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View PropertiesAs of Apr, 27 2026
Rabbu ROI Score
Kalamazoo offers attractive short-term rental potential, with a balance of healthy demand and revenue relative to property values.
Kalamazoo, MI presents an attractive entry point for short-term rental investors, with average home values around $389,167 and annual revenue averaging $20,205 across active listings. The market's 89 active Airbnb listings and a 136% year-over-year growth in supply signal rising investor interest, though the average daily rate of $146 sits well below Michigan's $350 state average — suggesting a budget-friendly market where affordability could be a differentiator. With occupancy at 37% and clear seasonal patterns, this is a market that rewards strategic pricing and property selection.
According to Rabbu market data, the Kalamazoo short-term rental market shows:
| Metric | Context | Value |
|---|---|---|
| Active Airbnb Listings | As of Apr, 27 2026 | 89 |
| Average Daily Rate (ADR) | vs. $350 state avg. | $146 |
| Average Occupancy Rate | vs. 42% state avg. | 37% |
| RevPAN | ADR * Occupancy Rate | $53 |
| Average Monthly Revenue | Historical 12-month average | $1,683 |
| Average Annual Revenue | Historical 12-month average | $20,205 |
Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026.
Kalamazoo draws investor attention thanks to relatively affordable property prices paired with reasonable revenue potential, anchored by university-driven demand and Midwest accessibility.
Key investment factors
"Kalamazoo earns an ROI score of 56 out of 100, placing it in the "Attractive Opportunity" tier — a market with genuine potential but one that asks investors to be deliberate about property type and timing. Seasonality is pronounced: monthly revenue swings from a January low of $1,034 to an August peak of $2,493, meaning cash-flow planning needs to account for meaningful winter softness. The supply side warrants attention, as the below-average supply/demand balance and rapid listing growth suggest competition is intensifying. Still, the combination of affordable acquisition costs and solid returns on larger properties makes Kalamazoo a worthwhile market for investors who can operate efficiently through off-peak months."
— Rabbu Market Analysis Team
Kalamazoo's revenue cycle peaks sharply in summer, with August topping out at $2,493 and July close behind at $2,374 — more than double the January low of $1,034. This roughly 2.4x spread between peak and trough underscores the importance of pricing optimization and reserve planning for the quieter winter months.
| Month | Trend | Revenue |
|---|---|---|
| January |
|
$1,034 |
| February |
|
$1,287 |
| March |
|
$1,445 |
| April |
|
$1,374 |
| May |
|
$1,677 |
| June |
|
$1,989 |
| July |
|
$2,374 |
| August |
|
$2,493 |
| September |
|
$1,846 |
| October |
|
$1,760 |
| November |
|
$1,435 |
| December |
|
$1,486 |
One-bedroom units dominate Kalamazoo's supply with 35 listings (39% of the market), followed by 28 two-bedroom properties. With only 7 four-bedroom listings currently active, larger properties represent a relatively underserved segment that could offer less competition and higher revenue per booking.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
35 |
| 2 bedrooms |
|
28 |
| 3 bedrooms |
|
14 |
| 4 bedrooms |
|
7 |
ADR scales steadily with size in Kalamazoo, from $97 for 1-bedrooms up to $233 for 4-bedroom properties — a 140% premium. The jump from 2-bedrooms ($145) to 3-bedrooms ($185) represents a sweet spot where the per-bedroom rate increase remains strong relative to the added space.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$97 |
| 2 bedrooms |
|
$145 |
| 3 bedrooms |
|
$185 |
| 4 bedrooms |
|
$233 |
RevPAN is remarkably consistent across 1- through 3-bedroom properties at $46–$47 per night, but 4-bedroom listings break away at $83 — nearly 77% higher. This suggests that larger properties in Kalamazoo command both the rates and the bookings to deliver materially better per-night revenue after accounting for vacancy.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$47 |
| 2 bedrooms |
|
$46 |
| 3 bedrooms |
|
$47 |
| 4 bedrooms |
|
$83 |
One-bedroom listings lead occupancy at 49%, well above the market average, while 3-bedroom properties lag at just 25%. Four-bedroom units recover to 36%, indicating that the combination of higher ADR and moderate occupancy at the 4-bedroom tier produces the strongest overall revenue profile.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
49% |
| 2 bedrooms |
|
32% |
| 3 bedrooms |
|
25% |
| 4 bedrooms |
|
36% |
Monthly revenue rises substantially with property size: 1-bedrooms average $1,241 while 4-bedrooms reach $3,452 — nearly three times as much. Even the step from 2-bedrooms ($1,724) to 3-bedrooms ($2,696) represents a meaningful 56% jump, making upsizing a compelling strategy for revenue-focused investors.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$1,241 |
| 2 bedrooms |
|
$1,724 |
| 3 bedrooms |
|
$2,696 |
| 4 bedrooms |
|
$3,452 |
Four-bedroom properties lead Kalamazoo's annual revenue rankings at $41,435, compared to $14,903 for 1-bedrooms. With only 7 four-bedroom listings in the market, there's potential for well-managed larger properties to capture outsized returns due to limited supply and strong per-unit revenue.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$14,903 |
| 2 bedrooms |
|
$20,693 |
| 3 bedrooms |
|
$32,354 |
| 4 bedrooms |
|
$41,435 |
Kitchens (97%) and parking (94%) are near-universal in Kalamazoo's STR market, reflecting guest expectations for home-like convenience in a car-dependent Midwest market. A workspace is offered in 69% of listings — signaling meaningful demand from remote workers and extended-stay guests — while premium amenities like hot tubs and lake access remain rare at just 5%, presenting potential differentiation opportunities.
| Amenity | Trend | Value |
|---|---|---|
| Kitchen |
|
97% |
| Parking |
|
94% |
| Self Check-in |
|
84% |
| Washer |
|
81% |
| Dryer |
|
75% |
| Workspace |
|
69% |
| Backyard |
|
53% |
| Patio or Balcony |
|
52% |
| Pets |
|
44% |
| BBQ Grill |
|
44% |
| Outdoor Furniture |
|
42% |
| Hot Tub |
|
5% |
| Lake Access |
|
5% |
| Gym |
|
5% |
Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.
| Factor | Kalamazoo Performance | Weight |
|---|---|---|
| Revenue-to-Price Ratio | Average | 40% |
| Occupancy Stability | Average | 30% |
| Market Growth Trend | Average | 15% |
| Supply/Demand Balance | Below average | 15% |
Kalamazoo's ROI score of 56 out of 100 places it in the "Attractive Opportunity" band, reflecting average performance across revenue-to-price ratio, occupancy stability, and market growth trend, with a below-average mark on supply/demand balance due to rapid listing growth. The score suggests the market offers genuine upside — particularly for larger properties — but incoming supply could compress margins if demand doesn't keep pace. Investors should pair this data with thorough local regulatory research and property-level underwriting to validate returns before committing.
Understanding local STR regulations is essential before investing in Kalamazoo. Here's the current regulatory landscape:
Short-term rental operators in Kalamazoo, MI may be required to obtain a permit or register their property with the city before listing. Investors should verify current requirements directly with the City of Kalamazoo and the State of Michigan, as regulations can evolve with changes in local policy.
Common restrictions that may apply to STRs in Kalamazoo include occupancy limits, minimum stay requirements, noise ordinances, and parking regulations. HOA rules can also impose additional limitations, and some jurisdictions cap the number of permits issued or restrict STRs to certain zoning districts — all factors worth confirming before purchasing a property.
Short-term rental hosts in Michigan are typically subject to state sales tax and local accommodations or excise taxes. Many booking platforms collect and remit these taxes on behalf of hosts, but operators should confirm their specific obligations with Kalamazoo's tax authority to ensure full compliance.
Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Kalamazoo can provide current regulatory guidance.
Financing an Airbnb investment in Kalamazoo requires lenders who understand STR income. Rabbu partner lenders offer:
"Over the next 12–18 months, Kalamazoo's STR market is expected to see continued supply growth given the 136% year-over-year increase in active listings, which may put modest downward pressure on occupancy unless demand keeps pace. Seasonal revenue patterns suggest summer months will remain the strongest earning period, with ADR potentially edging up 2–4% as hosts optimize pricing during peak demand in July and August. Occupancy rates may stabilize in the 35–40% range market-wide, though well-positioned properties with competitive amenities could outperform. Investors should monitor the supply-demand balance closely, as the below-average rating on that factor indicates the market is absorbing new inventory at a pace worth watching."
— 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 performance and market conditions as of the dates noted; actual conditions may differ at the time of investment. Local regulations, tax requirements, and permit rules are subject to change — always verify with municipal and state authorities before purchasing.
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