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View PropertiesAs of Apr, 27 2026
Rabbu ROI Score
Houghton Lake offers attractive short-term rental potential, with a balance of healthy demand and revenue relative to property values.
Houghton Lake is a seasonal lakefront market in Michigan where short-term rentals benefit from a strong revenue-to-price ratio, with average home values around $348,025 and annual revenue averaging $26,303 across 70 active Airbnb listings. The market's ADR of $213 sits well below the $350 state average, but affordable property prices help offset that gap, making the economics appealing for investors targeting vacation-rental demand. Occupancy runs at 21% overall — heavily concentrated in the summer months — so cash-flow planning needs to account for a pronounced off-season.
According to Rabbu market data, the Houghton Lake short-term rental market shows:
| Metric | Context | Value |
|---|---|---|
| Active Airbnb Listings | As of Apr, 27 2026 | 70 |
| Average Daily Rate (ADR) | vs. $350 state avg. | $213 |
| Average Occupancy Rate | vs. 42% state avg. | 21% |
| RevPAN | ADR * Occupancy Rate | $45 |
| Average Monthly Revenue | Historical 12-month average | $2,191 |
| Average Annual Revenue | Historical 12-month average | $26,303 |
Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026.
Houghton Lake attracts investor attention because affordable lakefront property prices paired with healthy summer ADRs create an above-average revenue-to-price ratio that can offset seasonal occupancy swings.
Key investment factors
"Houghton Lake presents a moderate-to-attractive opportunity for investors who understand and plan for its sharp seasonality. Revenue is heavily front-loaded into summer — July and August alone account for roughly half of the annual total — while the winter months from November through March each produce under $1,200. The ROI score of 62 out of 100 reflects a genuinely strong revenue-to-price ratio tempered by below-average occupancy stability and supply/demand balance. Investors who pair waterfront amenities with competitive pricing during shoulder months stand the best chance of smoothing out the seasonal revenue curve."
— Rabbu Market Analysis Team
Houghton Lake's revenue is sharply seasonal: July leads at $6,760 and August follows at $6,315, while the winter trough bottoms out in March at just $562. This roughly 12:1 spread between peak and off-peak months means investors should plan for a summer-dependent cash-flow model with limited winter income.
| Month | Trend | Revenue |
|---|---|---|
| January |
|
$1,125 |
| February |
|
$942 |
| March |
|
$562 |
| April |
|
$885 |
| May |
|
$1,652 |
| June |
|
$2,972 |
| July |
|
$6,760 |
| August |
|
$6,315 |
| September |
|
$1,988 |
| October |
|
$1,495 |
| November |
|
$851 |
| December |
|
$751 |
Two- and 3-bedroom properties dominate the supply, accounting for 48 of the 70 active listings. One-bedroom units are notably scarce with just 5 listings, which could represent either limited demand for smaller units in a lakefront market or a potential niche for budget-conscious travelers.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
5 |
| 2 bedrooms |
|
25 |
| 3 bedrooms |
|
23 |
| 4 bedrooms |
|
10 |
ADR nearly triples from 1-bedroom ($117) to 4-bedroom ($341) properties, with 3-bedroom listings hitting $226 — a meaningful jump from the 2-bedroom rate of $146. The steepest ADR premium kicks in at the 3- and 4-bedroom tiers, where lake-house-style accommodations likely command higher group-travel rates.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$117 |
| 2 bedrooms |
|
$146 |
| 3 bedrooms |
|
$226 |
| 4 bedrooms |
|
$341 |
Four-bedroom properties deliver the highest RevPAN at $73, nearly double the $38–$39 range for 2- and 3-bedroom units. One-bedroom listings trail significantly at $15 RevPAN, suggesting that larger properties convert their rate premium into meaningfully better revenue efficiency despite modest overall occupancy.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$15 |
| 2 bedrooms |
|
$39 |
| 3 bedrooms |
|
$38 |
| 4 bedrooms |
|
$73 |
Two-bedroom units lead occupancy at 27%, while 1-bedroom listings lag behind at just 13% — indicating that smaller units struggle to attract consistent bookings in this lake-oriented market. Three-bedroom (17%) and 4-bedroom (21%) properties fall in between, reflecting that larger homes may book fewer but more lucrative stays.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
13% |
| 2 bedrooms |
|
27% |
| 3 bedrooms |
|
17% |
| 4 bedrooms |
|
21% |
Monthly revenue climbs steadily with size: 4-bedroom properties earn $3,509 per month on average, roughly 3.6 times the $978 generated by 1-bedroom units. The jump from 2-bedroom ($1,790) to 3-bedroom ($2,485) is notable and suggests the 3-bedroom tier offers a strong balance of revenue and likely lower acquisition costs compared to 4-bedroom homes.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$978 |
| 2 bedrooms |
|
$1,790 |
| 3 bedrooms |
|
$2,485 |
| 4 bedrooms |
|
$3,509 |
Four-bedroom homes top the revenue chart at $42,109 annually, while 3-bedroom properties generate $29,830 — both configurations that may offer favorable return profiles against Houghton Lake's average home value of $348,025. One-bedroom units at $11,738 annually are unlikely to cover carrying costs on most properties without supplemental income streams.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$11,738 |
| 2 bedrooms |
|
$21,491 |
| 3 bedrooms |
|
$29,830 |
| 4 bedrooms |
|
$42,109 |
Parking (97%), kitchen (90%), and self check-in (84%) are table-stakes amenities in Houghton Lake, while lake access (66%) and waterfront positioning (57%) are the standout differentiators that align with guest expectations in a lake-destination market. BBQ grills (76%) and outdoor furniture (67%) further underscore that guests are booking for outdoor lakeside experiences.
| Amenity | Trend | Value |
|---|---|---|
| Parking |
|
97% |
| Kitchen |
|
90% |
| Self Check-in |
|
84% |
| BBQ Grill |
|
76% |
| Outdoor Furniture |
|
67% |
| Backyard |
|
67% |
| Lake Access |
|
66% |
| Waterfront |
|
57% |
| Patio or Balcony |
|
56% |
| Washer |
|
51% |
| Dryer |
|
50% |
| Pets |
|
37% |
| Beach Access |
|
34% |
| Workspace |
|
26% |
Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.
| Factor | Houghton Lake Performance | Weight |
|---|---|---|
| Revenue-to-Price Ratio | Above average | 40% |
| Occupancy Stability | Below average | 30% |
| Market Growth Trend | Average | 15% |
| Supply/Demand Balance | Below average | 15% |
Houghton Lake's ROI score of 62 out of 100 places it in the Attractive Opportunity tier, driven primarily by an above-average revenue-to-price ratio that reflects affordable property values relative to summer earning potential. The score is tempered by below-average occupancy stability and supply/demand balance, both consequences of the market's pronounced seasonality and concentrated summer demand. Investors should pair this data with thorough local regulatory research and realistic off-season budgeting to fully evaluate the opportunity.
Understanding local STR regulations is essential before investing in Houghton Lake. Here's the current regulatory landscape:
Houghton Lake, Michigan may require short-term rental operators to obtain a local permit or register their property with the township or county. Investors should verify current requirements directly with Roscommon County and the local municipality before listing a property.
Common restrictions in Michigan lakefront communities can include occupancy limits tied to bedroom count, minimum-stay requirements during certain seasons, noise ordinances, parking limitations, and septic system capacity rules. HOA covenants in lakeside developments may also restrict or prohibit short-term rentals, so reviewing any deed restrictions before purchasing is essential.
Short-term rental hosts in Michigan are generally subject to the state's 6% use tax and may owe local accommodations or tourism taxes depending on the jurisdiction. Major platforms like Airbnb often collect and remit state taxes automatically, but hosts should confirm whether any additional local obligations apply in the Houghton Lake area.
Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Houghton Lake can provide current regulatory guidance.
Financing an Airbnb investment in Houghton Lake requires lenders who understand STR income. Rabbu partner lenders offer:
"Over the next 12–18 months, Houghton Lake should continue to see its strongest booking activity from June through August, when monthly revenue can exceed $6,000. We estimate ADR could edge up 1–3% as waterfront inventory remains limited, though occupancy is likely to hover in the 20–25% range annually given the market's deep winter lull. Listing growth has been moderate — year-over-year active listings sit at 97% of the prior year — suggesting supply is relatively stable and unlikely to flood the market. Investors should budget conservatively for the November-through-April stretch and consider dynamic pricing strategies to capture shoulder-season demand."
— 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 historical averages and may not capture recent regulatory or market shifts. Local short-term rental regulations vary and can change; investors should verify current rules with municipal authorities before purchasing.
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