Regulatory Overview
State STR LicenseNot Required
State Preemption LawNo
Permit RequiredLocal Level Only
Owner-Occupied RequiredNo
Last Verified2026-02
Official source: https://www.michigan.gov/treasury
Tax Breakdown
6%
State Sales Tax
6%
Lodging / TOT
Est. Total Tax Burden~12%
Total is an estimate. Local taxes, county surcharges, and platform fees vary. Always verify with your local tax authority.
Key Rule Summary
No state STR license. Use tax + state sales tax applies. Michigan Vacation Rental Act (2023) provides some owner protections. Local municipalities control permitting. Lake Michigan coastal areas very popular STR markets.
Major City Rules
3 cities tracked
Detroit
Moderate
STR permit required in some districts
Traverse City
Moderate
Township permit required, popular wine/resort market
Petoskey
Host Friendly
State and local tax, permissive
Housing Market Data — US Census ACS
ACS 5-Year 2022
4,580,447
Total Housing Units
12.5%
Vacancy Rate
72.5%
Owner-Occupied
27.5%
Renter-Occupied
265,328
Seasonal/Vacation Units
5.8%
Seasonal Unit %
Source: US Census Bureau ACS 5-Year Estimates · Seasonal/vacation units are a proxy for STR-receptive housing stock.