Niles, MI Airbnb Market Data, Statistics, and Occupancy Rates

Niles Short-Term Rental Market Overview

Niles, MI earns an ROI score of 77 out of 100, placing it in Rabbu's Standout Opportunity tier for short-term rental investors. With an average daily rate of $265 — well below the $342K average home value — the revenue-to-price ratio is above average, giving investors a compelling entry point. The market's sharp summer seasonality, driven by its proximity to southwest Michigan's lake country, creates a concentrated but lucrative earning window that can power annual returns of roughly $30,213.

Key Market Statistics

According to Rabbu market data, the Niles 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 Niles

Niles combines an attractive revenue-to-price ratio with strong summer tourism demand anchored by southwest Michigan's lakes and outdoor recreation, making it appealing for investors comfortable with seasonal cash flow.

Expert Market Assessment

"Niles presents a compelling but season-dependent investment opportunity. The summer months — particularly July at $6,465 and August at $5,584 in average revenue — carry the bulk of the annual return, while winter months like January and February dip below $1,000. Investors who can manage cash flow through softer months and optimize pricing during peak season stand to benefit from above-average revenue-to-price dynamics and a still-small competitive field. The market's growth trend is encouraging, though new supply should be monitored closely given the limited year-round demand base."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Niles

Average revenue by month in Niles

Revenue in Niles is heavily seasonal, peaking in July at $6,465 and bottoming out in February at $923 — a nearly 7x spread. The June-through-September window accounts for the lion's share of annual income, making pricing optimization during these months critical for investors.

Active Airbnb listings by property size in Niles

Supply in Niles is concentrated in two segments: 1-bedroom units (9 listings) and 3-bedroom properties (10 listings). The absence of reported 2-bedroom, 4-bedroom, or larger listings could signal an underserved middle tier where new investors might find less direct competition.

Average daily rate (ADR) by property size in Niles

ADR scales sharply with size in Niles — 3-bedroom properties command $317 per night compared to $103 for 1-bedroom units, a 3x premium. For investors weighing acquisition cost against nightly rate, the jump to a 3-bedroom offers a significantly higher price point per booking.

Average RevPAN by property size in Niles

Three-bedroom properties edge out 1-bedrooms in RevPAN at $59 versus $50, though the gap is narrower than the ADR difference suggests. The smaller spread reflects the much higher occupancy rates that 1-bedroom units achieve, partially offsetting their lower nightly rates.

Average occupancy rates by property size in Niles

One-bedroom listings in Niles maintain a 48% occupancy rate, more than double the 19% seen by 3-bedroom properties. Investors prioritizing consistent bookings and steadier cash flow may prefer smaller units, while those targeting higher per-booking revenue will gravitate toward larger homes.

Average monthly revenue by property size in Niles

Three-bedroom properties lead in monthly revenue at $2,957, roughly 64% more than the $1,804 averaged by 1-bedroom units. Despite lower occupancy, the higher ADR of 3-bedroom homes more than compensates on a monthly dollar basis.

Average annual revenue by property size in Niles

On an annual basis, 3-bedroom homes in Niles generate approximately $35,484 compared to $21,651 for 1-bedroom listings, a difference of nearly $14,000. When weighed against the higher purchase and operating costs of larger properties, both configurations can pencil out depending on an investor's acquisition price and financing terms.

Most common amenities for Airbnb listings in Niles

Parking is universal at 100% of listings, and self check-in (88%) and kitchens (79%) are near-standard, signaling strong guest expectations for convenience and self-sufficiency. Outdoor amenities like BBQ grills (52%), backyards (49%), and waterfront access (27%) reflect the lake-oriented nature of the market — listings that offer these are well-positioned to capture premium summer demand.

Understanding Niles's ROI Score: 77/100

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

Niles earns a 77 out of 100 on Rabbu's ROI Score, placing it in the Standout Opportunity band — a reflection of its above-average revenue-to-price ratio and positive market growth trend, tempered by average marks for occupancy stability and supply/demand balance. The score signals that investors can achieve attractive yields relative to acquisition cost, especially during the summer peak, though the seasonal occupancy pattern means cash flow won't be evenly distributed across the year. Pairing these metrics with thorough local regulatory research will help investors build a realistic pro forma before committing to the market.

Short-Term Rental Regulations in Niles

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

Permit Requirements

Investors looking at short-term rentals in Niles, Michigan should verify whether the City of Niles or Berrien County requires a specific STR permit or registration before listing a property. Contacting the local planning or zoning office is the most reliable way to confirm current requirements.

Key Restrictions

Common restrictions in Michigan communities can include occupancy limits tied to bedroom count, minimum-stay requirements, noise ordinances, parking mandates, and caps on the number of permits issued in certain zones. HOA rules may impose additional limitations, so investors should review any applicable covenants before purchasing.

Tax Obligations

Michigan levies a 6% use tax on short-term rentals, and local jurisdictions may layer on additional lodging or tourism taxes. Platforms like Airbnb often collect and remit state-level taxes automatically, but hosts should confirm their local obligations with a tax professional.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Niles is likely to see continued demand growth during the summer peak, with July and August remaining the dominant revenue months. Year-over-year listing growth of 66% signals rising investor interest, though the market's small base of 33 active listings means even modest additions can shift the competitive landscape quickly. Expect ADR to hold steady or increase modestly by 2–5% as supply catches up with seasonal demand, while occupancy may settle in the 27–32% range annually as new listings dilute bookings outside peak months."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Niles, MI

What is the average Airbnb occupancy rate in Niles?

The average occupancy rate for Airbnb listings in Niles is currently 29%, which falls below the Michigan state average of 42%. This reflects the market's strong seasonality — occupancy surges during the summer lake season and drops significantly in the colder months. One-bedroom units tend to perform much better on occupancy at 48%, while larger 3-bedroom properties average around 19%, indicating that smaller units stay booked more consistently throughout the year.

How much do Airbnb hosts make in Niles?

Based on trailing 12-month data, the average Airbnb host in Niles earns approximately $2,517 per month or $30,213 per year. Revenue varies considerably by season and property size — 3-bedroom homes average about $35,484 annually, while 1-bedroom units bring in roughly $21,651. The summer months are the primary revenue drivers, with July alone averaging $6,465.

Is Niles a good market for Airbnb investment?

Niles scores 77 out of 100 on Rabbu's ROI Score, placing it in the Standout Opportunity category. The market's above-average revenue-to-price ratio is a key strength, with average home values around $342,144 supporting attractive yield potential relative to annual revenue of $30,213. Investors should be comfortable with pronounced seasonality, as the majority of income is concentrated in the summer months. The small listing base of 33 active properties means competition is limited, though the 66% year-over-year growth in listings suggests the market is gaining attention.

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

The current average daily rate in Niles is $265, which is below the Michigan state average of $350. ADR varies significantly by property size: 1-bedroom listings average $103 per night, while 3-bedroom properties command $317. The lower overall ADR compared to the state reflects the market's mix of smaller and seasonal properties, but the favorable home prices help maintain strong yield potential.

Are short-term rentals legal in Niles?

Short-term rentals operate in Niles, MI, as evidenced by 33 active Airbnb listings in the market. However, specific permit requirements, zoning restrictions, and regulatory rules can change, so investors should check directly with the City of Niles and any applicable HOA before purchasing or listing a property. Michigan does impose a use tax on short-term rentals, and additional local obligations may apply.

When is peak season for Airbnb in Niles?

Peak season in Niles runs from June through August, with July being the standout month at $6,465 in average revenue — more than six times what hosts earn in the slowest months. August follows closely at $5,584, and June averages $3,504. The shoulder months of May and September also see meaningful activity at $2,379 and $3,030 respectively. Winter months from December through February are the softest, with revenues dipping below $1,300.

How many Airbnbs are there in Niles?

As of April 2026, there are 33 active Airbnb listings in Niles. The market has experienced significant growth, with a 66% year-over-year increase in listings. Supply is split primarily between 1-bedroom units (9 listings) and 3-bedroom properties (10 listings), leaving potential gaps in other bedroom counts that could represent opportunities for new investors.

How is Airbnb revenue calculated in Niles?

The annual and monthly revenue figures for Niles are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — not a forward-looking projection. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, remove regional outliers, and aggregate the results into 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 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 Niles, MI
• Occupancy rates, average daily rates, and seasonal revenue trends based on trailing 12-month data
• Revenue and yield metrics including RevPAN, monthly revenue, and annual revenue by property size
• Home value data sourced from Zillow Home Value Index (ZHVI) for investment analysis
• Data aggregated from multiple providers and proprietary analytics for consistency

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 historical averages and may not capture very recent market shifts. Local regulations, permit requirements, and tax obligations can change; investors should verify current rules with local authorities before purchasing.