Madison Short-Term Rentals: Smart Investments Near Local Attractions
Madison short-term rentals offer strong returns for investors, especially near hotspots like the Wisconsin State Capitol. The city’s blend of lively festivals and unique neighborhoods creates consistent guest demand.
Quick Takeaways:
- Over 800 active vacation rentals in Madison as of April 2025
- Average Daily Rate (ADR): $170; Occupancy: 69%
- Year-over-year revenue up 11% from 2024
- Flexible cancellation policies boost bookings by 7%
- Pro tip: invest near University of Wisconsin–Madison and local attractions
Market Overview: Supply and Performance
Active Madison short-term rental listings continue to rise in 2025, reaching an all-time high above 800. Demand remains solid, particularly during university events and festivals. Vacation rentals in Madison near the Capitol and UW–Madison consistently outperform suburban listings.
Revenue Drivers for STR Investing in Madison
The city’s strong average daily rates and occupancy are driven by its dynamic event calendar. Annual festivals like Isthmus Jazz Fest and the Wisconsin Film Festival bring in thousands of guests, fueling high booking rates. Weekend stays remain especially popular.
Pricing, Seasonality, and Property Type
Average daily rates for Madison short-term rentals reached $170 in early 2025, with occupancy near 70%. Premium units in walkable neighborhoods command higher nightly rates. Many hosts see higher occupancy by offering flexible cancellation. Investors are prioritizing two-bedroom units, which see the lowest vacancy.
StaySTRa Analyzer
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Active Platforms and Guest Preferences
Madison rentals are mostly listed on leading platforms, with Airbnb being the top choice. Top amenities include fast WiFi, smart TVs, and parking. Our data indicates guests prefer rentals near State Street or close to attractions like the Chazen Museum of Art.
Outlook and Investment Strategy
STR investing in Madison remains promising for those who focus on unique locations and premium amenities. With sustained growth in guest bookings and strong local demand, 2025 is a great time to enter Madison’s short-term rental market.
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