Airbnb Market Analytics, Statistics and Data in Madison, Wisconsin, United States
Last updated: 2025-01-31
Looking to make more money with hosting or rental arbitraging Airbnbs, short-term rentals, vacation rentals in Madison? AirROI have just the data insights! Over the last twelve months from February 2024 to January 2025, we've uncovered key trends and opportunities that successful hosts are leveraging in Madison:
How much do Airbnb hosts make on average per month in Madison?
The short-term rental market in Madison shows distinct revenue patterns across different property tiers. Our analysis reveals that successful properties combine strategic pricing with quality management to maximize earnings potential. Market data demonstrates clear revenue differentiation among properties:
- Typical properties (median) earn $2,487 per month
- Strong performing properties (top 25%) make $4,450 or more
- Best-in-class properties (top 10%) achieve $8,251+ monthly
- Entry-level properties (bottom 25%) typically earn around $1,256
Revenue Variations by Month
Occupancy Rates Throughout the Year in Madison
The market in Madison shows distinct occupancy patterns influenced by seasonal trends and local dynamics. Properties that maintain high guest satisfaction scores and implement strategic pricing consistently achieve stronger occupancy rates. Current market data shows:
- Typical properties (median) maintain 60% occupancy rates
- Strong performing properties (top 25%) achieve 79% or higher
- Best-in-class properties (top 10%) reach 90%+occupancy
- Entry-level properties (bottom 25%) average around 35%
Occupancy Variations by Month
Average Daily Rates Seasonal Trends in Madison
Daily rates in Madison vary based on seasonality, property quality, and market dynamics. Properties that effectively balance competitive pricing with strong amenities typically command higher rates. Market analysis shows the following rate structure:
- Typical properties (median) generate $120 per night
- Strong performing properties (top 25%) secure $220 or more
- Best-in-class properties (top 10%) pull in $514+ per night
- Entry-level properties (bottom 25%) earn around $75
Daily Rate Variations by Month
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Seasonality patterns in Madison
Peak Season (August, July, September)
- Revenue peaks at $5473.88 per month
- Occupancy rates reach 69.65%
- Daily rates average $240.86
Shoulder Season
- Revenue averages $3870.59 per month
- Occupancy maintains 56.18%
- Daily rates hold at $216.76
Low Season (January, March, February)
- Revenue drops to $2232.05 per month
- Occupancy decreases to 41.33%
- Daily rates adjust to $199.53
Is it still profitable to do Airbnb in Madison in 2025?
Yes! Madison demonstrates highly seasonal trends requiring strategic adaptation, featuring a healthy occupancy rate of 56% and strong monthly revenue averaging $3871 and With 235 active listings, the market shows established demand while maintaining room for growth. There's also room for profit through rental arbitrage strategies, if you can identify competitively priced properties. To maximize your return on investment, consider employing the following strategies:
Peak Season Strategy
- Implement premium seasonal pricing strategies
- Set longer minimum stay requirements during high-demand periods
- Enforce stricter cancellation policies
Shoulder Season Strategy
- Maintain competitive market-based pricing
- Offer moderate-length stay incentives
- Target a mix of leisure and business travelers with flexible booking terms
- Focus on weekend getaway packages and mid-week business traveler promotions
Low Season Strategy
- Adjust pricing to remain competitive in the market
- Target different guest segments (business travelers, long-term stays, holiday visitors, event attendees, remote workers)
- Create targeted promotional campaigns to drive occupancy
Top Places to Start Airbnb in Madison
| Area | Why Choose This Area | Key Attractions |
|---|---|---|
| Downtown Madison | The heart of the city, known for its vibrant atmosphere, restaurants, shops, and proximity to the University of Wisconsin. Ideal for both business travelers and tourists who want to be in the center of activity. | Wisconsin State Capitol, Monona Terrace, State Street, The Overture Center for the Arts, Madison Children's Museum |
| University of Wisconsin Campus | A popular area for visitors to the university and parents of students. This area has a youthful vibe, with plenty of cultural events and activities. | University of Wisconsin-Madison, Memorial Union, Chazen Museum of Art, Lathrop Hall, The Arboretum |
| East Side | Known for its lively neighborhoods and diverse community, the East Side offers a mix of local businesses, parks, and cultural experiences. Popular with younger travelers. | Olbrich Botanical Gardens, Atwood Avenue, Dean Heights Park, Barrymore Theatre, Lake Monona |
| West Side | This suburban area features family-friendly neighborhoods, shopping centers, and is close to the popular West Towne Mall. It caters well to families visiting or relocating to Madison. | West Towne Mall, Elver Park, The Village at Autumn Lake, Greenway Station, Camp Randall Stadium |
| Capitol East District | A growing area with new restaurants, bars, and entertainment venues. Perfect for those who want to experience the developing side of Madison. | Madison Museum of Contemporary Art, The Sylvee, Capitol Square, The Great Dane Pub, The Madison Club |
| Monona | Just south of Madison, Monona offers beautiful lakeside views and a quieter atmosphere while still being close to the city's attractions. Great for nature lovers. | Monona Terrace Community and Convention Center, Winnequah Park, Monona Bait & Tackle, Lake Monona, The Fisher's Restaurant |
| Middleton | Known for its charming downtown and local shops, Middleton is just a short drive from Madison and is a desirable area for families and professionals. | Pheasant Branch Conservancy, Capital Brewery, Lakeview Park, Middleton Cross Plains Area School District, Greenway Station |
| Shorewood Hills | An upscale neighborhood offering a suburban feel with proximity to downtown Madison. Ideal for families and those looking for a serene living environment. | Shorewood Hills Park, Lake Mendota, University of Wisconsin Observatory, Hilldale Shopping Center, The Shorewood Hills Community Center |
Do you need a license for Airbnb in Madison?
We recommend checking directly with Madison's local government regarding short-term rental licensing requirements. Current market data shows limited licensing information (0% of listings), making it essential to verify current regulations before starting your Airbnb business.
Top Performing Airbnb Properties in Madison
Downtown Madison Lake Mendota Historic Mansion
Entire Place • 5 bedrooms
5-bedroom central Madison oasis
Entire Place • 5 bedrooms
The Best Neighborhood in Madison!
Entire Place • 4 bedrooms
Entire house with theater room
Entire Place • 4 bedrooms
Lakefront downtown private 3 BR. Hot Tub. Kayaks.
Entire Place • 3 bedrooms
4BR Family Friendly House - Downtown Location!
Entire Place • 5 bedrooms
Top Performing Professional Hosts in Madison
| Host Name | Properties | Grossing Revenue | Stay Reviews | Avg Rating |
|---|---|---|---|---|
| Adam | 2 | $385,935 | 3 | 2.50/5.0 |
| Jennifer | 2 | $330,188 | 226 | 4.98/5.0 |
| Remotely | 14 | $231,143 | 112 | 4.51/5.0 |
| Julia | 2 | $186,293 | 542 | 4.99/5.0 |
| Cheri | 1 | $175,224 | 58 | 4.98/5.0 |
| David | 6 | $170,179 | 327 | 4.85/5.0 |
| Bridget | 1 | $168,024 | 31 | 4.90/5.0 |
| Samantha & Bruce | 2 | $150,573 | 272 | 4.96/5.0 |
| Ryan | 1 | $141,477 | 39 | 4.95/5.0 |
| Robert | 4 | $138,667 | 689 | 4.90/5.0 |
Additional analytics on vacation rental, real estate, short term rental data in Madison
AirROI also have other key metrics and comprehensive data for your vacation rental, real estate needs. Go explore the advanced metrics that can help you make informed decisions:
Room Type Distribution
Property Type Distribution
Key Insights
- Market dominated by entire home listings (67.2%), with house and apartment & condo properties comprising 83.0% of inventory
- Untapped potential in outdoor & mobile segments (0.4% combined)
Room Capacity Distribution
Analysis of 235 properties in Madison shows that 1 bedroom properties are most prevalent, making up 32.3% of the market. The market tends to favor smaller properties, with 1 bedroom and 2 bedrooms together representing 55.3% of all listings.
Key Insights
- Most common: 1 bedroom (32.3%)
- Least common: 5+ bedrooms (4.3%)
- Market concentration: 55.3% in top 2 sizes
- Market skew: Favors smaller properties
Guest Capacity Distribution
Analysis of 235 properties in Madison reveals that 2 guests properties dominate the market, representing 25.1% of all listings. The average property accommodates 3.4 guests, with a clear trend towards larger guest capacities. Properties accommodating 2 guests and 4 guests make up 46.8% of the market.
Key Insights
- Most common capacity: 2 guests (25.1% of market)
- Least common capacity: 7 guests (1.3% of market)
- Average guest capacity: 3.4 guests per property
- Market concentration: 46.8% in top 2 capacity sizes
- Market segmentation: Predominantly larger guest capacities
Booking and Availability Patterns
Available Days Distribution
Booked Days Distribution
Among 235 properties in Madison, the most common availability pattern is 91-180 days (29.8% of properties). For actual bookings, properties most frequently secure bookings for 181-270 days (31.1% of properties).
Key Insights
- Most common availability window: 91-180 days (29.8%)
- Most common booking duration: 181-270 days (31.1%)
- Properties with high availability (180+ days): 54.9%
- Properties with long-term bookings (180+ days): 47.2%
Minimum Stay Distributions
1 Night
46 listings
21.6% of total
2 Nights
49 listings
23% of total
3 Nights
14 listings
6.6% of total
4-6 Nights
3 listings
1.4% of total
7-29 Nights
14 listings
6.6% of total
30+ Nights
87 listings
40.8% of total
Key Insights
- Short stays (1-2 nights) dominate the market at 44.6%
- Mid-length stays (4-6 nights) represent 1.4% of listings
- Monthly+ stays (40.8%) suggest a stable extended-stay market
- High market flexibility with 51.2% accepting 3 nights or less
Recommendations
- Set minimum stays between 2-3 nights to align with market standards
- Adjust minimum stays seasonally based on demand patterns
- Consider monthly stay discounts to capture the growing extended-stay market
- Implement different minimum stays for weekends vs. weekdays
Cancellation Policy Distribution
Super Strict 30 Days
3 listings
1.4% of total
Flexible
43 listings
20.3% of total
Moderate
51 listings
24.1% of total
Firm
57 listings
26.9% of total
Strict
58 listings
27.4% of total
Key Insights
- Strict is the preferred policy at 27.4% of listings
- The market shows a balanced distribution between guest-friendly (44.4%) and strict (54.3%) policies
- Strong market consensus around Strict policies
- Super Strict 30 Days policies are least common at 1.4% of listings
Recommendations
- Market supports various policies - choose based on your property type and target guests
- Strong market preference for Strict policies suggests this should be your baseline
Booking Lead Time Trends
Key Insights
- Peak booking lead times occur in Sep, May, Jul, averaging 80 days
- Shortest booking windows are in Mar, Feb, Jan, averaging 40 days
- Fall shows the longest average booking window at 78 days, while Winter has the shortest at 46 days
Recommendations
- Implement dynamic pricing strategies for Fall bookings at least 78 days in advance
- Consider early bird discounts during Winter to encourage longer lead times
- Focus on last-minute booking promotions during Mar-Jan when lead times are shortest
Popular Airbnb Amenities in Madison
Every property in Madison comes standard with Wifi. Below shows the distribution of other amenities:
Traveler Demographics
Key Insights
- Domestic travelers make up 93.6% of total guests, indicating a dominant local market share.
- Primary international markets: United Kingdom (1%) and DC (0.7%)
- English is the top language at 75%, followed by Spanish (13.2%)
- Notable demographic segment in <=1950s (Pre-1950s (Silent Gen)) at 6.0%
Recommendations
- Target marketing campaigns for Chicago and Madison markets
- Develop localized content for United Kingdom and DC
- Prioritize English and Spanish language support
- Tailor experiences for Pre-1950s (Silent Gen) while maintaining broad age appeal
- Implement seasonal promotions aligned with key market travel patterns
Nearby Markets
Explore short-term rental performance in markets surrounding Madison. These nearby markets offer diverse opportunities for property investors and hosts:
| Market | Properties | Monthly Revenue | Daily Rate | Occupancy |
|---|---|---|---|---|
| Town of Sugar Creek | 17 | $8,462 | $656.67 | 50% |
| Town of Wilson | 14 | $7,100 | $634.89 | 42% |
| Twin Lakes | 29 | $6,383 | $496.08 | 43% |
| Monona | 34 | $6,337 | $565.61 | 50% |
| Summit | 10 | $6,011 | $456.60 | 42% |
| Town of Geneva | 50 | $5,456 | $390.81 | 47% |
| Lake Geneva | 166 | $5,240 | $423.13 | 44% |
| McHenry | 33 | $5,151 | $479.42 | 45% |
| Town of Germantown | 57 | $5,141 | $476.76 | 37% |
| Lake Villa | 10 | $5,010 | $301.45 | 58% |
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