Airbnb Rentals The 2022 Guide to Investing in Airbnb Milwaukee by Amanda Rodriguez April 23, 2022April 25, 2022 by Amanda Rodriguez April 23, 2022April 25, 2022 Is it good to buy an income property in Milwaukee? As the local tourism industry reopens, investing in Airbnb Milwaukee can be a worthy investment. Table of Contents Wisconsin Real Estate Market Trends 2022 Is It Good to Invest in Airbnb Milwaukee? Reasons Why Investing in Airbnb Milwaukee Is a Good Idea Things to Do in Milwaukee Milwaukee Short Term Rental Laws Best Milwaukee Neighborhoods for Airbnb Investment Invest in Airbnb Milwaukee With the Help of Mashvisor The tourism industry in Milwaukee started to recover in 2021. As social leisure events drove visitors to Milwaukee, hotels and short-term rentals experienced high demand from guests. The trend is expected to continue in 2022, as more Americans are prepared to travel both for business and leisure. As a result, we expect more business opportunities and positive returns for Airbnb in Milwaukee. The City of Milwaukee is home to over 570,000 people and is the most populated city in Wisconsin. Milwaukee is known for its scenic river, lakefront view, brewery, cheese, nightlife, historic architecture, and rich culture. It enjoys a thriving tourism industry because it is a favorite destination for both nature lovers and party-goers. It is one of the reasons why buying an Airbnb investment property in Milwaukee is a good idea. Wisconsin Real Estate Market Trends 2022 In 2021, the Wisconsin real estate market experienced a persistent buyer demand amid the constantly low inventory levels. A quarter through 2022, we are not seeing any sign that the real estate market across the state is cooling off. In fact, experts believe that while inventory will rise slowly, buyer demand will still exceed the available supplies. It means the Wisconsin real estate will remain a seller’s market. Home prices are expected to rise at a steady pace. While the home appreciation rate will not be as fast as it was in 2021, home affordability will still be an issue for most homebuyers. Many would-be buyers will be priced out of the market, and we can still anticipate bidding wars among buyers and investors on listed homes. As a result, many residents are forced to rent a home instead of buying one. Based on Mashvisor’s data as of April 2022, the price to rent ratio in Wisconsin is high at 27. It means that property prices are more expensive relative to rental rates. Thus, many residents in Wisconsin would rather rent a home because it’s difficult for them to find a property they can afford to buy. Here is the Mashvisor’s real estate market analysis for Wisconsin as of April 2022: Median Property Price: $403,790 Average Price per Square Foot: $217 Days on Market: 76 Monthly Traditional Rental Income: $1,260 Traditional Cash on Cash Return: 1.48% Traditional Cap Rate: 1.55% Price-to-Rent Ratio: 27 Monthly Airbnb Rental Income: $3,030 Airbnb Cash on Cash Return: 4.58% Airbnb Cap Rate: 4.73% Airbnb Daily Rate: $233 Airbnb Occupancy Rate: 55% Walk Score: 47 Since the Airbnb cash on cash return is high than the traditional cash on cash return, investing in Wisconsin vacation rentals may be a good idea. However, with low inventory and increased demand, finding an investment property to buy can be challenging for investors. Is It Good to Invest in Airbnb Milwaukee? For many real estate investors, investing in short-term rentals is an excellent way to earn passive income. To be successful in Airbnb investing, it’s important to look at several factors to ensure that there is a demand for vacation rentals in your chosen location. For instance, check how the city’s tourism industry performs and how often visitors who typically book an Airbnb rental property visit the place. Milwaukee’s tourism industry is gradually picking up since the beginning of the pandemic in 2020. As a result, investing in Airbnb Milwaukee in 2022 can be favorable to investors. With the lifting of most COVID restrictions in the United States, Milwaukee expects to welcome many tourists from other states this year. Reasons Why Investing in Airbnb Milwaukee Is a Good Idea In general, buying an investment property in Milwaukee, WI is a great way to earn good returns. There are several reasons why Airbnb Milwaukee Wisconsin can be a promising investment for real estate investors, including the following: Milwaukee Festivals: The return of summer festivals, such as the Summerfest, Irish Fest, and Mexican Fiesta, are expected this year. They are expected to attract visitors to Milwaukee in mid-2022. Live Performing Arts: The reopening of art venues for live performing arts will also attract more guests from nearby cities and states. Demand From Business Travelers: Aside from tourists, Milwaukee also expects the arrival of business travelers. The downtown offices are slowly reopening, which will drive demand for business-related short-term rentals. Favorable Real Estate Data: The Airbnb Milwaukee real estate data is looking good at the beginning of 2022. The figures for cap rate, cash on cash return, and occupancy rate show that there are good opportunities for Airbnb business in Milwaukee. Related: 40 Best Cities for Airbnb Rental Income in 2022 Airbnb Milwaukee WI Real Estate Data The demand for vacation rental properties in Milwaukee should not be the only basis for your investment decision. It’s equally important to review the local real estate data to ensure that investing in Milwaukee Airbnb is really a smart move. Fortunately, Mashvisor makes such information easily available to us. Here is the Milwaukee real estate data as of April 2022: Median Property Price: $391,028 Average Price per Square Foot: $226 Days on Market: 57 Monthly Traditional Rental Income: $1,286 Traditional Cash on Cash Return: 1.54% Traditional Cap Rate: 1.62% Price-to-Rent Ratio: 25 Monthly Airbnb Rental Income: $2,544 Airbnb Cash on Cash Return: 3.78% Airbnb Cap Rate: 3.94% Airbnb Daily Rate: $136 Airbnb Occupancy Rate: 61% Walk Score: 56 Based on the above data, the Airbnb cash on cash return (3.78%) is higher than the traditional cash on cash return (1.54%). It means that Milwaukee is a good location for earning Airbnb passive income. Investors who are planning to own an Airbnb property can expect to earn an average of $2,544 monthly income. In addition, the Airbnb occupancy rate in Milwaukee is 61%, which shows a moderately high demand from vacation renters. If you are ready to earn Airbnb profits, Mashvisor can help you find the right investment property. Start an investment property search to begin your vacation rental venture. Start Analyzing Vacation Rentals Things to Do in Milwaukee The City of Milwaukee, which is the largest city in Wisconsin, is located north of Chicago and west of Lake Michigan. Milwaukee is famous for its picturesque river walk, which both residents and tourists enjoy day or night. One of the reasons why Airbnb Milwaukee is a great tourist destination is that it offers delicious food, rich culture, historic landmarks, architectural gems, and beautiful sceneries. Additionally, Milwaukee is home to several tourist attractions. The following are five of the most famous attractions in Milwaukee: Milwaukee River: Milwaukee is home to the Milwaukee River, which flows through the city center. You can enjoy the view of the scenic riverfront right from the city’s downtown. The River Walk: The paved pedestrian that follows the flowing water is a popular destination to go for a walk or hang out with friends. Locals and visitors enjoy the views of the duck statues and downtown buildings. Milwaukee Art Museum: The museum is home to historic collections like the European and American works from the 19th and 20th centuries. Pabst Theater: Known as “The Pabst,” the building is a historical architecture in Milwaukee. Visitors come to Pabst Theater to see stage productions, concerts, and other events. Lake Michigan: Milwaukee’s beautiful lakefront view provides access to green spaces and parks, making it a great option for people who want to reconnect with nature. Milwaukee Short Term Rental Laws Before you invest in Airbnb Milwaukee, it’s important to know the short-term rental laws in the state of Wisconsin, as well as the city’s ordinances. Fortunately, there are currently no official Airbnb rules regulating short-term rentals in the city of Milwaukee. It means that investors can own and operate a non-owner-occupied vacation rental in Milwaukee. However, since operating an Airbnb rental is a business, owners need to pay state and local taxes, including: Sales Tax: Reservations of 29 nights or shorter are subject to 5% state sales tax. The rule applies to the listing prices, cleaning fees, and additional guest fees. County Tax: The Milwaukee County Sales Tax is 0.5% of the property’s listing price, including any cleaning fees and guest fees. Basic Room Tax: Milwaukee County will charge 3% of the listing price, cleaning fees, and additional guest fees as basic room tax. Additional Room Tax: The City of Milwaukee will charge 7% of the listing price, cleaning fees, and additional guest fees as additional room tax. Related: Short Term Rental License: What Real Estate Investors Need to Know Best Milwaukee Neighborhoods for Airbnb Investment It’s important to choose the right location if you want to be a successful Airbnb Milwaukee investor. The best neighborhoods for Airbnb rentals are those that are near most tourist attractions and basic amenities, such as public transport and dining. It’s also essential to check the walk score of an area as it is a common factor that most tourists look at when booking a short-term stay. The higher the walk score, the more walkable the area. More importantly, to ensure that a neighborhood offers the potential for a profitable Airbnb investment, it’s critical to check its Airbnb analysis and data. According to Mashvisor’s data as of April 2022, here are the top six Milwaukee neighborhoods based on Airbnb cash on cash return: 1. Avenues West Median Property Price: $189,900 Average Price per Square Foot: $105 Days on Market: 74 Number of Airbnb Listings: 117 Monthly Airbnb Rental Income: $2,092 Airbnb Cash on Cash Return: 6.01% Airbnb Cap Rate: 6.26% Airbnb Daily Rate: $164 Airbnb Occupancy Rate: 59% Walk Score: 86 2. Bay View Median Property Price: $275,520 Average Price per Square Foot: $211 Days on Market: 27 Number of Airbnb Listings: 114 Monthly Airbnb Rental Income: $3,076 Airbnb Cash on Cash Return: 5.76% Airbnb Cap Rate: 5.94% Airbnb Daily Rate: $146 Airbnb Occupancy Rate: 62% Walk Score: 88 3. Juneau Town Median Property Price: $284,900 Average Price per Square Foot: $239 Days on Market: 18 Number of Airbnb Listings: 208 Monthly Airbnb Rental Income: $2,765 Airbnb Cash on Cash Return: 5.21% Airbnb Cap Rate: 5.39% Airbnb Daily Rate: $118 Airbnb Occupancy Rate: 69% Walk Score: 98 Related: What Is a Good Cash on Cash Return? 4. Walker’s Point Median Property Price: $235,000 Average Price per Square Foot: $160 Days on Market: 39 Number of Airbnb Listings: 126 Monthly Airbnb Rental Income: $1,867 Airbnb Cash on Cash Return: 4.79% Airbnb Cap Rate: 5.02% Airbnb Daily Rate: $147 Airbnb Occupancy Rate: 59% Walk Score: 89 5. Riverwest Median Property Price: $220,950 Average Price per Square Foot: $167 Days on Market: 99 Number of Airbnb Listings: 201 Monthly Airbnb Rental Income: $2,017 Airbnb Cash on Cash Return: 4.37% Airbnb Cap Rate: 4.56% Airbnb Daily Rate: $153 Airbnb Occupancy Rate: 54% Walk Score: 86 6. Fernwood Median Property Price: $321,250 Average Price per Square Foot: $231 Days on Market: 17 Number of Airbnb Listings: 83 Monthly Airbnb Rental Income: $3,054 Airbnb Cash on Cash Return: 4.14% Airbnb Cap Rate: 4.23% Airbnb Daily Rate: $125 Airbnb Occupancy Rate: 64% Walk Score: 60 Mashvisor provides an overview of a property’s real estate data, including important information such as Airbnb cash on cash return, cap rate, rental income, and occupancy rate. Invest in Airbnb Milwaukee With the Help of Mashvisor Buying an investment property in Milwaukee, WI can be a good investment decision. Mashvisor can help you find a profitable property for investing in Airbnb Milwaukee. Our database comes with a unique application programming interface (API) that collects data from a number of public sources. Moreover, with Mashvisor’s proprietary AI-powered investment analytics, you can get the best results for your property search. Mashvisor also provides in-depth analytics to help you maximize your return on investment. You will get an overview of a property’s real estate data and insights, including crucial information such as Airbnb cap rate, cash on cash return, occupancy rate, and neighborhood comps. Additionally, you can calculate your potential income using the Airbnb profitability calculator. You can customize your results further by adding your own figures for financing and expenses to get an accurate computation. Subscribe to any of Mashvisor’s available plans to get started. Start a free trial or schedule a demo now and don’t miss this chance to earn passive income through Airbnb investing. Start Your Investment Property Search! START FREE TRIAL AirbnbInvestment Property AnalysisInvestor ToolsLocationmashvisor toolsMilwaukee WI 0 FacebookTwitterGoogle +PinterestLinkedin Amanda Rodriguez Amanda is passionate about everything real estate and takes pride in her ability to help investors navigate the market with detailed and comprehensive guides. Previous Post The Beginner Real Estate Investor’s Guide to Using Free Cash Flow Formula Next Post Top Real Estate Deal Analyzer Tool in 2022 Related Posts What Are the Best Neighborhoods for Investing in Rental Properties in the Austin Real Estate Market in 2018? Real Estate Ads – Creative Ways for Marketing Your Airbnb Rental Become a Successful Real Estate Investor by Renting Out On Airbnb Looking for a Hot Real Estate Investment? How About Airbnb Las Vegas? 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