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

Petoskey Short-Term Rental Market Overview

Petoskey, MI, is a northern Michigan resort town where short-term rental performance swings dramatically with the seasons—July revenue tops $8,037 per listing while April dips to just $839. With only 83 active Airbnb listings and an ROI score of 56 out of 100 ("Attractive Opportunity"), the market offers meaningful upside for investors who target larger properties and price for the summer surge. Average annual revenue sits at $36,858 against home values near $965,680, a ratio that rewards careful underwriting but can pencil well for premium, high-occupancy listings.

Key Market Statistics

According to Rabbu market data, the Petoskey short-term rental market shows:

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026.

Why Investors Consider Petoskey

Petoskey's appeal to STR investors rests on its concentrated summer tourism demand, limited supply base, and above-average market growth trajectory that together create a window for well-positioned properties to outperform.

Expert Market Assessment

"Petoskey presents a moderately attractive opportunity weighted heavily toward summer performance. The market's ROI score of 56 reflects average revenue-to-price and occupancy metrics balanced by an encouraging growth trend—investors who can tolerate pronounced seasonality stand to capture strong July–August cash flow that carries the full-year numbers. Off-peak months from November through April are lean, with four months generating under $1,300 each, so debt-service coverage requires careful seasonal budgeting. Larger properties clearly outperform: 4- and 5-bedroom homes achieve 44–45% occupancy versus just 21% for 1- and 2-bedroom units, making them the most viable configurations for serious investors in this market."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Petoskey

Average revenue by month in Petoskey

Petoskey's revenue curve is steeply seasonal: July ($8,037) and August ($7,202) together account for roughly 41% of annual revenue, while the trough months of March ($1,248), April ($839), and November ($1,104) collectively contribute less than a single peak month. Investors should build cash reserves or secure flexible financing to bridge the November-through-April slow period.

Active Airbnb listings by property size in Petoskey

Supply is concentrated in the 1- to 3-bedroom range, with 62 of 83 total listings falling into those categories. Four- and five-bedroom homes represent just 17 listings combined, suggesting less competition and potential pricing power for investors who acquire larger properties.

Average daily rate (ADR) by property size in Petoskey

ADR climbs steadily from $165 for 1-bedroom units to $298 for 4-bedrooms, then jumps sharply to $721 for 5-bedroom properties—more than double the next tier down. This outsized premium on 5-bedroom homes reflects strong demand from group travelers and families willing to pay for space, making larger configurations the most efficient way to capture nightly rate upside.

Average RevPAN by property size in Petoskey

Revenue per available night scales dramatically with size: 5-bedroom listings deliver $327 RevPAN compared to just $35 for 1-bedrooms, a nearly 10× difference. Even 4-bedroom properties at $129 RevPAN significantly outperform mid-size units, confirming that larger homes convert their higher ADR into real earning power after accounting for occupancy.

Average occupancy rates by property size in Petoskey

Occupancy rises substantially with bedroom count—1- and 2-bedroom units sit at just 21%, while 4- and 5-bedroom homes reach 44–45%. This pattern suggests that group-sized properties in Petoskey attract more consistent bookings, offering meaningfully better cash-flow stability for investors.

Average monthly revenue by property size in Petoskey

Monthly revenue ranges from $1,451 for 1-bedroom listings to $11,316 for 5-bedroom properties, with each step up in bedrooms delivering a meaningful income boost. The jump from 4-bedroom ($5,698) to 5-bedroom ($11,316) is especially notable—nearly doubling monthly income—making the largest homes the clear top earners in the market.

Average annual revenue by property size in Petoskey

Five-bedroom properties lead the market at $135,792 in average annual revenue, nearly double the $68,384 earned by 4-bedroom units and roughly eight times the $17,416 generated by 1-bedroom listings. For investors seeking the strongest absolute return potential, larger homes in Petoskey offer a compelling case despite higher acquisition costs.

Most common amenities for Airbnb listings in Petoskey

Parking (90%), self check-in (87%), and a full kitchen (84%) are near-universal across Petoskey listings, establishing them as baseline expectations rather than differentiators. Outdoor-oriented amenities like BBQ grills (61%), lake access (36%), and waterfront positioning (29%) signal the market's recreational identity—investors who can offer these features are better positioned to command premium rates during peak season.

Understanding Petoskey's ROI Score: 56/100

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

Petoskey's ROI score of 56 out of 100 places it in the "Attractive Opportunity" band, reflecting a market where average revenue-to-price ratios and occupancy stability are balanced by an above-average growth trend that points to strengthening demand. The supply/demand balance rates below average, which could indicate either emerging competition or seasonal mismatches that dampen year-round utilization. Investors should pair this score with on-the-ground regulatory research and a property-specific financial model—particularly one that stress-tests the pronounced off-season dip—before committing capital.

Short-Term Rental Regulations in Petoskey

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

Permit Requirements

Short-term rental operators in Petoskey, MI, should verify whether the city or Emmet County requires a specific STR permit, registration, or zoning approval before listing. Michigan does not impose a statewide STR licensing mandate, so requirements are set locally—contacting the Petoskey city clerk or planning department is the most reliable way to confirm current rules.

Key Restrictions

Common restrictions in Michigan resort communities like Petoskey may include occupancy limits tied to bedroom count, minimum-stay requirements during certain seasons, noise and nuisance ordinances, designated parking standards, and caps on the number of permits issued per area. Investors in condos or planned developments should also review HOA covenants, which can independently prohibit or restrict short-term rentals regardless of municipal rules.

Tax Obligations

Michigan levies a 6% use tax and a 5% accommodations assessment on short-term rentals, and Petoskey or Emmet County may impose additional local lodging or tourism taxes. Platforms like Airbnb often collect and remit state-level taxes automatically, but hosts should confirm local obligations are covered and maintain records for compliance.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Petoskey's above-average market growth trend suggests continued strengthening of summer and shoulder-season demand, with ADR likely holding in the $315–$330 range given current pricing below the Michigan state average of $350. Occupancy—currently 27% market-wide—could edge toward 30–33% as newly listed properties season and operators optimize pricing for shoulder months. Investors should plan conservatively around the sharp winter-to-spring dip (March–April revenues under $1,300) while banking on July–August to deliver the bulk of annual cash flow. Supply growth, flagged as below average in the supply/demand balance, bears watching but is unlikely to overwhelm demand given Petoskey's geographic constraints and seasonal draw."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Petoskey, MI

What is the average Airbnb occupancy rate in Petoskey?

The average occupancy rate across active Airbnb listings in Petoskey is currently 27%, which sits below the Michigan state average of 42%. This reflects the market's heavy seasonality—larger properties (4–5 bedrooms) achieve 44–45% occupancy, while 1- and 2-bedroom units average around 21%. Investors targeting higher occupancy should consider bigger homes that appeal to families and groups visiting during peak summer months.

How much do Airbnb hosts make in Petoskey?

On average, Airbnb hosts in Petoskey earn approximately $3,071 per month or $36,858 per year based on trailing 12-month booking data. Earnings vary significantly by property size: 1-bedroom listings average about $17,416 annually, while 5-bedroom properties can generate around $135,792. Peak summer months (July and August) account for a large share of annual income, with July alone averaging over $8,037 per listing.

Is Petoskey a good market for Airbnb investment?

Petoskey scores 56 out of 100 on Rabbu's ROI Score, rated as an "Attractive Opportunity." The market benefits from above-average growth trends and a small supply base of just 83 active listings, which limits direct competition. However, investors need to plan around sharp seasonality—summer months drive the majority of revenue—and average home values near $965,680 mean the revenue-to-price ratio requires careful analysis. Larger properties (4+ bedrooms) offer the strongest return profile.

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

The average daily rate for Airbnb listings in Petoskey is $321, slightly below the Michigan state average of $350. ADR scales meaningfully with property size: 1-bedroom units average $165 per night, while 5-bedroom homes command $721 per night. This premium pricing for larger properties, combined with their higher occupancy rates, makes them the strongest performers in the market.

Are short-term rentals legal in Petoskey?

Short-term rentals generally operate in Petoskey, MI, but local regulations may require permits, registration, or compliance with specific zoning rules. Michigan does not have a blanket statewide STR ban, so legality is determined at the municipal and county level. Prospective investors should check directly with Petoskey city officials and review any applicable HOA restrictions before purchasing a property for STR use.

When is peak season for Airbnb in Petoskey?

Peak season in Petoskey runs from June through September, with July being the standout month at an average of $8,037 in revenue per listing. August follows closely at $7,202. The shoulder months of June ($3,473) and September ($3,660) still perform well above the annual average. The slowest period stretches from November through April, with April being the softest month at just $839 in average revenue.

How many Airbnbs are there in Petoskey?

As of April 2026, there are 83 active Airbnb listings in Petoskey. The supply is fairly evenly distributed among smaller sizes—19 one-bedroom, 23 two-bedroom, and 20 three-bedroom listings—while larger properties are scarcer, with only 10 four-bedroom and 7 five-bedroom listings. This limited inventory, particularly for bigger homes, may represent an opportunity for investors targeting the higher-earning segments.

How is Airbnb revenue calculated in Petoskey?

The annual and monthly revenue figures shown for Petoskey 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. Rabbu averages each comparable listing's actual revenue per available night (RevPAN) by month over the past year, removes regional outliers, and rolls the results up to a market-level historical average. Because each month uses its own historical performance data, the figures naturally reflect seasonal peaks (like July's $8,037 average) and slower periods (like April's $839). 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, occupancy rates, and daily rate data for the Petoskey market
• Historical revenue and RevPAN metrics based on trailing 12-month booking performance of comparable listings
• Property size breakdowns covering bedroom-level supply, pricing, occupancy, and revenue trends
• Home value benchmarks sourced from the Zillow Home Value Index (ZHVI)
• Amenity prevalence data across active listings to identify guest expectations and competitive positioning

Sources and disclaimers

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 as of April 2026 and may not capture very recent market shifts. Local regulations, HOA rules, and tax obligations vary—investors should verify all requirements with municipal authorities before purchasing.