Traverse City, MI Airbnb Market Data, Statistics, and Occupancy Rates

Traverse City Short-Term Rental Market Overview

Traverse City stands out as a seasonally driven short-term rental market in northern Michigan, where summer tourism along Grand Traverse Bay fuels dramatic revenue spikes — July listings average $9,156 in monthly revenue. With 521 active Airbnb listings, an average annual revenue of $42,274, and an ROI score of 64 out of 100, the market offers attractive potential for investors who can navigate its pronounced off-season. Average home values sit around $740,576, which means careful underwriting is essential to ensure summer peaks adequately offset quieter winter months.

Key Market Statistics

According to Rabbu market data, the Traverse City 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 Traverse City

Traverse City attracts STR investors because its iconic lakefront setting and vibrant tourism scene generate strong seasonal revenue against above-average occupancy stability.

Expert Market Assessment

"Traverse City presents an attractive yet seasonal investment opportunity. Summer months — particularly June through August — generate the lion's share of annual income, with July alone accounting for roughly 22% of the trailing twelve-month revenue. The winter trough is significant: January averages just $1,065, underscoring the need for realistic cash-flow planning across all twelve months. Still, above-average occupancy stability and a balanced supply-demand dynamic give well-positioned properties a meaningful edge, especially larger homes that tap into group and family travel during peak season."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Traverse City

Average revenue by month in Traverse City

Traverse City exhibits extreme seasonality: July leads at $9,156 in average monthly revenue — nearly nine times the January low of $1,065. The June-through-September window generates the vast majority of annual income, making cash-flow planning for the November-through-April off-season critical for investors.

Active Airbnb listings by property size in Traverse City

One- and two-bedroom units dominate the supply with 174 and 173 listings respectively, accounting for roughly two-thirds of the market's 521 active listings. Larger configurations (5+ bedrooms) represent only 25 total listings, which may signal less competition and an opportunity for investors targeting group-travel demand.

Average daily rate (ADR) by property size in Traverse City

ADR scales steeply with property size in Traverse City, rising from $104 for studios to $981 for 6+ bedroom homes. The jump from 3 bedrooms ($284) to 4 bedrooms ($368) and especially to 5 bedrooms ($590) suggests that larger properties capture a significant premium tied to group and family travel.

Average RevPAN by property size in Traverse City

Revenue per available night climbs sharply with bedroom count — from $19 for studios to $285 for 6+ bedroom properties. Four-bedroom listings deliver a solid $99 RevPAN, making them a strong middle-ground option that balances high nightly yields with more moderate acquisition costs than the largest homes.

Average occupancy rates by property size in Traverse City

Occupancy rates are relatively consistent across property sizes, ranging from 19% for studios to 29% for 6+ bedroom homes. One-bedroom and four-bedroom listings tie at 27%, suggesting that both budget-friendly and premium-sized properties maintain comparable demand levels throughout the year.

Average monthly revenue by property size in Traverse City

Monthly revenue climbs from $1,473 for studios to $19,643 for 6+ bedroom properties — a more than 13x difference. Three-bedroom listings at $4,943 per month represent a notable step up from two-bedrooms ($3,303), offering a meaningful revenue boost that may justify the incremental property cost.

Average annual revenue by property size in Traverse City

Annual revenue potential ranges from $17,687 for studios up to $235,722 for 6+ bedroom properties. Five-bedroom homes earning $118,547 annually stand out as a high-revenue category with relatively limited supply (only 17 listings), presenting a potential sweet spot for investors seeking top-line returns with less direct competition.

Most common amenities for Airbnb listings in Traverse City

Kitchens (97%) and parking (95%) are near-universal, reflecting the car-dependent, self-catering nature of Traverse City vacations. Outdoor-focused amenities like patios (65%), lake access (28%), and waterfront locations (25%) appear frequently enough to signal strong guest preference for properties that emphasize the area's natural setting.

Understanding Traverse City's ROI Score: 64/100

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

With an ROI score of 64 out of 100, Traverse City falls into the "Attractive Opportunity" band — strong enough to warrant serious consideration but not without nuances to evaluate. Above-average occupancy stability is the market's standout factor, while revenue-to-price ratio, market growth, and supply/demand balance all rate as average, reflecting the impact of $740,576 median home values on overall yield math. Investors should pair this score with thorough local regulatory research and a realistic cash-flow model that accounts for the market's sharp seasonal swings.

Short-Term Rental Regulations in Traverse City

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

Permit Requirements

Short-term rental operators in Traverse City, Michigan, may be required to obtain a local permit or register their property before listing it. Investors should verify current requirements directly with the City of Traverse City and Grand Traverse County, as rules can evolve quickly in popular vacation-rental markets.

Key Restrictions

Common restrictions in Michigan STR markets can include occupancy limits tied to bedroom count, minimum-stay requirements, noise and nuisance ordinances, and parking mandates. HOA covenants and zoning designations may further limit where short-term rentals are permitted, so it's important to review all applicable layers of regulation before purchasing a property.

Tax Obligations

Short-term rental hosts in Michigan are generally subject to the state's 6% use tax and may also owe a local accommodations or excise tax. Many booking platforms collect and remit some of these taxes on behalf of hosts, but operators should confirm their full obligation with the Michigan Department of Treasury and local tax authorities.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Traverse City's short-term rental market is expected to maintain its strong seasonal cadence, with peak summer months continuing to drive the bulk of annual revenue. ADR may see modest increases in the 1–3% range as the area's wine country, cherry festivals, and lakefront appeal sustain visitor interest. Occupancy stability — rated above average among the ROI calculation factors — suggests demand should hold steady around current levels, though winter months will likely remain soft with rates and bookings well below the annual mean. Investors who price aggressively for shoulder seasons like May, September, and October could capture incremental revenue that smooths overall cash flow."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Traverse City, MI

What is the average Airbnb occupancy rate in Traverse City?

The current average occupancy rate for Airbnb listings in Traverse City is 26%, which falls below the Michigan state average of 42%. This reflects the market's heavy seasonality — summer months see significantly higher booking rates while winter months are considerably quieter. Properties that optimize pricing and minimum-stay strategies for shoulder and off-peak seasons can outperform this average.

How much do Airbnb hosts make in Traverse City?

Based on trailing 12-month data, the average Airbnb host in Traverse City earns approximately $42,274 per year, or about $3,522 per month. Revenue varies dramatically by property size: studios average around $17,687 annually, while 6+ bedroom homes can generate upward of $235,722. Peak summer months like July can bring in over $9,000 for a well-performing listing.

Is Traverse City a good market for Airbnb investment?

Traverse City earns an ROI score of 64 out of 100, placing it in the "Attractive Opportunity" category. The market benefits from above-average occupancy stability and balanced supply-demand dynamics, though the revenue-to-price ratio is average given home values around $740,576. Investors who can capitalize on strong summer demand and manage through quieter winter months stand to do well, particularly with larger properties that command premium nightly rates.

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

The average daily rate across all active Traverse City Airbnb listings is $221, which is below the Michigan state average of $350. ADR scales significantly with property size — studios average $104 per night while 6+ bedroom homes command $981 per night. This spread makes larger properties particularly compelling for investors targeting higher per-night revenue.

Are short-term rentals legal in Traverse City?

Short-term rentals do operate in Traverse City, Michigan, with over 521 active Airbnb listings currently in the market. However, local regulations including permit requirements, zoning rules, and HOA restrictions can vary. Prospective investors should consult the City of Traverse City and Grand Traverse County directly to confirm current licensing and compliance requirements before purchasing a property.

When is peak season for Airbnb in Traverse City?

Peak season in Traverse City runs from June through August, with July being the single strongest month at an average revenue of $9,156 per listing. August follows closely at $8,238. The shoulder months of May, September, and October also perform meaningfully above winter levels, making the broader May-through-October window the primary earning period for hosts in this market.

How many Airbnbs are there in Traverse City?

As of April 2026, there are 521 active Airbnb listings in Traverse City. The market's supply is concentrated in 1-bedroom (174 listings) and 2-bedroom (173 listings) properties, which together account for about two-thirds of all inventory. Larger properties with 4+ bedrooms are less common, representing roughly 75 listings combined.

How is Airbnb revenue calculated in Traverse City?

The annual and monthly revenue figures shown for Traverse City 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 draws on 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 for Traverse City and surrounding areas
• Average daily rate, occupancy, and RevPAN trends across multiple property sizes
• Monthly and annual revenue benchmarks based on trailing 12-month booking performance
• Home value data sourced from the Zillow Home Value Index (ZHVI) for investment context
• Data aggregated from multiple proprietary and third-party sources for consistency and accuracy

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. Market data reflects trailing performance and may not capture very recent regulatory changes or demand shifts. Individual property results will vary based on location, condition, pricing strategy, and management quality.