Lake City, Michigan Short-Term Rental Market
Lake City, MI area STRs averaged $232/night at 38.2% occupancy in April 2026, with July peaking at 78.9% occupancy and $6,783 average monthly revenue.
Quick Answer: Lake City, Michigan is an active short-term rental market. average occupancy is 64%. average monthly revenue is $6,344. average daily rate is $411. the top operator is Vacasa with 206 listings. market score is 59/100 (grade C).
Market data reflects the Traverse City regional market, which includes Lake City. Regulations, taxes, and permit details below are specific to Lake City.
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
The Lake City, Michigan market is centered on Lake Missaukee, a 1,880-acre lake in Missaukee County in the northern Lower Peninsula. The incorporated city of Lake City has a population of just 829, but the STR data covers the broader lake region and surrounding area. Tourism is overwhelmingly seasonal: summer brings boaters, anglers, and swimmers, while fall draws visitors for foliage and the area’s Christmas-tree heritage. The July 4th ‘Greatest Fourth in the North’ celebration is a major regional draw.
Approximately 5,222 active listings are tracked across the market. Entire-place rentals account for 5,064 (97%), with 158 private rooms. By bedroom count, 2-bedroom properties lead with 1,523 listings, followed by 1-bedrooms (1,303), 3-bedrooms (1,236), 4-bedrooms (711), and 5-bedrooms (443). Channel distribution is well-balanced with cross-platform: 2,936 listings appear on both Airbnb and VRBO, 1,475 are Airbnb-only, and 811 are VRBO-only.
As of April 2026, the average daily rate was $232.22 with occupancy at 38.2%, producing RevPAR of $88.73. Year-over-year, occupancy declined 3.7% versus April 2025, while ADR increased 4.6%, and total revenue was nearly flat at +0.2%.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 32% | $243 | $2,217 |
| Feb | 39% | $240 | $2,264 |
| Mar | 35% | $212 | $2,085 |
| Apr | 40% | $219 | $2,094 |
| May | 52% | $274 | $2,699 |
| Jun | 64% | $343 | $5,015 |
| Jul | 79% | $349 | $6,779 |
| Aug | 71% | $347 | $6,314 |
| Sep | 49% | $295 | $3,909 |
| Oct | 45% | $265 | $3,347 |
| Nov | 29% | $230 | $2,035 |
| Dec | 39% | $239 | $2,172 |
Top Short-Term Rental Operators in Lake City
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Vacasa | 206 | 5,978 | ★ 4.46 |
| 2 | Elevated Homes & Hospitality | 116 | 4,924 | ★ 4.76 |
| 3 | True North Property Management | 109 | 3,627 | ★ 4.54 |
| 4 | The Mitten Group Property Management | 108 | 9,528 | ★ 4.79 |
| 5 | Evolve | 94 | 4,171 | ★ 4.76 |
What Kind of STR Should I Buy in Lake City?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 1,303 |
| 2 bed | 1,523 |
| 3 bed | 1,236 |
| 4 bed | 711 |
| 5 bed | 443 |
ADR by Property Tier
| Entire Home | $417 |
| Luxury | $638 |
| Professionally Managed | $441 |
Revenue by Dwelling Type
| Apartment | $5,431 |
| Entire Place | $6,470 |
| House | $6,994 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 28.2% |
| vrbo | 15.5% |
| both | 56.2% |
Investment Analysis
Zillow housing data is not available for this area in the dataset, so purchase-price-based yield calculations cannot be provided here. Investors should obtain current property valuations through local market research.
On revenue performance, April 2026 average monthly STR revenue was $2,189 across all listings, annualizing to approximately $26,268 per year at that rate. However, April is a shoulder month here: the 2025 full-year average was $4,146/month (annualized $49,752), which better reflects the summer-heavy revenue cycle.
Tier performance shows clear differentiation. Luxury-tier listings averaged $428/night versus $232 for the market average, an 84% premium. Professionally managed listings averaged $233/night, essentially at par with the market average, suggesting that professional management alone does not command a rate premium in this market. Houses generated $2,533/month versus $1,695 for apartments, and entire-place listings ($2,205) outperform the all-listing average ($2,189), confirming that private rooms pull the average down only modestly given their small share.
Investability scores at 84.1/100 are solid, and revenue growth at 78.3/100 indicates recent upward trend. Rental demand (57.1/100) and total score (59.2/100) reflect the market’s strong but highly seasonal nature. Investors should plan cash flow around a very short peak season.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
Lake City area guests book an average of 49.5 days in advance as of April 2026, the longest lead time in this batch. This reflects the market’s summer-peak concentration: visitors planning July 4th or peak-summer stays on Lake Missaukee secure accommodations well in advance, often 6-8 weeks out, because the supply of desirable lakefront properties is limited.
Average length of stay is 3.12 nights. This is consistent with a long-weekend profile: Thursday-through-Sunday or Friday-through-Monday summer stays. Holiday weekends, particularly the July 4th ‘Greatest Fourth in the North’ event, likely skew toward longer minimum stays.
The combination of long lead time and moderate stay length suggests operators should implement minimum-stay requirements of 3 nights during peak summer weekends and 2 nights during shoulder periods, and should hold rates firm through the 4-6 week advance window before considering yield-management discounts. Last-minute availability in July is unusual for lakefront properties; operators should treat remaining gaps as premium opportunities rather than discount triggers.
Short-Term Rental Regulations
The City of Lake City adopted Chapter 101, its Short-Term Rental Ordinance, effective late 2022. This ordinance applies within the incorporated city limits. Key provisions:
A hard cap of 15 STR properties is in effect citywide. Each permitted STR must be more than 500 feet from any other permitted STR. Once the cap is reached, new applicants are placed on a waiting list with a $100 non-refundable deposit. An STR Certificate of Compliance (rental license) is required before advertising or renting. Annual fees total $750 ($500 license fee plus $250 inspection fee).
Only single-family-zoned residences qualify. Non-residential structures are prohibited from operating as STRs. The owner or a designee must be able to respond on-site within 15 minutes. Quiet hours run from 11pm to 7am. Properties must meet 2018 International Property Maintenance Code standards, with smoke and CO detector requirements.
No owner-occupancy or primary-residence requirement is stated in the ordinance. There is no annual night cap.
Michigan levies a 6% state use tax on rentals under 30 days. No separate Lake City municipal lodging tax is noted. Enforcement is classified as strict: civil fines range from $100 to $500 plus court costs, with license revocation and Circuit Court injunction authority for unpermitted operators.
Note: The 5,200+ listings tracked in this market area extend significantly beyond the 15-property cap in the incorporated city. Missaukee County townships surrounding Lake Missaukee operate under separate, generally less restrictive, county-level rules. Investors should verify the jurisdiction of any specific property before assuming these caps apply.
Market Comparison
Nationally, STR markets average roughly 55% occupancy and $220 ADR. Lake City’s April 2026 occupancy of 38.2% is below the national average, though April is a shoulder month here; July peaks at 78.9%. ADR at $232 is slightly above the national median. The highly seasonal nature (45.2/100 seasonality score) is the defining characteristic that differentiates this market from more stable year-round markets.
The operator landscape is led by a mix of national and regional Michigan specialists. Vacasa leads with 206 listings and 5,978 reviews at a 4.46 rating. Elevated Homes and Hospitality holds 116 listings with a 4.76 rating. True North Property Management manages 109 listings (rating 4.54), and The Mitten Group Property Management holds 108 listings with the largest review count in the group at 9,528 and a 4.79 rating. Evolve rounds out the top five with 94 listings and a 4.76 rating.
The top five operators collectively manage 633 listings, representing about 12.1% of the 5,222-listing market. This moderate concentration reflects the presence of several established regional Michigan operators alongside a national platform. Revenue growth scores at 78.3/100 suggest the broader lake region has been growing its STR revenue in recent years despite the flat April 2026 year-over-year reading.
Frequently Asked Questions About Lake City, Michigan
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What does an STR license cost in Lake City, Michigan?
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How far in advance do guests book Lake City, MI STRs?
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