Yes—short-term rentals (STRs) are allowed in Madison and throughout Dane County, Wisconsin. In state law, STRs are classified as Tourist Rooming Houses (TRHs). Public Health Madison & Dane County licenses and inspects TRHs (and other lodging types like bed & breakfasts and hotels) each year to ensure compliance with Wisconsin public health laws. In Madison specifically, STRs are also subject to zoning requirements, and you must obtain a city Zoning Tourist Rooming House Permit (ZTRHP1) before advertising or renting. [Public Health Madison & Dane County – Places to Stay], [City of Madison – Short-Term Rental FAQ].

Important legal definitions and limits (what makes a legal STR in Madison and Dane County):

• Wisconsin/Dane County context: Wisconsin law defines a TRH as a place where sleeping accommodations are offered for pay for tourists/transients. Dane County states short-term rentals are commonly “less than 60 days” stays. [Public Health Madison & Dane County – Places to Stay].
• City of Madison definition: Under city zoning, a TRH is “rental of any partial or whole structure for sleeping purposes for less than 30 nights.” You must have a ZTRHP1 before advertising or renting. [City of Madison – Short-Term Rental FAQ].
• Host presence rules (Madison):
  • If the operator (host) is on site for guest stays, there is no limit to the number of nights rented.
  • If the operator is not on site, the STR may operate a maximum of 30 nights per licensing year. [City of Madison – Short-Term Rental FAQ].
• Primary residence requirement (Madison): The STR must be the operator’s primary residence. If renting an ADU, only the unit that is the operator’s primary residence can be operated as a TRH. [City of Madison – Short-Term Rental FAQ].

Bottom line for investors: STRs are allowed in Madison subject to licensing, zoning, tax, and inspection requirements. City rules are stricter than county/state definitions, particularly the 30-night limit when the host is not present and the primary residence requirement.

How to Start a Short-Term Rental (STR) Business in Madison

Follow these steps in order:

1. Confirm zoning eligibility and primary residence status

• Call Madison Zoning at 608-266-4551 (press 3 for STRs or the listed extension) and review the Short-Term Rentals and TRH Zoning FAQs.
• Confirm your property is allowed for STR use and that you can meet the primary residence requirement. [City of Madison – Short-Term Rental FAQ], [Public Health Madison & Dane County – Places to Stay].

2. Obtain required state and local tax registrations

• Wisconsin Seller’s Permit: Required unless you list exclusively on Airbnb and/or VRBO (in which case the platform handles sales tax). Apply via the Wisconsin Department of Revenue. [Public Health Madison & Dane County – Places to Stay].
• Room Tax (City of Madison or your municipality):
  • City of Madison: Complete a Room Tax Registration form. If renting only via Airbnb/VRBO, these platforms collect and remit Madison’s room tax; you typically do not need a separate room tax registration (check the applicable box on the City’s form). [Public Health Madison & Dane County – Places to Stay], [City of Madison – Room Tax Registration].
• Wisconsin Sales Tax: 5.5% combined (5% state, 0.5% Dane County). Occasional sales exemption may apply if taxable sales are less than $1,000 in a calendar year. If you only list on Airbnb, Airbnb automatically collects and remits Wisconsin sales tax. [Public Health Madison & Dane County – Places to Stay].

3. Get a TRH license from Public Health Madison & Dane County

• Submit the Lodging License Application and pay fees. Public Health conducts a pre-inspection and then an annual inspection to verify compliance with health and safety standards. [Public Health Madison & Dane County – Places to Stay].
• Contact Public Health to schedule your pre-inspection: 608-242-6515 or LEadmin@publichealthmdc.com (for pre-licensing), or str@publichealthmdc.com (for STR-specific scheduling). [Public Health Madison & Dane County – Places to Stay].

4. Apply for the City of Madison ZTRHP1 permit

• You must have a TRH license from Public Health before you can apply for the ZTRHP1.
• The application includes a home visit to verify floor plans and bedroom counts and to review regulations.
• Fees: $300 one-time, non-refundable application fee plus a $100 annual permit fee. [City of Madison – Short-Term Rental FAQ].

5. Maintain ongoing compliance

• Health inspection: Required annually by Public Health (licensing year July 1–June 30). [Public Health Madison & Dane County – Places to Stay].
• Quarterly reporting (Madison): Create an online account and submit ZTRHP Quarterly Reports (ZTRHP-QR) each quarter, including ad locations and registry information. [City of Madison – Short-Term Rental FAQ].
• Registry: Maintain a paper or digital registry of all stays with guests’ names, contact info, dates, and whether the operator was present. [City of Madison – Short-Term Rental FAQ].
• Renewal: Pay the $100 annual ZTRHP1 permit fee. If your permit is not renewed by June 30, the STR must stop operating until renewal. [City of Madison – Short-Term Rental FAQ].

Required Documents, Permits, Licenses, and Guidelines

Permits and licenses (order matters)

• Zoning Tourist Rooming House Permit (ZTRHP1) – City of Madison
  • One-time application fee: $300
  • Annual permit fee: $100
  • Primary residence verification and home visit required. [City of Madison – Short-Term Rental FAQ].
• Tourist Rooming House (TRH) License – Public Health Madison & Dane County
  • Lodging License Application required.
  • Pre-inspection prior to approval; annual inspection thereafter. [Public Health Madison & Dane County – Places to Stay].
• Zoning approvals – City of Madison
  • Contact Madison Zoning (608-266-4551) to confirm zoning eligibility and any conditional use or other zoning matters. [Public Health Madison & Dane County – Places to Stay], [City of Madison – Short-Term Rental FAQ].
• Room Tax Registration – Madison Treasurer/City Clerk
  • City of Madison Room Tax Registration form; exemptions apply if only listing via Airbnb/VRBO. [Public Health Madison & Dane County – Places to Stay], [City of Madison – Room Tax Registration].
• Wisconsin Seller’s Permit (sales tax registration)
  • Required unless listing exclusively on Airbnb/VRBO. [Public Health Madison & Dane County – Places to Stay].

Key guidelines and references

• ATCP 72: Hotels, Motels, and Tourist Rooming Houses (Wisconsin Administrative Code). [Public Health Madison & Dane County – Places to Stay].
• ATCP 73: Bed and Breakfast Establishments (Wisconsin Administrative Code). [Public Health Madison & Dane County – Places to Stay].
• Inspection checklists (TRH), sanitization directions, and jetted tub cleaning procedures. [Public Health Madison & Dane County – Places to Stay].
• Madison STR regulations, ZTRHP application process, and quarterly reporting forms (ZTRHP-QR). [City of Madison – Short-Term Rental FAQ].

Documents you will likely need

• Valid government ID; property ownership or lease documentation.
• Floor plans (for home visit); site plan if applicable.
• Proof of insurance (as required by city/zoning during application).
• Federal EIN; SSN/ITIN for tax registrations.
• Sales tax registration; room tax registration (unless platform-handled).
• Inspection reports and correspondence from Public Health.

Specific Regulations in Madison, Dane County, and Wisconsin

City of Madison STR rules

• Definition: TRH = rental for fewer than 30 nights. [City of Madison – Short-Term Rental FAQ].
• Primary residence: The STR must be the operator’s primary residence; only one primary residence per person. [City of Madison – Short-Term Rental FAQ].
• Host presence limits:
  • Host on site: no night limit.
  • Host not on site: maximum 30 nights per licensing year. [City of Madison – Short-Term Rental FAQ].
• Occupancy: Maximum guests = 2 × number of legal bedrooms (up to 12). Children under 12 are not counted toward the cap. [City of Madison – Short-Term Rental FAQ].
• Bedrooms: A legal bedroom must have a door, meet egress/light/ventilation standards, and be ≥70 sq ft (exclusive of closets). Dens/libraries that meet criteria can qualify. [City of Madison – Short-Term Rental FAQ].
• Quarterly reporting: ZTRHP operators must submit ZTRHP-QR forms online each quarter (even if no stays) listing all ads and registry data. [City of Madison – Short-Term Rental FAQ].
• Advertising/renting: ZTRHP1 permit is required before advertising or renting. [City of Madison – Short-Term Rental FAQ].
• Taxes:
  • Room tax: If only using Airbnb/VRBO, they collect and remit Madison’s room tax; you may not need a separate room tax registration. [Public Health Madison & Dane County – Places to Stay].
  • Sales tax: 5.5% total (state + county). Airbnb handles state sales tax if you only list through them. Occasional sales exemption if annual taxable sales < $1,000. [Public Health Madison & Dane County – Places to Stay].

Dane County licensing and health requirements

• All bed & breakfasts, hotels, and TRHs (STRs) in Dane County must be licensed and inspected annually by Public Health. [Public Health Madison & Dane County – Places to Stay].
• Licensing year: July 1–June 30. If approved in April–June, license runs until the end of the following licensing year. [Public Health Madison & Dane County – Places to Stay].
• Pre-inspection required before approval; inspections verify compliance with state health/safety rules. [Public Health Madison & Dane County – Places to Stay].

State of Wisconsin regulations

• STRs (1–4 sleeping accommodations) are governed as TRHs under Wisconsin law; 5+ sleeping accommodations are classified as hotels/motels. [Public Health Madison & Dane County – Places to Stay].
• Health and safety requirements are set by Wisconsin Administrative Code (ATCP 72, ATCP 73). [Public Health Madison & Dane County – Places to Stay].
• State sales tax: 5% (Dane County adds 0.5% for a combined 5.5%). Occasional sales exemption applies under $1,000 annual taxable sales. Airbnb collects and remits state sales tax if you list exclusively through them. [Public Health Madison & Dane County – Places to Stay].

Notes and practical considerations

• HOA/condo/co-op rules: Private associations may restrict STRs; the City does not enforce private covenants. Review your HOA/condo documents and lease terms. [City of Madison – Short-Term Rental FAQ].
• Lakefront/zoning specifics: Additional land-use/zoning restrictions can apply near lakes and in certain zoning districts. Confirm with Zoning before acquiring or listing. [Steadily blog overview on Madison STRs].

Contact Information (Phone, Email, Website)

• Public Health Madison & Dane County – Environmental Health (licensing, inspections)
  • Phone: 608-242-6515
  • Email (general licensing): LEadmin@publichealthmdc.com
  • Email (STR scheduling): str@publichealthmdc.com
  • Health inspection lookup portal: Health Inspections
  • Public Health main phone: 608-266-4821
  • Website: Public Health Madison & Dane County – Places to Stay
• City of Madison – Building Inspection / Zoning (ZTRHP permit, rules, reporting)
  • Phone: 608-266-4551 (press 3 for STR/Tourist Rooming House inquiries or as directed)
  • Email (Zoning/TRH): zoningtrh@cityofmadison.com
  • Contact form: City of Madison – Building Inspection Contact
  • Website: City of Madison – Short-Term Rentals (TRH)
• City of Madison – Room Tax Registration
  • Form: Room Tax Registration (City of Madison)
  • Website: City of Madison – Room Tax Overview and Exemptions
• Wisconsin Department of Revenue (Seller’s Permit/Taxes)
  • Website: Wisconsin Department of Revenue – Seller’s Permit

Links to Source Pages (Important)

• Public Health Madison & Dane County – Places to Stay (Licensing & Inspections for B&Bs, Hotels, STRs/TRHs): publichealthmdc.com/businesses-licensing/places-to-stay
• City of Madison – Short-Term Rentals (TRH) Landing and zoning overview: www.cityofmadison.com/dpced/building-inspection/zoning-signs/trh
• City of Madison – Frequently Asked Questions About Short-Term Rentals (TRH): www.cityofmadison.com/dpced/bi/faq/3450/
• City of Madison – Room Tax Registration form: www.cityofmadison.com/clerk/documents/licensing/RoomTaxApplication.pdf
• City of Madison – Room Tax overview (transient room tax/exemptions): www.cityofmadison.com/finance/treasury/transient-room-tax
• Wisconsin Department of Revenue – Seller’s Permit FAQ: www.revenue.wi.gov/Pages/FAQS/pcs-seller.aspx
• Wisconsin Administrative Code – ATCP 72 (Hotels, Motels, Tourist Rooming Houses): docs.legis.wisconsin.gov/code/admin_code/atcp/055/72.pdf
• Wisconsin Administrative Code – ATCP 73 (Bed and Breakfast Establishments): docs.legis.wisconsin.gov/code/admin_code/atcp/055/73.pdf
• City of Madison – Health Inspection Reports (lookup portal): elam.cityofmadison.com/healthInspections/
• Steadily – Airbnb & Short-Term Rental Laws in Madison (overview article): www.steadily.com/blog/airbnb-short-term-rental-laws-regulations-madison
• Jaken Finance Group – Madison Short-Term Rental Laws 2026 (market overview): www.jakenfinancegroup.com/madison-short-term-rental-laws-2026-a-complete-guide

Final note for investors: Madison is an STR-friendly market but with strict local rules—particularly around host presence, primary residence, and quarterly reporting. Confirm zoning, secure both the Public