Dane County, WI Short-Term Rentals: Occupancy Limits (2026)

Short-term rentals (STRs) in Wisconsin are governed primarily by Wis. Stat. §66.1014, which preempts municipalities from banning rentals of 6 nights or fewer for at least 7 consecutive days per month but permits reasonable regulation including occupancy caps, licensing, and nuisance controls. The state also licenses STRs as 'tourist rooming houses' under Wis. Stat. §97.01(15k) and Ch. ATCP 72, requiring a state license from DATCP or delegated local health departments. Madison General Ordinance §28.151 applies zoning standards to tourist rooming houses: in most residential districts, maximum occupancy is 2 guests per bedroom plus 2 additional, with a hard cap typically at 8 guests total. Dane County (unincorporated), Fitchburg, Middleton, Verona, Sun Prairie, Stoughton, and Monona apply similar formulas with cap ranges from 6 to 10 guests. Hosts must post occupancy limits in the unit, and listings must accurately state maximum occupancy. Operators need a Wisconsin seller's permit to remit 5% state sales tax, county sales tax, and the local Room Tax (typically 10% in Madison).