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View PropertiesAs of Apr, 27 2026
Rabbu ROI Score
Ludington offers attractive short-term rental potential, with a balance of healthy demand and revenue relative to property values.
Ludington, MI is a Lake Michigan beach town where short-term rental investors can tap into strong summer tourism demand and an above-average revenue-to-price ratio. With an ROI score of 72 out of 100, the market earns an "Attractive Opportunity" rating driven by healthy RevPAN relative to property costs averaging $453,952. The 48 active Airbnb listings indicate a compact, less saturated market, though sharp seasonality means investors should plan for significant revenue swings between summer peaks and winter lows.
According to Rabbu market data, the Ludington short-term rental market shows:
| Metric | Context | Value |
|---|---|---|
| Active Airbnb Listings | As of Apr, 27 2026 | 48 |
| Average Daily Rate (ADR) | vs. $350 state avg. | $289 |
| Average Occupancy Rate | vs. 42% state avg. | 23% |
| RevPAN | ADR * Occupancy Rate | $67 |
| Average Monthly Revenue | Historical 12-month average | $3,970 |
| Average Annual Revenue | Historical 12-month average | $47,646 |
Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026.
Ludington's favorable revenue-to-price ratio, lakefront tourism appeal, and compact supply make it a compelling option for investors seeking seasonal vacation rental income in western Michigan.
Key investment factors
"Ludington presents a compelling but distinctly seasonal investment opportunity. July revenue averages $10,998 per listing — more than ten times the February figure of $794 — so investors need to budget for dramatic off-season softness and price aggressively during the summer window. The above-average revenue-to-price ratio and occupancy stability scores reinforce that well-managed properties can generate meaningful returns, though the below-average supply/demand balance suggests new entrants should monitor competition closely. Overall, this is a market that rewards operators who lean into peak-season optimization and keep carrying costs manageable through the quieter months."
— Rabbu Market Analysis Team
Ludington's revenue curve is dramatically seasonal: July ($10,998) and August ($10,771) account for nearly half of all annual earnings, while February bottoms out at just $794. Investors should expect a roughly 14x spread between peak and off-peak months, making summer pricing strategy the single biggest lever for annual returns.
| Month | Trend | Revenue |
|---|---|---|
| January |
|
$1,072 |
| February |
|
$794 |
| March |
|
$1,050 |
| April |
|
$1,353 |
| May |
|
$2,619 |
| June |
|
$5,370 |
| July |
|
$10,998 |
| August |
|
$10,771 |
| September |
|
$3,956 |
| October |
|
$3,491 |
| November |
|
$2,809 |
| December |
|
$3,359 |
Supply is remarkably balanced across property sizes, with 3-bedroom homes holding a slight edge at 14 listings and all other sizes (1BR, 2BR, 4BR) tied at 10 each. This even distribution means no single segment is dramatically oversaturated, though the small total count of 48 listings means competitive dynamics can shift quickly.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
10 |
| 2 bedrooms |
|
10 |
| 3 bedrooms |
|
14 |
| 4 bedrooms |
|
10 |
ADR scales steeply with size in Ludington — 4-bedroom properties command $469 per night, more than double the $205 rate for 1-bedroom units. Interestingly, 2-bedroom listings have the lowest ADR at $187, suggesting that mid-size properties may face more pricing pressure than either end of the spectrum.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$205 |
| 2 bedrooms |
|
$187 |
| 3 bedrooms |
|
$264 |
| 4 bedrooms |
|
$469 |
Four-bedroom properties lead in RevPAN at $80, followed by 1-bedrooms at $65, while 2-bedroom and 3-bedroom listings trail at $51 and $49 respectively. This indicates that larger homes command enough of a nightly premium to offset their lower occupancy, making them competitive earners on a per-available-night basis.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$65 |
| 2 bedrooms |
|
$51 |
| 3 bedrooms |
|
$49 |
| 4 bedrooms |
|
$80 |
Smaller units stay booked more consistently, with 1-bedroom listings reaching 32% occupancy versus just 17% for 4-bedroom homes. The inverse relationship between size and occupancy is typical of seasonal vacation markets, where smaller properties attract a broader range of shorter getaway bookings year-round.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
32% |
| 2 bedrooms |
|
27% |
| 3 bedrooms |
|
19% |
| 4 bedrooms |
|
17% |
One-bedroom listings edge out the competition with $4,109 in average monthly revenue, just ahead of 4-bedroom homes at $4,087 — a striking near-tie despite vastly different nightly rates. Two-bedroom properties lag at $2,945 per month, making them the weakest performers in Ludington's current mix.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$4,109 |
| 2 bedrooms |
|
$2,945 |
| 3 bedrooms |
|
$3,363 |
| 4 bedrooms |
|
$4,087 |
On an annual basis, 1-bedroom properties lead at $49,319, closely followed by 4-bedrooms at $49,049, while 2-bedroom units trail at $35,343. For investors weighing acquisition cost against revenue, the strong performance of 1-bedroom listings — likely at a lower purchase price — may offer the most efficient path to returns.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$49,319 |
| 2 bedrooms |
|
$35,343 |
| 3 bedrooms |
|
$40,358 |
| 4 bedrooms |
|
$49,049 |
Parking and kitchens top the amenity list at 90% prevalence, with outdoor-focused features like BBQ grills (79%), backyards (75%), and patios (71%) rounding out the top five — a clear reflection of Ludington's appeal as a summer lakeside destination. Lake access (35%) and waterfront location (21%) are less common, suggesting properties with direct water access could command a meaningful premium.
| Amenity | Trend | Value |
|---|---|---|
| Parking |
|
90% |
| Kitchen |
|
90% |
| BBQ Grill |
|
79% |
| Backyard |
|
75% |
| Patio or Balcony |
|
71% |
| Outdoor Furniture |
|
67% |
| Self Check-in |
|
65% |
| Dryer |
|
60% |
| Washer |
|
60% |
| Workspace |
|
48% |
| Lake Access |
|
35% |
| Pets |
|
35% |
| Hot Tub |
|
23% |
| Waterfront |
|
21% |
Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.
| Factor | Ludington Performance | Weight |
|---|---|---|
| Revenue-to-Price Ratio | Above average | 40% |
| Occupancy Stability | Above average | 30% |
| Market Growth Trend | Above average | 15% |
| Supply/Demand Balance | Below average | 15% |
Ludington's ROI score of 72 out of 100 places it in the "Attractive Opportunity" band, driven primarily by an above-average revenue-to-price ratio and strong occupancy stability — two factors that together account for 70% of the score. Market growth trend also scores above average, reflecting the 83% year-over-year increase in active listings, though the below-average supply/demand balance is worth watching as more inventory enters this small market. Pairing these metrics with thorough research into local STR regulations and seasonal cash-flow planning will give investors the clearest picture of what Ludington can deliver.
Understanding local STR regulations is essential before investing in Ludington. Here's the current regulatory landscape:
Short-term rental operators in Ludington, Michigan may be required to obtain a local permit or register their property with the city before listing. Investors should verify current requirements directly with Ludington city officials and Mason County authorities, as STR regulations in Michigan communities can vary significantly.
Common restrictions in Michigan vacation rental markets include occupancy limits based on bedroom count, minimum-stay requirements during certain seasons, noise ordinances, and off-street parking mandates. HOA or deed restrictions may also apply to specific properties, so reviewing any covenants before purchasing is essential.
Short-term rental hosts in Michigan are generally subject to the state's 6% use tax and may owe local lodging or excise taxes depending on the municipality. Many booking platforms collect and remit certain taxes on the host's behalf, but operators should confirm their full tax obligations with a local tax advisor.
Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Ludington can provide current regulatory guidance.
Financing an Airbnb investment in Ludington requires lenders who understand STR income. Rabbu partner lenders offer:
"Over the next 12–18 months, Ludington's short-term rental market is expected to continue benefiting from its lakeside appeal and growing visitor interest — active listings grew 83% year over year, signaling increasing investor confidence. Summer months should remain the primary revenue driver, with July and August likely sustaining ADRs in the $250–$475 range depending on property size. Occupancy outside the June–September window will probably hover in the low-to-mid teens percentage-wise, so annual returns will hinge heavily on maximizing peak-season pricing. Investors who position properties with outdoor amenities and flexible booking strategies could see modest 2–4% revenue gains as the market matures."
— 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 as of the dates noted; market conditions can shift due to seasonal patterns, regulatory changes, or economic factors. Individual property results will vary based on location, condition, pricing strategy, and management quality.
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