Bayfield, Wisconsin Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Bayfield, WI?

YES, short-term rentals are explicitly allowed in Bayfield, Wisconsin. Short-term rentals operate under a multi-jurisdictional regulatory framework involving state, county, and municipal oversight. The regulatory environment recognizes short-term rentals as legitimate businesses while implementing standards to protect public health, safety, and community welfare.

What do Airbnb hosts actually earn in Bayfield?

Bayfield hosts earn a median $36,517/year with $257 ADR and 59% occupancy.

Top performers pull in $49,697+ per year.

See the full Bayfield market breakdown

How to Start a Short-Term Rental Business in Bayfield

Step 1: Determine Your Regulatory Jurisdiction

City of Bayfield: Subject to city zoning permits and room tax
City of Washburn: Requires conditional use permit for residential districts
Town of Pilsen: Contact town clerk for local requirements
All other Bayfield County locations: Governed by Bayfield County Planning and Zoning

Step 2: Property Requirements and Preparation

Property must comply with Wisconsin State Lodging Code ATCP 72
Obtain fire number for residential dwelling
Ensure adequate parking and address visibility for emergency services
Verify zoning compliance for short-term rental use
Install required safety equipment (smoke detectors, carbon monoxide detectors, fire extinguishers)

Step 3: Licensing and Permit Applications

Apply for Wisconsin Tourist Rooming House License through Bayfield County Health Department
Obtain Bayfield County Short-Term Rental Permit (if outside incorporated areas)
Secure municipality-specific permits if located in City of Bayfield or City of Washburn
Register with Wisconsin Department of Revenue for tax collection
Apply for room tax permits through appropriate municipality

Required Documents, Permits, Licenses, and Guidelines

State-Level Requirements

Wisconsin Tourist Rooming House License
- Issued under Wisconsin Administrative Code ATCP 72
- Licensing agent: Bayfield County Health Department
- Valid from July 1 to June 30 annually
- Pre-inspection required ($300 fee)
Wisconsin Business Tax Registration Certificate
- Issued by Wisconsin Department of Revenue
- Required for tax collection and remittance

County-Level Requirements (Bayfield County)

Bayfield County Short-Term Rental Permit
- Required for properties outside City of Bayfield, City of Washburn, and Town of Pilsen
- Application through Bayfield County Planning and Zoning Department
- Annual renewal required
- Non-transferable except as per ATCP 72.04(3)

Municipality-Specific Requirements

City of Bayfield

Zoning permit for nightly or short-term rentals
Room tax registration and compliance
Contact City Hall for current requirements and fees

City of Washburn

Conditional use permit required for nightly rentals in residential districts
Contact Zoning Administrator for application process
Room tax compliance required

Town of Pilsen

Contact town clerk for local permit and room tax requirements

Documentation Requirements

Owner contact information with physical address for legal service
Property manager designation with 24/7 availability
Liability insurance (minimum $1,000,000 coverage)
POWTS (Private Onsite Wastewater Treatment System) capacity verification
Wisconsin business tax registration certificate
Proof of current state lodging license

Specific Regulations for Short-Term Rentals

Bayfield County Zoning Ordinance (Title 13, Chapter 1, Article B)

Operational Limits

Maximum 4 short-term rental units per lot
Multiple unit developments require conditional use permits
No recreational vehicles, campers, tents, or temporary lodging beyond licensed capacity

Occupancy and Capacity

Total occupants cannot exceed POWTS design capacity or ATCP 72 limits (whichever is more restrictive)
Occupant defined as person present more than 14 hours in 24-hour period or sleeping 6+ hours

Prohibited Activities

Excessive noise or disturbance (3+ justified calls to law enforcement within 12 months constitutes public nuisance)
Fireworks on premises
Additional temporary accommodations beyond licensed capacity

Compliance Requirements

Maintain proof of all required licenses and permits
Compliance with all state, county, and local regulations
Payment of all applicable sales and room taxes
Fire number issued for residential dwelling

Permit Application and Renewal

Applications filed with Bayfield County Planning and Zoning Department
Complete applications processed within reasonable timeframe
Permits non-transferable; new application required upon ownership change
Annual renewal required
Permit revocation possible for violations

Municipal Regulations

City of Bayfield

Additional zoning permits required
Room tax collection and remittance (8% of gross receipts)
Fire department inspections may be required

City of Washburn

Conditional use permit process for residential districts
Zoning administrator approval required
Room tax compliance mandatory

Town of Pilsen

Contact town clerk for specific requirements and room tax rates

State Regulations (Wisconsin Administrative Code ATCP 72)

Wisconsin State Lodging Code governing tourist rooming houses
Health and safety standards for temporary lodging
Inspection requirements and capacity limits
Operational standards and guest safety requirements

Tax Obligations

Wisconsin state sales tax (5% of gross receipts)
Local room taxes (rates vary by municipality)
Premier Resort Area Tax (0.5% where applicable)
Quarterly or monthly filing requirements depending on volume

Contact Information for Local Authority

Bayfield County Health Department

Address: 117 E 5th Street, P.O. Box 878, Washburn, WI 54891
Phone: (715) 373-6109 (Tourist Rooming House Licenses)
Phone: (715) 373-6100 (General)
Website: www.bayfieldcounty.wi.gov
Email: Contact through website

Bayfield County Planning and Zoning Department

Address: 117 E 5th Street, P.O. Box 878, Washburn, WI 54891
Phone: (715) 373-6100
Website: www.bayfieldcounty.wi.gov
Contact: Planning and Zoning Director

City of Bayfield

Address: City Hall, Bayfield, WI
Phone: (715) 779-5712
Website: www.cityofbayfield.com/
Contact: Zoning Administrator

City of Washburn

Phone: Contact City Hall
Website: www.cityofwashburnwi.gov
Contact: Zoning Administrator

Town of Pilsen

Phone: Contact Town Clerk
Website: Contact through Bayfield County website
Contact: Town Clerk

Wisconsin Department of Revenue

Phone: (608) 266-2486 (Seller's Permits)
Website: www.revenue.wi.gov
Publication: Pub 219- Hotels, Motels, and Other Lodging Providers

Links to Source Pages

Important Compliance Notes

As of March 10, 2025, the Town of Bayfield repealed its Short-Term Rental Ordinance, eliminating the requirement for town-issued STR licenses while maintaining room tax obligations
All permits must be displayed at the property when in operation
Regular inspections may be conducted by health and safety officials
Violations can result in permit revocation, fines ($100-$500 per violation), and legal action
Tax compliance is mandatory with potential penalties for non-payment
Properties with multiple units may face additional commercial code requirements

This regulatory framework balances the economic benefits of short-term rentals with community concerns about neighborhood stability, housing availability, and public safety, creating a structured environment for legitimate vacation rental operations.

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Ask the AI Advisor about Bayfield

Bayfield is a small city in Bayfield County, Wisconsin, perched on the Bayfield Peninsula along the southern shore of Lake Superior. With a population of roughly 500 residents, the town has the feel of a quaint Northwoods lakeside village, complete with a walkable historic Main Street, berry farms, and a working harbor. It is best known as the mainland gateway to the Apostle Islands National Lakeshore and Madeline Island, and it sits approximately 90 miles northeast of Duluth, Minnesota, the nearest major city.

The Apostle Islands National Lakeshore is the marquee attraction, and its mainland visitor center is located in Bayfield itself. The lakeshore encompasses 21 islands scattered across Lake Superior, with sea caves carved into sandstone cliffs, historic lighthouses, and waters renowned for clarity that makes them popular for kayaking in summer and dramatic ice formations in winter. Sightseeing cruises, kayak tours, and ferry services all depart from the Bayfield waterfront during the warmer months, with the mainland sea caves at nearby Cornucopia roughly 25 minutes by car.

Just a short ferry ride across the bay — about a 20-minute crossing from the Bayfield City Dock — lies Madeline Island, the largest of the Apostle Islands and a destination in its own right. Though not part of the National Lakeshore, Madeline Island is home to the community of La Pointe, Big Bay State Park, sandy beaches, and a network of hiking and biking trails that wind through old-growth forest. The island is the most developed of the Apostle chain and tends to be where visitors spend a full day or two.

The surrounding region adds another layer to the area's appeal. The Chequamegon-Nicolet National Forest wraps around much of Bayfield County, offering hundreds of miles of trails for hiking, mountain biking, cross-country skiing, and snowmobiling, along with numerous inland lakes and rivers for paddling and fishing. Back in town, Bayfield's historic downtown is anchored by locally owned shops, restaurants, and galleries, and the surrounding orchards and berry farms give the city its unofficial title as the berry capital of Wisconsin, an identity celebrated each fall at the well-known Bayfield Apple Festival.

For prospective short-term-rental owners, Bayfield offers a compelling mix of natural beauty, established tourism infrastructure, and small-town character. The Apostle Islands draw visitors year-round — from summer boaters and kayakers to fall color-seekers and winter ice cave explorers — while the walkable downtown, ferry access, and proximity to Duluth provide a steady stream of weekend travelers. Its compact footprint, lake views, and the variety of activities within a short drive make the city a versatile base for anyone exploring the Lake Superior shoreline.