Overview: Are short-term rentals allowed in Milwaukee, WI?

• Short-term rentals are allowed in Milwaukee, Wisconsin, subject to state law and local regulations. Wisconsin Statute §66.1014 prohibits municipalities from banning STRs for stays of 7 consecutive days or more and limits municipal restrictions on rentals lasting 6–28 consecutive days (180-day cap in any 365-day period). Municipalities retain authority to license, zone, and otherwise regulate STRs in ways not inconsistent with those state limits. In practice, investors must obtain a Wisconsin Tourist Rooming House (TRH) license and comply with Milwaukee County and City of Milwaukee room and sales taxes.

How to start a short-term rental business in this market

1. Verify zoning and local rules

• Confirm that your property’s zoning permits short-term rentals or Tourist Rooming House (TRH) use. Different Milwaukee-area municipalities (e.g., City of Milwaukee vs. Village of West Milwaukee) apply their own ordinances, permit districts, and inspection regimes.

2. Obtain the Wisconsin Tourist Rooming House (TRH) license

• Wisconsin requires a TRH license for any lodging facility offering sleeping accommodations to tourists/transients in 1–4 rooms (including entire-home listings). Most STRs qualify as TRHs.
• Contact the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) Licensing Specialist to initiate the process and receive the information packet. Email: datcpdfslicensing@wisconsin.gov; phone: 608/224-4923.
• Complete the application and schedule a pre-licensing inspection (often conducted by a assigned Sanitarian).
• Display your license in the listing and at the property as required.

3. Complete the pre-licensing inspection

• The Sanitarian will verify health and safety code compliance before license approval. Address any deficiencies noted.

4. Maintain compliance and renew annually

• Keep records of inspections, licenses, and safety equipment. Renew annually by June 30 (license term: July 1–June 30).

5. Register and collect room and sales taxes

• Register with the Wisconsin Department of Revenue (DOR) for sales tax and room tax (if using your own tax collection). For Milwaukee County and City of Milwaukee, you’ll collect the respective room taxes and state/county sales taxes on stays under 30 days. If using a registered “lodging marketplace,” they may collect and remit state and room taxes for you.

6. Maintain local permits, if any

• Some municipalities within Milwaukee County require local STR/TRH permits and inspections (e.g., Village of West Milwaukee). Confirm local requirements before listing.

Required documents, permits, licenses, and guidelines

• Wisconsin TRH license
  • License type: Tourist Rooming House (TRH).
  • Who needs it: Anyone offering 1–4 rooms (or an entire home) to tourists/transients for fewer than 30 days.
  • Initial license fee: $110.
  • One-time pre-inspection fee: $300.
  • Annual renewal: $110, due by June 30.
  • Display requirement: License must be visibly displayed (at property and/or in listing).
• Local permits (example: Village of West Milwaukee)
  • Local TRH application and local fees, zoning verification, annual inspections, and room tax registration. See example instructions and fees in the West Milwaukee form (initial: $265 total = $165 permit + $100 pre-inspection; annual renewal: $165).
• Insurance
  • Maintain homeowner’s liability or business liability insurance. For regular STR use, a business policy (e.g., hotel/bed & breakfast or a short-term rental liability policy) may be required.
• Health and safety compliance (as enforced via the pre-licensing inspection)
  • Functional smoke and carbon monoxide detectors; fire extinguishers; proper egress routes; door locks; directions of escape posted; proper ventilation/combustion air for fuel-fired appliances; safe wastewater disposal; garbage/solid waste handling; linen/towel handling; cleanliness standards; minimum sleeping room size; recent water test report for private wells (if applicable).
• Taxes and registration
  • DOR seller’s permit (for tax collection/remittance).
  • Lodging marketplace license (if applicable) to collect taxes via platforms.

Specific regulations for short-term rentals (city, county, and state)

• State of Wisconsin
  • Wis. Stat. §66.1014 (enacted in 2017 WI Act 59) sets statewide STR framework:
    • Municipalities may not prohibit STRs for 7 consecutive days or more.
    • For rentals of more than 6 but fewer than 29 consecutive days, municipalities may cap total rental days at no fewer than 180 days within any 365-day period.
    • Municipalities retain authority to regulate STRs (licensing, zoning, safety, occupancy, parking, etc.) as long as the rules are not inconsistent with the statute.
  • Tourist Rooming House (TRH) licensing and health/safety standards administered by DATCP:
    • All STRs renting to tourists/transients for fewer than 30 days require a TRH license.
    • Pre-licensing inspection required; license renewal by June 30 annually.
  • Taxes on short-term lodging:
    • Sales tax applies to lodging rentals under one month.
    • State sales tax: 5% (reservations 29 nights or shorter).
    • County sales tax: 0.5% in Milwaukee County.
    • Stadium tax: 0.1% in Milwaukee County.
    • Municipal room taxes apply on lodging under one month, including:
      • Milwaukee County basic room tax: 2.5% (applies countywide, including unincorporated areas).
      • City of Milwaukee additional room tax: 7.0% (applies within City of Milwaukee).
    • Effective September 23, 2017, lodging marketplaces that register with DOR must collect state and room taxes on residential STRs; if the marketplace notifies you it is collecting, you generally don’t have to remit those taxes for those bookings.
• Milwaukee County
  • Collects county sales tax (0.5%) and imposes a countywide room tax (2.5%). If you collect taxes directly (rather than via a marketplace), register with DOR to collect and remit.
• City of Milwaukee
  • Imposes an additional 7.0% room tax on lodging furnished within city limits. The total effective lodging tax for stays in the City of Milwaukee is commonly cited as 12.1% (5% state sales tax + 0.5% county sales tax + 0.1% stadium tax + 2.5% county room tax + 7% city room tax).
  • City-specific STR permits: Not evidenced in the provided materials; check the city’s Department of Neighborhood Services for any local requirements. Many investors in the city operate under the state TRH license and comply with tax obligations.
• Municipal variations within Milwaukee County
  • Example: The Village of West Milwaukee issues its own local TRH permits, requires annual inspection through the West Allis Health Department, and charges local fees (see the West Milwaukee STR packet). Similar municipal rules may apply in other villages/cities within the county; verify with each municipality’s clerk/health department.

Contact information (local authority in charge of STRs)

• Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP)
  • Licensing: datcpdfslicensing@wisconsin.gov; phone: 608/224-4923
  • Contact a licensing specialist; a Sanitarian will be assigned for inspection after application.
• Wisconsin Department of Revenue (DOR)
  • Seller’s permit registration and tax guidance: tap.revenue.wi.gov/btr
• Milwaukee County
  • Room/sales tax administration is handled by DOR (state-level registration). County-specific room tax applies at 2.5%.
• City of Milwaukee
  • Department of Neighborhood Services (DNS): Contact via city channels for any city-level STR enforcement or inspection matters. The provided materials emphasize DNS as the oversight body for inspections and violations in the city.
• West Allis Health Department (serves Village of West Milwaukee)
  • Phone: (414) 645-1530; Village Hall: 4755 W. Beloit Rd., West Milwaukee, WI 53214

Links to source pages (if available)

• Airbnb Help: Responsible hosting in Wisconsin — www.airbnb.com/help/article/3624
• Wisconsin Department of Revenue: Short-Term Lodging guidance — www.revenue.wi.gov/Pages/SalesAndUse/2018/Homeowners-and-Individual-Providing-Short-Term-Lodging-Updated.aspx
• Wisconsin DOR seller’s permit (business tax registration) — tap.revenue.wi.gov/btr
• League of Wisconsin Municipalities: Licensing and Regulation (Short-Term Rentals) — www.lwm-info.org/DocumentCenter/View/3990/Licensing-and-Regulations-403-Short-Term-Rentals
• Wisconsin Lodging Industry collaborative PDF (statewide STR basics) — www.wisconsinlodging.org/uploads/1/3/4/7/134752307/short_term_rentals_for_web.pdf
• Village of West Milwaukee Short-Term Rental License Application and Instructions (2024) — www.westmilwaukee.org/wp-content/uploads/2024/06/Short-Term-Rentals-Form-1.pdf

Key compliance checklist for Milwaukee-area investors

• Confirm zoning and local rules (city vs. village).
• Apply for and obtain a Wisconsin TRH license; schedule and pass pre-licensing inspection; display license.
• Maintain adequate liability/homeowner’s or business insurance; consider an STR-specific policy.
• Install and maintain required safety equipment and post emergency egress info.
• Register for tax collection and confirm whether your platform will collect state/room taxes; if not, register with DOR and collect/remit applicable taxes.
• Renew your TRH annually by June 30; comply with any local permits and inspections in your municipality.
• Keep records of guest logs, safety inspections, tax filings, and license renewals.

Note: This guide is informational and not legal advice. Local ordinances can change; verify specifics with your municipality and consider consulting a qualified attorney or tax professional.