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

Ontonagon Short-Term Rental Market Overview

Ontonagon, MI earns an impressive ROI score of 87 out of 100, placing it in "Standout Opportunity" territory for short-term rental investors. With average home values around $229,092 and trailing annual revenue of $28,255, the revenue-to-price ratio here significantly outpaces many Michigan markets. The compact supply of just 33 active listings, combined with above-average growth trends and occupancy stability, points to a market where demand is catching up to a still-limited inventory — a setup that favors early movers.

Key Market Statistics

According to Rabbu market data, the Ontonagon 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 Ontonagon

Ontonagon offers an unusually strong revenue-to-price ratio bolstered by low property costs, dual-season tourism demand, and a supply base small enough that well-managed listings can capture outsized returns.

Expert Market Assessment

"Ontonagon represents a genuinely compelling opportunity for investors seeking high yield relative to acquisition cost. The market's dual seasonality — with July and August driving peak revenues near $3,871 and $3,809 respectively, and January and February delivering a strong winter bump above $3,000 — provides multiple revenue windows uncommon in many rural STR markets. April remains the clear soft spot at just $521 in average revenue, but the overall annual pattern supports solid cash flow for operators who manage pricing across seasons. With all four ROI calculation factors rated above average, this is one of Michigan's more attractive small-market plays."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Ontonagon

Average revenue by month in Ontonagon

Ontonagon displays a distinctive dual-peak seasonality, with July ($3,871) and August ($3,809) forming the summer high and January ($3,480) and February ($3,066) delivering a strong winter surge — likely driven by snowmobile and winter recreation traffic. April is the clear trough at just $521, creating a roughly 7:1 spread between peak and off-peak months that investors should plan around with dynamic pricing and off-season marketing.

Active Airbnb listings by property size in Ontonagon

Supply is concentrated in 3-bedroom (12 listings) and 2-bedroom (10 listings) properties, with 4-bedroom homes accounting for just 7 of the 33 total listings. The relative scarcity of larger properties, combined with their superior revenue performance, may signal an underserved niche worth targeting.

Average daily rate (ADR) by property size in Ontonagon

ADR scales modestly with size, from $210 for 2-bedroom listings to $248 for 4-bedroom properties — a roughly 18% premium for double the bedroom count. This compressed rate spread means larger properties earn their revenue advantage primarily through higher occupancy rather than dramatically higher nightly prices.

Average RevPAN by property size in Ontonagon

RevPAN increases sharply with property size: 4-bedroom listings deliver $107 per available night compared to $81 for 3-bedrooms and just $42 for 2-bedrooms. The 2.5x RevPAN gap between 2- and 4-bedroom properties makes a compelling case for investing in larger configurations that can accommodate groups and families.

Average occupancy rates by property size in Ontonagon

Occupancy rates climb steeply with bedroom count — 4-bedroom properties fill 43% of available nights versus just 20% for 2-bedrooms, with 3-bedrooms landing at 34%. This pattern suggests group travelers and families dominate Ontonagon's booking demand, giving larger homes a meaningful cash-flow stability advantage.

Average monthly revenue by property size in Ontonagon

Four-bedroom properties lead monthly revenue at $3,758, followed by 2-bedrooms at $2,934 and 3-bedrooms at $1,943. The fact that 2-bedroom units outearn 3-bedrooms on a monthly basis is notable and may reflect pricing or quality differences among the current listings rather than a structural advantage for smaller properties.

Average annual revenue by property size in Ontonagon

At $45,106 in annual revenue against average home values of $229,092, 4-bedroom properties offer the strongest return potential in Ontonagon, followed by 2-bedrooms at $35,208 and 3-bedrooms at $23,323. Investors focused on maximizing yield relative to acquisition cost should give serious consideration to the 4-bedroom segment, where both RevPAN and occupancy are highest.

Most common amenities for Airbnb listings in Ontonagon

Every listing in Ontonagon includes a kitchen, and 91% offer parking — both essential for the rural, self-sufficient vacation experience guests expect in Michigan's Upper Peninsula. Outdoor-oriented amenities like backyards (82%), BBQ grills (79%), and lake or beach access (30–46%) underscore a market catering to nature seekers, while 64% featuring a workspace hints at remote-worker appeal during off-peak months.

Understanding Ontonagon's ROI Score: 87/100

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

Ontonagon's ROI score of 87 out of 100 places it firmly in "Standout Opportunity" territory, driven by above-average marks across all four evaluation factors: revenue-to-price ratio, occupancy stability, market growth trend, and supply/demand balance. The combination of affordable home prices and meaningful rental income creates one of the stronger yield profiles among Michigan's smaller STR markets. Investors should pair these data-driven insights with thorough local regulatory research and on-the-ground property evaluation to confirm the opportunity fits their portfolio goals.

Short-Term Rental Regulations in Ontonagon

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

Permit Requirements

Short-term rental operators in Ontonagon, Michigan may need to obtain a local permit or register their property with the village or county before listing. Investors should verify current requirements directly with Ontonagon County or the Village of Ontonagon, as regulations in Michigan's Upper Peninsula communities can vary.

Key Restrictions

Common restrictions in Michigan STR markets include occupancy limits tied to bedroom count, noise and nuisance ordinances, parking requirements, and potential seasonal or geographic restrictions in certain zones. HOA rules, if applicable, may impose additional constraints, so reviewing any covenants before purchasing is essential.

Tax Obligations

Michigan requires STR operators to collect and remit the state's 6% use tax, and local jurisdictions may impose additional accommodations or tourism taxes. Many booking platforms handle state-level tax collection automatically, but hosts should confirm whether any county-level obligations apply in Ontonagon.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Ontonagon's STR market is expected to benefit from continued growth in outdoor recreation and Upper Peninsula tourism interest, with summer months and the winter snowmobiling season likely sustaining dual seasonal peaks. ADR could see modest increases in the range of 3–5% as supply remains tight relative to demand, though occupancy during shoulder months like April and November will likely stay soft. The 80% year-over-year listing growth signals rising investor interest, so the supply/demand balance bears watching — but current conditions still favor hosts who price strategically and capitalize on peak-season demand."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Ontonagon, MI

What is the average Airbnb occupancy rate in Ontonagon?

The average Airbnb occupancy rate in Ontonagon is currently 30%, which is below the Michigan state average of 42%. However, occupancy varies significantly by property size — 4-bedroom properties achieve around 43% occupancy, while 2-bedroom units average 20%. The market's seasonal nature means occupancy concentrates heavily in summer and winter peak periods, with quieter shoulder months pulling down the annual average.

How much do Airbnb hosts make in Ontonagon?

Airbnb hosts in Ontonagon earn an average of $2,354 per month and approximately $28,255 per year based on trailing 12-month booking data. Earnings vary considerably by property size: 4-bedroom homes lead with an average of $45,106 annually, while 3-bedroom properties average $23,323 and 2-bedroom units bring in roughly $35,208 per year. Peak months like July can push monthly revenue above $3,800.

Is Ontonagon a good market for Airbnb investment?

Ontonagon scores 87 out of 100 on Rabbu's ROI Score, earning a "Standout Opportunity" rating. The combination of relatively affordable home values ($229,092 average) and meaningful annual revenue ($28,255) creates a strong revenue-to-price ratio. All four evaluation factors — revenue-to-price, occupancy stability, market growth, and supply/demand balance — rate above average, making it one of the more attractive small markets in Michigan for STR investment.

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

The average daily rate in Ontonagon is $217, which sits well below the Michigan state average of $350. ADR increases with property size: 2-bedroom listings average $210, 3-bedroom listings $238, and 4-bedroom properties $248. While the nightly rate is lower than urban Michigan markets, the favorable acquisition costs mean investors can still achieve strong returns.

Are short-term rentals legal in Ontonagon?

Short-term rentals are generally permitted in Ontonagon, Michigan, though operators may need to comply with local registration or permitting requirements. Regulations can vary between the Village of Ontonagon and unincorporated parts of the county, so prospective investors should check with local authorities to confirm any zoning, permitting, or licensing obligations before listing a property.

When is peak season for Airbnb in Ontonagon?

Ontonagon benefits from two distinct peak seasons. Summer is the primary high season, with July averaging $3,871 and August $3,809 in monthly revenue, driven by Lake Superior tourism and outdoor recreation. A notable winter peak also occurs in January ($3,480) and February ($3,066), likely fueled by snowmobiling and winter sports. April is the slowest month at just $521 in average revenue.

How many Airbnbs are there in Ontonagon?

As of April 2026, there are 33 active Airbnb listings in Ontonagon. The supply is concentrated among 2-bedroom (10 listings), 3-bedroom (12 listings), and 4-bedroom (7 listings) properties. The market has experienced significant 80% year-over-year growth in listings, though the overall inventory remains quite small, which limits direct competition for well-positioned properties.

How is Airbnb revenue calculated in Ontonagon?

The annual and monthly revenue figures for Ontonagon 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 roll the results into a market-level historical average. This approach anchors figures to what hosts have actually earned recently and naturally reflects seasonal peaks and slower months because each month uses its own historical data. Individual results can vary based on property quality, pricing strategy, and how actively 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 for the Ontonagon market
• Average daily rate, occupancy, and RevPAN trends by property size and month
• Historical revenue and yield metrics based on trailing 12-month booking data
• Home value benchmarks sourced from the Zillow Home Value Index (ZHVI)
• Data aggregated from multiple providers including Rabbu proprietary analytics

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 as of April 2026; actual results will vary based on property condition, pricing strategy, and market shifts. Local regulations and tax obligations are subject to change — investors should verify current rules with Ontonagon County or village authorities before purchasing.