Introduction
Detroit, Michigan, once known as the “Motor City,” has seen its housing market undergo significant changes in recent years. This blog post will delve into the short-term rental market in Detroit, focusing on both Airbnb and other short-term rental platforms. We’ll explore key data points, market trends, and factors that make Detroit an attractive destination for property investors in the short-term rental market.
Market Overview
To understand the dynamics of the short-term rental market in Minneapolis, let’s delve into some key statistics and figures.
Supply
The most popular homes are 3-bedroom homes, comprising 46.82% of inventory. This is followed by 2-bedroom homes at 31.36% and 1-bedroom 13.64% of the total inventory, respectively.
Homes Appreciation
AS of July 2025, according to Zillow, homes in Detroit experienced an appreciation of 7.88%. This data indicates a significant increase in property values.
As of January of 2025, Homes in Detroit have appreciated by 7.88%. The median home value in Minneapolis is $73,400 as reported by Zillow. This figure highlights the city’s robust real estate market and the potential for long-term property appreciation.
Active Short Term Rentals
AS of July 2025, Detroit boasts a significant Airbnb rental market, with approximately 1,433 active rentals. This abundance of available properties provides ample opportunities for investors and homeowners looking to capitalize on the tourism demand.
Average Daily Rate
The median ADR for the market is $162.47 The Average Daily Rate is the highest for 4 bedroom homes ($295) followed by 5 and studio bedrooms at $280 and $270 respectively.
Occupancy Rate
Chalet data reveals an occupancy rate of 53% for Airbnb rentals in Detroit. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in Detroit ?
AS of July 2025, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 42.15% in Detroit. This figure suggests that short-term rentals in the city offer a favorable return on investment. Detroit is ranked #1 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in Detroit earn an average of $31,969 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
Property Tax
According to SmartAsset, the average property tax in Detroit is 1.90%. This relatively moderate tax rate is an important consideration for those looking to invest in short-term rental properties.
Regulations
Detroit’s short-term rental regulations are somewhat investor-friendly, with different zoning regulations and limitations in place. Understanding these regulations is crucial for potential investors to ensure compliance and a smooth operation.
Top Places for Airbnb in Detroit
Detroit top submarkets for Airbnb investments include areas like ZIP code 48217, which has the highest gross yield at 42% and an annual revenue of $22,601. In contrast, ZIP code 48211 offers more extensive opportunities with 23 full-time listings, but a lower gross yield of 34%.
Hosts
The market is dominated by property management firms. The largest host is RoomPicks with 4.53% of the total inventory and an average review of 4.58⭐️s .
