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

Madison Short-Term Rental Market Overview

Madison, WI stands out as an attractive short-term rental market where above-average revenue-to-price ratios give investors a meaningful edge. With 163 active Airbnb listings, an average daily rate of $208, and trailing-twelve-month annual revenue of $33,323, the market benefits from a university-driven demand base, state capital activity, and strong summer tourism. The ROI score of 74 out of 100 reflects healthy fundamentals, though investors should note that supply growth has outpaced demand recently and market growth trends are softening.

Key Market Statistics

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

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026.

Why Investors Consider Madison

Madison draws STR investors with its blend of university, government, and event-driven demand that supports above-average revenue relative to property prices.

Expert Market Assessment

"Madison represents a genuinely attractive opportunity for STR investors who can navigate its sharp seasonality. Revenue swings from a low of around $1,260 in January to nearly $5,000 in August — a fourfold difference that rewards hosts who optimize pricing and marketing around peak periods. The market's above-average occupancy stability and favorable revenue-to-price dynamics anchor the 74/100 ROI score, though the 151% year-over-year growth in listings signals rising competition that could compress margins for undifferentiated properties. Investors who target three-bedroom homes and deliver amenities guests expect — particularly parking, kitchens, and self check-in — will be best positioned to capture strong returns."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Madison

Average revenue by month in Madison

Madison's revenue pattern is highly seasonal, peaking in August at $4,999 and bottoming out in January at $1,260 — a nearly 4x spread that underscores the importance of summer and early fall for cash flow. The May-through-October window accounts for the bulk of annual income, so investors should plan reserves to cover leaner winter months.

Active Airbnb listings by property size in Madison

One-bedroom units dominate supply with 74 of 163 total listings (45%), while 4-bedroom homes are the most underrepresented at just 9 listings. The relative scarcity of larger properties, combined with their higher revenue potential, could signal an opportunity for investors willing to target the 3- and 4-bedroom segments.

Average daily rate (ADR) by property size in Madison

ADR scales steeply with property size in Madison, jumping from $93 for studios to $556 for 4-bedroom homes — a 6x premium. The sharpest rate increase occurs between 2-bedrooms ($149) and 3-bedrooms ($345), suggesting that group-sized properties capture outsized nightly pricing power in this market.

Average RevPAN by property size in Madison

Three-bedroom properties deliver the strongest RevPAN at $124, significantly outpacing all other sizes — including 4-bedrooms at $58, which suffer from very low occupancy. Studios ($49) and 2-bedrooms ($54) offer moderate RevPAN, while 1-bedrooms lag slightly at $45, making the 3-bedroom configuration the clear efficiency sweet spot.

Average occupancy rates by property size in Madison

Studios lead occupancy at 53%, benefiting from lower price points and solo/couple traveler demand, while 1-bedroom (39%), 2-bedroom (36%), and 3-bedroom (36%) properties cluster in a similar range. Four-bedroom listings are a notable outlier at just 10% occupancy, suggesting that the high ADR for these large homes doesn't translate into consistent bookings.

Average monthly revenue by property size in Madison

Monthly revenue climbs steadily with property size, from $1,929 for studios to $5,563 for 4-bedroom homes. Three-bedroom listings offer a compelling balance at $4,923/month — nearly matching 4-bedroom income while maintaining much stronger occupancy, making them the most reliable high-revenue option.

Average annual revenue by property size in Madison

Four-bedroom properties top the annual revenue chart at $66,766, followed closely by 3-bedrooms at $59,080, while studios and 1-bedrooms generate $23,152 and $24,440 respectively. Given the occupancy and RevPAN data, 3-bedroom homes likely offer the best risk-adjusted return, producing strong annual income without the occupancy volatility that drags on larger units.

Most common amenities for Airbnb listings in Madison

Parking is virtually universal at 98% of listings, reflecting Madison's car-centric layout, while kitchens (85%) and self check-in (78%) round out the top three must-haves. The prevalence of workspaces (62%) signals meaningful remote-worker and business-traveler demand, and the 14% of listings with lake access hints at a premium niche that investors near Madison's lakes could exploit.

Understanding Madison's ROI Score: 74/100

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

Madison's ROI score of 74 out of 100 places it in the "Attractive Opportunity" band, driven primarily by above-average revenue-to-price ratios and solid occupancy stability — two factors that together account for 70% of the score's weighting. The score is tempered by below-average marks on market growth trend and supply/demand balance, reflecting the rapid 151% increase in active listings that's adding competitive pressure. Investors should pair this score with thorough local regulatory research and property-level underwriting to confirm that the market's fundamentals hold for their specific target property.

Short-Term Rental Regulations in Madison

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

Permit Requirements

The City of Madison and the State of Wisconsin may require short-term rental operators to obtain permits or register their properties before hosting guests. Investors should verify current licensing requirements directly with the City of Madison's planning or licensing department and the Wisconsin Department of Revenue.

Key Restrictions

Common STR restrictions in markets like Madison can include occupancy limits per bedroom, minimum stay requirements, noise ordinances, and parking mandates — the near-universal presence of parking among local listings hints at its importance here. HOA rules may further limit or prohibit short-term rentals in certain neighborhoods, and some municipalities impose caps on the total number of permits issued.

Tax Obligations

Short-term rental hosts in Wisconsin are generally subject to state and local room taxes, as well as sales tax on accommodations. Platforms like Airbnb often collect and remit some of these taxes automatically, but operators should confirm their full obligations with the Wisconsin Department of Revenue to ensure compliance.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Madison's STR market is expected to maintain solid seasonal demand, with peak revenue concentrated in the summer months — August historically averaging close to $5,000 per listing. ADR could see modest increases in the 1–3% range as the market absorbs a recent 151% year-over-year jump in active listings. Occupancy may face slight downward pressure from the expanding supply, potentially settling in the 34–38% range market-wide. Investors entering now should plan pricing strategies around the pronounced seasonality and budget conservatively for the January–March slow period."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Madison, WI

What is the average Airbnb occupancy rate in Madison?

The average occupancy rate for Airbnb listings in Madison is currently 37%, which is just a hair below the Wisconsin state average of 38%. Occupancy varies significantly by property size: studios lead at 53%, while 1-bedroom units average 39% and larger properties like 4-bedrooms sit at just 10%. Seasonality plays a major role — summer and early fall months see the heaviest booking activity.

How much do Airbnb hosts make in Madison?

Based on the trailing 12 months of booking data, the average Airbnb host in Madison earns approximately $2,776 per month, which translates to about $33,323 per year. Earnings vary considerably by property size: 3-bedroom listings average $4,923/month ($59,080/year), while studios bring in roughly $1,929/month ($23,152/year). Peak months like July and August can push monthly revenue above $4,000–$5,000.

Is Madison a good market for Airbnb investment?

Madison scores 74 out of 100 on Rabbu's ROI Score, placing it in the "Attractive Opportunity" tier. The market benefits from above-average revenue-to-price ratios and solid occupancy stability, making it appealing relative to property costs. However, investors should be aware that market growth trends and the supply/demand balance are currently below average, largely due to a 151% increase in active listings year over year. Success here depends on targeting the right property size, pricing strategically around the pronounced summer peak, and delivering the amenities guests expect.

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

The average daily rate across all Madison Airbnb listings is $208, which is well below the Wisconsin state average of $368. ADR scales sharply with property size: studios average $93/night, 1-bedrooms are $118, 2-bedrooms reach $149, 3-bedrooms command $345, and 4-bedroom properties top out at $556/night. This pricing structure suggests strong premiums for larger, group-friendly properties.

Are short-term rentals legal in Madison?

Short-term rentals do operate in Madison, WI, with 163 active Airbnb listings currently in the market. However, local regulations regarding permits, licensing, zoning, and taxation can change, so prospective investors should consult the City of Madison's licensing department and the Wisconsin Department of Revenue to confirm current requirements before purchasing or listing a property.

When is peak season for Airbnb in Madison?

Peak season in Madison runs from June through October, with August delivering the highest average revenue at nearly $5,000 per listing. July ($4,024), September ($3,542), and October ($3,464) are also strong months. The slowest period is January through February, when average monthly revenue dips to around $1,260–$1,282. This seasonality is closely tied to university activity, summer tourism, and fall events like football season.

How many Airbnbs are there in Madison?

There are currently 163 active Airbnb listings in Madison as of April 2026. The supply is heavily concentrated in 1-bedroom units (74 listings), followed by 3-bedrooms (31), 2-bedrooms (30), studios (15), and 4-bedrooms (9). Year-over-year, the number of active listings has grown by 151%, indicating a rapidly expanding supply.

How is Airbnb revenue calculated in Madison?

The annual and monthly revenue figures for Madison are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — they are not forward-looking projections. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, remove regional outliers, and roll the remaining data up to a market-level historical average. Because each month uses its own historical performance, the figures naturally reflect seasonal peaks and slower months. Individual results can vary meaningfully based on property quality, pricing strategy, guest reviews, and how actively the listing is managed.

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, occupancy rates, and daily rates for the Madison market
• Historical revenue and yield metrics based on trailing 12-month booking performance of comparable listings
• Property size breakdowns covering studios through 4-bedroom homes, including ADR, occupancy, and revenue by configuration
• Amenity prevalence data showing which features are most common among active listings in the market
• Home value benchmarks sourced from the Zillow Home Value Index (ZHVI) for investment cost context

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month historical averages and market conditions may have shifted since the most recent update. Local regulations, tax requirements, and permit rules can change; investors should verify current rules with Madison and Wisconsin authorities before purchasing.