Algonac, MI Airbnb Market Data, Statistics, and Occupancy Rates

Algonac Short-Term Rental Market Overview

Algonac, MI is a compact waterfront market on the St. Clair River where just 18 active Airbnb listings serve seasonal demand driven by lake access, boating, and outdoor recreation. With an average annual revenue of $31,318 and home values around $401,339, the revenue-to-price ratio lands at an average level — but an 81% year-over-year growth in active listings signals rising investor interest. The market's pronounced summer seasonality creates strong peak-month earnings, though off-peak months require careful cash-flow planning.

Key Market Statistics

According to Rabbu market data, the Algonac short-term rental market shows:

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026.

Why Investors Consider Algonac

Algonac appeals to investors seeking affordable waterfront entry points in Michigan with strong seasonal upside and a still-emerging competitive landscape.

Expert Market Assessment

"Algonac presents a moderate opportunity for STR investors who understand seasonal markets and can capitalize on a short but lucrative summer window. July revenue averaging $5,779 is roughly eight times higher than February's $706, creating a dramatic seasonal curve that rewards hosts who price aggressively in peak months and manage costs tightly in winter. The ROI score of 60 out of 100 — rated as an Attractive Opportunity — reflects average fundamentals across revenue-to-price and occupancy stability, buoyed by an above-average growth trend. Investors targeting 3-bedroom properties stand to capture the best returns, though the low overall occupancy rate means this market works best as a supplemental income play or paired with midterm rental strategies during off-peak months."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Algonac

Average revenue by month in Algonac

Algonac displays extreme seasonality, with July ($5,779) and August ($5,519) generating nearly eight times the revenue of the slowest month, February ($706). Investors should plan for a concentrated earning window from June through September that accounts for the majority of annual income.

Active Airbnb listings by property size in Algonac

Supply is split between 3-bedroom properties (8 listings) and 2-bedroom units (6 listings), with no data on other sizes — suggesting a narrow, focused market. The absence of larger luxury homes or studio units could represent an untapped niche for investors willing to differentiate.

Average daily rate (ADR) by property size in Algonac

Interestingly, 2-bedroom properties command a higher ADR of $173 compared to $155 for 3-bedroom listings, which may reflect boutique waterfront positioning or premium finishes in smaller units. However, the higher rate doesn't fully compensate for the occupancy gap, making ADR alone an incomplete picture of earning potential.

Average RevPAN by property size in Algonac

Three-bedroom properties edge out two-bedroom units on RevPAN at $29 versus $27, reflecting their slightly better occupancy rates despite lower daily rates. The modest $2 difference suggests both sizes perform comparably on a per-night basis, with the three-bedroom advantage compounding over a full year.

Average occupancy rates by property size in Algonac

Three-bedroom listings maintain a 19% average occupancy rate compared to 16% for two-bedroom properties, indicating that larger groups or families seeking more space keep these units booked more consistently. Both figures are low relative to state averages, underscoring the seasonal nature of the Algonac market.

Average monthly revenue by property size in Algonac

Three-bedroom properties earn an average of $2,504 per month — roughly 63% more than the $1,541 generated by two-bedroom units. This gap makes 3-bedroom configurations the clear revenue leader on a monthly basis for Algonac investors.

Average annual revenue by property size in Algonac

On an annual basis, 3-bedroom properties generate approximately $30,051 compared to $18,502 for 2-bedroom units, making them the stronger revenue play at roughly 62% more income. Given the significant annual revenue difference, investors should weigh whether the incremental acquisition cost of a third bedroom is justified by the $11,500+ revenue premium.

Most common amenities for Airbnb listings in Algonac

Kitchens (100%), BBQ grills (94%), and parking (94%) are near-universal, reflecting a guest base that expects self-sufficient, outdoor-oriented stays. Notably, 67% of listings highlight waterfront access and 56% offer lake access, confirming that proximity to water is the market's core draw and a must-have for competitive listings.

Understanding Algonac's ROI Score: 60/100

Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.

How the ROI Score is Calculated

What This Means for Investors

Algonac's ROI score of 60 out of 100 places it in the Attractive Opportunity band, reflecting a market with decent revenue relative to property costs and meaningful growth momentum. While revenue-to-price ratio, occupancy stability, and supply/demand balance all register at average levels, the above-average market growth trend — supported by an 81% year-over-year jump in listings — signals an emerging market gaining traction. Investors should pair this data with thorough local regulatory research and seasonal cash-flow modeling to ensure the summer earning window supports their financial targets.

Short-Term Rental Regulations in Algonac

Understanding local STR regulations is essential before investing in Algonac. Here's the current regulatory landscape:

Permit Requirements

Short-term rental operators in Algonac, Michigan may need to obtain permits or register their property with local authorities before listing. Investors should verify current requirements with the City of Algonac and the State of Michigan, as regulations in smaller waterfront communities can change as STR activity grows.

Key Restrictions

Common restrictions that may apply include occupancy limits tied to bedroom count, minimum stay requirements, noise ordinances, parking regulations, and potential HOA covenants — particularly relevant in waterfront neighborhoods. Some Michigan communities have also explored permit caps, so checking for any pending local legislation is advisable before purchasing.

Tax Obligations

Michigan imposes a state sales tax and a use tax on short-term rental accommodations, and local jurisdictions may levy additional occupancy or tourism taxes. Platforms like Airbnb often collect and remit state-level taxes on behalf of hosts, but investors should confirm whether any local obligations require separate filing.

Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Algonac can provide current regulatory guidance.

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Algonac's STR market is likely to continue expanding given the above-average growth trend and limited existing supply. Summer months should remain the revenue engine, with July and August potentially pushing monthly averages into the $5,500–$6,000 range as waterfront demand holds. Occupancy rates, currently at 17% on an annualized basis, could see modest improvement as the market matures and hosts optimize pricing for shoulder seasons. Investors should expect winter months to remain soft and plan reserves accordingly, though the overall trajectory favors gradual revenue gains."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Algonac, MI

What is the average Airbnb occupancy rate in Algonac?

The average Airbnb occupancy rate in Algonac is currently 17%, which is notably below the Michigan state average of 42%. This reflects the market's strong seasonal character — summer months drive the bulk of bookings while winter sees significantly less activity. Three-bedroom properties slightly outperform at 19% occupancy compared to 16% for two-bedroom listings.

How much do Airbnb hosts make in Algonac?

Airbnb hosts in Algonac earn an average of $2,609 per month, which translates to approximately $31,318 per year based on trailing 12-month performance. Revenue varies widely by season, ranging from around $706 in February to $5,779 in July. Three-bedroom properties generate roughly $30,051 annually, while two-bedroom units average about $18,502.

Is Algonac a good market for Airbnb investment?

Algonac scores a 60 out of 100 on Rabbu's ROI Score, rated as an Attractive Opportunity. The market benefits from above-average growth trends and limited competition with only 18 active listings, but its low annualized occupancy and heavy seasonal dependence mean investors need strong summer performance to carry the year. Waterfront properties with lake access and outdoor amenities tend to perform best here.

What is the average daily rate (ADR) for Airbnb in Algonac?

The average daily rate for Airbnb listings in Algonac is $201, which sits well below the Michigan state average of $350. Two-bedroom properties command a slightly higher ADR of $173 compared to $155 for three-bedroom units, though three-bedroom listings generate more total revenue due to higher occupancy. The lower ADR reflects Algonac's positioning as an accessible waterfront getaway rather than a luxury destination.

Are short-term rentals legal in Algonac?

Short-term rentals operate in Algonac, MI, as evidenced by 18 active Airbnb listings in the market. However, investors should verify current permit requirements, zoning restrictions, and any local ordinances with the City of Algonac and the State of Michigan before purchasing or listing a property. Regulations in small waterfront communities can evolve quickly as STR activity increases.

When is peak season for Airbnb in Algonac?

Peak season in Algonac runs from June through September, with July being the strongest month at an average revenue of $5,779, followed closely by August at $5,519. Revenue drops sharply after October and hits its lowest point in February at $706. The summer peak is driven by waterfront recreation, lake access, and outdoor activities that define the area's appeal.

How many Airbnbs are there in Algonac?

There are currently 18 active Airbnb listings in Algonac as of April 2026. The market has seen significant growth, with an 81% year-over-year increase in active listings. Supply is concentrated in two-bedroom (6 listings) and three-bedroom (8 listings) properties, keeping overall inventory compact and potentially creating opportunity for new entrants.

How is Airbnb revenue calculated in Algonac?

The annual and monthly revenue figures for Algonac are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — not a forward-looking projection. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, remove regional outliers, and aggregate the results to a market-level historical average. This approach anchors the figures to what hosts have actually earned recently while naturally reflecting seasonal peaks and slower months, since each month uses its own historical performance. Individual results can vary based on property quality, pricing strategy, and operational management.

About Rabbu Market Data

Rabbu provides Airbnb and short-term rental market data and statistics across the United States. Our mission is to empower investors with accurate insights and easy-to-use tools, so they can confidently identify and act on the best opportunities in the Airbnb market.

What this data includes

• Regularly updated active Airbnb and STR listing counts for the Algonac market
• Average daily rate, occupancy, and RevPAN trends by property size
• Monthly and annual revenue metrics based on trailing 12-month booking data
• Popular amenity prevalence across active listings
• Home value data sourced from the Zillow Home Value Index (ZHVI)

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month averages and may not capture very recent market shifts or regulatory changes. Individual property results will vary based on location, condition, pricing strategy, and management quality.