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

Detroit Short-Term Rental Market Overview

Detroit stands out as a compelling short-term rental market thanks to its unusually favorable revenue-to-price ratio — with average home values around $139,855 and annual STR revenue averaging $19,336, investors can achieve entry points that many larger metros simply can't match. The market hosts 597 active Airbnb listings and has seen a remarkable 92% year-over-year growth in supply, signaling rising investor confidence. While occupancy sits at 28% (below the 42% Michigan state average), the low acquisition cost means even modest booking rates can deliver meaningful returns relative to the investment.

Key Market Statistics

According to Rabbu market data, the Detroit 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 Detroit

Detroit's exceptionally low property prices relative to STR revenue potential make it one of the most accessible markets for investors seeking strong yield without heavy capital outlay.

Expert Market Assessment

"Detroit represents a standout opportunity for STR investors who prioritize yield over volume. The revenue-to-price ratio is above average, and the market growth trend signals expanding demand — but occupancy stability currently sits below average at 28%, meaning investors need realistic expectations about booking frequency. Seasonality is moderate: revenue peaks in July at $2,024/month and dips to $957 in February, creating a roughly 2:1 spread between the best and weakest months. Investors who target larger properties and price competitively stand to capture the strongest returns in this still-maturing market."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Detroit

Average revenue by month in Detroit

Detroit's STR revenue peaks in July at $2,024 and bottoms out in February at $957, creating a roughly 2:1 seasonal spread. The May–October window consistently delivers above-average monthly revenue, while the winter months from December through March represent the softest period — something investors should plan for with adequate reserves.

Active Airbnb listings by property size in Detroit

One-bedroom units dominate Detroit's supply with 265 listings (44% of the market), followed by 2-bedrooms at 124 and 3-bedrooms at 98. Larger properties with 4+ bedrooms are significantly underrepresented — just 73 listings combined — which could signal a supply gap and an opportunity for investors willing to target that segment.

Average daily rate (ADR) by property size in Detroit

ADR scales dramatically with property size in Detroit, from $116 for 1-bedroom units all the way to $802 for 6+ bedroom homes. The steepest jump occurs between 4-bedroom ($247) and 5-bedroom ($411) properties, suggesting that the premium guests will pay for group-sized accommodations is particularly strong in this market.

Average RevPAN by property size in Detroit

Revenue per available night is highest for 6+ bedroom properties at $138, followed by 5-bedrooms at $92 and 4-bedrooms at $67. One-bedroom units trail at just $33 RevPAN, indicating that despite their higher occupancy rates, smaller properties generate far less per-night revenue — making larger homes more efficient earners on a per-night basis.

Average occupancy rates by property size in Detroit

Studios lead occupancy at 32%, with 1- and 2-bedroom units close behind at 29% and 30% respectively. Occupancy drops for larger properties, with 6+ bedroom homes filling just 17% of available nights — meaning investors in bigger properties rely on high nightly rates rather than volume to drive revenue.

Average monthly revenue by property size in Detroit

Monthly revenue rises sharply with bedroom count: 1-bedroom listings average $1,262/month while 6+ bedroom properties bring in $6,253 — nearly five times more. The jump from 3-bedroom ($1,802) to 4-bedroom ($2,998) is especially notable, marking the inflection point where larger properties begin significantly outperforming the market average of $1,611.

Average annual revenue by property size in Detroit

Annual revenue ranges from $14,589 for studios to $75,046 for 6+ bedroom properties, with 5-bedroom homes averaging $56,098 — representing particularly strong return potential given Detroit's low property prices. Even mid-range 3-bedroom units generate $21,634 annually, which paired with the market's ~$140K average home value offers an attractive yield profile.

Most common amenities for Airbnb listings in Detroit

Parking and kitchen access are near-universal at 97% each, reflecting that Detroit guests overwhelmingly expect a full home experience with convenient vehicle access. Self check-in (82%) and laundry facilities (72% washer, 68% dryer) round out the essentials, while differentiators like hot tubs (3%) and waterfront access (4%) remain rare and could help listings stand out.

Understanding Detroit's ROI Score: 77/100

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

Detroit's ROI Score of 77 out of 100 places it in the "Standout Opportunity" tier, driven primarily by an above-average revenue-to-price ratio — the single most heavily weighted factor at 40%. Market growth trend also scores above average, reflecting the 92% year-over-year increase in active listings, though below-average occupancy stability tempers the overall picture. Investors should pair these metrics with thorough local regulatory research and realistic occupancy modeling to build a complete investment thesis.

Short-Term Rental Regulations in Detroit

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

Permit Requirements

The City of Detroit and the State of Michigan may require short-term rental operators to obtain permits, register their property, or secure a business license before listing. Investors should verify current requirements directly with Detroit's Buildings, Safety Engineering, and Environmental Department and the Michigan Department of Licensing and Regulatory Affairs.

Key Restrictions

Common restrictions that may apply include occupancy limits based on property size, minimum stay requirements, noise and nuisance ordinances, and parking provisions for guests. HOA rules can impose additional limitations — particularly in condo or multi-unit buildings — so reviewing governing documents before purchasing is essential.

Tax Obligations

Short-term rental hosts in Michigan are typically subject to state sales tax and local excise or accommodations taxes. Many booking platforms collect and remit these taxes on behalf of hosts, but operators should confirm their obligations with 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 Detroit can provide current regulatory guidance.

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Detroit's STR market is expected to continue its rapid growth trajectory, though the pace of new supply entering the market may moderate occupancy rates further before stabilizing. Seasonal patterns suggest revenue could concentrate between May and October, with July remaining the peak month and February the softest — investors should plan cash reserves to cover leaner winter months. ADR may see modest increases in the 2–4% range as the market matures and larger properties command stronger premiums. The above-average market growth trend and favorable revenue-to-price dynamics position Detroit well, though occupancy stability remains the metric to watch most closely."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Detroit, MI

What is the average Airbnb occupancy rate in Detroit?

The average Airbnb occupancy rate in Detroit is currently 28%, which falls below the Michigan state average of 42%. Occupancy varies by property size — studios lead at 32%, while 6+ bedroom properties see the lowest rate at 17%. Investors should factor in this lower occupancy when modeling cash flow, though Detroit's affordable property prices help offset the impact on overall returns.

How much do Airbnb hosts make in Detroit?

Detroit Airbnb hosts earn an average of $1,611 per month, or approximately $19,336 per year, based on the trailing 12 months of booking data. Revenue varies significantly by property size: 1-bedroom listings average $15,147 annually, while 5-bedroom properties pull in roughly $56,098 per year. Larger homes clearly command the highest returns, though they also require greater upfront investment and operational effort.

Is Detroit a good market for Airbnb investment?

Detroit scores 77 out of 100 on Rabbu's ROI Score, placing it in the "Standout Opportunity" category. The market's biggest strength is its above-average revenue-to-price ratio — with average home values around $139,855, investors can achieve meaningful yield at a fraction of the cost seen in most major metros. The main consideration is below-average occupancy stability, so success often depends on competitive pricing, property quality, and targeting the right property size for the market.

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

The average daily rate for Airbnb listings in Detroit is $179, which is well below the Michigan state average of $350. ADR scales significantly with property size: 1-bedroom units average $116 per night, while 6+ bedroom properties command $802 per night. This wide range means investors in larger properties can capture substantial nightly premiums, though occupancy rates tend to be lower for those bigger homes.

Are short-term rentals legal in Detroit?

Short-term rentals do operate in Detroit, with 597 active Airbnb listings currently in the market. However, the City of Detroit and the State of Michigan may require permits, registration, or licensing for STR operators. Regulations can change, so investors should verify the latest requirements with local authorities before purchasing or listing a property.

When is peak season for Airbnb in Detroit?

Peak season for Airbnb in Detroit runs from May through October, with July being the highest-earning month at an average of $2,024 in revenue. The summer months benefit from warmer weather, outdoor events, and tourism activity. February is the slowest month at $957, so investors should budget for reduced income during the winter months.

How many Airbnbs are there in Detroit?

Detroit currently has 597 active Airbnb listings, with a notable 92% year-over-year growth in supply. The market is dominated by 1-bedroom units (265 listings), followed by 2-bedroom properties (124 listings) and 3-bedroom homes (98 listings). The rapid supply growth indicates strong investor interest, though it also means increased competition for bookings.

How is Airbnb revenue calculated in Detroit?

The annual and monthly revenue figures for Detroit 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 remaining data 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. 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 by market and property size
• Average daily rate, occupancy, and RevPAN metrics across property configurations
• Monthly and annual revenue trends based on trailing 12-month booking performance
• Home value data from Zillow Home Value Index (ZHVI) for investment analysis
• Data aggregated from multiple proprietary and third-party sources for consistency

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 historical averages and may not capture very recent market shifts. Local regulations, permit requirements, and tax obligations are subject to change — always verify with local authorities before investing.