Overview: Are short-term rentals allowed?

Yes. Short-term rentals (STRs) are allowed in Hudson, WI but only under a City-issued “Short Term Home Rental License” and subject to strict performance standards. The City maintains a public list of all licensed STR properties, and the license year runs from October 1 through September 30 of the following year.

Key constraints:

• Citywide cap of 25 licenses.
• Planning district caps: up to 15 licenses in Planning Districts 1 and 2 combined (downtown overlay), and no more than 15 licenses in any other single planning district.
• Owner-occupancy requirement for new license applicants (effective for applications considered after October 15, 2025): the owner must occupy the unit at least 183 days per calendar year, unless the rental is for seven consecutive days or more (which is protected under state law).
• 300-foot separation measured from property lines between licensed STRs.
• The City adopted an ordinance and, after a moratorium, resumed accepting applications effective October 16, 2025.

How to start an STR business in Hudson

1. Site feasibility and pre-application checks

• Confirm your property falls within the City’s jurisdiction and zoning.
• Verify the 300-foot separation from any existing or proposed licensed STR (measured from property lines).
• Confirm whether your property must meet owner-occupancy for your intended term pattern (see “Specific Regulations” below).
• Review planning district caps to ensure headroom in your district for an additional license.

2. Prepare application materials

• Owner and manager information (if different), including phone and email.
• Site plan (scale), showing structures, driveways, parking, and all outdoor recreational areas available to guests (deck/patio, grill, recreational fire area, pool, etc.).
• Floor plan (scale) identifying all rooms used as transient guest bedrooms.
• Proof of insurance.
• Tourist Rooming House or Bed & Breakfast license from St. Croix County, as applicable.
• Information on any web-based booking services used.
• Signed owner-occupancy affidavit and 300-foot neighborhood notification affidavit.
• Disclosure posting to be placed inside the rental within 2 feet of the main entrance (see “Required documents” for required content).

3. Fees, inspections, and timelines

• Annual application fee: $350 (nonrefundable), payable to the City of Hudson.
• Schedule and pass an annual City of Hudson Fire Department inspection (phone: 715-386-5861). The Fire inspection must be completed before the application can be considered complete.
• A parking mitigation plan may be required in B-3 and B-4 zoning districts if on-site parking cannot accommodate guests.
• Upon approval, the license is valid for the license year (October 1–September 30). Plan renewal at least 90 days prior to expiration to avoid loss of license.

4. Marketing and compliance setup

• If using a lodging marketplace, ensure your listing prominently displays required disclosures and local rules.
• Prepare standard operating procedures (SOPs) for guest check-in, posted rules, parking compliance, waste storage and collection, and noise enforcement windows (10 p.m.–8 a.m.).
• Set up city room tax quarterly remittances (see “Required documents/permits” for details).

5. Ongoing compliance

• Maintain active homeowner’s or landlord insurance that reasonably covers STR operations.
• Keep your contact information current and notify the City Clerk’s office within 10 days of any change in owner/manager contact details.
• Maintain posted guest disclosures and house rules; renew licenses on time.

Required documents, permits, licenses, and guidelines

• Short Term Home Rental License Application (rev. 10/2025): application form includes site plan, floor plan, fee, proof of insurance, and affidavits. License year runs Oct 1–Sept 30; renewal due 90 days before expiration.
• Tourist Rooming House or Bed & Breakfast license (St. Croix County), if required for your operation.
• Owner-occupancy affidavit and 300-foot neighbor notification affidavit (signed and submitted with application).
• Guest disclosure posting to be displayed within two feet of the main entrance, containing:
  • Name, phone number, and address of the property owner or manager.
  • Maximum number of transient guests allowed.
  • Maximum number of vehicles allowed and where they must park.
  • Property rules for outdoor recreational areas (decks, patios, grills, recreational fires, pools, etc.).
  • City nuisance ordinances and quiet hours (10 p.m.–8 a.m.).
• Annual Fire Department inspection and safety equipment checklist:
  • Smoke and carbon monoxide detectors (Wisconsin statute-compliant) on each floor level and in sleeping areas.
  • Fire extinguishers in the kitchen, furnace area, and hallways adjoining bedrooms.
  • Evacuation plan posted inside each bedroom with escape routes and emergency numbers.
• Tax and room tax obligations:
  • State sales tax and City of Hudson room tax are required.
  • Room tax is paid quarterly; a report is required even if no rentals occurred in a quarter.
  • When using a booking service or lodging marketplace, the company coordinating rentals is responsible for collecting and paying the city room tax quarterly.
• Signage:
  • Up to one sign, up to 6 square feet, posted on the building; a separate sign permit is required from the Community Development Department.
• Optional helpful resources:
  • Planning forms (including sign permit): City of Hudson Planning Forms page.

Specific regulations for STRs (City, County, and State)

City of Hudson (Municipal Code Chapter 141) — performance standards and limits:

• Cap structure:
  • Total licenses citywide: 25.
  • Planning Districts 1 and 2 combined: up to 15 licenses.
  • Any other individual planning district: up to 15 licenses.
• Separation and density:
  • STRs must be at least 300 feet apart measured from property lines.
  • City publishes a public list of all licensed STR properties with license holder name, phone, address, property address, and license expiration.
• Owner-occupancy (effective for applications considered after Oct 15, 2025):
  • New applicants must prove owner occupancy for at least 183 days per calendar year, unless the rental term is seven consecutive days or longer (see state carve-out below).
• Occupancy:
  • Maximum of two transient guests per legal guest bedroom.
  • Bedroom definition: at least 80 sq ft for one occupant, 120 sq ft for two; max two occupants per bedroom regardless of size; minimum ceiling height seven feet over at least 50% of floor area; minimum of two code-compliant means of egress (one egress window meeting Wisconsin Uniform Dwelling Code).
• Parking:
  • Residential zones: no on-street parking for guests; all guest parking must be on a concrete or asphalt surface on the property.
  • Minimum stalls: 1–2 guest bedroom unit: two spaces; 3+ guest bedroom unit: one space per guest bedroom.
  • B-3/B-4 districts: on-site parking or City-approved parking mitigation plan.
• Exterior appearance and signage:
  • No exterior changes except permitted on-site City code-compliant parking; one building sign up to 6 sq ft (separate sign permit required).
• Health and safety:
  • Required detectors, extinguishers, posted evacuation plans, and annual Fire inspection.
• Guest disclosure and rules:
  • Posted inside the unit near the main entrance; includes occupancy, vehicle limits, outdoor rules, and quiet hours.
• Proximity of assistance and neighbor notifications:
  • Owner or property manager must be within 30 miles of the STR property while guests are present.
  • Provide contact information to all property owners within 100 feet of the property boundary and update the City within 10 days of any changes.
• Refuse and noise:
  • Waste must be stored in approved, closed, watertight containers and kept out of view as much as possible.
  • No amplified outdoor sound after 10 p.m. or before 8 a.m.; outdoor recreational areas are subject to rules in §141-4(H).
• Non-overnight guests:
  • Up to four additional non-transient guests may be on-site between 8 a.m. and 10 p.m., in addition to transient guests; all must follow property rules and City ordinances.
• Tax obligations:
  • State sales tax and Hudson room tax; room tax paid quarterly with required reporting.
• Enforcement and penalties:
  • Operating without a license or violating performance standards is subject to a forfeiture of at least $500 and at most $1,000 per offense, plus costs; each violation and each day of violation constitutes a separate offense.
  • Complaints are handled by the Police Department’s compliance function (non-emergency STR concerns line provided below).

County-level notes (St. Croix County):

• The City application requires a copy of a Tourist Rooming House or Bed & Breakfast license from St. Croix County “as necessary.” Operators should confirm with the County whether a TRH or B&B license applies to their property type and obtain it before applying for the City license.

State of Wisconsin — lodging marketplace and owner-occupancy carve-out:

• Lodging marketplace duty:
  • Wisconsin requires booking services or lodging marketplaces to collect and remit room taxes for transactions they facilitate (Wis. Stat. § 66.1015(2m)).
• Seven-day rental protection and owner-occupancy constraint:
  • Under Wis. Stat. § 66.10142, a political subdivision (e.g., the City) may not prohibit the rental of a residential dwelling for seven consecutive days or longer. Because of this statute, Hudson’s owner-occupancy requirement applies only to short-term rentals of six days or fewer. Rentals of seven consecutive days or more are not subject to the owner-occupancy condition and operate free from that requirement.
• Practical implication for investors:
  • Owners seeking to avoid the owner-occupancy burden should structure bookings to seven or more consecutive days. However, they must still comply with City performance standards (cap, separation, parking, disclosures, inspections, taxes, etc.).

Contact information (local authority for STRs)

• City of Hudson — Short-Term Rentals page and licensing:
  • City Clerk (licensing questions): Becky Eggen, City Clerk
  • City Hall: 505 Third Street, Hudson, WI 54016-1694
  • Phone: 715-386-4765
  • Website: City of Hudson STR Licensing Page
• Non-emergency STR concerns (complaints, compliance):
  • Phone: 715.386.4701
• Fire Department inspections (required annually):
  • Phone: 715-386-5861
• Other helpful City numbers:
  • City Hall general: 715-386-4765
  • Fax: 715-386-0804
  • Hours: Monday–Friday, 8:00 a.m.–4:00 p.m.
• Community Development (sign permits):
  • Use the City’s Planning Forms page.

Source pages (links)

• City of Hudson — Short-Term Rentals Licensing: hudsonwi.gov/671/Short-Term-Rentals
• Short-Term Home Rental License Application (rev. 10/2025): hudsonwi.gov/DocumentCenter/View/6289/-Short-Term-Rental-License-Application-rev-1025-
• Hudson Star-Observer: City Council passes short-term rentals ordinance: www.hudsonstarobserver.com/news/hudson-city-council-passes-short-term-rentals-ordinance/article_aeaedb4b-2f1c-48fb-81d7-8dd1ee76ee88.html
• Hudson Star-Observer: Council to lift moratorium on STRs Oct. 16: www.hudsonstarobserver.com/news/hudson-city-council-to-lift-moratorium-on-short-term-rentals-oct-16/article_8162b5bf-c5a1-4b85-b7fb-95a3c0313ec9.html
• Citizen Portal: Council continues STR ordinance review; owner-occupancy and state law: citizenportal.ai/articles/6196351/Hudson-City/St-Croix-County/Wisconsin/Council-continues-short-term-rental-ordinance-review-state-law-complicates-owner-occupancy-requirement
• Citizen Portal: Council first reading; draft STR rules; moratorium extended: citizenportal.ai/articles/6218150/Hudson-City/St-Croix-County/Wisconsin/Hudson-council-holds-first-reading-on-short-term-rental-rules-extends-moratorium
• City of Hudson — Planning Forms (includes sign permits): www.hudsonwi.gov/629/Planning-Forms

Notes for investors

• Demand for licenses exceeds supply. With a 25-license cap and concentration in downtown planning districts, qualified, compliant properties can be valuable, but availability is tightly constrained.
• The City prioritizes well-documented applications with clean site plans, clear bedroom counts and occupancy limits, and obvious compliance with separation, parking, and safety rules.
• If you plan to avoid the owner-occupancy requirement, structure stays for seven or more consecutive days, but confirm tax collection responsibilities with any marketplace you use and ensure your property still meets all City performance standards.
• Keep close alignment with your Fire inspector’s notes and the posted disclosures; enforcement is active and penalties are significant.