Madison has now approved 11 new short-term rental permits

After approving short-term rentals (STRs) within city limits back in June, the City of Madison has approved 11 new permits for STRs. The deadline for all current STR operators within the City of Madison to obtain a permit and business license was on Oct. 1, 2026.

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27 STR applications, 11 permits issued

Since the ordinance’s adoption in June of 2026, the city reports:

• 27 total applications received (as of Oct. 10, 2026)
• 11 permits issued following a successful inspection
• 15 pending applications, with 5 failing their inspection
• 1 application denied

As a result, the City of Madison has collected $2,460 in business license revenue and $5,506 in past-due lodging taxes.

Despite the passing of the Oct. 1 deadline, 57 active listings have been identified within the City of Madison and the city has issued 42 notices to operators who are now in violation of the ordinance.

A statement from the City of Madison said the ordinance requirements will continue for any new operators seeking a permit within city limits.

The City uses specialty software to monitor properties in violation of the ordinance. These operators will receive a series of three notices to comply before they will be issued a citation for further prosecution.

STR guidelines in Madison

Guidelines for STRs include:

• STR owners must obtain a special permit and renew it annually (at a cost of $350).
• A maximum of 190 STRs are allowed to operate in the city with said permit.
• Hosts must alert neighbors that they are renting their residences.
• If a rental receives three complaints in a year, the city can suspend its permit.
• If an STR is located in an HOA neighborhood, they will need permission from the HOA to operate as a rental.
• Each STR unit must have a local point of contact.

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