Butternut, Wisconsin Short Term Rental Regulations Guide for Airbnb hosts

Executive Overview

Whether Short-Term Rentals Are Allowed: Based on a thorough review of the Village of Butternut Municipal Ordinance Book (www.butternutwi.com/PDF/ORDINANCE%20BOOK.pdf), no specific regulations addressing short-term rentals, vacation rentals, or transient accommodations are provided in the current municipal code. This means that short-term rentals are not explicitly prohibited by the village ordinances, but there are also no specific permitting requirements or regulations for STR operations within Butternut.

Since no city-specific STR regulations exist, operators would need to comply with any applicable state-level Wisconsin regulations and general zoning requirements while operating under the oversight of local authorities.

What do Airbnb hosts actually earn in Butternut?

Butternut hosts earn a median $22,765/year with $217 ADR and 50% occupancy.

Top performers pull in $37,401+ per year.

See the full Butternut market breakdown

How to Start a Short-Term Rental Business in Butternut

Without specific STR ordinances, starting a short-term rental business in Butternut follows a standard process:

1. Property Zoning Verification

Confirm that your property is zoned appropriately for short-term rental use
Contact the Village Clerk/Treasurer to verify zoning compliance
Ensure your property meets all residential use requirements

2. Business Registration

Register your business with Ashland County
Obtain any required state business licenses
Consider registering for Wisconsin tax collection obligations

3. Property Preparation

Ensure the property meets all safety standards
Install required smoke detectors and carbon monoxide detectors
Verify compliance with Wisconsin rental property requirements
Consider liability insurance coverage for short-term rental operations

4. Platform Compliance

Register with major short-term rental platforms (Airbnb, VRBO, etc.)
Ensure your listing complies with platform policies
Set up proper payment processing and tax collection

5. Local Compliance

Adhere to all existing municipal ordinances that may apply
Ensure compliance with parking regulations (see Chapter 4)
Respect noise ordinances and community standards

Required Documents, Permits, Licenses, and Guidelines

Based on the municipal code provided:

Village-Level Requirements

Building Permits: All building permits are issued through the Village Clerk/Treasurer (Chapter 2.06(2)(d)(4))
Zoning Compliance: Verify zoning with the Village (contact local authorities)

County/State-Level Requirements

Wisconsin State Business License: May be required depending on business structure
Wisconsin Tax Registration: Required for collecting/remitting state taxes
Ashland County Business Registration: Register with county authorities

Safety Requirements

Fire Safety Compliance: Subject to Fire Department regulations (Chapter 5)
Water/Sewer Compliance: Must comply with utility regulations (Chapter 7)
Cross-Connection Inspection: May be required for commercial properties (Section 7.01(10))

Specific Regulations by Level

Village of Butternut

Since no specific STR regulations exist in the current ordinances, general municipal codes apply:

Parking Requirements (Chapter 4):

No parking on State Highway 13 within village limits at any time
Snow removal parking restrictions (2 AM - 6 AM, November 1 - April 1)
Abandoned vehicle regulations

Fire Safety (Chapter 5):

Fire Chief serves as Fire Inspector
False fire alarms prohibited
Equipment usage restricted to fire fighting within village limits

Utilities (Chapter 7):

Cross-connection control program
Water service regulations
Sewer service compliance required

Ashland County

Check county-level regulations for any additional requirements:

County zoning ordinances
County health department requirements
County business licensing

State of Wisconsin

Wisconsin has minimal state-level restrictions on STRs but requires:

Wisconsin Tax Registration for tax collection
Compliance with Wisconsin Fair Housing Act
Adherence to state building and safety codes

Contact Information for Local Authority

Village of Butternut Contact Information

Village Clerk/Treasurer (Primary Contact)

Phone: Not provided in municipal code
Email: Not provided in municipal code
Office Location: Village Hall (address not specified in provided documents)
Duties: Issues building permits, handles business licenses, serves as information center
Note: All applications for licenses and permits go through this office

Key Village Officials:

Village President: Contact for zoning matters and board approval
Fire Chief: Serves as Fire Inspector for safety compliance
Superintendent of Public Works: Handles permits and inspections

Village Hall Meeting Schedule:

Regular Village Board meetings: Second Monday of each month at 7 PM
Special meetings may be called as needed

Recommended Contacts

Village Clerk/Treasurer: First contact for all permitting questions
Fire Chief: For safety inspection requirements
Ashland County: For county-level business registration and zoning
Wisconsin Department of Revenue: For tax registration requirements

Limitations and Recommendations

Information Gaps

No specific STR regulations found in provided ordinances
No contact phone numbers or email addresses provided
Building permit fee structure not detailed
Zoning maps and specific zoning requirements not provided

Recommended Next Steps

Direct Contact: Call the Village Hall to inquire about current STR policies
Zoning Verification: Confirm property zoning allows short-term rental use
Platform Consultation: Check with major STR platforms for local requirements
Legal Review: Consider consulting with a local attorney familiar with Wisconsin STR law
Insurance Consultation: Work with an insurance professional to ensure adequate coverage

Source Information

Primary Source Document: Village of Butternut Municipal Ordinance Book

URL: www.butternutwi.com/PDF/ORDINANCE%20BOOK.pdf
Document Type: Complete Municipal Code
Content: 16 chapters covering all municipal regulations
Note: Document appears to be complete and current as of publication date

Important Note: This analysis is based solely on the provided municipal ordinance content. For the most current information and specific STR guidance, direct contact with village authorities is strongly recommended.

This guide provides a comprehensive analysis based on available municipal code information. Given the absence of specific STR regulations in the provided ordinances, investors should verify all requirements with local authorities before proceeding with a short-term rental business in Butternut, Wisconsin.

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Ask the AI Advisor about Butternut

Butternut is a tiny village tucked into the wooded hills of Ashland County in northern Wisconsin, with a population of roughly 375 residents. It carries the unhurried character of a traditional Northwoods community, where clapboard storefronts, quiet residential streets, and a backdrop of evergreen forest define everyday life. The village functions primarily as a jumping-off point for visitors exploring the surrounding Chequamegon-Nicolet National Forest, one of the largest stretches of protected woodland in the upper Midwest. It sits about 100 miles southeast of Duluth, Minnesota, the nearest major metropolitan center, and roughly 20 miles south of Ashland, the county seat along Lake Superior's Chequamegon Bay.

The dominant draw of the area is the surrounding national forest itself, which spreads across more than 1.5 million acres of northern Wisconsin. From Butternut, travelers can reach countless trailheads, trout streams, and small glacial lakes within minutes, making the village a practical base for hiking, fishing, hunting, snowmobiling, and cross-country skiing depending on the season. Fall color drives through the hardwood ridges and the Penokee Hills are a particular favorite, and the forest's network of forest roads and the North Country National Scenic Trail pass through the region for those interested in longer excursions.

To the north, the Lake Superior shoreline at Ashland and the broader South Shore area offer a completely different scene, with rocky beaches, lighthouses, and views across the world's largest freshwater lake by surface area. The city of Ashland, about a half-hour drive from Butternut, provides a more developed set of restaurants, shops, and marina attractions, and serves as a gateway to the Apostle Islands National Lakeshore, where sea caves and historic lighthouses draw visitors by boat and kayak in the warmer months.

To the southwest, the larger resort community of Hayward lies roughly an hour away and is widely known for its musky fishing, the National Fresh Water Fishing Hall of Fame, and the Lac Courte Oreilles chain of lakes. Hayward's downtown and its annual events add a livelier counterpoint to the quiet pace of Butternut, giving visitors a reason to combine a stay in the smaller village with day trips in either direction.

For short-term rental investors and guests alike, Butternut's appeal lies in this combination of small-town quiet and easy access to some of Wisconsin's most celebrated outdoor landscapes. Guests who choose a stay here can wake up in a peaceful Northwoods setting, spend the day on forest trails or Lake Superior's shoreline, and return to a simple, unpretentious base that feels genuinely removed from busier tourist hubs.