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

As of Apr, 27 2026

Rabbu ROI Score

40 / 100

Birmingham presents a competitive opportunity: investor interest and demand are strong, but higher prices or tighter competition may require more selective deal sourcing.

Birmingham Short-Term Rental Market Overview

Birmingham, MI is a compact, affluent suburban market where short-term rental activity is growing rapidly — active listings surged 133% year over year — yet the high average home value of $1,443,562 creates a steep entry barrier that keeps yield ratios below average. With just 32 active Airbnb listings generating an average annual revenue of $34,742, the market rewards operators who can command premium nightly rates on larger properties while managing pronounced seasonal swings between summer peaks and winter lows. Investors drawn to this Oakland County enclave should expect a competitive landscape where selective deal sourcing matters more than broad inventory accumulation.

Key Market Statistics

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

Key Airbnb and short-term rental market statistics.
Metric Context Value
Active Airbnb Listings As of Apr, 27 2026 32
Average Daily Rate (ADR) vs. $350 state avg. $259
Average Occupancy Rate vs. 42% state avg. 29%
RevPAN ADR * Occupancy Rate $74
Average Monthly Revenue Historical 12-month average $2,895
Average Annual Revenue Historical 12-month average $34,742

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

Why Investors Consider Birmingham

Investors consider Birmingham for its affluent demographic profile, rapid listing growth signaling opportunity, and premium ADR potential on larger properties — though high home prices demand careful underwriting.

Key investment factors

  • Strong 133% year-over-year growth in active listings signals rising demand and investor confidence
  • 3-bedroom properties deliver $95 RevPAN, nearly triple the rate of smaller units, rewarding upsizing
  • Affluent Oakland County location supports premium daily rates and attracts quality-conscious guests
  • Small market of just 32 listings means less noise and the ability to differentiate with superior amenities
  • Seasonal revenue peak in summer (July at $4,250) provides a concentrated cash-flow window for strategic pricing

Expert Market Assessment

"Birmingham presents a competitive but niche opportunity best suited for investors comfortable with premium price points and moderate yield ratios. The ROI score of 40 out of 100 reflects a below-average revenue-to-price ratio — the market's biggest headwind — tempered by average occupancy stability and balanced supply-demand dynamics. Seasonality is pronounced: July revenue ($4,250) runs nearly three times the February trough ($1,530), so cash-flow planning should account for leaner winter months. Operators who target 3-bedroom properties and deliver the upscale amenities this market's guests expect stand the best chance of generating meaningful returns."

— Rabbu Market Analysis Team

Understanding Birmingham's ROI Score: 40/100

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

Factor Birmingham Performance Weight
Revenue-to-Price Ratio Below average 40%
Occupancy Stability Average 30%
Market Growth Trend Average 15%
Supply/Demand Balance Average 15%

What This Means for Investors

Birmingham's ROI score of 40 out of 100 places it in the 'Competitive Opportunity' band, meaning the market has genuine demand but requires sharper deal-finding to make the numbers work. The below-average revenue-to-price ratio — driven by home values averaging $1.4M against roughly $35K in annual revenue — is the primary drag, while occupancy stability, market growth, and supply/demand balance all register as average. Pairing this data with thorough local regulatory research and targeting 3-bedroom properties can help investors identify the deals that outperform the market-wide averages.

Short-Term Rental Regulations in Birmingham

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

Permit Requirements

Birmingham, Michigan may require short-term rental operators to obtain a permit or register with the city before listing a property. Investors should verify current requirements directly with the City of Birmingham and Oakland County, as local STR ordinances in Michigan communities can vary significantly.

Key Restrictions

Common restrictions in Michigan suburban markets like Birmingham may include occupancy limits tied to bedroom count, minimum-stay requirements, noise and nuisance ordinances, and off-street parking mandates. HOA covenants are especially relevant here given the neighborhood character, and some communities impose caps on the total number of STR permits issued.

Tax Obligations

Short-term rental hosts in Michigan are generally subject to the state's 6% use tax and may owe local or county-level accommodations taxes. Platforms like Airbnb often collect and remit certain taxes on behalf of hosts, but operators should confirm their full obligations with a tax professional familiar with Michigan STR rules.

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

Short-Term Rental Financing for Birmingham

Financing an Airbnb investment in Birmingham requires lenders who understand STR income. Rabbu partner lenders offer:

  • DSCR Loans: Qualify based on property income, not personal income
  • Low Down Payment: As low as 10–15% for investment properties
  • Fast Closing: 21–30 day average close times
  • STR Experience: Lenders who understand vacation rental underwriting
Connect with a Birmingham Lender →

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Birmingham's STR demand is expected to follow its established seasonal arc, with July and August remaining the strongest revenue months and February representing the softest period. The 133% year-over-year listing growth suggests rising investor interest, which could put modest downward pressure on occupancy — currently 29% against a 42% state average — unless demand keeps pace. ADR may hold steady or tick up 1–3% given the market's premium positioning, but investors should plan conservatively around occupancy in the 25–35% range and treat summer revenue as the primary driver of annual returns."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Birmingham, MI

What is the average Airbnb occupancy rate in Birmingham?
The average occupancy rate for Airbnb listings in Birmingham, MI is currently 29%, which sits below the Michigan state average of 42%. Occupancy varies by property size, with 3-bedroom listings achieving the highest rate at 34% and 2-bedroom listings trailing at 23%. These figures reflect the market's seasonal nature and relatively small supply base.
How much do Airbnb hosts make in Birmingham?
Birmingham Airbnb hosts earn an average of $2,895 per month, which translates to roughly $34,742 per year based on the trailing 12-month historical average. Revenue varies significantly by property size: 3-bedroom listings lead at about $3,022 per month ($36,273 annually), while 1-bedroom units average $1,119 per month ($13,439 annually). Summer months deliver the strongest returns, with July topping out around $4,250.
Is Birmingham a good market for Airbnb investment?
Birmingham earns an ROI score of 40 out of 100, categorized as a 'Competitive Opportunity.' Strong investor interest and guest demand exist, but the high average home value of $1,443,562 compresses the revenue-to-price ratio below average. The market works best for investors who already own property in the area or can find off-market deals, particularly 3-bedroom homes that deliver the strongest RevPAN at $95 per available night.
What is the average daily rate (ADR) for Airbnb in Birmingham?
The average daily rate in Birmingham is $259, which is below the Michigan state average of $350. ADR scales meaningfully with property size: 1-bedroom listings average $114, 2-bedrooms average $144, and 3-bedrooms command $280 per night. The premium on larger properties makes them notably more attractive from a pricing perspective.
Are short-term rentals legal in Birmingham?
Short-term rentals operate in Birmingham, MI, with 32 active listings currently on the market. However, investors should check directly with the City of Birmingham for the latest permit requirements, zoning restrictions, and any HOA rules that may apply. Michigan municipalities have varying regulations, and local rules can change, so verifying compliance before purchasing is essential.
When is peak season for Airbnb in Birmingham?
Peak season in Birmingham runs from June through September, with July delivering the highest average monthly revenue at $4,250. August follows closely at $3,980, and June comes in at $3,674. The off-peak period spans December through March, with February marking the lowest revenue month at $1,530 — about 36% of July's earnings.
How many Airbnbs are there in Birmingham?
As of April 2026, there are 32 active Airbnb listings in Birmingham, MI. The supply is split primarily between 2-bedroom and 3-bedroom properties (11 listings each), with 5 one-bedroom units rounding out the inventory. Notably, the market saw 133% year-over-year growth in active listings, indicating a fast-expanding but still small supply base.
How is Airbnb revenue calculated in Birmingham?
The annual and monthly revenue figures for Birmingham are derived from the trailing 12 months of historical booking performance across 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 up the remaining data to a market-level historical average. Because each month uses its own historical performance, the figures naturally reflect seasonal peaks (like July's $4,250) and slower months (like February's $1,530). 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, occupancy rates, and daily rates for the Birmingham, MI market
  • Historical monthly and annual revenue averages based on trailing 12-month booking data from comparable listings
  • Property size breakdowns across key performance metrics including ADR, RevPAN, occupancy, and revenue
  • Amenity prevalence data across active listings to benchmark guest expectations
  • Home value estimates sourced from the Zillow Home Value Index (ZHVI) for investment underwriting context

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 as of April 2026 and may not capture very recent market shifts. Local regulations, HOA restrictions, and tax obligations vary and should be independently verified before investing.

Next Steps

Ready to invest in Birmingham's short-term rental market? Take action with these resources:

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