Last updated: October 2024
Michigan, known for its diverse landscapes and Great Lakes shoreline, offers excellent opportunities for short-term rental investors. From vibrant cities to scenic lakefront destinations, these markets provide strong investment potential.
Our latest tool, Chalet Intel, provides comprehensive insights and strategies tailored to investors at all experience levels. It includes a calculator, regulation overview, and much more for each market discussed. Links will be provided for each market, allowing you to conduct a more detailed analysis on your own.
1. Detroit, Michigan
Detroit, MI, known as the Motor City, has a rich history in the automotive industry and a vibrant arts scene, with attractions like the Detroit Institute of Arts and the Motown Museum.
Detroit has experienced a slight decrease in home values by -0.90%, with the average home price now at $68,379. The city maintains a competitive edge with an average daily rate (ADR) of $118.00 and an occupancy rate of 53%, leading to an annual revenue of $21,392 from 1,222 active listings. The average gross yield is an impressive 26.07%, complemented by a cap rate of 15.64%.
Discover more about investing in Detroit through Chalet Intel.
2. South Haven, Michigan
South Haven, MI, a popular lakeside destination, is known for its beautiful beaches, charming downtown, and vibrant festivals.
South Haven has seen a modest increase in home values by 2.00%, with the average price at $320,023. The city thrives with an ADR of $331.00 and an occupancy rate of 49%, translating to an annual revenue of $55,244 from 589 active rentals. The gross yield here is 14.39%, with a cap rate of 8.63%.
Discover more about investing in South Haven through the free South Haven Airbnb Investor Guide and South Haven Rental Regulations.
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3. Traverse City, Michigan
Traverse City, MI, offers a mix of stunning lakeside views, vibrant local culture, and access to the nearby Sleeping Bear Dunes National Lakeshore.
Traverse City has seen a stable increase in home values, with the average price reaching $400,000. With an ADR of $200.00 and an occupancy rate of 50%, the annual revenue is $36,500 from 650 active rentals. The gross yield is 9.76%, and the cap rate is 6.00%.
Explore more about investing in Traverse City through the Traverse City Airbnb Investor Guide and Traverse City Rental Regulations.
4. Grand Rapids, Michigan
Grand Rapids, MI, known for its craft breweries, vibrant arts scene, and outdoor recreation opportunities, is a dynamic city for short-term rentals.
Grand Rapids has seen a moderate increase in home values, with the average price now at $300,000. The market thrives with an ADR of $175.00 and an occupancy rate of 55%, leading to an annual revenue of $35,000 from 1,500 active rentals. The gross yield here is 7.50%, with a cap rate of 5.00%.
For more comprehensive insights into Grand Rapids as a rental market, explore Chalet Intel.
5. Ann Arbor, Michigan
Ann Arbor, MI, home to the University of Michigan, offers a vibrant college town atmosphere with a rich cultural and academic scene.
Ann Arbor has seen a stable increase in home values, with the average price now at $400,000. The market shows promise with an ADR of $225.00 and an occupancy rate of 55%, generating annual revenues of $45,000 from 1,800 active rentals. The gross yield stands at 7.20%, with a cap rate of 4.00%.
To delve deeper into Ann Arbor’s investment potential, check out Chalet Intel.
Each of these markets in Michigan offers unique opportunities for short-term rental investors, combining strong financial metrics with appealing tourist attractions. For a comprehensive overview, including detailed analyses, calculators, and regulation insights, make sure to explore our latest tool, Chalet Intel.
