Airbnb City Guide: The Best Places To Invest in Madison, Wisconsin

Airbnb Rules and Regulations in Madison, Wisconsin

As of 2024, those looking to start a short-term rental in Madison, Wisconsin, must navigate a set of regulations put in place by the city. Hosts are required to obtain a tourist rooming house license, which involves an initial application fee of $700 and an annual renewal fee of $20. The property must be the host's primary residence; a notarized statement affirming this is necessary. Additionally, hosts must submit a detailed floor plan to the city zoning department, which will be verified through an on-site inspection.

Properties are subject to annual home inspections by the Dane County Public Health Department to ensure guest safety. Hosts are also obligated to maintain a guest registry with contact information and submit quarterly reports to the city. To comply with tax requirements, hosts must obtain a Transient Room Tax Permit and remit applicable sales and room taxes to both Madison and Dane County. It's important to note that Madison limits short-term rentals to a maximum of 30 days per year. While operating a successful Airbnb in Madison is possible, hosts must be prepared to work within these stringent guidelines.

Madison Airbnb Market Data:

• Average Revenue – $50.7K per year
• Average Daily Rate – $279.5 per night
• Average Occupancy Rate – 66%
• Average RevPAR – $183.8
• Average Home Prices – $380,800

1. Top Place to Invest in Madison, Wisconsin - Marquette Neighborhood

Nestled in the heart of Madison, the Marquette Neighborhood offers a captivating blend of historic charm, vibrant culture, and prime investment opportunities. This eclectic enclave has emerged as a top contender for Airbnb investors seeking to capitalize on Madison's thriving short-term rental market.

Marquette Neighborhood Airbnb Market Data:

• Average Revenue – $50.7K per year
• Average Daily Rate – $282.3 per night
• Average Occupancy Rate – 69%
• Average RevPAR – $186.6

Convenience: 9/10

The Marquette Neighborhood boasts an unbeatable location, with easy access to downtown Madison and the University of Wisconsin-Madison campus. Residents and visitors alike enjoy the walkability to nearby shops, restaurants, and entertainment venues. The neighborhood's well-connected public transportation system further enhances its appeal for guests without cars.

Tourist Attractions: 7/10

While not a traditional tourist hotspot, the Marquette Neighborhood's unique character and local flavor attract visitors seeking an authentic Madison experience. The neighborhood is home to several popular destinations, including the Willy Street Co-op, the Marquette Waterfront Festival, and the Orton Park Concert Series. These attractions provide a steady stream of potential guests, even during off-seasons, who are looking for a taste of the local culture.

Things to Do: 8/10

From exploring the vibrant art scene at local galleries to indulging in the culinary delights of the neighborhood's diverse restaurants, there's never a dull moment in Marquette. The nearby Lake Monona and Yahara River provide ample opportunities for outdoor recreation, including kayaking, fishing, and picnicking. However, the neighborhood could benefit from a few more high-profile attractions to truly stand out.

Average Home Prices: 6/10

According to Zillow data for 2024, the median home value in the Marquette Neighborhood stands at $475,000, representing a modest 4.2% appreciation over the past year. While prices are higher than the Madison average, the neighborhood's strong rental demand and potential for long-term appreciation make it an attractive option for investors. However, the relatively high entry point may deter some budget-conscious investors.

Proximity to Work-Related Travel: 8/10

The Marquette Neighborhood's central location makes it an ideal base for work-related travel. The University of Wisconsin Hospital and Clinics, the Alliant Energy Center, and the Monona Terrace Convention Center are all within easy reach. Additionally, the neighborhood's proximity to the State Capitol and downtown business district attracts government employees and corporate travelers. However, the lack of a major airport in the immediate vicinity slightly limits its score in this category.

X-Factor: 9/10

What sets the Marquette Neighborhood apart is its unparalleled sense of community and vibrant local culture. The neighborhood's eclectic mix of artists, professionals, and families creates a welcoming and inclusive atmosphere. The area's commitment to sustainability, evident in its thriving community gardens and eco-friendly initiatives, resonates with environmentally conscious travelers. This unique character and strong community bonds make it a highly desirable destination for Airbnb guests seeking an authentic and memorable stay in Madison.

2. Top Place to Invest in Madison, Wisconsin - Monroe Street

Nestled in the heart of Madison, the Monroe Street neighborhood offers a perfect blend of urban convenience and small-town charm. This vibrant area has emerged as a top choice for Airbnb investors seeking to capitalize on Madison's thriving short-term rental market.

Monroe Street Airbnb Market Data:

• Average Revenue – $44.1K per year
• Average Daily Rate – $278.5 per night
• Average Occupancy Rate – 59%
• Average RevPAR – $166

Convenience: 9/10

Monroe Street boasts an unbeatable location, with easy access to downtown Madison and the University of Wisconsin-Madison campus. Residents and visitors alike enjoy the walkability to nearby shops, restaurants, and entertainment venues. The neighborhood's well-connected public transportation system further enhances its appeal for guests without cars.

Tourist Attractions: 8/10

While not a traditional tourist hotspot, Monroe Street's proximity to popular destinations like Henry Vilas Zoo and the UW-Madison Arboretum attracts visitors seeking a mix of urban amenities and natural beauty. The neighborhood's unique character and local flavor also draw travelers looking for an authentic Madison experience.

Things to Do: 9/10

From exploring the eclectic mix of locally-owned shops to indulging in the culinary delights of the neighborhood's diverse restaurants, Monroe Street offers a plethora of activities for residents and visitors. The nearby Lake Wingra provides opportunities for outdoor recreation, while the neighborhood's vibrant arts scene and community events keep guests entertained.

Average Home Prices: 7/10

According to Zillow data for 2024, the typical home value in the Dudgeon-Monroe neighborhood, which encompasses Monroe Street, stands at $530,743. While prices are higher than the Madison average, the neighborhood's strong rental demand and potential for long-term appreciation make it an attractive option for investors. However, the relatively high entry point may deter some budget-conscious investors.

Proximity to Work-Related Travel: 9/10

Monroe Street's central location makes it an ideal base for corporate rentals, targeting work-related travelers. The University of Wisconsin Hospital and Clinics, the Alliant Energy Center, and the Monona Terrace Convention Center are all within easy reach. Additionally, the neighborhood's proximity to the UW-Madison campus attracts visiting academics and prospective students.

X-Factor: 9/10

What sets Monroe Street apart is its perfect balance of urban convenience and small-town charm. The neighborhood's tight-knit community, locally-owned businesses, and friendly atmosphere create a welcoming environment for both residents and visitors. The area's commitment to sustainability, evident in its thriving farmers' market and eco-friendly initiatives, resonates with environmentally conscious travelers. This unique combination of factors makes Monroe Street a highly desirable destination for Airbnb guests seeking an authentic and memorable stay in Madison.

3. Top Place to Invest in Madison, Wisconsin - Regent Neighborhood

Nestled in the heart of Madison, the Regent Neighborhood offers a perfect blend of urban convenience and small-town charm. This vibrant area has emerged as a top choice for Airbnb investors seeking to capitalize on Madison's thriving short-term rental market.

Regent Neighborhood Airbnb Market Data:

• Average Revenue – $67.6K per year
• Average Daily Rate – $286.8 per night
• Average Occupancy Rate – 85%
• Average RevPAR – $229.1

Convenience: 9/10

The Regent Neighborhood boasts an unbeatable location, with easy access to downtown Madison and the University of Wisconsin-Madison campus. Residents and visitors alike enjoy the walkability to nearby shops, restaurants, and entertainment venues. The neighborhood's well-connected public transportation system further enhances its appeal for guests without cars.

Tourist Attractions: 8/10

While not a traditional tourist hotspot, the Regent Neighborhood's proximity to popular destinations like Camp Randall Stadium and the UW-Madison Arboretum attracts visitors seeking a mix of urban amenities and natural beauty. The neighborhood's unique character and local flavor also draw travelers looking for an authentic Madison experience.

Things to Do: 8/10

From exploring the eclectic mix of locally-owned shops to indulging in the culinary delights of the neighborhood's diverse restaurants, the Regent Neighborhood offers a variety of activities for residents and visitors. The nearby Lake Wingra provides opportunities for outdoor recreation, while the neighborhood's vibrant arts scene and community events keep guests entertained.

Average Home Prices: 6/10

According to Zillow data for 2024, the typical home value in the Regent Neighborhood stands at $575,000, representing a modest 3.8% appreciation over the past year. While prices are higher than the Madison average, the neighborhood's strong rental demand and potential for long-term appreciation make it an attractive option for investors. However, the relatively high entry point may deter some budget-conscious investors.

Proximity to Work-Related Travel: 9/10

The Regent Neighborhood's central location makes it an ideal base for work-related travel. The University of Wisconsin Hospital and Clinics, the Alliant Energy Center, and the Monona Terrace Convention Center are all within easy reach. Additionally, the neighborhood's proximity to the UW-Madison campus attracts visiting academics and prospective students.

X-Factor: 8/10

What sets the Regent Neighborhood apart is its perfect balance of urban convenience and small-town charm. The neighborhood's tight-knit community, locally-owned businesses, and friendly atmosphere create a welcoming environment for both residents and visitors. The area's commitment to sustainability, evident in its thriving community gardens and eco-friendly initiatives, resonates with environmentally conscious travelers. This unique combination of factors makes the Regent Neighborhood a desirable destination for Airbnb guests seeking an authentic and memorable stay in Madison.

4. Top Place to Invest in Madison, Wisconsin - Near East Side

The Near East Side of Madison, Wisconsin, is a vibrant and eclectic neighborhood that offers a perfect blend of urban convenience and cultural charm. This area has emerged as a top choice for those aspring to start a short-term rental business and capitalize on Madison's thriving rental market.

Near East Side Airbnb Market Data:

• Average Revenue – $81.3K per year
• Average Daily Rate – $447.7 per night
• Average Occupancy Rate – 64%
• Average RevPAR – $296.2

Convenience: 9/10

The Near East Side boasts an unbeatable location, with easy access to downtown Madison and the University of Wisconsin-Madison campus. Residents and visitors alike enjoy the walkability to nearby shops, restaurants, and entertainment venues. The neighborhood's well-connected public transportation system further enhances its appeal for guests without cars.

Tourist Attractions: 8/10

While not a traditional tourist hotspot, the Near East Side's proximity to popular destinations like the State Capitol and Olbrich Botanical Gardens attracts visitors seeking a mix of urban amenities and natural beauty. The neighborhood's unique character, historic architecture, and local flavor also draw travelers looking for an authentic Madison experience.

Things to Do: 9/10

From exploring the eclectic mix of locally-owned shops to indulging in the culinary delights of the neighborhood's diverse restaurants, the Near East Side offers a plethora of activities for residents and visitors. The nearby Lake Monona provides opportunities for outdoor recreation, while the neighborhood's vibrant arts scene and community events keep guests entertained.

Average Home Prices: 7/10

According to Zillow data for 2024, the typical home value in the Near East Side stands at $495,000, representing a modest 4.5% appreciation over the past year. While prices are higher than the Madison average, the neighborhood's strong rental demand and potential for long-term appreciation make it an attractive option for investors.

Proximity to Work-Related Travel: 9/10

The Near East Side's central location makes it an ideal base for work-related travel. The University of Wisconsin Hospital and Clinics, the Alliant Energy Center, and the Monona Terrace Convention Center are all within easy reach. Additionally, the neighborhood's proximity to the State Capitol and downtown business district attracts government employees and corporate travelers.

X-Factor: 9/10

What sets the Near East Side apart is its perfect balance of urban convenience and cultural charm. The neighborhood's tight-knit community, locally-owned businesses, and friendly atmosphere create a welcoming environment for both residents and visitors. The area's commitment to sustainability, evident in its thriving community gardens and eco-friendly initiatives, resonates with environmentally conscious travelers. This unique combination of factors makes the Near East Side a highly desirable destination for Airbnb guests seeking an authentic and memorable stay in Madison.

5. Top Place to Invest in Madison, Wisconsin - West Side

Madison's West Side is a thriving neighborhood that offers a perfect blend of suburban comfort and urban convenience. This area has emerged as a top choice for investors looking to enter Madison's growing short-term rental market.

West Side Airbnb Market Data:

• Average Revenue – $K per year
• Average Daily Rate – $ per night
• Average Occupancy Rate – %
• Average RevPAR – $

Convenience: 8/10

The West Side boasts a convenient location, with easy access to downtown Madison and the University of Wisconsin-Madison campus. Residents and visitors enjoy the proximity to shopping centers, restaurants, and entertainment venues. The neighborhood's well-connected public transportation system and major highways make it easy for guests to navigate the area.

Tourist Attractions: 7/10

While not a traditional tourist hotspot, the West Side's proximity to popular destinations like the Henry Vilas Zoo and the University of Wisconsin Arboretum attracts visitors seeking a mix of urban amenities and natural beauty. The neighborhood's unique character and local flavor also draw travelers looking for a taste of Madison's suburban charm.

Things to Do: 8/10

From exploring the numerous parks and green spaces to indulging in the culinary delights of the neighborhood's diverse restaurants, the West Side offers a variety of activities for residents and visitors. The nearby West Towne Mall provides ample shopping opportunities, while the neighborhood's local community events and festivals keep guests entertained.

Average Home Prices: 6/10

According to Zillow data for 2024, the typical home value in Madison's West Side stands at $450,000, representing a modest 3.5% appreciation over the past year. While prices are slightly higher than the Madison average, the neighborhood's strong rental demand and potential for long-term appreciation make it an attractive option for investors.

Proximity to Work-Related Travel: 7/10

The West Side's location makes it a convenient base for work-related travel. The University of Wisconsin Hospital and Clinics and the Alliant Energy Center are within a reasonable distance. However, the neighborhood's distance from the Monona Terrace Convention Center and the State Capitol may be a drawback for some corporate travelers.

X-Factor: 7/10

Its perfect balance of suburban comfort and urban convenience sets the West Side apart. The neighborhood's family-friendly atmosphere, excellent schools, and safe environment create a welcoming environment for both residents and visitors. The area's commitment to green spaces and recreational activities resonates with nature-loving travelers. While the West Side may not have the same cultural allure as other Madison neighborhoods, its unique combination of factors makes it a solid choice for Airbnb guests seeking a comfortable and convenient stay in Madison.