Michigan Short-Term Rental Laws by City (2026)
Short-term rental rules in Michigan are set city by city — a property that is legal to rent nightly in one town can be prohibited a few miles away. The table below covers 3 Michigan cities (3 human-verified against official sources), with each city's legal status, permit cost, and last-verified date.
Statewide short-term rental rules in Michigan
Michigan has no statewide short-term rental license, registration, or preemption law: STRs are legal by default at the state level, and each city, township, or village decides through local zoning and ordinances whether and how they may operate. A 2021 preemption bill (HB 4722) that would have made STRs a permitted residential use in all residential zones passed the House but died in the Senate, a 2024 statewide registry/excise-tax package (HB 5437-5446) also died, and a June 2026 successor package (HB 6026-6027) pairing a statewide LARA registry and 6% STR excise tax with a ban on local total STR bans is pending in committee. The state's only across-the-board requirement is the 6% Michigan use tax on accommodations rented for one month or less — Airbnb collects it for hosts, but Vrbo does not and is fighting an $18.7 million Treasury assessment in court, while a pending 2025-26 bill package (HB 5138-5140) would force all platforms to collect and let local voters approve an added lodging excise tax. City and county rules apply on top of state law — check your local market's page.
Full statewide rules: permits, taxes & enforcement
Michigan has no statewide short-term rental license, registration, or preemption law: STRs are legal by default at the state level, and each city, township, or village decides through local zoning and ordinances whether and how they may operate. A 2021 preemption bill (HB 4722) that would have made STRs a permitted residential use in all residential zones passed the House but died in the Senate, a 2024 statewide registry/excise-tax package (HB 5437-5446) also died, and a June 2026 successor package (HB 6026-6027) pairing a statewide LARA registry and 6% STR excise tax with a ban on local total STR bans is pending in committee. The state's only across-the-board requirement is the 6% Michigan use tax on accommodations rented for one month or less — Airbnb collects it for hosts, but Vrbo does not and is fighting an $18.7 million Treasury assessment in court, while a pending 2025-26 bill package (HB 5138-5140) would force all platforms to collect and let local voters approve an added lodging excise tax. City and county rules apply on top of state law — check your local market's page.
Reviewed by the STR Rule Watch research team against 11 official sources. How we verify data
Michigan statewide STR rules at a glance
| Legal status | Allowed, no permit required |
|---|---|
| Permit required | No |
| Total occupancy taxes | ~6% of gross revenue |
| Enforcement | State-level enforcement is limited to tax compliance by the Michigan Department of Treasury; there is no state STR licensing agency or inspection regime. |
State law & local authority
No state preemption: Michigan leaves STR regulation entirely to local governments under the Michigan Zoning Enabling Act (2006 PA 110), so cities, townships, and villages may permit, restrict, cap, or effectively ban STRs through zoning and licensing ordinances. HB 4722 of 2021 — an Arizona-style preemption bill declaring an STR 'a residential use of property and a permitted use in all residential zones' while preserving local nuisance, noise, traffic, inspection, and occupancy regulation — passed the House 55-47 on October 27, 2021 (immediate effect approved 55-48) but died without a Senate floor vote at the end of the 2021-22 session; no successor preemption bill has passed either chamber since, though HB 6027 of 2026 (introduced June 2, 2026, tie-barred to the HB 6026 statewide registry bill) would amend MZEA sec. 207 (MCL 125.3207) to bar local governments from totally banning STRs and is pending in the House Government Operations Committee. Michigan courts have also enforced private deed covenants against STRs: the published Eager v. Peasley (2017) precedent treats short-term rental as a commercial use violating residential-use covenants, and in Melvin R. Berlin Revocable Trust v. Rubin the Michigan Supreme Court's equally divided July 9, 2025 order left standing an unpublished 2023 Court of Appeals holding that a 'single family residence purposes' covenant bars STRs (persuasive but not binding statewide precedent), so both local zoning and deed restrictions can block STRs.
State-level taxes
| Tax | Rate | Who collects |
|---|---|---|
| Michigan Use Tax on accommodationsUnder the Use Tax Act (MCL 205.93, 205.93a), a 6% tax applies to rooms or lodging furnished to guests, except rentals for a continuous period of more than 1 month. Airbnb collects and remits it ('6% of the listing price including any cleaning fee for reservations 30 nights and shorter'); Vrbo/HomeAway does not collect for Michigan and is contesting an $18.7M Treasury use-tax assessment for 2020-2022 in the Michigan Court of Claims (filed Dec. 2025). Hosts must register with Treasury and remit the tax on direct bookings and on any platform that does not collect. County accommodation taxes (e.g., Kent 8%, Genesee 5%) are local add-ons, not state taxes. | 6% | varies |
Enforcement & penalties
State-level enforcement is limited to tax compliance by the Michigan Department of Treasury; there is no state STR licensing agency or inspection regime. Treasury audited HomeAway/Vrbo and billed it $18.7 million in use tax and interest for 2020-2022; HomeAway sued Treasury in the Michigan Court of Claims on Dec. 18, 2025, arguing hosts, not the platform, owe the tax. All other STR enforcement (zoning, permits, caps, safety) happens at the city/township level.
No STR-specific state penalties. Uncollected or unremitted 6% use tax is subject to Treasury assessment with penalties and interest, as in the pending $18.7M HomeAway/Vrbo assessment.
Statewide sources
- Michigan Legislature — Use Tax Act, MCL 205.93a (services taxed, incl. accommodations)retrieved July 11, 2026
- Michigan Legislature — Use Tax Act, MCL 205.93 (6% rate)retrieved July 11, 2026
- Michigan Legislature — House Bill 4722 of 2021 (STR zoning preemption; died)retrieved July 11, 2026
- Michigan Legislature — House Bill 5438 of 2024 (Short-Term Rental Regulation Act; statewide registry, not enacted)retrieved July 11, 2026
- Michigan Legislature — House Bill 5139 of 2025 (marketplace facilitator definition expansion; pending)retrieved July 11, 2026
- Michigan Legislature — House Bill 6026 of 2026 (Short-Term Rental Act; statewide registry + excise tax; pending, tie-barred to HB 6027)retrieved July 11, 2026
- Michigan Legislature — House Bill 6027 of 2026 (MZEA amendment barring local total bans of STRs; pending)retrieved July 11, 2026
- Justia — Melvin R Berlin Revocable Trust v Rubin, Mich. Ct. App. Docket No. 359300 (July 20, 2023) (unpublished opinion)retrieved July 11, 2026
- Airbnb Help Center — Occupancy tax collection and remittance by Airbnb in Michiganretrieved July 11, 2026
- Michigan Townships Association — Short-term rentals advocacy pageretrieved July 11, 2026
- The Detroit News — Short-term rental website Vrbo sues Michigan over $18.7M tax bill (Dec. 2025)retrieved July 11, 2026
| City | Status | Permit fee | Last verified |
|---|---|---|---|
| Detroit | Banned | None | July 21, 2026 |
| Lansing | Permit required | $400 | July 21, 2026 |
| Traverse City | Restricted | $200 | July 13, 2026 |
Don't see your city? Browse all covered cities or request coverage with a Pro account.
This page is informational only and is not legal, tax, or financial advice. Regulations change frequently — verify current requirements with each jurisdiction before operating. HOA and condo rules may prohibit short-term rentals regardless of city law.