Madison

As of May 2026, Madison, Wisconsin Dells, Lake Geneva have 751 active Airbnb and VRBO listings. This represents a 10% decrease from the previous year.

The average Airbnb or VRBO in Madison generates $37K per year. High-performing properties earn $90K/year, while low-performing properties earn $18K/year. The substantial variance between top and bottom performers suggests that revenue outcomes are highly sensitive to specific asset positioning within the current 35% occupancy environment.

Average home prices in Madison vary by property size: 1-bedroom properties cost approximately $250K, 2-bedroom homes average $308K, 3-bedroom properties are around $415K, and 4+ bedroom homes average $520K. These prices reflect median home values across the Madison, Wisconsin Dells, Lake Geneva area.

Airbnb and VRBO can be profitable in Madison, with an average gross yield of 9% across all properties. High-performing properties achieve yields up to 21%, which is considered top for short-term rental investment. This yield spread highlights how top-tier listings effectively capture market share despite the recent 32% decline in total revenue.

The average occupancy rate for Airbnbs and VRBOs in Madison is 35%. This occupancy level, combined with an average nightly rate of $282, results in a RevPAR (revenue per available room) of $68 per day.

4+ bedroom properties demonstrate the strongest performance in Madison, with an average gross yield of 12% and annual revenue of $65K. These properties balance purchase price ($520K), operating costs, and rental demand most effectively in the Madison market.

Short-term rental regulations vary by jurisdiction in the Madison area. Madison: Moderate. License required, zoning restrictions, 90-day owner-occupied rule for some areas. Complaint-driven enforcement, some unlicensed operate. Wisconsin Dells: Lenient. Business tax certificate and state seller's permit needed. Tourism-friendly area, minimal enforcement beyond tax compliance. Lake Geneva: Moderate. Registration required, occupancy limits, parking rules. Primarily complaint-based enforcement in residential zones. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Madison Airbnb and VRBO market is currently showing balanced conditions. Supply has declined 10% year-over-year, while RevPAR has decreased 32%. This indicates balanced supply-demand dynamics. These metrics point to a market recalibrating as the contraction in supply attempts to stabilize against the sharp downward pressure on per-listing revenue.

Launch around April, 2-3 months before peak summer season (July peaks). This pre-peak timing lets you build reviews when competition is -14% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (March-January) when gaining traction is harder.

The most common amenities in Madison listings include: Air Conditioning (98%), Kitchen (96%), Tv (85%), Heating (71%), Washing Machine (67%). Amenities that boost revenue the most include Hot Tub, Sauna, Air Conditioning, with Hot Tub properties earning approximately 98% more ($98K/year vs $50K/year).

Monthly estimated revenue per listing in Madison over the last 12 months: May: $2K, June: $2K, July: $3K, August: $3K, September: $2K, October: $2K, November: $2K, December: $2K, January: $1K, February: $1K, March: $2K, April: $2K. These figures are based on RevPAR (revenue per available room) multiplied by the number of days in each month.

The overall average nightly rate in Madison is $282, up 22% year-over-year. By property size: 1-bedroom properties average $149/night, 2-bedroom properties average $201/night, 3-bedroom properties average $321/night, 4+ bedroom properties average $608/night. Rates peak in July and are lowest in May.

Guests in Madison book an average of 37 days in advance, down 17% from last year. By property size: 1-bedroom: 31 days, 2-bedroom: 37 days, 3-bedroom: 38 days, 4+ bedroom: 49 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Madison Airbnb and VRBO market has seen the following changes: supply declined 10%, revenue per listing decreased 32%, occupancy fell 23%, average nightly rates increased 22%, and lead time decreased 17%. The combination of higher rates and lower occupancy suggests a shift toward shorter, more expensive stays that are increasingly difficult for average listings to capture.

In Madison, Saturday sees the highest booking demand while Monday has the lowest. Nightly rates peak on Saturday and are lowest on Tuesday. Weekends show 64% higher occupancy than weekdays.