Ann Arbor, MI Airbnb Market Data, Statistics, and Occupancy Rates

Ann Arbor Short-Term Rental Market Overview

Ann Arbor's short-term rental market benefits from the University of Michigan's year-round draw — driving demand from visiting families, football weekends, graduation ceremonies, and academic conferences. With 298 active listings, an average daily rate of $355 (just above Michigan's $350 state average), and an ROI score of 65 out of 100, the market presents an attractive opportunity where event-driven demand spikes can meaningfully boost annual returns. Average annual revenue sits at $40,505, though larger properties can far exceed that figure, making property-size selection a critical investment decision.

Key Market Statistics

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

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026.

Why Investors Consider Ann Arbor

Ann Arbor's university-anchored demand, above-average occupancy stability, and premium nightly rates for larger properties make it a compelling market for investors willing to navigate seasonal revenue swings.

Expert Market Assessment

"Ann Arbor represents a moderately strong STR opportunity with clear seasonal peaks that reward well-timed pricing. October leads the revenue calendar at $5,417 per month — more than three times the January low of $1,675 — so investors should build reserves or supplement income during the winter trough. The market's above-average occupancy stability and average revenue-to-price ratio suggest that returns are achievable but depend on property selection and operational execution, particularly given average home values near $763,319. Targeting 3- or 4-bedroom properties appears to offer the best balance of demand and revenue potential."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Ann Arbor

Average revenue by month in Ann Arbor

Ann Arbor's revenue curve is sharply seasonal: October peaks at $5,417, more than triple the January low of $1,675, with a strong August–November corridor that captures fall semester and football demand. Investors should expect roughly 60% of annual revenue to concentrate in just five months (July–November), making cash reserves essential for the winter trough.

Active Airbnb listings by property size in Ann Arbor

Supply is concentrated in the 1- to 3-bedroom range, which collectively accounts for 217 of the market's 298 listings, while 5-bedroom and 6+ bedroom properties total just 16 listings combined. The scarcity of larger homes could represent an opportunity for investors, given the outsized revenue those configurations generate.

Average daily rate (ADR) by property size in Ann Arbor

ADR rises steeply with bedroom count, jumping from $122 for 1-bedrooms to $461 for 3-bedrooms and $742 for 4-bedrooms, with 6+ bedroom properties topping out at $821. The most pronounced price jump occurs between 2 and 3 bedrooms (from $224 to $461), suggesting that the group-accommodation premium kicks in meaningfully at the 3-bedroom threshold.

Average RevPAN by property size in Ann Arbor

Four-bedroom properties deliver the highest RevPAN at $223, followed closely by 6+ bedrooms at $214, while 1-bedroom units lag at just $41 per available night. The gap between ADR leaders and RevPAN leaders — particularly the drop from $605 ADR to $130 RevPAN for 5-bedrooms — highlights how occupancy differences can dramatically reshape effective revenue.

Average occupancy rates by property size in Ann Arbor

Studios and 1-bedrooms lead occupancy at 34–35%, while 5-bedroom properties trail at just 22%, reflecting narrower demand for the largest units. The relatively tight 27–35% range across most sizes means occupancy alone isn't the differentiator — revenue gains come primarily from higher nightly rates on larger properties.

Average monthly revenue by property size in Ann Arbor

Six-plus bedroom properties dominate monthly revenue at $11,981 — more than six times the $1,928 earned by 1-bedroom units — while 4-bedrooms deliver a strong $7,926 per month. The dip from 4-bedroom ($7,926) to 5-bedroom ($4,563) revenue is notable and may reflect a thinner demand pool or less competitive pricing at that size.

Average annual revenue by property size in Ann Arbor

At $143,781 annually, 6+ bedroom properties far outpace all other sizes, with 4-bedrooms next at $95,113 — both configurations generating multiples of the market-wide $40,505 average. For investors weighing acquisition cost against return, 3-bedroom properties at $53,033 annual revenue offer a solid middle ground with more moderate purchase prices.

Most common amenities for Airbnb listings in Ann Arbor

Parking (97%) and a kitchen (93%) are near-universal, signaling that guests treat Ann Arbor stays as home-base experiences rather than hotel alternatives. A workspace appears in 70% of listings — well above many leisure markets — suggesting meaningful demand from remote workers and visiting academics, while the low prevalence of hot tubs (4%) and gyms (6%) indicates these aren't market expectations.

Understanding Ann Arbor's ROI Score: 65/100

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

Ann Arbor's ROI score of 65 out of 100 places it in the 'Attractive Opportunity' band, driven primarily by above-average occupancy stability and average marks on revenue-to-price ratio, market growth, and supply/demand balance. The average revenue-to-price ratio reflects the reality that Ann Arbor's home values ($763,319) require meaningful revenue to justify the investment, though larger properties can tip that equation favorably. Pairing this score with on-the-ground regulatory research and a property-specific pro forma will give investors the clearest picture of achievable returns.

Short-Term Rental Regulations in Ann Arbor

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

Permit Requirements

Ann Arbor, Michigan may require short-term rental operators to obtain a permit or register their property with the city before listing on platforms like Airbnb. Investors should verify current requirements directly with the City of Ann Arbor's planning or licensing department before purchasing.

Key Restrictions

Common restrictions in markets like Ann Arbor can include occupancy limits per bedroom, minimum stay requirements, noise and nuisance ordinances, and parking provisions for guests. HOA rules may add another layer of limitation, and some neighborhoods may have permit caps or owner-occupancy requirements that affect investor-owned properties.

Tax Obligations

Short-term rental hosts in Michigan are generally subject to state sales tax and local accommodations or excise taxes, which platforms like Airbnb often collect and remit on the host's behalf. Investors should confirm their specific obligations with Ann Arbor's finance office and the Michigan Department of Treasury to ensure full compliance.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Ann Arbor's STR market is expected to maintain its strongly seasonal pattern, with revenue concentrated in the August–November corridor driven by the fall academic calendar and football season. Occupancy stability rates above average for the state, which should help cushion softer winter months when revenue dips below $2,000. ADR could edge up 2–4% as listing supply — which has grown 122% year-over-year — begins to stabilize and hosts compete on quality rather than volume. Investors entering now should plan conservatively for January–March cash flow while positioning for substantial fall upside."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Ann Arbor, MI

What is the average Airbnb occupancy rate in Ann Arbor?

The average occupancy rate for Airbnb listings in Ann Arbor is currently 31%, which falls below the Michigan state average of 42%. Occupancy varies significantly by property size, with studios and 1-bedroom units leading at 34–35%, while larger 5-bedroom properties average around 22%. The lower overall figure reflects Ann Arbor's highly seasonal demand pattern, where fall months see substantially higher bookings than winter.

How much do Airbnb hosts make in Ann Arbor?

Based on trailing 12-month data, the average Airbnb host in Ann Arbor earns approximately $3,375 per month or $40,505 annually. Earnings vary widely by property size — 1-bedroom units average about $23,140 per year, while 4-bedroom properties can bring in roughly $95,113, and 6+ bedroom homes average an impressive $143,781 annually. Peak months like October can generate over $5,400, while January may yield closer to $1,675.

Is Ann Arbor a good market for Airbnb investment?

Ann Arbor scores 65 out of 100 on Rabbu's ROI Score, placing it in the 'Attractive Opportunity' category. The market benefits from above-average occupancy stability and steady demand driven by university events, though the revenue-to-price ratio is average given home values near $763,319. Investors targeting larger properties (3–4 bedrooms) can capture significantly higher revenue, but should plan for pronounced seasonality with softer returns from January through March.

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

The average daily rate in Ann Arbor is $355, slightly above the Michigan state average of $350. ADR scales considerably with property size: studios and 1-bedrooms average $122–$135 per night, while 4-bedroom listings command $742 and 6+ bedroom properties reach $821. This tiered pricing reflects the premium guests are willing to pay for group-friendly accommodations, especially during event weekends.

Are short-term rentals legal in Ann Arbor?

Short-term rentals do operate in Ann Arbor, with 298 active Airbnb listings currently in the market. However, local regulations may require permits, registration, or compliance with zoning requirements. Investors should contact the City of Ann Arbor directly to confirm current rules, as STR regulations can evolve. Reviewing any applicable HOA restrictions before purchasing is also strongly recommended.

When is peak season for Airbnb in Ann Arbor?

Peak season in Ann Arbor runs from August through November, aligning with the University of Michigan's fall semester and football season. October is the single highest-earning month at $5,417 in average revenue, followed by September ($4,690) and August ($4,676). Revenue drops sharply in winter, with January ($1,675) and February ($1,734) marking the softest months — a spread of over $3,700 between the peak and trough.

How many Airbnbs are there in Ann Arbor?

As of April 2026, there are 298 active Airbnb listings in Ann Arbor. The supply is fairly evenly distributed between 1-bedroom (76 listings), 2-bedroom (78 listings), and 3-bedroom (63 listings) properties, with 49 four-bedroom listings and smaller counts of studios (16), 5-bedroom (8), and 6+ bedroom (8) properties. Notably, listing count has grown 122% year-over-year, indicating significant new supply entering the market.

How is Airbnb revenue calculated in Ann Arbor?

The annual and monthly revenue figures shown for Ann Arbor are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — they are not forward-looking projections. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, remove regional outliers, and roll the results up 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 because each month uses its own historical performance data. Individual results can vary based on property quality, pricing strategy, and how effectively the listing is managed.

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 by market and property size
• Average daily rate, occupancy, and RevPAN metrics based on current and trailing 12-month data
• Revenue estimates by month and property size derived from historical booking performance
• Popular amenity prevalence across active listings in the market
• Home value benchmarks 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 Mar, 17 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month averages and current snapshots as of the dates noted; market conditions can shift due to regulatory changes, economic factors, or seasonal variations. Local STR regulations are subject to change — investors should independently verify all permit, zoning, and tax requirements before purchasing.