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View PropertiesAs of Apr, 27 2026
Rabbu ROI Score
Saugatuck offers attractive short-term rental potential, with a balance of healthy demand and revenue relative to property values.
Saugatuck is a charming Lake Michigan resort town that draws vacationers with its art galleries, beaches, and small-town waterfront appeal — all of which fuel a highly seasonal short-term rental market. With 169 active Airbnb listings, an average daily rate of $346, and trailing-12-month annual revenue averaging $60,961, the market offers genuine earning potential for investors who can navigate its concentrated summer demand. Average home values sit around $1,015,464, so returns hinge on capturing premium summer rates and managing carrying costs through the quieter winter months.
According to Rabbu market data, the Saugatuck short-term rental market shows:
| Metric | Context | Value |
|---|---|---|
| Active Airbnb Listings | As of Apr, 27 2026 | 169 |
| Average Daily Rate (ADR) | vs. $350 state avg. | $346 |
| Average Occupancy Rate | vs. 42% state avg. | 20% |
| RevPAN | ADR * Occupancy Rate | $69 |
| Average Monthly Revenue | Historical 12-month average | $5,080 |
| Average Annual Revenue | Historical 12-month average | $60,961 |
Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026.
Investors are drawn to Saugatuck for its combination of premium nightly rates, loyal summer tourist demand, and the lifestyle appeal of a Lake Michigan coastal market.
Key investment factors
"Saugatuck represents an attractive but sharply seasonal investment opportunity. July and August are the revenue engine — together they account for roughly 40% of annual income — while winter months dip below $2,200. The ROI score of 61 out of 100 reflects a balanced picture: revenue-to-price ratios are average given elevated home values, but occupancy stability scores above average, signaling that summer demand is reliable. Investors who pair a well-appointed larger property with smart off-season pricing strategies stand to capture the best returns this market has to offer."
— Rabbu Market Analysis Team
Saugatuck's revenue curve is extremely seasonal: July ($12,642) and August ($12,128) dwarf winter lows like February ($1,561), creating a roughly 8x spread between peak and trough months. Investors should expect the June–September window to deliver the bulk of annual income, with shoulder months in May and October offering moderate supplemental revenue.
| Month | Trend | Revenue |
|---|---|---|
| January |
|
$2,121 |
| February |
|
$1,561 |
| March |
|
$2,156 |
| April |
|
$2,623 |
| May |
|
$4,933 |
| June |
|
$6,879 |
| July |
|
$12,642 |
| August |
|
$12,128 |
| September |
|
$6,142 |
| October |
|
$4,757 |
| November |
|
$2,525 |
| December |
|
$2,488 |
Three-bedroom listings lead supply with 46 active properties, closely followed by 1-bedroom units at 43, while the larger 5-bedroom (16) and 6+ bedroom (8) segments are notably thinner. The limited supply of bigger homes could represent an opportunity, especially given their superior revenue performance.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
43 |
| 2 bedrooms |
|
28 |
| 3 bedrooms |
|
46 |
| 4 bedrooms |
|
25 |
| 5 bedrooms |
|
16 |
| 6+ bedrooms |
|
8 |
ADR scales steeply with property size in Saugatuck, climbing from $178 for 1-bedroom units to $916 for 6+ bedroom homes — a 5x jump that reflects strong demand for spacious vacation properties. The jump from 4-bedroom ($445) to 5-bedroom ($536) is more modest, suggesting the sweet spot for premium pricing without excessive acquisition cost may fall in the 4–5 bedroom range.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$178 |
| 2 bedrooms |
|
$256 |
| 3 bedrooms |
|
$354 |
| 4 bedrooms |
|
$445 |
| 5 bedrooms |
|
$536 |
| 6+ bedrooms |
|
$916 |
Five-bedroom properties deliver the highest RevPAN at $135, just edging out 6+ bedrooms ($134), while 1-bedroom listings trail at $34. The 4-bedroom tier at $97 also stands out as a strong performer, offering nearly triple the RevPAN of a 2-bedroom ($55) with proportionally less supply competition.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$34 |
| 2 bedrooms |
|
$55 |
| 3 bedrooms |
|
$62 |
| 4 bedrooms |
|
$97 |
| 5 bedrooms |
|
$135 |
| 6+ bedrooms |
|
$134 |
Occupancy rates are relatively compressed across property sizes, ranging from 15% for 6+ bedrooms to 25% for 5-bedroom units. Five-bedroom and 4-bedroom properties (22%) tend to stay booked more often, while the lower occupancy for the largest homes suggests they command such high nightly rates that fewer bookings still yield competitive revenue.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
19% |
| 2 bedrooms |
|
22% |
| 3 bedrooms |
|
18% |
| 4 bedrooms |
|
22% |
| 5 bedrooms |
|
25% |
| 6+ bedrooms |
|
15% |
Five-bedroom properties are the clear monthly revenue leaders at $9,967, nearly double the $4,966 earned by 3-bedroom listings. Even 4-bedroom homes pull in $5,989 per month on average, making mid-to-large properties the strongest earners in a market where group and family travel dominate.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$3,047 |
| 2 bedrooms |
|
$4,905 |
| 3 bedrooms |
|
$4,966 |
| 4 bedrooms |
|
$5,989 |
| 5 bedrooms |
|
$9,967 |
| 6+ bedrooms |
|
$7,716 |
Annual revenue ranges from $36,567 for 1-bedroom units to $119,606 for 5-bedroom homes, with the 6+ bedroom segment coming in at $92,596 — likely tempered by its lower occupancy rate. Investors targeting the highest annual return potential should focus on the 4-bedroom ($71,868) to 5-bedroom tier, where revenue substantially outpaces smaller configurations.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$36,567 |
| 2 bedrooms |
|
$58,871 |
| 3 bedrooms |
|
$59,601 |
| 4 bedrooms |
|
$71,868 |
| 5 bedrooms |
|
$119,606 |
| 6+ bedrooms |
|
$92,596 |
Parking (98%) and a full kitchen (95%) are essentially table stakes in Saugatuck, while self check-in (84%), washer/dryer (75–76%), and BBQ grills (69%) round out the near-universal amenities. Differentiators like hot tubs (37%), lake access (16%), and waterfront location (15%) are far less common, signaling that listings offering these features can stand out and potentially command premium rates.
| Amenity | Trend | Value |
|---|---|---|
| Parking |
|
98% |
| Kitchen |
|
95% |
| Self Check-in |
|
84% |
| Washer |
|
76% |
| Dryer |
|
75% |
| BBQ Grill |
|
69% |
| Patio or Balcony |
|
66% |
| Outdoor Furniture |
|
53% |
| Backyard |
|
51% |
| Workspace |
|
41% |
| Hot Tub |
|
37% |
| Pets |
|
32% |
| Lake Access |
|
16% |
| Waterfront |
|
15% |
Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.
| Factor | Saugatuck Performance | Weight |
|---|---|---|
| Revenue-to-Price Ratio | Average | 40% |
| Occupancy Stability | Above average | 30% |
| Market Growth Trend | Average | 15% |
| Supply/Demand Balance | Average | 15% |
Saugatuck's ROI score of 61 out of 100 places it in the 'Attractive Opportunity' band, reflecting a market where summer demand is dependable but elevated home prices keep revenue-to-price ratios at average levels. Occupancy stability stands out as an above-average factor, meaning peak-season bookings have been consistent year over year — a reassuring signal for investors counting on those critical summer months. Pairing this data with thorough local regulatory research and a clear off-season strategy will help investors make the most informed decision.
Understanding local STR regulations is essential before investing in Saugatuck. Here's the current regulatory landscape:
Short-term rental operators in Saugatuck, Michigan, should expect to register or obtain a permit from the local municipality before listing their property. Investors are strongly encouraged to verify current permit requirements with the City of Saugatuck and Allegan County, as local rules can change.
Common restrictions in Michigan resort communities like Saugatuck may include occupancy limits tied to bedroom count, minimum-stay requirements during certain seasons, noise ordinances, and off-street parking mandates. HOA covenants in some developments can also limit or prohibit short-term rentals, so reviewing deed restrictions before purchasing is essential.
Michigan levies a 6% state use tax on short-term rental accommodations, and Saugatuck may impose an additional local lodging or assessment fee. Major platforms like Airbnb typically collect and remit state taxes on behalf of hosts, but investors should confirm their obligations for any local levies directly with tax authorities.
Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Saugatuck can provide current regulatory guidance.
Financing an Airbnb investment in Saugatuck requires lenders who understand STR income. Rabbu partner lenders offer:
"Saugatuck's summer-driven demand pattern shows no signs of weakening, and with above-average occupancy stability as a key ROI factor, investors can expect the peak season to remain robust over the next 12–18 months. ADR is likely to hold steady or edge up 1–3% given the market's premium positioning near Lake Michigan. Off-season revenue will remain modest — estimates suggest winter months may continue to yield $1,500–$2,500 — so annual projections should account for roughly 60% of income arriving between June and September. Listing growth has been strong at 141% year-over-year, which could moderate pricing power if supply continues to expand at that pace."
— Rabbu Market Analysis Team
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.
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 historical averages and current snapshots as of April 2026; market conditions may shift. Local regulations, HOA restrictions, and tax obligations can change — always verify current rules with Saugatuck and Michigan authorities before investing.
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