State Airbnb laws2026 34 sources cited

Michigan Short-Term Rental Laws & Hotel Tax (2026)

Source: AirROI Reviewed by , Founder @ AirROI Rules checked

From 32 official sources and 2 Airbnb help pages. Not legal advice.

The short answer

Michigan Airbnb Laws in Brief

At a glance

Michigan Short-Term Rental Laws at a Glance

State license required
Yes
Latest rule change
Jul 20, 2026

The laws in brief

The rules a Michigan host meets first, each linked to the ordinance, statute or official page it comes from. Details and exceptions follow below.

Michigan Short-Term Rental Laws at a Glance
TopicRule
PermitNo statewide license2,14
Who can hostTraverse City: only owners can hold a license5
WhereState law limits total bans of a land use1,3
Night capSouth Haven: Class II limited to 28 days or 6 rentals19
GuestsSouth Haven: two guests a bedroom, twelve at most9
Listing displayTraverse City: license number in every ad5
InsuranceSouth Haven: $1,000,000 liability insurance for Class I9

Your home

Can You Host an Airbnb in Michigan? It Depends on the Home

Whether you can host in Michigan turns on whose home it is and whether you live there.

Your own home, rented whole while you're away

Allowed with conditions

A room in your home with you present

Allowed with conditions

A second home or investment property you don't live in

Allowed with conditions

A rented apartment (tenant hosting)

Allowed with conditions

A condominium or HOA building

Allowed with conditions

Permit

Do You Need a License for Airbnb in Michigan?

Yes. Michigan hosts need the Local short-term rental license or rental registration from city, village or township where the home stands (clerk, planning or building department). It costs $500.16,17,19,20,21,27,30,32

Who needs it
Issued by
Valid for
Processing
On listings
Platform checks

Fees

Fees
FeeAmount
Ann Arbor STR licenseNon-refundable; paid before review and renewed every year.$500
Grand Rapids one-room rental (first issuance)Application fee for a Home Occupation Class B one-room rental license; the renewal fee is $229.$634
Grand Rapids one-room rental (renewal)Renewal fee in the second and third years when no complaints are on file.$229
Traverse City vacation home rental licenseFee for a new license or a renewal in the city's Directory of Charges as amended June 1, 2026; licenses expire on December 31.$230
South Haven Class I licensePlus a $450 application and inspection fee and a $450 initial zoning compliance determination.$750
South Haven Class II licensePlus a $250 application and inspection fee and a $450 initial zoning compliance determination.$250
Saugatuck STR licenseAnnual license fee; each failed inspection adds a $175 reinspection fee.$540
Royal Oak rental license (single-family home)Rental license application fee; $90 for a condominium and $230 for a duplex.$145

Who qualifies

  • Ann Arbor: only the owner or permanent resident; principal residence only in residential zones; no accessory dwelling units
  • Grand Rapids: owner-occupied principal residence, one room, no more than two adult guests, owner present, 200 licenses a year
  • Traverse City: owners only; vacation home rentals only in the zoning districts that list them; owner-occupied tourist homes need a separate license
  • South Haven: owners only; Class I or Class II license by zoning, inspection before a license is issued
  • Detroit: no license available because the zoning code prohibits paid overnight guests in homes

How to apply

  1. Confirm with the city planning or zoning office that the property's zoning allows the type of rental.
  2. Apply through the city's portal or clerk: Ann Arbor (STREAM portal), Grand Rapids (Citizen Access), Traverse City (City Clerk), South Haven (zoning compliance review, then license application).
  3. Pass the required inspection: fire inspection in Grand Rapids and Saugatuck, city inspection in Traverse City and South Haven.
  4. Register for the state use tax and any county lodging tax for bookings made outside Airbnb.

Permit rules

No statewide license
Check local rules before listing
Traverse City: vacation home rental license
Traverse City: license number in every ad
Ann Arbor: STR license for every unit
Ann Arbor: license number and occupancy in ads
South Haven: two-class license
Grand Rapids: 200 licenses a year
Lansing: rental registration for non-owner-occupied homes
Saugatuck: annual license for stays under 31 nights
Royal Oak: rental registration with insurance

Who can host

What Michigan Cities and Counties Can and Can't Regulate

State law limits total bans of a land use
Detroit: paid overnight guests prohibited as a home occupation
Traverse City: only owners can hold a license
Traverse City: parcel cap in the C-1 district
Traverse City: owner-hosted tourist homes
Ann Arbor: principal residence only in residential zones
Ann Arbor: no accessory dwelling units
Grand Rapids: owner-occupied single-room rentals only
Saugatuck: license caps in R-1 districts

Local rules

Local Rules in Michigan's 8 Largest Airbnb Markets

A state license doesn't replace local rules. Cities and counties still set registration, occupancy, parking and safety requirements. These are Michigan's largest markets by active Airbnb listings, with the share of each market's listings that display a registration or license number.

The largest markets and how each registers rentals
MarketLocal registration
Detroit Wayne CountyNone
Traverse City Grand Traverse CountyRequired
Ann Arbor Washtenaw CountyRequired
South Haven Van Buren and Allegan counties CountyRequired
Grand Rapids Kent CountyRequired
Lansing Ingham CountyRequired
Saugatuck Allegan CountyRequired
Royal Oak Oakland CountyRequired
  1. 1. Detroit

    Wayne County

  2. 2. Traverse City

    Grand Traverse County

  3. 3. Ann Arbor

    Washtenaw County

  4. 4. South Haven

    Van Buren and Allegan counties County

  5. 5. Grand Rapids

    Kent County

  6. 6. Lansing

    Ingham County

  7. 7. Saugatuck

    Allegan County

  8. 8. Royal Oak

    Oakland County

Taxes

Michigan Short-Term Rental Taxes

6% state use tax on every stay; Kent County (including Grand Rapids) adds 8% for 14% in total, and Genesee County adds 5%.

Michigan Short-Term Rental Taxes
TaxRateCollected by
Michigan use tax on lodging 6% of the listing price including any cleaning fee, for stays of 30 nights or fewer6%12,13,33Airbnb
Kent County hotel-motel excise tax 8% of the listing price including cleaning fees, for stays under 30 nights (raised from 5% on January 1, 2025); applies in Grand Rapids8%24,33Airbnb
Genesee County accommodation tax 5% of the listing price including cleaning fees, for stays of 29 days or fewer5%33Airbnb

What the host still handles

Operating rules

Operating Rules for Michigan Short-Term Rentals

South Haven: Class II limited to 28 days or 6 rentals
South Haven: $1,000,000 liability insurance for Class I
South Haven: two guests a bedroom, twelve at most

Fines

How to Avoid Airbnb Fines in Michigan

Fines in Michigan fall on hosting without the approvals described above, or outside the rules. With them in hand and the rules followed, none of the fines below apply.

Changes

What's Changed in Michigan's Airbnb Rules

No change was scheduled when the rules were checked on October 17, 2026; the most recent are listed first.

  1. July 20, 2026
    Ann Arbor council directs a six-month moratorium on new licenses
  2. June 2, 2026 Not in force
    House bills would create a rental registry and clarify the ban on total bans
  3. May 20, 2026 Not in force
    Senate bill would let local governments tax rentals
  4. May 1, 2026
    South Haven's old registrations expire
  5. March 27, 2026
    South Haven starts conditional licenses
  6. March 27, 2025
    South Haven's new licensing ordinance takes effect
  7. January 1, 2025
    Kent County lodging tax rises to 8%
  8. July 18, 2024
    Royal Oak rental registration takes effect

Listing data

What Michigan's Listings Show

What officials report

200
5

Earnings

What Could a Short-Term Rental in Michigan Earn?

The rules shape the numbers: a license that costs $500 a year and taxes of 6% that Airbnb adds to guests' bills. For a specific address, the Airbnb profit calculator estimates revenue, occupancy and nightly rate from comparable listings, so you can test the numbers before applying.

Estimate what a home could earn

FAQ

Michigan Short-Term Rental Laws: Frequently Asked Questions

Is Airbnb legal in Michigan?

Yes, in most of the state, but rules are set by each city rather than by Michigan. Ann Arbor, Traverse City, South Haven, Saugatuck and Royal Oak license short-term rentals, Grand Rapids allows only owner-occupied single rooms, and Detroit's zoning code prohibits them.11,14,16,17,19,22,27

Do I need a permit for Airbnb in Michigan?

There is no statewide permit, but most cities that allow short-term rentals require a local license or rental registration, such as Ann Arbor's STR license or Traverse City's vacation home rental license. Check the city or township where the home stands before listing.14,16,17,34

How much is a short-term rental license in Michigan?

Fees are local: Ann Arbor charges $500 per unit per year, Saugatuck $540 a year, Traverse City $230 a year, Grand Rapids $634 for a first-issuance one-room license and $229 to renew, and South Haven $750 for a two-year Class I license plus application and zoning fees.16,17,20,21,27,32

Can I rent a home I don't live in?

Sometimes. Ann Arbor, South Haven, Saugatuck and Traverse City license non-owner-occupied rentals in zones that allow them, often with caps, while Grand Rapids and Detroit do not allow them. Traverse City and South Haven issue licenses to owners only.5,14,17,19,22,28

Is Airbnb legal in Detroit?

Not under the zoning code as of the council staff's June 2025 report, which says short-term rentals in the city are prohibited because paid overnight guests cannot be hosted as a home occupation. A draft licensing ordinance was prepared for council in January 2024.14,15

Can I rent my whole home in Grand Rapids?

Not under the city's rental license. Grand Rapids licenses one room in an owner-occupied principal residence, for no more than two adult guests, with the owner present during every stay, and issues no more than 200 licenses a year.21,22

Does Airbnb collect hotel tax in Michigan?

Airbnb collects the 6% Michigan use tax on all Michigan stays of 30 nights or fewer, plus Kent County's 8% hotel-motel tax and Genesee County's 5% accommodation tax. Hosts remain responsible for all other tax obligations.33

What is the total lodging tax on a Michigan Airbnb stay?

The state use tax is 6% everywhere. Kent County, which includes Grand Rapids, adds an 8% hotel-motel tax for 14% in total, and Genesee County adds 5%.24,33

What is the fine for renting without a license?

It depends on the city. South Haven fines $1,000 to $5,000 a violation, Traverse City at least $500 plus costs, Ann Arbor up to $500 plus costs per violation, and Royal Oak at least $200 for a first violation.5,8,9,11

Is there a limit on how many nights I can host?

Only in some places. South Haven's Class II license allows six rental terms or 28 days a calendar year, and its Class I license allows no more than two rental stays in any seven days. Check the city's own rules for other limits.19

Can a Michigan city ban short-term rentals?

Cities and townships control zoning, and state law bars an ordinance from totally prohibiting a land use where a need is shown unless no suitable location exists. Detroit prohibits paid overnight guests as a home occupation, and a 2026 House bill (HB 6027) would clarify the rule for short-term rentals.1,3,14

Is Ann Arbor pausing new short-term rental licenses?

Ann Arbor City Council voted on July 20, 2026 to direct the city attorney to prepare a six-month moratorium on new licenses that still allows renewals for compliant rentals. The ordinance itself would need a later council vote.18

Method

How These Rules Were Checked

Each rule on this page was checked in October 2026 against the official source cited beside it: the ordinance or statute, the permit office's own pages and the tax authority. Airbnb's help pages are cited on their own only for what Airbnb itself does, such as the taxes it collects and the permit checks it runs, and otherwise only beside an official source; news reports only for when a change was announced. Rules that could not be confirmed on an official page are left out. Traverse City and Ann Arbor code chapters (Municode), Traverse City tourist home chapter and the Kent County Treasurer's hotel-motel tax page were read in a browser.

Rules change with council votes, court rulings and new state laws, so the page is rechecked every three months and whenever a scheduled change takes effect. It summarizes the rules for information and is not legal advice; the state agency and your city or county has the final word on any application.

Sources

Sources

Each rule above links to the source it comes from. Official ordinances, statutes and government pages come first, then Airbnb's own help pages.

  1. 1. MCL 125.3207 - Zoning ordinance or decision; effect as prohibiting establishment of land use · Michigan Legislature
  2. 2. House Bill 6026 of 2026 · Michigan Legislature
  3. 3. House Bill 6027 of 2026 · Michigan Legislature
  4. 4. Senate Bill 983 of 2026 · Michigan Legislature
  5. 5. Chapter 870 - Vacation Home Rental License · Traverse City Code of Ordinances (Municode)
  6. 6. Chapter 868 - Tourist Homes · Traverse City Code of Ordinances (Municode)
  7. 7. Chapter 1340 - C-1 Office Service District · Traverse City Code of Ordinances (Municode)
  8. 8. Chapter 97 - Short-Term Rentals · Ann Arbor Code of Ordinances (Municode)
  9. 9. Ordinance No. 1097 - Short-Term Rental Regulations · City of South Haven
  10. 10. Ordinance No. 240229-B - Short-Term Rental License Ordinance · City of Saugatuck
  11. 11. Ordinance No. 2024-06 - Rental property registration · City of Royal Oak
  12. 12. Use Tax · Michigan Department of Treasury
  13. 13. Taxability of Services and Tangible Personal Property · Michigan Department of Treasury
  14. 14. Study On Feasibility of Implementing Tax on Short Term Rentals (June 24, 2025) · Detroit City Council Legislative Policy Division
  15. 15. Draft Short Term Rental Ordinance (January 3, 2024) · Detroit City Council Legislative Policy Division
  16. 16. Vacation Home Rental License Application · City of Traverse City
  17. 17. Short-Term Rentals · City of Ann Arbor Planning
  18. 18. File 26-1231: Resolution to Direct the City Attorney to Prepare a Moratorium on Short-term Rentals · City of Ann Arbor City Council (Legistar)
  19. 19. Short-Term Rental Registration · City of South Haven
  20. 20. Resolution No. 2025-37: Short-Term Rental Fee Schedule (November 17, 2025) · City of South Haven
  21. 21. Apply for a Home Occupation One-Room Rental License · City of Grand Rapids Clerk's Office
  22. 22. One-Room Rental Checklist · City of Grand Rapids
  23. 23. State Convention Facility Development Tax Return Instructions (form 406) · Michigan Department of Treasury
  24. 24. Hotel / Motel Tax · Kent County Treasurer
  25. 25. City of Lansing Airbnb/Short-Term Rental Housing FAQ's · City of Lansing Planning & Zoning Office
  26. 26. Rental Registrations · City of Lansing Code Enforcement
  27. 27. Short-Term Rentals · City of Saugatuck
  28. 28. Short-Term Rental License Notification and Issuance Policy · City of Saugatuck
  29. 29. Notice of Available Short-Term Rental Licenses (January 29, 2026) · City of Saugatuck
  30. 30. Master Administrative Fee Schedule, effective July 1, 2025 · City of Royal Oak
  31. 31. Rental Registration Guide · City of Royal Oak
  32. 32. City of Traverse City Directory of Charges (amended through June 1, 2026) · City of Traverse City
  33. 33. Occupancy tax collection and remittance by Airbnb in Michigan · Airbnb Help Center
  34. 34. Responsible hosting in the United States · Airbnb Help Center