Lake City, MI Airbnb Market Data, Statistics, and Occupancy Rates

Lake City Short-Term Rental Market Overview

Lake City, MI is a small lakeside market with just 21 active Airbnb listings and dramatic seasonal swings that reward investors who can capitalize on a short but lucrative summer window. Average annual revenue sits at $32,653 against an average home value of $371,008, producing an average revenue-to-price ratio that keeps the ROI score at a respectable 60 out of 100. The market's explosive 172% year-over-year listing growth signals rising investor interest, though occupancy at 18% — well below Michigan's 42% state average — underscores the importance of realistic cash-flow planning beyond peak months.

Key Market Statistics

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

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

Why Investors Consider Lake City

Investors are drawn to Lake City for its favorable revenue-to-price ratio and the outsized summer earning potential typical of Michigan lake destinations.

Expert Market Assessment

"Lake City presents an attractive but seasonal investment opportunity, best suited for investors comfortable with a concentrated earning period. July and August drive the bulk of annual revenue, with monthly earnings dropping sharply to under $900 during winter months — a pattern that demands disciplined budgeting. The 3-bedroom segment stands out with a RevPAN of $52 and annual revenue of $33,797, meaningfully outperforming 2-bedroom units. With supply still limited at 21 listings and occupancy stability below average, this is a market that rewards operators who optimize pricing aggressively during summer and manage costs tightly in the off-season."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Lake City

Average revenue by month in Lake City

Lake City's revenue is extremely seasonal, peaking in July at $7,614 and August at $7,428 before dropping sharply — January and February produce just $831 and $876 respectively, creating a roughly 9:1 spread between peak and trough months. Investors should expect to earn the majority of their annual income in a four-month summer window from June through September.

Active Airbnb listings by property size in Lake City

Supply is concentrated in 2-bedroom (7 listings) and 3-bedroom (5 listings) properties, with no other bedroom counts showing meaningful inventory. This limited size range could signal an opportunity for investors willing to offer larger family-sized homes or unique smaller configurations that differentiate from the current supply.

Average daily rate (ADR) by property size in Lake City

ADR is remarkably flat across the two property sizes tracked, with 2-bedroom units at $195 and 3-bedroom units at $198. The minimal $3 premium for an additional bedroom suggests that the rate advantage of larger properties comes more from higher occupancy than from nightly pricing power.

Average RevPAN by property size in Lake City

Three-bedroom properties deliver a RevPAN of $52, roughly 68% higher than the $31 earned by 2-bedroom listings. This gap, driven primarily by stronger occupancy rather than ADR differences, makes the 3-bedroom configuration a more efficient revenue generator per available night.

Average occupancy rates by property size in Lake City

Three-bedroom listings achieve 27% occupancy compared to just 16% for 2-bedroom units, a substantial gap that directly fuels the RevPAN and revenue differences between the two sizes. Both figures remain below the state average of 42%, reinforcing the seasonal nature of Lake City's demand.

Average monthly revenue by property size in Lake City

Three-bedroom properties average $2,816 per month compared to $2,270 for 2-bedroom units, a $546 monthly difference that adds up to meaningful cash-flow impact over a full year. Investors targeting the 3-bedroom segment can expect roughly 24% more monthly revenue on average.

Average annual revenue by property size in Lake City

Annual revenue for 3-bedroom properties reaches $33,797, outpacing 2-bedroom units at $27,245 by about $6,500 per year. Given that ADR is nearly identical, this difference is almost entirely occupancy-driven, making the 3-bedroom format the stronger return configuration in Lake City.

Most common amenities for Airbnb listings in Lake City

Parking (100%) and kitchen access (95%) are effectively table stakes in Lake City, while outdoor-oriented amenities like patio/balcony (67%), BBQ grill (67%), and outdoor furniture (76%) reflect the lake-vacation character of the market. Lake access at 48% and waterfront at 29% signal premium differentiators — properties offering direct water access likely command stronger bookings during the critical summer season.

Understanding Lake City's ROI Score: 60/100

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

Lake City's ROI score of 60 out of 100 places it in the 'Attractive Opportunity' band, reflecting an average revenue-to-price ratio and supply/demand balance that create a workable foundation for investment returns. The score is tempered by below-average occupancy stability and market growth trend, both consequences of the market's pronounced seasonality and rapid listing growth. Investors should pair this data with thorough local regulatory research and a realistic seasonal cash-flow model before committing capital.

Short-Term Rental Regulations in Lake City

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

Permit Requirements

Short-term rental operators in Lake City, Michigan may need to obtain a local rental permit or register their property with the city or Missaukee County. Investors should verify current requirements directly with Lake City's municipal offices and the State of Michigan before listing a property.

Key Restrictions

Common restrictions in Michigan lake communities can include occupancy limits based on bedroom count, minimum-night stay requirements during certain seasons, noise ordinances, parking limitations, and rules around septic system capacity for waterfront properties. HOA covenants, where applicable, may impose additional constraints on short-term rental activity.

Tax Obligations

Michigan requires the collection of a 6% state use tax on short-term accommodations, and some jurisdictions may levy additional local lodging or assessment district taxes. Major platforms like Airbnb often collect and remit state taxes on behalf of hosts, but operators should confirm local obligations are fully covered.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Lake City's summer revenue engine — July and August alone accounted for roughly 46% of annual earnings — is likely to remain the primary driver of returns. The rapid growth in active listings (172% year-over-year) could temper occupancy further unless guest demand keeps pace, so investors should plan for annual occupancy in the 16–22% range. ADR may see modest upward pressure in the $195–$210 range during peak season as the market matures, but off-season months from November through March will likely continue producing sub-$1,000 revenue figures. Pairing a Lake City property with a strong summer pricing strategy and shoulder-season promotions will be critical for maximizing returns."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Lake City, MI

What is the average Airbnb occupancy rate in Lake City?

The average occupancy rate for Airbnb listings in Lake City is currently 18%, which is notably below Michigan's 42% state average. This reflects the market's strong seasonal concentration — summer months see much higher booking activity while winter demand is quite limited. Three-bedroom properties fare better at 27% occupancy compared to 16% for two-bedroom units.

How much do Airbnb hosts make in Lake City?

Based on the trailing 12 months of booking data, Airbnb hosts in Lake City earn an average of $2,721 per month and approximately $32,653 per year. However, revenue varies dramatically by season: July listings average $7,614 while January drops to just $831. Three-bedroom properties tend to outperform with average annual revenue of $33,797 compared to $27,245 for two-bedroom listings.

Is Lake City a good market for Airbnb investment?

Lake City earns an ROI score of 60 out of 100, placing it in the 'Attractive Opportunity' tier. The market benefits from a reasonable revenue-to-price ratio and limited competition with only 21 active listings. The main considerations are below-average occupancy stability and a heavily seasonal revenue pattern, so investors should plan for concentrated summer earnings and lean winter months. Those comfortable with this cadence may find appealing returns, especially with a well-equipped 3-bedroom lakeside property.

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

The average daily rate in Lake City is $198, which is well below Michigan's statewide average of $350. ADR is relatively consistent across property sizes, with 2-bedroom listings averaging $195 and 3-bedroom listings at $198. This more moderate pricing reflects the market's rural lake-community character and keeps the barrier to entry lower for guests.

Are short-term rentals legal in Lake City?

Short-term rentals do operate in Lake City, MI, with 21 active Airbnb listings currently in the market. However, local regulations can change, and operators should check with Lake City municipal authorities and Missaukee County for any permit, registration, or zoning requirements before purchasing or listing a property.

When is peak season for Airbnb in Lake City?

Peak season in Lake City is clearly July and August, when average monthly revenue reaches $7,614 and $7,428 respectively. Shoulder months like June ($2,977) and October ($3,162) also perform well above the annual average. The slowest months are January through March, with revenue dropping below $900 — a pattern typical of Michigan's northern lake destinations.

How many Airbnbs are there in Lake City?

There are currently 21 active Airbnb listings in Lake City as of April 2026. The market is split between 2-bedroom properties (7 listings) and 3-bedroom properties (5 listings), with the remaining units at other sizes. Notably, active listings grew 172% year-over-year, suggesting increasing investor and host interest in this market.

How is Airbnb revenue calculated in Lake City?

The annual and monthly revenue figures for Lake City 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 results 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 meaningfully based on property quality, location relative to the lake, 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 for Lake City and surrounding areas
• Average daily rates, occupancy rates, and RevPAN trends by property size
• Monthly and annual revenue estimates based on trailing 12-month booking performance
• Popular amenity prevalence across active listings to benchmark competitive positioning
• Home value data from the Zillow Home Value Index (ZHVI) for investment analysis

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 and current snapshots as of April 2026; market conditions may shift due to new regulations, economic changes, or shifts in traveler demand. Individual property results will vary based on location, condition, amenities, pricing strategy, and management quality.