Overview: Are Short-Term Rentals Allowed in Monroe, WI?

Yes—short-term rentals are allowed in Monroe, Wisconsin. Monroe County has implemented a county-wide licensing program for lodging, including short-term vacation rentals. Property owners who rent rooms, homes, cabins, or cottages to tourists or transients for overnight lodging are required to obtain a lodging license from the Monroe County Health Department. Monroe County Health Department acts as an agent of the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) to administer state lodging rules under Wisconsin Administrative Code ATCP 72.

Importantly, the licensing requirement applies regardless of whether a property is operated year-round or only during part of the year. Facilities operating without a license after the enforcement deadline may be assessed a $750 fee.

At the municipal level, the City of Monroe requires a Lodging House Permit for lodging operations within city limits. State rules also require registration for sales and room taxes with the Wisconsin Department of Revenue.

Sources:

• WXOW report on Monroe County licensing requirement
• Monroe County Health Department licensing overview (lodging under ATCP 72)
• City of Monroe Lodging House Permit page and online application

How to Start a Short-Term Rental Business in Monroe, WI

Investors should follow a structured compliance path before opening:

1. Confirm zoning eligibility at your property address. In the City of Monroe, verify that lodging use is permitted under local zoning. If outside the City, check with Monroe County Zoning for district allowances.
2. Obtain municipal approvals:
   • City of Monroe operators: secure a Lodging House Permit through the Building Inspection / Property Maintenance division.
3. Obtain county lodging license:
   • Submit the Lodging and Recreation application to the Monroe County Health Department. The department issues licenses under ATCP 72 for hotels, tourist rooming houses, and bed & breakfasts.
4. Complete plan reviews and inspections:
   • Follow any required plan review processes through the City’s delegated review (E-Plan or DSPS) if structural, HVAC, plumbing, or fire protection work is involved.
   • County annual inspections apply once licensed.
5. Register for taxes:
   • Register with the Wisconsin Department of Revenue (DOR) for sales tax and room tax. Short-term lodging is generally taxable in Wisconsin.
6. Finalize operations:
   • Display license and permit information, maintain compliance records, and prepare for ongoing inspections.

Key points from county guidance:

• Licensing applications are accepted via the Monroe County Health Department’s Lodging and Recreation application. While the provided materials emphasize a June 30 application deadline for a recent enforcement cycle, investors should confirm current timelines with the Health Department before opening or expanding operations.
• Operating without a license after the enforcement date may result in a $750 fee.
• Annual inspections are conducted by the county to ensure compliance with state and local regulations.

Sources:

• City of Monroe Building Inspection / Property Maintenance portal
• Monroe County Health Department licensing page
• WXOW county licensing report

Required Documents, Permits, Licenses, and Guidelines

Investors should assemble the following documents, in order:

• City of Monroe Lodging House Permit Application (if operating within the City):
  • Lodging House Permit Application (fillable PDF)
• Monroe County Lodging License (for all lodging, including short-term rentals):
  • Lodging and Recreation application (county health department)
  • Compliance with ATCP 72 lodging rules
• Tax registrations:
  • Wisconsin Department of Revenue (DOR) registration for sales and room taxes (guidance via WHLA and DOR)
• Safety and housing compliance:
  • Minimum Residential Housing Standards
  • Minimum Residential Space Standards
  • Minimum Residential Fire Safety Standards
  • Minimum Property Maintenance Standards
  • Carbon Monoxide Detector Law compliance (Wisconsin statute)
• Building and life-safety plan reviews (as applicable):
  • Use City of Monroe’s delegated plan review if structural, mechanical, plumbing, fire alarm, or sprinkler work is required.
  • E-Plan Services form and DSPS alternative are noted on the City portal.
• Licensing documentation and annual inspection schedules:
  • Maintain copies of license, inspection reports, and any corrective action correspondence from the county Health Department.

Sources:

• Monroe County Health Department licensing resources (definitions and application links)
• City of Monroe Building Inspection resources (permit application and housing standards)

Specific Regulations for Short-Term Rentals (City, County, State)

Local (City of Monroe)

• Lodging House Permit: Required to operate lodging in the City of Monroe.
• Housing and property maintenance standards: The City enforces minimum residential housing, space, fire safety, and property maintenance standards for lodging and residential rentals.
• Plan reviews: For projects requiring construction or life-safety system changes, the City of Monroe is fully delegated for Building, HVAC, Plumbing, Fire Alarm, and Fire Sprinkler plan reviews; applicants may use E-Plan Services or the Wisconsin Department of Safety and Professional Services (DSPS).
• Inspection cadence: inspections are scheduled through the Building Inspection Division; plan reviews and inspections occur on set days—coordinate directly with the Building Inspector.

County (Monroe County)

• Lodging license under ATCP 72: The Monroe County Health Department acts as a DATCP agent. All tourist rooming houses (including vacation rentals), hotels, motels, and bed & breakfasts must be licensed.
• Inspection authority: County performs annual inspections of licensed lodging establishments.
• Enforcement: Operating without a license after the required deadline can result in a $750 fee.
• Definitions and scope: Tourist Rooming House generally includes vacation homes, cabins, and cottages rented to tourists and transients for short stays; licensing applies even if operation is seasonal.

State (Wisconsin)

• ATCP 72: Wisconsin’s lodging rule governing hotels, tourist rooming houses, and bed & breakfasts. Compliance covers sanitation, safety, guest services, and operations.
• Sales and room taxes: Short-term lodging is subject to state sales tax and local room taxes. Operators must register with the DOR, collect, and remit applicable taxes.
• CO detector law: Compliance with Wisconsin’s Carbon Monoxide Detector Law is required in residential lodging settings.

Sources:

• City of Monroe Building Inspection / Property Maintenance (Lodging House Permit; housing and property standards)
• Monroe County Health Department licensing (ATCP 72; definitions)
• WXOW report (county enforcement and fee context)
• WHLA Short-Term Rentals page (DOR tax guidance)

Contact Information (Phone, Email, Website)

Monroe County Health Department – Environmental Health (Licensing and Inspections)

• Environmental Health Coordinator: Donald Bates
• Address: 315 West Oak Street, Sparta, WI 54656
• Phone: (608) 269-8670
• Fax: (608) 269-8872
• Email: donald.bates@co.monroe.wi.us
• Office Hours: Monday–Friday, 8:00 a.m.–4:30 p.m.
• After-hours emergency: (608) 269-2117
• Licensing page: Environmental Health Licensing

City of Monroe – Building Inspection / Property Maintenance

• Building Inspector: Ryan Lindsey
  • Phone: (608) 329-2518
  • Email: rlindsey@cityofmonroe.org
• Property Code Administrator: Jeff Neises
  • Phone: (608) 329-2533
  • Email: codeenforcement@cityofmonroe.org
• Text-a-Code: 608-336-3336 (for property code complaints)
• Office Hours: Monday–Friday, 7:00 a.m.–3:30 p.m.
• Online Building Permit Application
• Lodging House Permit Application (fillable PDF)

Wisconsin Department of Revenue (State-level tax registration guidance)

• See WHLA Short-Term Rentals page for DOR homeowner/operator guidance

Links to Source Pages

• WXOW: Vacation homes in Monroe County will require a license this summer
• Monroe County Health Department – Environmental Health Licensing
• Wisconsin Hotel & Lodging Association (WHLA): Short-Term Rentals
• City of Monroe – Building Inspection / Property Maintenance & Lodging House Permit
• City of Monroe – Lodging House Permit Application (fillable PDF)
• City of Monroe – Online Building Permit Application

Investors should confirm zoning and licensing details for their specific property location, as requirements can differ between City limits and unincorporated Monroe County. Begin with municipal and county approvals, then complete state tax registration and ongoing inspections. Maintain records and ready displays of permits and licenses. Contact the County Health Department for licensing timelines and inspection scheduling, and the City Building Inspection Division for lodging house permitting and any required plan reviews.