Overview

• Short‑term rentals (STRs) are allowed in Franklin, WI. Within residential zoning districts, the use is permitted by right (P) across the R‑C, R‑SE, R‑SR, R‑MF, and R‑V districts. In most nonresidential and mixed‑use zoning districts, STRs are allowed only with a conditional use permit (C), and in Agricultural and Park/Open Space districts STRs are also permitted (P). (Ref: Unified Development Ordinance, Article 3, Table 15‑3‑04(B) and (C)).

Starting a Short‑Term Rental Business in Franklin

• Property selection and zoning:
  • Residential districts (R‑C, R‑SE, R‑SR, R‑MF, R‑V): STRs are a permitted principal use and do not require a conditional use permit.
  • Commercial, mixed‑use, agricultural, and park districts: Check the zoning for the parcel; in most B‑N, B‑G, B‑R, B‑MU, B‑SM, B‑P, LI districts STRs require conditional use approval; in Agricultural (A, A‑P) and Park/Open Space (P) districts STRs are permitted. If you intend to convert or operate in a nonresidential district, a conditional use permit (CUP) will be required in most cases (Ref: UDO Table 15‑3‑04(C)).
• Owner‑occupancy requirement:
  • The residential dwelling used for an STR must be the primary residence of the property owner (Ref: UDO §15‑4‑05(B)(3)). If you do not live there primarily, the property may not qualify as an STR unless located in a nonresidential zone where STRs are allowed under a CUP.
• Licensing and approvals:
  • Obtain a Tourist Rooming House License from the City of Franklin Health Department before operating (Ref: UDO §15‑4‑05(B)(5)).
  • Apply for a conditional use permit (if the subject property is in a nonresidential/mixed‑use district where STRs are “C”).
• Taxes:
  • Comply with the City’s hotel tax provisions under Franklin Municipal Code Chapter 138‑25 (Ref: UDO §15‑4‑05(B)(4)).
  • Register as needed with the Wisconsin Department of Revenue for state sales/transient occupancy tax obligations and any applicable local room taxes.
• Operations:
  • Observe occupancy and length‑of‑stay rules, maintain good neighbor standards, and keep current with City inspections/enforcement.

Required Documents, Permits, Licenses, and Operational Guidelines

• City Business License
  • Tourist Rooming House License (Franklin Health Department). This is the foundational license for operating an STR in Franklin (Ref: UDO §15‑4‑05(B)(5)).
• Zoning and Land Use
  • Zoning confirmation (for your parcel; STRs are permitted by right in residential districts; conditional in most nonresidential/mixed‑use districts). A conditional use permit may be required in nonresidential zones (Ref: UDO Tables 15‑3‑04(B) and (C)).
  • If a CUP is necessary, submit applications and fees per the City’s administrative procedures and any site plan/dimensional standards (UDO Articles 3, 4, and 9).
• Taxes
  • City of Franklin hotel/motel room tax registration and ongoing filings per Chapter 138‑25 of the Municipal Code (Ref: UDO §15‑4‑05(B)(4)).
  • Wisconsin state transient occupancy/sales tax registration (operate within state requirements).
• Health and Safety
  • Meet health and housing standards associated with a Tourist Rooming House License; be prepared for inspections and compliance checks by the Health Department.
• Operations (Owner Obligations)
  • Post license information and house rules; comply with occupancy limits, guest stay limits, and noise/behavior standards; respond to neighbor complaints; ensure trash management and parking comply with neighborhood standards.

Specific Regulations for Short‑Term Rentals

• City of Franklin (municipal) STR regulations
  • Zoning status:
    • Residential districts (R‑C, R‑SE, R‑SR, R‑MF, R‑V): Permitted by right (P) for STRs.
    • Nonresidential/mixed‑use districts: Generally conditional use (C), except Agricultural (A, A‑P) and Park/Open Space (P) where permitted (Ref: UDO Table 15‑3‑04(C)).
  • Guest limits: Maximum of two adult guests per bedroom (Ref: UDO §15‑4‑05(B)(1)).
  • Stay limits: Minimum stay of three days; maximum stay of thirty days (Ref: UDO §15‑4‑05(B)(2)).
  • Owner‑occupancy: The STR must be the owner’s primary residence (Ref: UDO §15‑4‑05(B)(3)).
  • Taxes: Subject to City hotel tax under Chapter 138‑25 (Ref: UDO §15‑4‑05(B)(4)).
  • Licensing: A Tourist Rooming House License is required from the City’s Health Department (Ref: UDO §15‑4‑05(B)(5)).
  • Standards for lodging houses more broadly may include screening/bufferyard requirements at the Zoning Administrator’s discretion (Ref: UDO §15‑4‑05(A)(3)). While not specific to STRs, these standards can influence site layout and neighbor impacts.
• County-level (Milwaukee County)
  • The provided materials do not contain Milwaukee County regulations specifically governing STRs. Confirm with the County or the City whether any county permits, inspections, or taxes are applicable.
• State of Wisconsin
  • Wisconsin Statute §66.0615 (2009): Municipalities may not prohibit transient rentals but may regulate through registration, permits, and reasonable health/safety/occupancy rules consistent with state law. Operators must comply with applicable state sales and transient occupancy tax obligations.

Contact Information (City of Franklin)

• City of Franklin (Main)
  • Phone: (414) 425‑7500
  • Website: www.franklinwi.gov
• Franklin Health Department (Tourist Rooming House Licenses)
  • Phone: (414) 425‑9101
  • Address: 9229 W. Loomis Road, Suite 200, Franklin, WI 53132
  • Website: www.franklinwi.gov/Departments/Health/Health-Department
• Department of City Development (Planning/Zoning)
  • Phone: (414) 425‑0084
  • Address: 9229 W. Loomis Road, Suite 200, Franklin, WI 53132
  • Website: www.franklinwi.gov/Departments/City-Development/City-Development
• Building Inspection/Code Enforcement
  • Phone: (414) 425‑0084
  • Website: www.franklinwi.gov/Departments/Building-Inspection/Building-Inspection

Links to Source Pages

• City of Franklin – Unified Development Ordinance (2025, Ordinance 2025‑2701): www.franklinwi.gov/Files/Planning/UDO-Rewrite-2025/2025-UDO-Full-Text-As-Amended-by-Ord-2025-2701-10-7-2025.pdf
• Franklin Health Department: www.franklinwi.gov/Departments/Health/Health-Department
• Department of City Development (Planning/Zoning): www.franklinwi.gov/Departments/City-Development/City-Development

Notes for Investors

• If you do not intend to occupy the property as your primary residence, focus your search on parcels within nonresidential/mixed‑use districts where STRs can be approved via a conditional use permit, and be prepared for added time and uncertainty with the CUP process.
• Confirm any additional county health, fire, or tax requirements with the City or Milwaukee County before finalizing the purchase or renovation plan.