Short-Term Rental Laws in Detroit, MI (2026)
Detroit's Zoning Code (Sec. 50-12-492(d), effective Feb. 6, 2018) prohibits using a dwelling to accommodate paid overnight guests as a home occupation, so Airbnb/Vrbo-style short-term rentals in homes are currently prohibited citywide; only bed-and-breakfast inns operating as public accommodations outside R1 and R2 districts are permitted. The city has drafted a licensing ordinance (most recently in January 2024) but as of July 2026 no STR ordinance has been adopted, and the city's own Legislative Policy Division confirmed in June 2025 that short-term rentals remain prohibited. Enforcement has historically been limited, but hosts operate without any legal permit pathway.
Reviewed by the STR Rule Watch research team against 9 official sources. How we verify data
Detroit STR rules at a glance
| Legal status | Banned |
|---|---|
| Permit required | No |
| Total occupancy taxes | ~6% of gross revenue |
| Enforcement | BSEED (Buildings, Safety Engineering and Environmental Department) enforces the Property Maintenance Code and zoning through blight violations, but there is no STR-specific registration or enforcement regime because no STR ordinance has been enacted. In 2019, Corporation Counsel Lawrence Garcia advised against implementing the home-occupation prohibition on short-term rentals in favor of a dedicated STR amendment, and news reports from 2018 indicate BSEED publicly stated it would not ticket homeowners renting rooms in their own residences while legal review was pending. In practice, many STRs operate in Detroit despite the prohibition. |
| Current rules effective | 2018-02-06 |
What will guests pay in taxes on a Detroit stay?
Itemized occupancy taxes for Detroit, MI — enter your nightly rate to see the real cost breakdown.
Detroit occupancy tax calculator
| Gross rent | $450.00 |
| Michigan Use Tax on accommodations (state) (6%)· collection varies | $27.00 |
| Total tax (6%) | $27.00 |
| Guest pays | $477.00 |
Estimate only. Platform collection varies by listing site and agreement; verify rates with the taxing authorities.
Permits & licensing
Detroit does not currently require a dedicated short-term rental permit, but state or county registration and tax rules may still apply.
No STR permit or license exists because the use itself is prohibited under the Zoning Code. Figures repeated by secondary sources come from unenacted drafts: the 2019 draft (Secs. 9-1-100.2 through 9-1-100.14) included the 90-day annual cap and 10-guest limit, and the January 3, 2024 LPD draft (Chapter 8, proposed Sec. 8-15-100.5) proposed a $250 non-refundable initial license fee and $125 renewal fee for a one-year license. The '$500 annual license' figure widely repeated by listing sites appears in neither official draft and could not be traced to any official source. None of these drafts were enacted by City Council.
Zoning & location rules
Under Sec. 50-12-492(d) of the 2019 Detroit City Code (adopted via Ord. No. 37-17, effective Feb. 6, 2018), use of a dwelling to accommodate paid overnight guests is prohibited as a home occupation in all residential dwellings citywide. The only carve-out is for public accommodations, including bed-and-breakfast inns, which are permitted outside the R1 (single-family) and R2 (two-family) districts as provided in Sec. 50-12-65. The October 2024 City Planning Commission recommendation on the Sixth General Text Amendment expressly declined to repeal this prohibition until a dedicated STR ordinance is ready for Council consideration.
Taxes
| Tax | Rate | Who collects |
|---|---|---|
| Michigan Use Tax on accommodations (state)Applies to accommodations rented for a continuous period of 1 month or less (MCL 205.93a, Use Tax Act, PA 94 of 1937), levied by the Michigan Department of Treasury. Airbnb collects and remits 6% of the listing price including cleaning fees for reservations of 30 nights or shorter; hosts booking through platforms that do not collect must register and remit to Michigan Treasury themselves. Detroit levies no city accommodations/excise tax on STRs: under MCL 141.862 (as amended effective April 2, 2024) the City could levy up to a 2% excise tax on transient lodging, but only with voter approval, which has not occurred. Net STR income is separately subject to Michigan and City of Detroit income taxes. | 6% | varies |
Enforcement & penalties
BSEED (Buildings, Safety Engineering and Environmental Department) enforces the Property Maintenance Code and zoning through blight violations, but there is no STR-specific registration or enforcement regime because no STR ordinance has been enacted. In 2019, Corporation Counsel Lawrence Garcia advised against implementing the home-occupation prohibition on short-term rentals in favor of a dedicated STR amendment, and news reports from 2018 indicate BSEED publicly stated it would not ticket homeowners renting rooms in their own residences while legal review was pending. In practice, many STRs operate in Detroit despite the prohibition.
⚠️ HOA/condo rules may prohibit STRs regardless of city law.
Getting legal in Detroit
Detroit currently prohibits short-term rentals in most or all circumstances, so there is no standard path to a new permit. Check the change history below and consider tracking this market — prohibition regimes are among the most litigated and most frequently revised in our database.
Recent rule changes in Detroit
June 24, 2025
LPD study confirms STRs remain prohibited; explores STR tax feasibility
In a study on the feasibility of taxing short-term rentals, the City Council's Legislative Policy Division confirmed that 'currently short-term rentals in the City are prohibited' under the Zoning Code, and that a local STR excise tax would first require repealing the prohibition and obtaining voter approval.
Official source →October 3, 2024
City Planning Commission keeps STR prohibition in Sixth General Text Amendment
The CPC voted to recommend approval of the Sixth General Text Amendment to the Zoning Ordinance but expressly declined to repeal the Sec. 50-12-492(d) prohibition on paid overnight guests as a home occupation until a dedicated STR ordinance is ready for Council consideration. The amendment was still awaiting City Council action as of early 2026.
Official source →April 2, 2024
State law amendment lets Detroit levy up to 2% lodging excise tax with voter approval
MCL 141.862 (PA 263 of 1974, Excise Tax on Business Providing Accommodations), as amended effective April 2, 2024, authorizes Detroit to levy an excise tax of up to 2% on transient lodging (including STR operators) but only if approved by city voters. No such tax has been enacted.
Official source →January 3, 2024material
Draft STR licensing ordinance submitted to City Council
Detroit's Legislative Policy Division submitted an 18-page draft short-term rental ordinance amending Chapter 8 (Property Maintenance Code, Requirements for Rental Property, Subdivision C, Short Term Rentals). As of July 2026 it has not been adopted, so the zoning prohibition remains in force.
Official source →
Frequently asked questions
›Is Airbnb legal in Detroit?
No — Detroit, MI prohibits short-term rentals like Airbnb in most or all circumstances. Always confirm current requirements with the city before operating.
›Do I need a permit for a short-term rental in Detroit?
No permit is currently required to operate a short-term rental in Detroit, MI, though other rules (taxes, safety, HOA restrictions) may still apply. Always confirm current requirements with the city before operating.
›What taxes do short-term rental hosts pay in Detroit?
Hosts in Detroit are subject to: Michigan Use Tax on accommodations (state) (6%) — roughly 6% total on gross rental revenue. Platforms like Airbnb collect some of these automatically; check each line's collection method on this page.
›Does Airbnb collect taxes automatically in Detroit?
No — in Detroit hosts are responsible for registering, collecting, and remitting the listed occupancy taxes themselves. Always confirm current requirements with the city before operating.
›What happens if I operate a short-term rental illegally in Detroit?
BSEED (Buildings, Safety Engineering and Environmental Department) enforces the Property Maintenance Code and zoning through blight violations, but there is no STR-specific registration or enforcement regime because no STR ordinance has been enacted. In 2019, Corporation Counsel Lawrence Garcia advised against implementing the home-occupation prohibition on short-term rentals in favor of a dedicated STR amendment, and news reports from 2018 indicate BSEED publicly stated it would not ticket homeowners renting rooms in their own residences while legal review was pending. In practice, many STRs operate in Detroit despite the prohibition.
›When did Detroit's current short-term rental rules take effect?
The current ordinance took effect on February 6, 2018. See the change timeline on this page for amendments since, and the sources section for the official text.
Detroit's STR rules changed 2 times recently.
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Related
Nearby covered markets
- Lansing, MIPermit required
- Cleveland, OHRestricted
- Columbus, OHPermit required
- Pittsburgh, PAPermit required
- Traverse City, MIRestricted
More resources
- How to get a short-term rental permit in Detroit
- Detroit short-term rental taxes explained
- Can I Airbnb in Detroit?
- All Michigan STR laws by city
- Occupancy tax calculator
- Compare STR permit costs across cities
- Detroit ranks among cities that ban or effectively ban airbnb
- Detroit ranks among cities with no str permit required
- STR city rankings: strictest, cheapest permits & more
- What is transient occupancy tax?
- What is a de-facto STR ban?
- Best STR compliance tools, compared
- Latest STR rule changes nationwide
Sources
- Detroit City Council Legislative Policy Division — Study On Feasibility of Implementing Tax on Short Term Rentals (June 24, 2025)retrieved July 20, 2026
- City of Detroit — 2024-01-03 Draft Short Term Rental Ordinanceretrieved July 20, 2026
- Detroit City Planning Commission — Report to City Council on the Sixth General Text Amendment (Aug. 29, 2025)retrieved July 20, 2026
- Airbnb Help Center — Occupancy tax collection and remittance by Airbnb in Michiganretrieved July 20, 2026
- Detroit, MI Code of Ordinances (2019 Detroit City Code) — Municode Libraryretrieved July 20, 2026
- City of Detroit — BSEED Tenant/Rental Property (landlord rental requirements)retrieved July 20, 2026
- Metro Times — Detroit says it will not enforce its controversial new Airbnb rules (2018 enforcement posture; lead only)retrieved July 20, 2026
- Fox News — Detroit won't enforce Airbnb ban (BSEED director David Bell: 'BSEED will not be ticketing homeowners for renting out rooms in their own residence')retrieved July 20, 2026
- City of Detroit — Proposed Short Term Rental Ordinance 1-3-24 (draft PDF; Sec. 8-15-100.5 fee: $250 initial, $125 renewal — never enacted)retrieved July 20, 2026
This page is informational only and is not legal, tax, or financial advice. Rules change and enforcement varies — verify current requirements with Detroit and a qualified professional before operating.