Airbnb Market Data

13 min read

20 Best Short Term Rental Markets In Michigan For 2025

We’ve identified the top 20 cities in Michigan that offer promising opportunities to investors looking for high-yield STR markets.

Written By

Emir Dukic

Jan 21, 2025

Michigan is home to many thriving short-term rental markets, but identifying the top-performing cities can be overwhelming, especially when combing through data from countless locations across the state.

To simplify this process, we analyzed data from markets statewide and compiled a list of the top 20 cities for investors and landlords seeking potentially high-return rental properties in the coming year.

As always, we recommend thorough underwriting and analysis of any prospective property and a review of local short-term rental regulations before making any investment decisions.

How We Created This List

First, we looked at all Airbnb listings in Michigan that met the following criteria as of January 2025:

  • Average Rating: 4.8 stars and above
  • Guest Review Count: Minimum of 10
  • Average Daily Rate: $1 (minimum) to $2,000 (maximum)
  • Occupancy Rate: 1% (minimum) to 99% (maximum)
  • Property Size: 1 to 10 bedrooms
  • Property Type: Entire homes

We did this to eliminate Airbnb listings from our analysis that fall outside of what we consider "realistic" situations. This left us with a total of 5,552 Airbnb listings across the state of Michigan to work with.

Next, we grouped these listings by city and eliminated markets that didn't have at least 75 Airbnb listings meeting the above criteria. We took this step to avoid outlier cities we felt didn't have enough data to be considered at this current time. This left us with 35 cities in Michigan to rank.

Then, we needed to arrive at a gross yield number for each of our remaining cities in order to create our rankings. We did this by taking the average annual Airbnb revenue for each city and combining it with the cities median property value (from Zillow as of December 2024) to calculate our gross yield for each city.

Finally, we ordered the cities by highest gross yield.

The Top 20 STR Markets in Michigan

1. Benton Harbor, MI

Benton Harbor, MI, is rapidly gaining attention in the short-term rental market, making it a prime spot for real estate investors looking for vacation rentals. The city offers a mix of attractions, from the serene shores of Lake Michigan to the lush trails of Jean Klock Park, drawing outdoor enthusiasts and tourists alike. Hosting annual events like the Whirlpool Ironman 70.3 and featuring local sports teams, Benton Harbor ensures a steady influx of visitors. With its burgeoning arts scene and cozy vacation homes, the area promises strong rental income and a good return for Airbnb hosts.

Key STR Metrics:

  • Average Gross Yield: 19.9%
  • Average Property Value: $258,438 (as of December 2024)
  • Average Annual Revenue: $51,343 (past 12 months)
  • Average Occupancy Rate: 35% (past 12 months)
  • Qualifying Airbnbs: 80 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 98%

Find Airbnbs For Sale in Benton Harbor, MI →

2. Detroit, MI

Detroit, MI, is a vibrant city brimming with attractions, making it one of the best places for short-term rental properties. Its rich cultural scene includes the Detroit Institute of Arts and the historic Motown Museum. Sports enthusiasts flock to witness the Detroit Lions and Pistons in action. Annual events like the North American International Auto Show draw countless tourists, enhancing the city’s tourism allure. For real estate investors seeking good returns, Detroit's vacation rentals offer promising rental income opportunities in a dynamic housing market.

Key STR Metrics:

  • Average Gross Yield: 19.6%
  • Average Property Value: $133,227 (as of December 2024)
  • Average Annual Revenue: $26,127 (past 12 months)
  • Average Occupancy Rate: 31% (past 12 months)
  • Qualifying Airbnbs: 386 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 115%

Find Airbnbs For Sale in Detroit, MI →

3. Muskegon, MI

Muskegon, MI, is an enticing destination for real estate investors eyeing the thriving short-term rental market. With attractions like the Muskegon State Park, Pere Marquette Beach, and the celebrated Muskegon Art Museum, it draws a diverse range of tourists. The bustling event calendar, featuring the Michigan Irish Music Festival and Lakeshore Art Festival, boosts its allure. Proximity to the Muskegon Lumberjacks ensures consistent guest interest, offering Airbnb hosts promising rental income and a good return on investment properties in this vibrant vacation home and tourism hub.

Key STR Metrics:

  • Average Gross Yield: 18.7%
  • Average Property Value: $257,181 (as of December 2024)
  • Average Annual Revenue: $48,180 (past 12 months)
  • Average Occupancy Rate: 40% (past 12 months)
  • Qualifying Airbnbs: 209 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 57%

Find Airbnbs For Sale in Muskegon, MI →

4. Munising, MI

Munising, MI, adorned with breathtaking natural beauty, is a gem for real estate investors seeking to capitalize on the flourishing short-term rental market. Attracting tourists with stunning attractions like Pictured Rocks National Lakeshore, Munising is ideal for vacation rentals that promise a good return. Visitors flock year-round to explore waterfalls, kayak tours, and hiking trails, ensuring consistent rental income. Tourism peaks during events like the annual Music in the Park series, making Munising one of the best places for investment property opportunities.

Key STR Metrics:

  • Average Gross Yield: 18.1%
  • Average Property Value: $288,128 (as of December 2024)
  • Average Annual Revenue: $52,103 (past 12 months)
  • Average Occupancy Rate: 39% (past 12 months)
  • Qualifying Airbnbs: 76 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 71%

Find Airbnbs For Sale in Munising, MI →

5. Coloma, MI

Coloma, MI, nestled amid scenic landscapes and vineyards, is a hotbed for short-term rental properties, making it a top pick for real estate investors seeking good returns. Known for its vibrant tourism, Coloma attracts visitors with attractions like the Paw Paw Lake, ideal for water sports, and the sprawling wineries offering a taste of Michigan's finest. Events like the Glad Peach Festival draw tourists annually, providing Airbnb hosts with lucrative rental income opportunities. This thriving vacation home market promises robust cash flow in 2025’s real estate scene.

Key STR Metrics:

  • Average Gross Yield: 13.9%
  • Average Property Value: $404,498 (as of December 2024)
  • Average Annual Revenue: $56,027 (past 12 months)
  • Average Occupancy Rate: 36% (past 12 months)
  • Qualifying Airbnbs: 80 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 85%

Find Airbnbs For Sale in Coloma, MI →

6. Holland, MI

Holland, MI is a charming lakeside city ideal for short-term rental investments, thanks to its vibrant tourism and strong real estate market. Known for its Dutch heritage, it attracts visitors year-round with the famous Tulip Time Festival, stunning Lake Michigan beaches, and the beloved Holland Farmers Market. Outdoor enthusiasts enjoy nearby hiking trails and parks, while sports fans can catch local teams in action. These attractions make Holland one of the best places for vacation rentals, offering Airbnb hosts a potential for good return and consistent rental income.

Key STR Metrics:

  • Average Gross Yield: 13.6%
  • Average Property Value: $508,978 (as of December 2024)
  • Average Annual Revenue: $69,197 (past 12 months)
  • Average Occupancy Rate: 49% (past 12 months)
  • Qualifying Airbnbs: 151 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 113%

Find Airbnbs For Sale in Holland, MI →

7. South Haven, MI

South Haven, MI, is a prime spot for real estate investors eyeing the short-term rental market. Known for its pristine beaches, the picturesque lighthouse, and charming downtown, it offers a wealth of attractions for tourists and visitors year-round. The Blueberry Festival and Harborfest are standout events drawing crowds. The local housing market features promising vacation homes and airbnb opportunities that promise good rental income and cash flow. With its seasonal beauty, South Haven is one of the best places for vacation rentals in Michigan.

Key STR Metrics:

  • Average Gross Yield: 13.5%
  • Average Property Value: $619,784 (as of December 2024)
  • Average Annual Revenue: $83,950 (past 12 months)
  • Average Occupancy Rate: 38% (past 12 months)
  • Qualifying Airbnbs: 322 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 87%

Find Airbnbs For Sale in South Haven, MI →

8. Gaylord, MI

Gaylord, MI is a top choice for real estate investors seeking short-term rental properties in 2025, thanks to its vibrant tourism scene and strong vacation rental market. Nestled in the heart of Northern Michigan, Gaylord offers attractions like the Otsego Resort for skiing enthusiasts and the scenic Pigeon River State Forest. The area hosts events like the Alpenfest, drawing countless visitors and increasing demand for vacation homes. With a thriving housing market and excellent rental income potential, this is one of the best places for investing in real estate.

Key STR Metrics:

  • Average Gross Yield: 12.8%
  • Average Property Value: $377,435 (as of December 2024)
  • Average Annual Revenue: $48,180 (past 12 months)
  • Average Occupancy Rate: 34% (past 12 months)
  • Qualifying Airbnbs: 131 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 97%

Find Airbnbs For Sale in Gaylord, MI →

9. Fennville, MI

Fennville, MI is an enticing destination for real estate investors eyeing the short-term rental market. Known for its picturesque landscapes and attractions like the nearby Lake Michigan beaches and the acclaimed Crane Orchards, Fennville draws tourists year-round. The local housing market offers excellent vacation homes perfect for Airbnb hosts, providing good return and rental income. Events such as the Fennville Goose Festival attract visitors, making it one of the best places for investment property in the region. Whether it's for leisure or special events, guests find Fennville a charming retreat.

Key STR Metrics:

  • Average Gross Yield: 12.8%
  • Average Property Value: $647,544 (as of December 2024)
  • Average Annual Revenue: $82,611 (past 12 months)
  • Average Occupancy Rate: 42% (past 12 months)
  • Qualifying Airbnbs: 93 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 138%

Find Airbnbs For Sale in Fennville, MI →

10. Boyne Falls, MI

Boyne Falls, MI, is a top destination for real estate investors seeking lucrative short-term rental properties in 2025. Nestled amidst lush landscapes, it draws tourists year-round with attractions like Boyne Mountain Resort, offering skiing, golfing, and Avalanche Bay Indoor Waterpark. With vibrant events such as the Boyne Falls Polish Festival and a strong tourism appeal, owning an Airbnb or vacation rental here promises good return and consistent rental income. This thriving real estate market offers investors a prime opportunity in one of the best places for vacation homes.

Key STR Metrics:

  • Average Gross Yield: 12.5%
  • Average Property Value: $646,799 (as of December 2024)
  • Average Annual Revenue: $81,090 (past 12 months)
  • Average Occupancy Rate: 61% (past 12 months)
  • Qualifying Airbnbs: 86 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 91%

Find Airbnbs For Sale in Boyne Falls, MI →

11. Three Oaks, MI

Three Oaks, MI is a charming destination ideal for real estate investors targeting the short-term rental market. Situated near Lake Michigan, it's a haven for tourists seeking quaint vacation homes and unique attractions like the Acorn Theater and Journeyman Distillery. Known for its vibrant arts scene and the annual Apple Cider Century bicycle ride, the area promises steady rental income and strong cash flow for Airbnb hosts. With its rich culture and events, Three Oaks ranks among the best places for short-term vacation rentals with promising returns on real estate investing.

Key STR Metrics:

  • Average Gross Yield: 12.3%
  • Average Property Value: $489,589 (as of December 2024)
  • Average Annual Revenue: $60,072 (past 12 months)
  • Average Occupancy Rate: 37% (past 12 months)
  • Qualifying Airbnbs: 93 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 76%

Find Airbnbs For Sale in Three Oaks, MI →

12. Ludington, MI

Ludington, MI, is a vibrant lakeside town with a thriving short-term rental market, making it an attractive destination for real estate investors. Renowned for its stunning beaches along Lake Michigan, it offers tourists the perfect vacation spot with attractions like Ludington State Park and Big Sable Point Lighthouse. Hosting events like the Ludington Arts & Crafts Festival and Gus Macker Basketball, it appeals to vacation home enthusiasts. The local tourism scene promises good rental income and cash flow for Airbnb hosts looking to capitalize on its bustling tourism.

Key STR Metrics:

  • Average Gross Yield: 12.2%
  • Average Property Value: $438,647 (as of December 2024)
  • Average Annual Revenue: $53,502 (past 12 months)
  • Average Occupancy Rate: 42% (past 12 months)
  • Qualifying Airbnbs: 123 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 100%

Find Airbnbs For Sale in Ludington, MI →

13. Lansing, MI

Lansing, MI, a vibrant destination for real estate investors, is rich with attractions that draw tourists and boost the short-term rental market. Home to Michigan State University and the Lansing Lugnuts baseball team, it offers exciting sports events. Visitors can explore cultural gems like the Michigan History Center and the Impression 5 Science Center. Annual events like the Capital City River Run entice more guests, making it a hot spot for vacation rentals. With its robust tourism scene, Lansing promises good returns for Airbnb hosts seeking profitable investment properties.

Key STR Metrics:

  • Average Gross Yield: 12.1%
  • Average Property Value: $234,687 (as of December 2024)
  • Average Annual Revenue: $28,317 (past 12 months)
  • Average Occupancy Rate: 41% (past 12 months)
  • Qualifying Airbnbs: 111 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 80%

Find Airbnbs For Sale in Lansing, MI →

14. Cheboygan, MI

Cheboygan, MI is emerging as a prime short-term rental market, enticing real estate investors with its promising vacation homes and rental income potential. Nestled along the scenic Straits of Mackinac, this charming destination is rich with attractions such as the historic Cheboygan Opera House and the Cheboygan State Park. The area draws tourists with its vibrant festivals like the annual Mackinaw Area Historical Festival. Its thriving tourism scene ensures consistent guest flow, making it one of the best places for real estate investing and a good return in 2025.

Key STR Metrics:

  • Average Gross Yield: 11.4%
  • Average Property Value: $404,975 (as of December 2024)
  • Average Annual Revenue: $46,324 (past 12 months)
  • Average Occupancy Rate: 44% (past 12 months)
  • Qualifying Airbnbs: 101 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 112%

Find Airbnbs For Sale in Cheboygan, MI →

15. Marquette, MI

Marquette, MI, is a premier location for real estate investors seeking lucrative short-term rental markets. Nestled along Lake Superior, this vibrant city boasts attractions like Presque Isle Park and the Marquette Maritime Museum, drawing numerous tourists. The city's lively calendar features events such as the UP 200 Sled Dog Race and the Marquette Blues Fest, ensuring continuous guest interest. With a robust tourism scene and potential for great rental income, Marquette's vacation homes offer a promising real estate investing opportunity.

Key STR Metrics:

  • Average Gross Yield: 11.4%
  • Average Property Value: $437,049 (as of December 2024)
  • Average Annual Revenue: $49,670 (past 12 months)
  • Average Occupancy Rate: 50% (past 12 months)
  • Qualifying Airbnbs: 183 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 109%

Find Airbnbs For Sale in Marquette, MI →

16. Grand Rapids, MI

Grand Rapids, MI, a dynamic hub for real estate investing, offers thriving opportunities in the short-term rental market. Known for attractions like the Frederik Meijer Gardens and vibrant art scene, it's a hotspot for vacation homes. With sports teams like the Grand Rapids Griffins and events such as ArtPrize, tourists flock to this city, making it lucrative for Airbnb hosts. A strong housing market ensures good return and rental income for investors eyeing short-term rental properties.

Key STR Metrics:

  • Average Gross Yield: 11.3%
  • Average Property Value: $369,165 (as of December 2024)
  • Average Annual Revenue: $41,640 (past 12 months)
  • Average Occupancy Rate: 47% (past 12 months)
  • Qualifying Airbnbs: 199 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 74%

Find Airbnbs For Sale in Grand Rapids, MI →

17. Manistee, MI

Manistee, MI, is a hidden gem for real estate investors seeking lucrative short-term rental properties. Nestled along Lake Michigan, it's a paradise for tourists who flock to attractions like the historic downtown, pristine beaches, and nearby Manistee National Forest. The local housing market offers great potential for investment property with good return, especially during popular events like the Manistee Victorian Sleighbell Parade. As an Airbnb host, capitalize on the area's rich tourism and generate cash flow from vacation rentals that draw guests year-round.

Key STR Metrics:

  • Average Gross Yield: 10.2%
  • Average Property Value: $384,947 (as of December 2024)
  • Average Annual Revenue: $39,328 (past 12 months)
  • Average Occupancy Rate: 38% (past 12 months)
  • Qualifying Airbnbs: 95 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 118%

Find Airbnbs For Sale in Manistee, MI →

18. Grand Haven, MI

Grand Haven, MI, a prime destination for short-term rental market enthusiasts, boasts sandy beaches, the iconic Grand Haven Lighthouse, and a vibrant downtown. Known for events like the Coast Guard Festival, it draws tourists throughout the year, offering real estate investors attractive vacation homes. As an Airbnb host, expect high rental income from guests eager to experience the city's attractions. With a dynamic housing market, Grand Haven ensures a good return and cash flow, making it one of the best places for real estate investing.

Key STR Metrics:

  • Average Gross Yield: 9.4%
  • Average Property Value: $525,974 (as of December 2024)
  • Average Annual Revenue: $49,700 (past 12 months)
  • Average Occupancy Rate: 47% (past 12 months)
  • Qualifying Airbnbs: 103 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 116%

Find Airbnbs For Sale in Grand Haven, MI →

19. Ann Arbor, MI

Ann Arbor, MI, is a thriving hub for short-term rental properties, offering real estate investors excellent opportunities in the short term rental market. Known for the University of Michigan, it attracts sports enthusiasts with football games and cultural events like the Ann Arbor Art Fair. Visitors enjoy the vibrant downtown, green parks, and rich cultural scene, making it ideal for vacation rentals. With robust tourism and diverse attractions, Ann Arbor provides Airbnb hosts a good return and consistent rental income, positioning it among the best places for vacation homes.

Key STR Metrics:

  • Average Gross Yield: 9.2%
  • Average Property Value: $742,742 (as of December 2024)
  • Average Annual Revenue: $68,224 (past 12 months)
  • Average Occupancy Rate: 45% (past 12 months)
  • Qualifying Airbnbs: 317 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 90%

Find Airbnbs For Sale in Ann Arbor, MI →

20. Roscommon, MI

Nestled in Northern Michigan, Roscommon offers a thriving short-term rental market perfect for real estate investors looking to capitalize on vacation rentals. The area boasts prime attractions like Higgins Lake, known for its crystal-clear waters, and nearby North Higgins Lake State Park. Visitors can enjoy outdoor activities such as fishing, boating, and hiking. Popular events like the Firemen's Memorial Festival bring tourists annually, ensuring strong rental income potential. Roscommon's appeal makes it one of the best places for Airbnb hosts seeking good returns on investment.

Key STR Metrics:

  • Average Gross Yield: 9.1%
  • Average Property Value: $375,805 (as of December 2024)
  • Average Annual Revenue: $34,097 (past 12 months)
  • Average Occupancy Rate: 33% (past 12 months)
  • Qualifying Airbnbs: 97 (as of January 2025)
  • Year-Over-Year Growth in Airbnbs: 92%

Find Airbnbs For Sale in Roscommon, MI →

Categories: Airbnb Market Data

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About the author

Emir Dukic

CEO @ Rabbu.com

With a passion for real estate innovation and technology, Emir has transformed Rabbu into a go-to marketplace for real estate investors seeking high-yield opportunities in the short-term rental market. Drawing on his background in entrepreneurship and operational strategy, Emir has been instrumental in simplifying the complexities of the short-term rental industry, empowering investors to maximize their returns with data-driven insights and streamlined tools.

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