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View PropertiesAs of Apr, 27 2026
Rabbu ROI Score
Douglas presents a competitive opportunity: investor interest and demand are strong, but higher prices or tighter competition may require more selective deal sourcing.
Douglas, MI is a small lakeside market on Michigan's western shore where short-term rentals command a premium average daily rate of $377—well above the $350 state average. However, with just 54 active listings and a current occupancy rate of 18% (compared to the 42% state average), performance is heavily concentrated in the summer months, making this a highly seasonal play. Average annual revenue sits at $55,961, and average home values near $1,029,881 mean investors need to be strategic about entry price and property type to generate meaningful returns.
According to Rabbu market data, the Douglas short-term rental market shows:
| Metric | Context | Value |
|---|---|---|
| Active Airbnb Listings | As of Apr, 27 2026 | 54 |
| Average Daily Rate (ADR) | vs. $350 state avg. | $377 |
| Average Occupancy Rate | vs. 42% state avg. | 18% |
| RevPAN | ADR * Occupancy Rate | $66 |
| Average Monthly Revenue | Historical 12-month average | $4,663 |
| Average Annual Revenue | Historical 12-month average | $55,961 |
Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026.
Investors are drawn to Douglas for its high nightly rates and lakefront vacation appeal, though the seasonal demand pattern and elevated home prices require careful deal selection.
Key investment factors
"Douglas presents a competitive but narrowly seasonal opportunity. The market's strength is unmistakable during peak summer months—July alone averages $11,607 in revenue—but the off-season from November through March drops to roughly $1,400–$2,300 per month, creating a wide revenue gap that investors must plan around. With an ROI score of 50 out of 100 reflecting average revenue-to-price ratios and below-average growth trends, this is not a passive-income market; it rewards operators who maximize peak-season pricing and actively manage shoulder months. Larger properties, especially 3- and 4-bedroom homes, offer the best path to meaningful annual returns."
— Rabbu Market Analysis Team
Douglas exhibits extreme seasonality, with July ($11,607) and August ($11,132) generating roughly six to eight times the revenue of winter months like February ($1,433). The summer peak accounts for the majority of annual income, so investors should budget for carrying costs during the November-through-March lull when monthly revenue averages just $1,400–$2,300.
| Month | Trend | Revenue |
|---|---|---|
| January |
|
$1,946 |
| February |
|
$1,433 |
| March |
|
$1,980 |
| April |
|
$2,409 |
| May |
|
$4,527 |
| June |
|
$6,316 |
| July |
|
$11,607 |
| August |
|
$11,132 |
| September |
|
$5,640 |
| October |
|
$4,368 |
| November |
|
$2,318 |
| December |
|
$2,282 |
Three-bedroom properties dominate supply with 16 listings, while 2-bedroom and 4-bedroom units each have 11, and 1-bedroom units are the scarcest at just 9 listings. The relatively thin supply across all sizes—only 54 total—means even modest additions could shift competitive dynamics, though the 1-bedroom segment may offer the least crowded entry point.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
9 |
| 2 bedrooms |
|
11 |
| 3 bedrooms |
|
16 |
| 4 bedrooms |
|
11 |
ADR scales steadily with size, from $220 for 1-bedroom units to $466 for 4-bedroom properties—more than double. The jump from 2-bedroom ($267) to 3-bedroom ($390) represents the steepest premium increase at roughly 46%, suggesting that the extra bedroom unlocks a meaningfully higher pricing tier in this vacation-oriented market.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$220 |
| 2 bedrooms |
|
$267 |
| 3 bedrooms |
|
$390 |
| 4 bedrooms |
|
$466 |
Three-bedroom listings deliver the highest RevPAN at $80, narrowly edging out 4-bedroom properties at $75, while 1-bedroom and 2-bedroom units trail at $37 and $47 respectively. The strong RevPAN performance of 3-bedroom homes, combined with their lower acquisition cost compared to 4-bedroom properties, may offer the best balance of revenue and investment efficiency.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$37 |
| 2 bedrooms |
|
$47 |
| 3 bedrooms |
|
$80 |
| 4 bedrooms |
|
$75 |
Occupancy rates are low across the board, ranging from 16% for 4-bedroom properties to a market-high of 21% for 3-bedroom listings. The tight spread suggests that seasonality—not property size—is the primary driver of occupancy in Douglas, with all unit types experiencing the same summer surge and winter slowdown.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
17% |
| 2 bedrooms |
|
18% |
| 3 bedrooms |
|
21% |
| 4 bedrooms |
|
16% |
Four-bedroom properties lead monthly revenue at $7,425, nearly double the $3,999–$4,102 range of 2- and 3-bedroom units, while 1-bedroom listings trail significantly at $2,090. The gap between the top and bottom earners underscores how larger family-friendly homes capture substantially more vacation rental income in this lakeside market.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$2,090 |
| 2 bedrooms |
|
$4,102 |
| 3 bedrooms |
|
$3,999 |
| 4 bedrooms |
|
$7,425 |
At $89,108 per year, 4-bedroom homes earn nearly 3.6 times what 1-bedroom units bring in ($25,083), making them the clear revenue leader. Two- and 3-bedroom properties cluster together around $47,995–$49,229 annually, offering a mid-tier option for investors who want meaningful income without the higher acquisition cost of a larger home.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$25,083 |
| 2 bedrooms |
|
$49,229 |
| 3 bedrooms |
|
$47,995 |
| 4 bedrooms |
|
$89,108 |
Parking is universal (100%) and a kitchen is nearly so (91%), reflecting guest expectations for self-catering vacation stays in Douglas. Outdoor-focused amenities are especially prevalent—patio or balcony (78%), BBQ grill (67%), and backyard (61%)—while differentiators like hot tubs (48%) and lake access (33%) signal opportunities for investors to stand out in this lakeside market.
| Amenity | Trend | Value |
|---|---|---|
| Parking |
|
100% |
| Kitchen |
|
91% |
| Washer |
|
87% |
| Dryer |
|
87% |
| Self Check-in |
|
80% |
| Patio or Balcony |
|
78% |
| BBQ Grill |
|
67% |
| Backyard |
|
61% |
| Outdoor Furniture |
|
59% |
| Workspace |
|
52% |
| Hot Tub |
|
48% |
| Pets |
|
39% |
| Lake Access |
|
33% |
| Waterfront |
|
20% |
Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.
| Factor | Douglas Performance | Weight |
|---|---|---|
| Revenue-to-Price Ratio | Average | 40% |
| Occupancy Stability | Average | 30% |
| Market Growth Trend | Below average | 15% |
| Supply/Demand Balance | Below average | 15% |
Douglas's ROI score of 50 out of 100 places it in the 'Competitive Opportunity' band, meaning the market has genuine appeal but requires disciplined deal selection. Revenue-to-price ratios and occupancy stability both rate as average, while market growth trend and supply/demand balance score below average—reflecting the rapid 180% increase in listings and the market's heavy reliance on a short summer season. Pairing this data with thorough local regulatory research and a realistic off-season budget will help investors determine whether a specific property pencils out.
Understanding local STR regulations is essential before investing in Douglas. Here's the current regulatory landscape:
Short-term rental operators in Douglas, Michigan may need to obtain a permit or register their property with local authorities before listing. Investors should verify current requirements directly with the City of Douglas and Allegan County, as regulations in small Michigan communities can change with limited notice.
Common restrictions in Michigan lakeside communities can include occupancy limits tied to bedroom count, minimum-night stays during certain seasons, noise ordinances, and parking requirements to manage neighborhood impact. HOA or deed restrictions may also apply in some Douglas subdivisions, so reviewing property-level covenants before purchasing is strongly recommended.
Michigan imposes a 6% state use tax on short-term accommodations, and Allegan County may levy additional local lodging or excise taxes. Many booking platforms collect and remit state-level taxes automatically, but hosts should confirm county-level obligations are covered to remain in compliance.
Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Douglas can provide current regulatory guidance.
Financing an Airbnb investment in Douglas requires lenders who understand STR income. Rabbu partner lenders offer:
"Over the next 12–18 months, Douglas is likely to remain a summer-dominated market where July and August drive the bulk of annual income. Investors can reasonably expect ADRs to hold steady or edge up 1–3% given the premium positioning, but occupancy gains will depend on shoulder-season marketing and local event programming. The 180% year-over-year growth in active listings signals rising competition, which could compress occupancy further if demand doesn't keep pace. Selective deal sourcing—particularly for larger properties that command higher nightly rates—will be essential in this environment."
— Rabbu Market Analysis Team
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.
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; market conditions may have shifted since the last update. Local regulations, tax requirements, and permit rules may change; investors should verify all compliance obligations independently.
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