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

Paw Paw Short-Term Rental Market Overview

Paw Paw, MI is a compact lakeside market with just 16 active Airbnb listings and an ROI score of 83 out of 100, placing it in "Standout Opportunity" territory. With an average daily rate of $318, average annual revenue of $45,981, and home values around $381,395, the revenue-to-price ratio sits above average — a key draw for investors seeking strong yields in a smaller Michigan market. The market's heavy seasonality and lake-driven demand create a concentrated earning window, but the limited supply and favorable supply/demand balance suggest room for well-positioned new entrants.

Key Market Statistics

According to Rabbu market data, the Paw Paw 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 Paw Paw

Paw Paw's above-average revenue-to-price ratio and limited competition make it an appealing option for investors targeting high seasonal yields in Michigan's lake country.

Expert Market Assessment

"Paw Paw earns a "Standout Opportunity" designation with an ROI score of 83, driven primarily by its above-average revenue-to-price ratio and a healthy supply/demand balance. The market's seasonality is striking: July revenue ($11,175) is more than twelve times January ($881), so investors need to budget around a concentrated summer earning window. That said, the tight supply of 16 listings and strong lake-driven demand during warm months create a favorable environment for hosts who optimize pricing and guest experience. For investors comfortable with seasonal cash-flow patterns, Paw Paw offers compelling yield potential relative to its entry cost."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Paw Paw

Average revenue by month in Paw Paw

Paw Paw's revenue is heavily seasonal, with July ($11,175) and August ($10,531) accounting for the lion's share of annual income, while January ($881) marks the lowest point — a roughly 12:1 spread between peak and trough. Investors should expect to earn the majority of their annual return in a four-month summer window from June through September.

Active Airbnb listings by property size in Paw Paw

The market's 16 listings are concentrated in just two size categories: 5 one-bedroom units and 6 four-bedroom properties. The absence of 2- and 3-bedroom listings could represent an underserved niche for investors looking to differentiate their offering.

Average daily rate (ADR) by property size in Paw Paw

ADR scales significantly with size in Paw Paw — 1-bedroom listings average $149/night while 4-bedroom properties command $407/night, a 2.7x premium. For investors weighing acquisition costs, the 4-bedroom tier offers the strongest nightly pricing power in this lake-driven market.

Average RevPAN by property size in Paw Paw

Four-bedroom properties generate the highest RevPAN at $72, compared to $48 for 1-bedroom units. Despite lower occupancy, the 4-bedroom segment's significantly higher ADR more than compensates, making it the stronger revenue generator per available night.

Average occupancy rates by property size in Paw Paw

One-bedroom listings achieve 32% occupancy — nearly double the 18% rate for 4-bedroom properties — suggesting smaller units attract bookings across a broader range of dates. However, the lower occupancy for 4-bedrooms is offset by their much higher nightly rates, so investors should weigh cash-flow consistency against total revenue.

Average monthly revenue by property size in Paw Paw

Four-bedroom properties lead with $3,979 in average monthly revenue, roughly 57% more than the $2,533 earned by 1-bedroom listings. The gap reflects the pricing premium that larger lakefront-style properties can capture, particularly during peak summer demand.

Average annual revenue by property size in Paw Paw

Annually, 4-bedroom properties earn approximately $47,755 compared to $30,406 for 1-bedroom units, making the larger configuration the top earner. However, investors should weigh the higher acquisition and operating costs of a 4-bedroom against the roughly $17,000 revenue advantage to determine which size offers the best net return.

Most common amenities for Airbnb listings in Paw Paw

Kitchen (100%), parking (94%), and washer (94%) are table-stakes amenities in Paw Paw, while lake access (75%) and waterfront (63%) underscore the market's vacation-oriented character. Investors should prioritize lakefront or lake-access properties and outfit them with outdoor amenities like backyards (75%), BBQ grills (69%), and patio spaces to meet guest expectations.

Understanding Paw Paw's ROI Score: 83/100

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

Paw Paw's ROI score of 83 out of 100 places it in "Standout Opportunity" territory, driven largely by an above-average revenue-to-price ratio and a favorable supply/demand balance — just 16 listings serve this lake-driven market. Occupancy stability and market growth trend score as average, reflecting the pronounced seasonality and a 30% year-over-year increase in listings that bears watching. Investors should pair this score with on-the-ground regulatory research and a clear seasonal budgeting plan to make the most of the opportunity.

Short-Term Rental Regulations in Paw Paw

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

Permit Requirements

Short-term rental operators in Paw Paw, Michigan may need to obtain a permit or register with local authorities before listing a property. Investors should verify current requirements directly with the Village of Paw Paw and Van Buren County, as regulations in smaller Michigan municipalities can evolve quickly.

Key Restrictions

Common STR restrictions in Michigan communities include occupancy limits based on property size, minimum stay requirements, noise ordinances, and parking regulations. HOA or neighborhood covenant restrictions may also apply, so it's important to review any deed restrictions before purchasing an investment property in Paw Paw.

Tax Obligations

Michigan typically requires STR hosts to collect and remit state sales tax and any applicable local accommodations or use taxes. Platforms like Airbnb often handle a portion of tax collection automatically, but hosts should confirm their full obligations with the Michigan Department of Treasury.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Paw Paw's STR performance is likely to remain closely tied to its summer season, with July and August continuing to drive the bulk of annual revenue. ADR could see modest increases in the range of 2–5% as the limited supply of just 16 listings keeps pricing power in hosts' favor, though occupancy — currently at 24% on a market-wide basis — may stay in the low-to-mid 20s given the pronounced off-season. Investors should plan for strong summer cash flow offset by much leaner winter months, and monitor whether listing growth (up 30% year-over-year) begins to erode the favorable supply/demand dynamic."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Paw Paw, MI

What is the average Airbnb occupancy rate in Paw Paw?

The average occupancy rate for Airbnb listings in Paw Paw is currently 24%, which is below Michigan's state average of 42%. This reflects the market's strong seasonality — occupancy spikes during summer months when lake and outdoor activities drive demand, then drops considerably in winter. One-bedroom properties tend to maintain higher occupancy at 32%, while 4-bedroom properties average around 18%, likely due to higher nightly rates filtering for peak-season guests.

How much do Airbnb hosts make in Paw Paw?

On average, Airbnb hosts in Paw Paw earn approximately $3,831 per month and $45,981 per year based on trailing 12-month booking data. Revenue varies significantly by property size: 1-bedroom listings average about $30,406 annually, while 4-bedroom properties bring in roughly $47,755. Keep in mind these are market-wide averages — individual results depend on property quality, location relative to the lake, pricing strategy, and how well you capture the high-demand summer months.

Is Paw Paw a good market for Airbnb investment?

Paw Paw scores 83 out of 100 on Rabbu's ROI Score, earning a "Standout Opportunity" rating. The market benefits from an above-average revenue-to-price ratio, with average annual revenue of $45,981 against home values around $381,395. Supply remains tight at just 16 active listings, and the supply/demand balance is above average. The main consideration is seasonality — the bulk of earnings are concentrated in June through September — so investors should be comfortable with a summer-heavy income profile.

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

The average daily rate in Paw Paw is $318, slightly below Michigan's statewide average of $350. Rates vary by property size: 1-bedroom listings average $149/night, while 4-bedroom properties command around $407/night. The premium for larger properties reflects the family and group travel demand that lakes and outdoor recreation naturally attract.

Are short-term rentals legal in Paw Paw?

Short-term rentals generally operate in Paw Paw, MI, as evidenced by 16 active Airbnb listings in the market. However, local regulations can change, and operators may need permits or registration. We recommend checking directly with the Village of Paw Paw and Van Buren County for the most current rules, including any zoning restrictions or licensing requirements that may apply.

When is peak season for Airbnb in Paw Paw?

Peak season in Paw Paw runs from June through August, with July being the strongest month at an average revenue of $11,175 per listing. August follows closely at $10,531. The shoulder months of May ($3,239) and September ($4,519) also offer meaningful income. The off-season from November through March sees monthly revenue drop below $1,400, so the summer window is critical for annual returns.

How many Airbnbs are there in Paw Paw?

As of April 2026, there are 16 active Airbnb listings in Paw Paw. This represents a 30% increase year-over-year, indicating growing investor interest in the market. The small total supply means new listings still have meaningful impact on market dynamics, and the limited competition currently favors hosts during peak season.

How is Airbnb revenue calculated in Paw Paw?

The annual and monthly revenue figures for Paw Paw 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 remaining data 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. 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 by market
• Average daily rate, occupancy, and RevPAN trends across property sizes
• Monthly and annual revenue estimates based on trailing 12-month booking data
• Home value benchmarks sourced from the Zillow Home Value Index (ZHVI)
• Popular amenity prevalence across active listings 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 may not capture very recent market shifts. Local regulations, zoning rules, and tax obligations may change; investors should verify current requirements before purchasing.