Rapid City, Michigan Short-Term Rental Market
Rapid City, MI short-term rentals near Torch Lake averaged $411/night at 64.4% occupancy in June 2026, with a roughly 20.8% gross rental yield.
Quick Answer: Rapid 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 179 listings. market score is 60/100 (grade C).
Market data reflects the Traverse City regional market, which includes Rapid City. Regulations, taxes, and permit details below are specific to Rapid City.
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
Rapid City is a small unincorporated community at the south end of Torch Lake in Kalkaska County, part of Northern Michigan’s Traverse City region, with a population of 1,357. Torch Lake, named by National Geographic as one of the most beautiful lakes in the world, drives an overwhelmingly summer recreational visitor base of boaters, swimmers, and cottage renters. In June 2026, the latest month with data, short-term rentals in this market averaged $410.84 per night at 64.4% occupancy, generating $6,344 in average monthly revenue per listing. Occupancy eased 0.6 point year over year and ADR fell 6.0%, but revenue still rose 4.5%. By property type, apartments averaged $5,431/month, entire homes $6,470/month, and houses $6,994/month. Regionally, entire-place listings make up roughly 97% of inventory.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 32% | $243 | $2,220 |
| Feb | 39% | $240 | $2,269 |
| Mar | 35% | $212 | $2,088 |
| Apr | 40% | $219 | $2,095 |
| May | 52% | $274 | $2,700 |
| Jun | 64% | $343 | $5,018 |
| Jul | 79% | $349 | $6,781 |
| Aug | 71% | $347 | $6,316 |
| Sep | 49% | $295 | $3,910 |
| Oct | 45% | $265 | $3,347 |
| Nov | 29% | $230 | $2,034 |
| Dec | 39% | $239 | $2,175 |
Top Short-Term Rental Operators in Rapid City
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Vacasa | 179 | 5,712 | ★ 4.46 |
| 2 | Elevated Homes & Hospitality | 125 | 4,924 | ★ 4.78 |
| 3 | The Mitten Group Property Management | 109 | 9,508 | ★ 4.79 |
| 4 | True North Property Management | 107 | 3,603 | ★ 4.56 |
| 5 | Evolve | 94 | 4,157 | ★ 4.76 |
What Kind of STR Should I Buy in Rapid City?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 1,295 |
| 2 bed | 1,503 |
| 3 bed | 1,231 |
| 4 bed | 703 |
| 5 bed | 440 |
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 | 28.4% |
| vrbo | 15.1% |
| both | 56.5% |
Investment Analysis
Rapid City’s market-wide ADR of $410.84 trails the professionally-managed tier average ($440.56) and sits well below the luxury tier average ($638.10), leaving room for well-positioned lakefront properties to price above the baseline. The typical home value here is $366,762, and average monthly revenue of $6,344 annualizes to about $76,129, working out to a gross rental yield of roughly 20.8% before expenses, one of the strongest figures in this entire batch of markets. For-sale inventory is thin at just 18 homes, meaning limited selection for buyers. On regulation, Rapid City is unincorporated, so land-use control falls to Clearwater Township under its dedicated STR ordinance (No. 07122021.2), which requires registration and licensure, though exact fee amounts, renewal cadence, and occupancy or parking caps were not verifiable from public source text; investors should confirm current terms directly with the township.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
Guests book Rapid City-area listings an average of 87.4 days ahead and stay 4.0 nights per trip. That lead time reflects Torch Lake’s status as a planned summer getaway destination for Michigan and Midwest families, giving operators months of visibility to manage pricing ahead of the sharp July-August peak.
Short-Term Rental Regulations
Rapid City, Michigan is an unincorporated community (census-designated place) in Clearwater Township, Kalkaska County, with no city government of its own, so short-term rental rules come from Clearwater Township plus the State of Michigan. Michigan has no statewide STR licensing system and no preemption law as of 2026, leaving regulation to local governments. Clearwater Township has adopted a dedicated Short-Term Rental Ordinance (No. 07122021.2) requiring registration and licensure of STRs within the township, alongside its Zoning Ordinance No. 22. The exact fee amount, renewal cadence, and any occupancy or parking caps were not verifiable from accessible source text; confirm directly with the township (231-331-6249). Statewide, all lodging rented for fewer than 30 days must collect and remit Michigan’s 6% use tax. There is no evidence of an owner-occupancy or primary-residence mandate or an annual-nights cap for this township. Enforcement is rated moderate. Note: many web results for ‘Rapid City short-term rental’ refer to Rapid City, South Dakota, and do not apply here.
Market Comparison
Rapid City’s 64.4% occupancy in June 2026 runs above the roughly 55% U.S. median often cited for short-term rentals, and its $410.84 ADR nearly doubles the roughly $220 national median, reflecting its position as a premium Torch Lake market. No property manager snapshot data is currently published for this specific market, so a top-operator comparison is not available here; based on available data, ownership appears fragmented among individual lake-house owners rather than concentrated under a large professional manager.
Frequently Asked Questions About Rapid City, Michigan
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What is the gross rental yield on a Rapid City, MI short-term rental?
Do you need a permit for a short-term rental in Rapid City, MI?
When is the busiest season for short-term rentals near Torch Lake?
What taxes apply to short-term rentals in Rapid City, MI?
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