Short-Term Rentals in Madison, WI: What Residents Actually Need to Know

If you live in Madison or are thinking about moving there, short-term rentals are one of those things you probably won't think about until they affect you directly. Madison has 7 specific rules on the books covering different aspects of short-term rentals, and some of them might surprise you.

Occupancy Limits

Madison caps how many guests a licensed Tourist Rooming House can sleep: Sec. 28.151(k), MGO limits maximum tourist occupancy to the lesser of two times the number of legal bedrooms or twelve people, and children under 12 don't count toward that cap. The limit sits on top of the City's separate TRH permitting and licensing requirements.

Key details: Governing section: MGO § 28.151(k), Tourist Rooming House. Max occupancy: Lesser of 2× bedrooms or 12. Children under 12: Excluded from occupancy count. Underlying permit: TRH Permit, Sec. 9.29, MGO. Penalty: $1–$1,000 forfeiture, § 28.207(1).

Exceeding the occupancy formula in Sec. 28.151(k), MGO, more guests than the lesser of two times the legal bedroom count or twelve, violates Chapter 28. Sec. 28.207(1), MGO subjects any such violation to a forfeiture of not less than $1 and not more than $1,000 upon conviction, and City staff can document overcounts during an inspection conducted under subsection (l)'s 48-hour-notice provision.

Night Caps

Madison caps non-owner-occupied short-term rentals at 30 nights per calendar year under WI Stat. 66.1014 and MGO Chapter 32. Owner-occupied primary residences have no night cap but the 30-day minimum stay rule applies when the owner is absent for longer periods.

Key details: Non-Primary Cap: 30 nights/yr. Primary: No cap. State Law: WI 66.1014. Guest Log: Required. Min Stay: 7 nights if owner gone 30+ days.

Exceeding 30 nights without primary residency can trigger MGO forfeitures and license revocation.

This is one of the stricter rules in Madison's municipal code. If you are unsure whether your situation complies, it is worth checking with the city before proceeding.

Short-Term Rental Permits

Operating a short-term rental in Madison, a tourist rooming house (TRH), is unlawful without a permit from the Zoning Administrator under MGO § 9.29. The Administrator inspects the unit before issuing or renewing a permit, permits cannot be transferred, and violators face fines of $500 to $1,000 per day, doubled if the permit was previously revoked.

Key details: Permit: Permit required from Zoning Administrator before operating. Inspection: Pre-permit inspection confirms Chapter 28 zoning compliance. Routine inspection notice: Routine inspections require 48 hours' written notice. Penalty: Fine: $500-$1,000 per day of violation. Repeat penalty: Fine doubles if permit was previously revoked.

Operating a tourist rooming house without a Zoning Administrator permit, or violating any condition of Sec. 9.29, carries a fine of $500 to $1,000 per conviction, with each day of continued violation treated as a separate offense, and that fine doubles if the property's permit was previously revoked. The Director of Building Inspection or Common Council can also suspend, deny, or revoke the permit outright, locking the property out of new permits for six months.

Compared to other cities, Madison takes a harder line on short-term rental permits. The enforcement and penalty structure reflects that.

Host Presence Rule

Madison Sec. 28.131 requires that tourist rooming houses be located within an owner-occupied dwelling unless the operator obtains a separate conditional use permit. Hosts generally must reside on the property as their primary residence to qualify for routine STR registration.

Key details: Code section: MGO Sec. 28.131. Owner-occupancy: Required by default. Non-occupant path: Conditional use permit. State authority: Wis. Act 59 (2017). Annual registration: City Clerk + DATCP.

Operating a non-owner-occupied tourist rooming house without conditional use approval is a zoning violation, with daily forfeitures and potential injunctive action by the City Attorney.

Host Platform Liability

Wisconsin Act 55 (2019) requires lodging marketplaces like Airbnb and Vrbo to collect state and local room taxes for Wisconsin listings. Madison enforces room tax under MGO Sec. 4.21 and expects valid license numbers in every listing.

Key details: Platform tax law: Wis. Act 55 (2019). Local room tax: MGO Sec. 4.21. Listing duty: Display license numbers. Audit body: Madison Treasurer + DATCP. Removal tool: Platform takedown request.

Listing without a valid license number triggers forfeitures of up to $500 per day under Sec. 1.08 and may lead the platform to delist the property at city request.

Primary-Residence-Only Rule

Madison treats short-term rentals as accessory uses to a primary residence. Operators must demonstrate that the dwelling is their principal place of habitation, typically through tax records, voter registration, or a Wisconsin driver license bearing the property address.

Key details: Standard: Principal residence required. Common proof: Tax bill, license, voter reg. Investor path: Conditional use permit. Code reference: MGO 28.131. State backstop: Wis. Act 59 (2017).

False certification of primary residence is grounds for license revocation, fines under Sec. 1.08, and referral for prosecution if the misrepresentation is material.

Taxes & Fees

Madison charges tourist rooming house operators a nonrefundable $300 application fee up front and a $100 annual permit fee under MGO § 9.29. Renewal permits are due by June 30 each year; filing late adds a further $100 late fee, and operators must also register with the City Treasurer to pay room tax under Sec. 4.21.

Key details: Application fee: $300 nonrefundable application fee. Annual fee: $100 annual permit fee. Expiration: Permits expire June 30 every year. Late fee: $100 late fee for renewals filed after June 30. Room tax: Must also register for room tax under Sec. 4.21.

Operating past a permit's June 30 expiration without renewing, or without paying the required fees, exposes the operator to the same enforcement as operating without a permit at all, a conviction fine of $500 to $1,000 under Sec. 9.29(12), on top of the $100 late filing fee. Paying the late fee does not excuse any other penalty owed for the lapse.

The Bottom Line

Madison is tougher than many cities when it comes to short-term rentals. Out of the 7 rules covered here, 2 are rated strict. If you are a homeowner, renter, or business owner in Madison, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

These rules come from Madison's publicly available municipal code. For complete penalty schedules, exemption details, and answers to common questions, see the individual ordinance pages throughout this guide.