Michigan Short-Term Rental Rules

Michigan has no statewide short-term rental law. Local governments control nearly everything. State sales tax applies at 6%, and your first call should be to your city or township zoning office before you list a single night.

Quick Answer: Michigan STRs at a Glance

Michigan adopts a hands-off approach at the state level. No statewide preemption law overrides local STR ordinances; cities, townships, and villages set the rules. The Michigan Zoning Enabling Act (PA 110 of 2006, MCL 125.3101 et seq.) grants local governments broad land use authority. Most have used this authority to shape, restrict, or ban short-term rentals.

Statewide, hosts can expect:

• No uniform registration system. Each municipality manages its own system, or none.
• State sales and use tax applies. Michigan levies a 6% sales tax (PA 167 of 1933, MCL 205.51 et seq.) and a 6% use tax (PA 94 of 1937, MCL 205.91 et seq.) on short-term rental income. Platforms like Airbnb and VRBO typically collect and remit this on your behalf; verify your platform's coverage.
• Local rules vary dramatically. A property in Traverse City faces a different regulatory environment than one in Detroit or a rural township in Leelanau County.

Before listing, contact your local zoning and planning department.

State vs. Local Control: Understanding Michigan's Framework

Home Rule and the Zoning Enabling Act

Michigan municipalities derive their zoning authority from the Michigan Zoning Enabling Act (MZEA), MCL 125.3101 et seq. This statute empowers cities, townships, and villages to regulate land use, define permitted uses by zoning district, and impose conditions. Short-term rentals fall within this authority.

Under the MZEA, a local government can:

• Define STRs as a distinct use category.
• Permit STRs by right in some zones, and prohibit them in others.
• Require special use permits or conditional use approvals.
• Impose density caps, occupancy limits, and operational standards.

State Preemption Attempts

The Michigan Legislature has seen several attempts to preempt local STR ordinances and create a statewide framework. None have been enacted. Consult the Michigan Legislature's bill tracking system (legislature.mi.gov) for pending preemption legislation.

Court Decisions

Michigan courts have generally upheld local zoning authority over STRs. In Reaume v. Township of Spring Lake and related cases, Michigan courts affirmed local governments can classify STRs as commercial uses in residential zones and regulate or prohibit them. For current case law, consult a Michigan real estate attorney or search Michigan Court of Appeals published opinions at courts.michigan.gov. No Michigan Supreme Court ruling has fundamentally altered this local-control framework.

Key Local Ordinances and Requirements Across Michigan

What Local Regulations Typically Cover

Local ordinances typically cover some or all of the following:

• Annual registration or licensing with a fee.
• Maximum occupancy limits (often tied to bedroom count).
• Parking requirements (minimum off-street spaces per rental unit).
• Noise ordinances and quiet hours.
• Trash and waste management rules.
• Life safety inspections (smoke detectors, CO detectors, fire extinguishers, egress).
• Owner or local agent contact requirements for guest issues.
• Prohibition on rentals shorter than a defined minimum stay in some zones.

City-by-City Snapshot

Local ordinances vary. Verify current requirements directly with each municipality.