Madison Heights, MI Airbnb Market Data, Statistics, and Occupancy Rates

Madison Heights Short-Term Rental Market Overview

Madison Heights, MI is a compact suburban market just north of Detroit that punches above its weight for short-term rental investors. With an average home value of $269,943 and an above-average revenue-to-price ratio, the market offers an accessible entry point relative to the income it generates. The 43 active listings and 124% year-over-year listing growth suggest rising investor interest, while the market's proximity to metro Detroit employment centers and event venues provides a steady base of demand.

Key Market Statistics

According to Rabbu market data, the Madison Heights 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 Madison Heights

Affordable property prices paired with above-average revenue-to-price performance make Madison Heights a compelling market for investors seeking cash-flow-oriented STR opportunities near a major metro area.

Expert Market Assessment

"Madison Heights represents an attractive opportunity for STR investors who prioritize affordability and yield over peak nightly rates. Revenue follows a clear seasonal arc — July tops out at $2,218 per month on average while February bottoms near $798 — so investors should expect meaningful cash-flow swings and plan reserves accordingly. The above-average revenue-to-price ratio and occupancy stability factors suggest the market rewards well-run properties, especially 2-bedroom and 4-bedroom configurations that deliver the strongest RevPAN. With only 43 active listings, the competitive landscape remains manageable, though the rapid growth in supply warrants monitoring."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Madison Heights

Average revenue by month in Madison Heights

Revenue in Madison Heights follows a pronounced summer peak, with July topping out at $2,218 and February marking the low point at $798 — a nearly 3x spread that underscores the importance of seasonal budgeting. The shoulder months of May ($1,696) and October ($1,577) still deliver respectable income, suggesting demand doesn't fall off a cliff outside the core summer window.

Active Airbnb listings by property size in Madison Heights

One-bedroom units make up the largest share of supply with 15 listings, followed closely by 3-bedrooms at 13, while 4-bedroom properties are the scarcest at just 5 listings. The limited supply of larger homes, combined with their higher revenue potential, may signal a gap worth exploring for investors willing to acquire multi-bedroom properties.

Average daily rate (ADR) by property size in Madison Heights

ADR scales steadily from $49 for 1-bedroom units to $174 for 4-bedroom properties, with each bedroom step adding roughly $35–$50 in nightly rate. The jump from 1-bedroom to 2-bedroom pricing ($49 to $103) is especially steep, suggesting 2-bedrooms offer a strong value proposition for guests and a meaningful rate uplift for hosts.

Average RevPAN by property size in Madison Heights

Four-bedroom properties deliver the highest RevPAN at $47 per available night, followed by 2-bedrooms at $39, while 1-bedroom and 3-bedroom units cluster around $21–$22. The gap between 3-bedroom RevPAN ($22) and their $139 ADR highlights their low 16% occupancy as the key drag on per-night revenue efficiency.

Average occupancy rates by property size in Madison Heights

One-bedroom listings lead occupancy at 43%, comfortably above the market average, while 2-bedrooms hold at 38% — both viable for consistent bookings. Three-bedroom properties stand out as the weakest performers at just 16% occupancy, which could reflect oversupply relative to demand or pricing misalignment in that segment.

Average monthly revenue by property size in Madison Heights

Four-bedroom properties generate the highest average monthly revenue at $2,605, more than four times the $581 earned by 1-bedroom units. Two-bedroom listings at $1,973 per month represent a strong middle ground, outearning 3-bedrooms ($1,596) despite lower nightly rates, thanks to substantially better occupancy.

Average annual revenue by property size in Madison Heights

Annualized, 4-bedroom homes lead at $31,265, followed by 2-bedrooms at $23,685, making these two configurations the most compelling from a gross revenue standpoint. One-bedroom units at $6,974 annually are likely best suited as low-cost entry points or supplemental income plays rather than primary investment vehicles.

Most common amenities for Airbnb listings in Madison Heights

Parking is universal at 100% of listings — an essential baseline in this suburban Detroit market — while kitchen (95%), washer (93%), and dryer (91%) round out the must-haves. The high prevalence of workspace (81%) suggests a notable share of guests are business or remote-work travelers, and investors should treat self check-in (86%) as a standard expectation rather than a differentiator.

Understanding Madison Heights's ROI Score: 74/100

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

Madison Heights earns a 74 out of 100 on Rabbu's ROI Score, placing it in the "Attractive Opportunity" band. The score is anchored by above-average marks in both revenue-to-price ratio and occupancy stability — two factors that together account for 70% of the score's weighting — while market growth trend and supply/demand balance come in at average levels. Investors should pair these data-driven signals with on-the-ground regulatory research and a property-specific underwriting analysis before committing capital.

Short-Term Rental Regulations in Madison Heights

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

Permit Requirements

Short-term rental operators in Madison Heights, Michigan may be required to obtain a local rental permit or business registration before listing their property. Investors should verify current permit requirements directly with the City of Madison Heights and Oakland County authorities, as local rules can change.

Key Restrictions

Common STR restrictions in Michigan suburban markets include occupancy limits tied to bedroom count, minimum stay requirements, noise and nuisance ordinances, and parking regulations. HOA and condo association rules may impose additional limitations, so investors should review any applicable covenants before purchasing a property intended for short-term rental use.

Tax Obligations

Michigan imposes a 6% state use tax and local hotel/excise taxes on short-term accommodations, though platforms like Airbnb often collect and remit some of these taxes on behalf of hosts. Investors should confirm whether any additional Madison Heights or Oakland County lodging assessments apply to their specific property.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Madison Heights is expected to see continued supply growth as investors respond to favorable revenue-to-price dynamics, though the pace may moderate from the recent 124% surge. Seasonal patterns suggest revenue will concentrate in the June–September window, with ADR likely holding steady or rising 1–3% as hosts optimize pricing. Occupancy, currently at 32% market-wide, could tighten modestly as newer listings mature and refine their strategies. Investors entering now should plan for a seasonal revenue curve and budget conservatively around winter months when monthly revenue dips below $1,000."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Madison Heights, MI

What is the average Airbnb occupancy rate in Madison Heights?

The average occupancy rate for Airbnb listings in Madison Heights is currently 32%, which trails the Michigan state average of 42%. However, occupancy varies significantly by property size — 1-bedroom units lead at 43%, while 3-bedroom properties sit at just 16%. Investors who optimize pricing and amenities for their target guest segment can often outperform the market average.

How much do Airbnb hosts make in Madison Heights?

Based on trailing 12-month booking data, the average Airbnb host in Madison Heights earns approximately $1,511 per month or $18,135 per year. Larger properties tend to earn more — 4-bedroom listings average $2,605 per month ($31,265 annually), while 1-bedroom units average $581 per month ($6,974 annually). Actual results depend on factors like property condition, guest experience, and pricing strategy.

Is Madison Heights a good market for Airbnb investment?

Madison Heights scores a 74 out of 100 on Rabbu's ROI Score, earning an "Attractive Opportunity" rating. The market benefits from an above-average revenue-to-price ratio thanks to relatively affordable home values around $269,943 combined with solid earning potential. Occupancy stability is also above average, which helps smooth out cash flow. Investors should still account for seasonal revenue swings and verify local regulations before committing.

What is the average daily rate (ADR) for Airbnb in Madison Heights?

The average daily rate across all active listings in Madison Heights is $103, which is well below the $350 Michigan state average. ADR scales meaningfully with property size: 1-bedroom units average $49 per night, 2-bedrooms come in at $103, 3-bedrooms at $139, and 4-bedroom properties command $174 per night. The lower ADR reflects the suburban, value-oriented nature of the market rather than a quality issue.

Are short-term rentals legal in Madison Heights?

Short-term rentals generally operate in Madison Heights, MI, but local regulations may require permits, registration, or compliance with zoning rules. Since STR regulations can change, investors should check directly with the City of Madison Heights and relevant Oakland County offices to confirm current requirements before listing a property.

When is peak season for Airbnb in Madison Heights?

Peak season in Madison Heights runs from June through September, with July delivering the highest average monthly revenue at $2,218. The summer months benefit from warmer weather, events in the greater Detroit area, and increased travel activity. The slowest months are January and February, when average revenue drops to $916 and $798 respectively — a seasonal spread investors should factor into their financial planning.

How many Airbnbs are there in Madison Heights?

As of April 2026, there are 43 active Airbnb listings in Madison Heights. The supply is distributed across property sizes: 15 one-bedroom units, 10 two-bedroom units, 13 three-bedroom units, and 5 four-bedroom properties. Notably, the market has seen 124% year-over-year growth in active listings, indicating rising investor interest.

How is Airbnb revenue calculated in Madison Heights?

The annual and monthly revenue figures shown for Madison Heights 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, since each month uses its own historical performance data. Individual results can vary based on property quality, pricing strategy, and how well the listing is managed.

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 by market and property size
• Average daily rate, occupancy, and RevPAN metrics across multiple property configurations
• Monthly and annual revenue trends based on trailing 12-month booking performance
• Home value benchmarks sourced from the Zillow Home Value Index (ZHVI)
• Amenity prevalence data reflecting current listing standards in the market

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 can shift due to regulatory changes, economic factors, or competitive dynamics. Individual property results will vary based on location within the market, property condition, pricing strategy, and management quality.