Michigan’s short-term rental landscape in 2026 is defined by sharp contrasts in yield and entry price, with the best-performing markets clustering in two distinct types of locations. Urban centers where home values remain accessible, and lakeshore towns that command high nightly rates despite pronounced seasonality.
The top six markets stretch from Detroit’s 33.4% gross yield, third-highest in the nation, to Saugatuck’s 9.6%, with entry prices spanning from under $80,000 to over $600,000. That yield spread is among the widest of any state, and it reflects the way Michigan’s economic diversity shapes rental performance.
Gross yield, the central metric here, measures annual Airbnb revenue as a percentage of the median home value. It puts cash flow front and center, which is why celebrated vacation destinations sometimes miss the cut. High prices often erase even strong revenue. The markets that make this list do so because their numbers pencil out for investors focused on payback and risk. See where your strategy fits, match with a Michigan STR agent to get property-level guidance.
Michigan Airbnb Market Rankings 2026 (and the City-by-City Breakdown)
| Rank | Market | Gross Yield | Annual Revenue | Median Home Value | ADR | Occupancy | Active Listings |
|---|---|---|---|---|---|---|---|
| 1 | Detroit | 33.4% | $25,555 | $76,466 | $159 | 38% | 774 |
| 2 | South Haven | 22.1% | $83,127 | $375,325 | $478 | 23% | 606 |
| 3 | Ann Arbor | 13.5% | $72,459 | $536,407 | $243 | 46% | 445 |
| 4 | Grand Rapids | 11.3% | $35,245 | $313,257 | $179 | 43% | 312 |
| 5 | Traverse City | 10.2% | $45,639 | $446,500 | $258 | 21% | 907 |
| 6 | Saugatuck | 9.6% | $59,413 | $620,251 | $381 | 26% | 277 |
Data as of July 11, 2026. Each market’s annual revenue is calculated from its own ADR × occupancy × 365 using trailing 12-month data, gross before expenses. The table reports the median listing’s revenue, alongside median ADR and median occupancy computed independently. Multiplying the table’s ADR by its occupancy will not reproduce the revenue figure. Gross yield divides the median annual revenue by the median home value (Zillow Home Value Index). See the full data methodology.
Headline revenue averages every listing, but the active-operator benchmark filters for hosts with sustained bookings. That filtered figure is what a committed buyer should underwrite against, as it better reflects the returns of a well-run property.
1. Detroit: The nation’s highest-yielding major city
Detroit’s numbers are in a league of their own. With a 33.4% gross yield and a median home value of just $76,466, Detroit sits at the 99th percentile for yield among 501 US markets. The city’s annual Airbnb revenue clocks in at $25,555, while active operators clear $24,361, meaning the gap between average and top hosts is minimal for those who commit.
Seasonality is pronounced. Occupancy peaks at 65% in August (ADR $150), then drops to 26% in January. Summer delivers 30% of annual revenue, but the market’s YoY momentum is strong, with occupancy up 13%, ADR up 25%, and listings down 20%, a classic supply squeeze. The most common listing is a 1-bedroom, but 5-bedrooms are the top earners, pulling in $52,614 on a $454 ADR.
Detroit’s risk profile is shaped by its low entry price and fast payback, just 3.1 years at active-operator revenue. For investors, this is a cash-flow play with real upside if you can navigate the city’s licensing and inspection rules. For a deeper dive into bedroom mix and operator benchmarks, see Detroit’s analytics page.
| Gross yield | 33.4% |
| Annual revenue | $25,555 |
| Active-operator revenue | $24,361 |
| Occupancy | 38% |
| ADR | $159 |
| Median home value (YoY) | $76,466 (-5.1%) |
| Full-time listings | 774 |
| US yield rank | #3 |
Who it fits. Buyers seeking maximum cash-on-cash returns and willing to manage urban compliance.
Regulation: Detroit requires rental properties to be registered and certified under city ordinances, with laws and ordinances in place to help identify and regulate rental units for safety and quality. Verify current requirements for the specific property before buying.
2. South Haven: Lake Michigan luxury with a seasonal twist
South Haven’s 22.1% gross yield is driven by sky-high summer rates, ADR hits $478, and July occupancy peaks at 86%. Annual revenue for the median listing is $83,127, with active operators close behind at $78,942. Home values have climbed to $375,325, up 3% year-over-year, so the payback period stretches to 4.8 years for a well-run property.
This is a pure summer market. Occupancy craters to 3% in January, and a third of annual revenue lands in the summer quarter. The most common property is a 3-bedroom, but 5-bedrooms out-earn all others at $73,583 on a $695 ADR. The market’s supply has contracted by 16% even as occupancy and ADR have surged, signaling a tightening field for new entrants.
South Haven is best suited to buyers who can price for the peak and ride out the off-season. For a breakdown of bedroom-level returns, review South Haven’s analytics.
| Gross yield | 22.1% |
| Annual revenue | $83,127 |
| Active-operator revenue | $78,942 |
| Occupancy | 23% |
| ADR | $478 |
| Median home value (YoY) | $375,325 (+3.0%) |
| Full-time listings | 606 |
| US yield rank | #13 |
Who it fits. Investors targeting high summer rates and able to manage pronounced off-season gaps.
Regulation: Short-term rental rules vary by city, county, and HOA. Verify current requirements for the specific property before buying.
3. Ann Arbor: College town demand, steady year-round
Price trends in Ann Arbor reveal a market with both stability and upside. A 13.5% gross yield places it in the 84th percentile of 501 US markets, well above the national median of 9.0%. The median home value has grown by 3.9% year-over-year to $536,407, and annual revenue for active operators stands at $69,865, with overall median revenue at $72,459.
Occupancy is solid at 46%, peaking dramatically in August at 78% (ADR $266), driven by university move-ins and late-summer events, while even January’s low of 31% occupancy signals persistent off-season demand. Summer brings in 31% of annual revenue, but spring’s 24% and winter’s 23% shares show Ann Arbor’s calendar is not overly reliant on a single season.
Momentum data shows a supply squeeze is intensifying. Listings have dropped by 26% over the past year, while occupancy has surged by 18% and ADR has climbed 10%. This tightening market supports the robust payback period of roughly 7.7 years when underwriting against the active-operator benchmark. While 1-bedroom units are most common (169 listings, $16,003/year), the highest returns are captured by 4-bedrooms, which gross $133,917 annually at a $509 ADR, an attractive proposition for investors targeting larger groups or families.
This market suits buyers seeking steady demand from university events, conferences, and medical tourism. For more on zoning and property types, see Ann Arbor’s analytics.
| Gross yield | 13.5% |
| Annual revenue | $72,459 |
| Active-operator revenue | $69,865 |
| Occupancy | 46% |
| ADR | $243 |
| Median home value (YoY) | $536,407 (+3.9%) |
| Full-time listings | 445 |
| US yield rank | #76 |
Who it fits. Buyers seeking a stable, year-round market with strong university-driven demand.
Regulation: Ann Arbor requires a short-term rental license and non-owner-occupied properties must have a valid Certificate of Compliance before applying for a license, if permitted in designated zones. Verify current requirements for the specific property before buying.
4. Grand Rapids: Urban growth with rising occupancy
Momentum in Grand Rapids is unmistakable, as occupancy surged 39% year-over-year even while active listings expanded by 86%, reflecting a market absorbing new supply without sacrificing demand. July stands out with a 66% occupancy rate and $187 average daily rate, while January’s low of 29% shows the city’s strong summer draw and significant seasonality. Summer delivers 29% of annual revenue, but spring and fall each contribute a robust 25%, underscoring steady demand outside peak months.
Compared to the US median, Grand Rapids’ 11.3% gross yield sits in the 71st percentile, making it a strong performer among 501 tracked markets. The typical payback period of 9.4 years at the active-operator benchmark of $33,241 annual revenue signals a reasonable path to recouping investment, especially given the median home price of $313,257 and moderate property tax rate.
The preponderance of 1-bedroom listings (184 units) suggests affordability and urban appeal, but 4-bedrooms stand out for revenue potential at $28,562 per year with a $346 ADR, offering options for diverse investor strategies.
This market works for buyers seeking a mix of urban amenities and steady, growing demand. For a closer look at supply trends, see Grand Rapids analytics.
| Gross yield | 11.3% |
| Annual revenue | $35,245 |
| Active-operator revenue | $33,241 |
| Occupancy | 43% |
| ADR | $179 |
| Median home value (YoY) | $313,257 (+2.9%) |
| Full-time listings | 312 |
| US yield rank | #134 |
Who it fits. Investors looking for a growth market with manageable entry price and urban demand.
Regulation: Grand Rapids requires a Home Occupation Class C License for STRs operating as home-based businesses offering overnight lodging.
5. Traverse City: Seasonal volume in the lakeshore capital
Summer demand shapes Traverse City’s investment landscape, with July occupancy surging to 78% at a $355 average daily rate, while March occupancy drops sharply to just 9%. This pronounced seasonality means 34% of annual revenue is earned in summer, compared to only 19% in winter, making timing and pricing strategy critical for operators.
Despite the market’s overall occupancy rate of 21%, well below the US median of 45%, Traverse City’s gross yield stands at 10.2%, ranking it in the 64th percentile nationally as higher summer rates offset off-season lulls.
Rapid supply growth, listings jumped 74% year-over-year, has not dampened performance, as occupancy and ADR both rose by 11% and 10% respectively, signaling that guest demand keeps pace with new inventory.
The active-operator revenue of $42,722 suggests that consistent, hands-on management is key to extracting value, but the 10.5-year payback period reflects the challenge of recouping a $446,500 median home price in a market with such a short high season. Larger properties, especially 5-bedrooms, command the highest returns at $60,771 annually, but the dominance of 2-bedroom listings (385 active) underscores the need for investors to match property size to demand waves.
This market is best for buyers who can maximize the short summer window and manage off-season cash flow. For a full breakdown of seasonal revenue, see Traverse City’s analytics.
| Gross yield | 10.2% |
| Annual revenue | $45,639 |
| Active-operator revenue | $42,722 |
| Occupancy | 21% |
| ADR | $258 |
| Median home value (YoY) | $446,500 (+1.8%) |
| Full-time listings | 907 |
| US yield rank | #168 |
Who it fits. Buyers focused on high summer returns and willing to underwrite for heavy seasonality.
Regulation: Traverse City requires all vacation home rentals to obtain a city license before operating as a short-term rental.
6. Saugatuck: High-end pricing, high barriers to entry
Price-sensitive investors will find Saugatuck’s $620,251 median home value and 9.6% gross yield place it just above the US median, ranking in the 56th percentile nationally. Occupancy surges to 78% in August with an ADR of $416, but plummets to only 9% in January, making for highly seasonal cash flow. Spring outpaces all other quarters, contributing 28% of annual revenue, while winter and fall lag slightly behind, each bringing in about a quarter of the yearly total.
Momentum is strong, with occupancy up 67% and listings climbing 24% year-over-year, signaling that demand is absorbing new supply. The 10.8-year payback period, based on the active-operator revenue of $57,449, reflects both the steep entry costs and the premium rates Saugatuck commands.
Most listings are 1-bedrooms, but the highest annual revenue comes from 5-bedrooms at $47,294 and a $742 ADR, highlighting the outsized earning potential for larger properties catering to group travel. These numbers are shaped by Saugatuck’s reputation as a luxury lakeshore destination, where short, lucrative peak seasons and high property values create a challenging but potentially rewarding landscape for well-capitalized buyers.
Saugatuck is best suited for buyers who can afford a high entry price and want to tap into the luxury lakeshore segment. For more detail on revenue by property type, visit Saugatuck’s analytics.
| Gross yield | 9.6% |
| Annual revenue | $59,413 |
| Active-operator revenue | $57,449 |
| Occupancy | 26% |
| ADR | $381 |
| Median home value (YoY) | $620,251 (+7.2%) |
| Full-time listings | 277 |
| US yield rank | #203 |
Who it fits. Buyers after premium rates and able to underwrite for a long payback window.
Regulation: Short-term rental rules vary by city, county, and HOA. Verify current requirements for the specific property before buying.
Why Michigan’s best-known destinations miss the ranking
Michigan’s most famous vacation towns, think Petoskey, Harbor Springs, or Mackinac Island, don’t appear in the top yield rankings because home prices in those markets have outpaced rental revenue. Trophy locations often see appreciation-driven buyers bid up values, which compresses gross yields below the threshold for cash-flow investors. The markets that make this list do so because their revenue-to-price ratios still pencil out, even as demand remains strong statewide.
How to read these rankings before you buy
Gross yield is a powerful first filter, capturing the relationship between annual Airbnb revenue and median home value. But it’s only a starting point. The headline revenue averages every listing, active and inactive, while the active-operator benchmark shows what a committed host can expect.
Seasonality, regulatory limits, and property-level differences can all swing returns. Always verify local rules and underwrite against the active-operator figure for your property type. The best market on paper may not be the best fit for your goals or risk tolerance.
Ready to act? Connect with a Michigan STR agent for property-level underwriting, or revisit the rankings above to compare your options. The right market is the one where your strategy matches the numbers, and the rules.
