNBCalc can help you determine the ideal number of bedrooms, bathrooms, and purchase price to maximize your revenue potential. The platform provides detailed breakdowns of estimated revenue based on different property configurations, allowing you to make informed decisions about the type of property to invest in.

4. Make an Offer

Once you've identified a property that meets your criteria and offers strong returns, it's time to make an offer. BNBCalc has partnered with STR lenders to help users get prequalified for financing. Our team recommends working with Brian Bockholdt at Alliant Credit Union, who offers some of the lowest rates in the industry. With financing in place, you'll be well-positioned to make a competitive offer and secure your ideal short-term rental property.

5. Use Our Tax Calculator

In addition to analyzing profitability, BNBCalc also provides a tax calculator that can help you determine potential tax deductions from bonus depreciation. By taking advantage of these deductions, you can significantly reduce your tax liability and maximize your overall returns.

6. Come Up with a Buy Box

When searching for a profitable short-term rental property in Milwaukee, it's important to have a clear buy box in mind. Your buy box should include specific criteria that a property must meet to be considered a worthwhile investment. Some key factors to consider include:

• Location: Focus on neighborhoods with strong demand for short-term rentals, such as those near popular attractions, business districts, or universities.
• Property Type: Consider the types of properties that are most popular among short-term rental guests in Milwaukee, such as single-family homes, apartments, or condos.
• Amenities: Look for properties with amenities that are in high demand, such as fully-equipped kitchens, outdoor spaces, dedicated workspaces, and smart home features.
• Price Range: Determine a price range that aligns with your budget and offers strong potential returns based on BNBCalc's projections.

By using BNBCalc to analyze properties, benchmark comparable rentals, determine the right price and property size, and take advantage of tax deductions, aspiring short-term rental business owners in Milwaukee can make informed decisions and maximize their chances of success. With a clear buy box in mind and the right tools at your disposal, you'll be well on your way to building a profitable and rewarding short-term rental business in this thriving market.

Ready to start your Airbnb journey in Milwaukee? Use BNBCalc to analyze potential properties and make informed investment decisions. Our powerful tool provides comprehensive data to help you maximize your profits. Check out this pre-analyzed Milwaukee Airbnb opportunity and see how BNBCalc can help you succeed in the short-term rental market. Visit BNBCalc.com today and take the first step towards building your Airbnb business.