Algoma, WI Airbnb Market Data, Statistics, and Occupancy Rates

Algoma Short-Term Rental Market Overview

Algoma, a small lakeside community on Wisconsin's Door County coast, presents an intriguing niche opportunity for short-term rental investors drawn to seasonal vacation markets. With just 17 active Airbnb listings and an average annual revenue of $35,591, the market is compact but benefits from an above-average revenue-to-price ratio relative to the state. An ADR of $211 sits well below the Wisconsin state average of $368, yet the lower average home value of $413,793 helps keep the entry point accessible. Investors willing to embrace pronounced seasonality will find a market with limited competition and genuine upside during peak summer months.

Key Market Statistics

According to Rabbu market data, the Algoma short-term rental market shows:

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026.

Why Investors Consider Algoma

Algoma appeals to investors seeking a low-competition lakefront market with favorable revenue relative to property costs, anchored by strong seasonal tourism demand.

Expert Market Assessment

"Algoma earns an 'Attractive Opportunity' designation with a 67/100 ROI score, driven primarily by its strong revenue-to-price ratio. The market's pronounced seasonality is the defining characteristic — July listings average $6,191 in revenue while January drops to just $582, creating a roughly 10:1 peak-to-trough spread. This means investors need to capture maximum value during the June–September window to build a healthy annual return. With average occupancy at 16% (well below the 38% state average), this is not a year-round cash-flow market, but the combination of affordable entry prices and concentrated summer demand makes it viable for investors who plan around seasonality."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Algoma

Average revenue by month in Algoma

Algoma exhibits extreme seasonality, with July peaking at $6,191 — more than ten times the January low of $582. The core earning window spans June through September, accounting for the bulk of annual revenue, while November through March represents a prolonged off-season where monthly income rarely exceeds $2,300.

Active Airbnb listings by property size in Algoma

The available data shows all reportable listings concentrated in the 3-bedroom category, with 6 active properties. This narrow supply profile suggests that alternative configurations — such as 1-bedroom, 2-bedroom, or larger 4+ bedroom homes — may represent underserved niches worth exploring.

Average daily rate (ADR) by property size in Algoma

Three-bedroom properties command an ADR of $242, which exceeds the overall market average of $211. This premium reflects the demand for family-sized vacation rentals in a lakefront leisure market, where groups typically seek more spacious accommodations.

Average RevPAN by property size in Algoma

Three-bedroom listings generate a RevPAN of $21, which sits below the broader market average of $33 — indicating that while their nightly rate is higher, lower occupancy pulls down per-available-night revenue. Investors targeting this size should focus on maximizing peak-season bookings to improve this metric.

Average occupancy rates by property size in Algoma

Three-bedroom properties average just 9% occupancy, falling below the market-wide 16% average. This low figure reflects the seasonal nature of Algoma's demand and suggests that most bookings cluster tightly around the summer months, leaving substantial vacancy the rest of the year.

Average monthly revenue by property size in Algoma

Three-bedroom properties lead with an average monthly revenue of $4,499, outperforming the overall market average of $2,965. This premium underscores the value of family-sized vacation homes in a market where guests tend to book larger spaces for lake getaways.

Average annual revenue by property size in Algoma

At $53,994 in average annual revenue, 3-bedroom properties deliver roughly 52% more than the market-wide average of $35,591. For investors evaluating Algoma, this size appears to offer the strongest absolute return potential based on available data.

Most common amenities for Airbnb listings in Algoma

Self check-in, parking, and kitchen facilities each appear in 94% of listings, establishing them as baseline expectations rather than differentiators. Notably, 65% of properties advertise lake access and BBQ grills, reinforcing that guests come to Algoma for outdoor lakefront experiences — investors who can offer waterfront or beach-adjacent properties with strong outdoor amenities will be best positioned.

Understanding Algoma's ROI Score: 67/100

Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.

How the ROI Score is Calculated

What This Means for Investors

Algoma's ROI score of 67 out of 100 places it in the 'Attractive Opportunity' band, buoyed by an above-average revenue-to-price ratio that makes the initial investment pencil out more favorably than many Wisconsin markets. Occupancy stability and supply/demand balance both rate as average, while market growth trend scores below average — a flag that the recent 178% surge in listings could pressure returns if demand doesn't scale alongside supply. Investors should pair this score with thorough research into local STR regulations and seasonal cash-flow planning to fully assess the opportunity.

Short-Term Rental Regulations in Algoma

Understanding local STR regulations is essential before investing in Algoma. Here's the current regulatory landscape:

Permit Requirements

Short-term rental operators in Algoma, Wisconsin may need to obtain a local permit or register their property with the city, and the state of Wisconsin requires STR hosts to hold a Tourist Rooming House license issued by the Department of Agriculture, Trade and Consumer Protection. Investors should verify current requirements directly with the City of Algoma and the state before listing.

Key Restrictions

Common restrictions in Wisconsin's STR markets include occupancy limits tied to bedroom count, minimum stay requirements during certain seasons, noise and parking regulations, and potential HOA or condo association restrictions. Some municipalities also impose caps on the number of permits issued, so prospective hosts should confirm availability early in the process.

Tax Obligations

Wisconsin imposes a 5% state sales tax and a 5% state room tax on short-term rental income, and Kewaunee County or the City of Algoma may levy additional local room taxes. Major platforms like Airbnb typically collect and remit some of these taxes automatically, but hosts should confirm their full obligation with a tax professional.

Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Algoma can provide current regulatory guidance.

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Algoma's peak summer season should remain the primary revenue engine, with July revenues likely hovering near $6,000–$6,500 per listing. The 178% year-over-year growth in active listings signals rising investor interest, though this rapid supply increase could temper occupancy gains if demand doesn't keep pace. ADR may see modest upward pressure of 2–4% as hosts refine pricing strategies for the summer corridor, but off-season occupancy — currently well below the state average — is unlikely to shift dramatically. Investors should plan conservatively around a 4–5 month high-earning window and budget accordingly for quieter winter months."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Algoma, WI

What is the average Airbnb occupancy rate in Algoma?

The average occupancy rate for Airbnb listings in Algoma is currently 16%, which is notably below the Wisconsin state average of 38%. This reflects the market's highly seasonal nature — demand concentrates heavily in the summer months when visitors flock to the Lake Michigan shoreline, while winter months see very limited booking activity.

How much do Airbnb hosts make in Algoma?

Based on trailing 12-month data, Airbnb hosts in Algoma earn an average of $2,965 per month and approximately $35,591 per year. However, monthly revenue varies dramatically by season — July tops out at around $6,191, while January averages just $582. Three-bedroom properties tend to outperform the market average, pulling in roughly $53,994 annually.

Is Algoma a good market for Airbnb investment?

Algoma scores 67 out of 100 on Rabbu's ROI Score, placing it in the 'Attractive Opportunity' tier. Its standout strength is an above-average revenue-to-price ratio, meaning the income potential is strong relative to the cost of acquiring property. The main trade-off is significant seasonality and below-average occupancy outside summer, so investors should model their returns around a concentrated peak season rather than year-round income.

What is the average daily rate (ADR) for Airbnb in Algoma?

The average daily rate in Algoma is $211, which is lower than the Wisconsin state average of $368. For three-bedroom properties specifically, the ADR rises to $242. While rates are modest compared to some resort markets, the lower entry costs in Algoma help keep the overall investment equation attractive.

Are short-term rentals legal in Algoma?

Short-term rentals operate in Algoma, with 17 active Airbnb listings currently in the market. Wisconsin requires STR operators to obtain a Tourist Rooming House license, and local permitting may also apply. Investors should contact the City of Algoma and the Wisconsin DATCP to confirm all current licensing and compliance requirements before purchasing or listing a property.

When is peak season for Airbnb in Algoma?

Peak season in Algoma runs from June through September, with July being the highest-earning month at an average of $6,191 in revenue per listing. August follows closely at $5,325, and September remains strong at $4,388. The off-season from November through March sees significantly reduced demand, with the lowest revenue months being January ($582) and February ($565).

How many Airbnbs are there in Algoma?

There are currently 17 active Airbnb listings in Algoma as of April 2026. The market has seen substantial growth, with a 178% year-over-year increase in active listings. Despite this growth, the total supply remains small, which can work in favor of well-managed properties during peak season.

How is Airbnb revenue calculated in Algoma?

The annual and monthly revenue figures for Algoma are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — they are not a forward-looking projection. Rabbu averages each comparable listing's actual revenue per available night (RevPAN) by month over the past year, removes regional outliers, and rolls the remainder into a market-level historical average. This approach anchors the figures to what hosts have actually earned recently while naturally reflecting seasonal peaks and slower months, since each month uses its own historical performance. Individual results can vary based on property quality, pricing strategy, and how effectively a host manages their listing.

About Rabbu Market Data

Rabbu provides Airbnb and short-term rental market data and statistics across the United States. Our mission is to empower investors with accurate insights and easy-to-use tools, so they can confidently identify and act on the best opportunities in the Airbnb market.

What this data includes

• Regularly updated active Airbnb and STR listing counts for the Algoma market
• Occupancy rates, average daily rates, and RevPAN trends by property size
• Monthly and annual revenue estimates based on trailing 12-month booking data
• Home value benchmarks from the Zillow Home Value Index (ZHVI)
• Data sourced from Rabbu proprietary analytics and third-party providers for consistency

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Regulatory requirements for short-term rentals can change; always verify current local and state rules before investing. Individual property results may vary significantly based on location, condition, pricing strategy, and management quality.