Michigan Airbnb and Short-Term Rental Regulations (2026 Guide)

Michigan's Great Lakes shoreline, Upper Peninsula wilderness, and popular resort towns like Traverse City attract millions of vacation rental guests annually. Whether you already own a vacation rental in Michigan or are evaluating your first investment, understanding the regulatory landscape is essential. STR laws in Michigan vary significantly by city and county — and getting compliance wrong can mean fines, forced delistings, or lost income.

This guide covers Michigan's approach to short-term rental regulation at the state level, then breaks down the rules in key markets investors and hosts need to know. Regulations as of 2026 — always verify current rules directly with your local municipality before listing.

If you'd like help navigating STR compliance in Michigan, Awning's property management team operates in Traverse City, Petoskey, and the Lake Michigan shoreline and helps hosts stay compliant while maximizing revenue.

How Michigan Defines a Short-Term Rental

For regulatory and tax purposes, a short-term rental in Michigan is generally defined as a residential property rented for 30 consecutive days or fewer. Any rental longer than this threshold is typically treated as a long-term rental and subject to different rules.

Does Michigan Require a Statewide STR License?

Michigan passed a statewide preemption law in 2022 (PA 72) that limits local governments' ability to ban STRs outright, though local zoning and licensing requirements are still permitted.

Michigan Short-Term Rental Taxes

Michigan charges a 6% use tax on short-term rental income. Many counties and resort communities add a local accommodations tax. Airbnb remits state use tax automatically. Hosts using other platforms must register with the Michigan Department of Treasury.

Regardless of which booking platform you use, it is your responsibility as a host to ensure all applicable taxes are collected and remitted correctly. Failure to comply can result in penalties, back taxes, and potential loss of your ability to operate.

STR Regulations by City in Michigan

Below are the key STR markets in Michigan and their current regulatory requirements. City regulations change frequently — check with your local planning or licensing department for the most current rules before investing.

Traverse City

Traverse City allows STRs but requires an annual registration and limits occupancy to two guests per bedroom plus two additional guests. The city has debated density caps in residential neighborhoods.

Mackinac Island

Mackinac Island requires a lodging license for all STRs. The island's unique no-cars environment and historic character mean strict compliance with local zoning is essential for operating legally.

Holland

Holland requires STR operators to obtain a rental registration, pass an inspection, and comply with local zoning. The city has restricted new non-owner-occupied STR permits in some neighborhoods to address housing concerns.

Key Questions to Ask Before Listing an STR in Michigan

• Does your city or county require an STR permit or license?
• Are there caps on the number of STR permits in your neighborhood or zone?
• Is your property owner-occupied or non-owner-occupied — and does that distinction affect your eligibility?
• What occupancy, noise, and parking rules apply to your specific property?
• Which taxes are you responsible for collecting and remitting vs. what the platform handles?
• Does your HOA or condo association allow short-term rentals?

The Bottom Line

Michigan's STR regulatory environment ranges from investor-friendly rural counties to tightly regulated resort towns and urban cores. Understanding the specific rules in your target market — not just at the state level — is what determines whether your rental operates smoothly or faces costly disruptions.

Staying on top of changing regulations is one of the most valuable things a professional property manager brings to your operation. Awning manages short-term rentals in Traverse City, Petoskey, and the Lake Michigan shoreline and monitors local regulatory changes so you don't have to. Reach out to learn how we can help you operate compliantly and profitably in Michigan.