Ann Arbor, Michigan Short-Term Rental Market
Ann Arbor bans investor-owned residential STRs; September 2026 ADR $368, occupancy 57.1%, revenue $5,445 monthly.
Quick Answer: Ann Arbor, Michigan is an active short-term rental market. average occupancy in the Ann Arbor market area is 57%. average monthly revenue in the Ann Arbor market area is $5,445. average daily rate in the Ann Arbor market area is $368. the top operator in the Ann Arbor market area is Goldilocks with 32 listings. market score is 57/100 (grade C).
Market data reflects the wider Ann Arbor market, which covers 2 areas. Regulations, taxes, and permit details below are specific to Ann Arbor.
Market Score Breakdown
Five dimensions StaySTRA evaluates per market.
Market Overview
This profile covers the Ann Arbor STR market as of September 2026, and it starts with the rule that shapes everything else: investor-owned whole-home short-term rentals have been banned in all residential zones since March 1, 2021. Only owner-occupied primary residences, homestays, and units in mixed-use or commercial zones can operate legally, so the supply described below is a restricted pool. In September 2026 the average daily rate was $368, occupancy was 57.1%, and the average listing earned $5,445 for the month. Compared with September 2025, occupancy is up 11.5%, ADR is up 2.0%, and revenue is up 34.6%. The Ann Arbor area STR market tracks 1,284 listings. Entire places make up 1,042 of them (81.2%), private rooms account for 240, and shared rooms for 2. By bedroom count, 1-bedroom units lead with 483 listings, followed by 309 two-bedroom, 262 three-bedroom, 143 four-bedroom, and 80 five-bedroom listings. On distribution, 823 listings appear on Airbnb only, 54 on Vrbo only, and 407 on both platforms. Demand is anchored by the University of Michigan. Football Saturdays at Michigan Stadium, campus tours, alumni visits, conventions, and the Ann Arbor Art Fair each July draw travelers from the Detroit metro, the Chicago corridor, and farther afield. Destination Ann Arbor booked 113 conventions and meetings in 2023, with $20.8M in economic impact. Ann Arbor has a population of 122,036. The typical home value is $526,592, which sets a high entry cost for buyers. Year to date in 2026, the market has averaged 58.6% occupancy, a $225 ADR, and $3,443 in monthly revenue across nine months, ahead of the full-year 2025 figures of 55.4%, $219, and $3,259.
Seasonal Patterns
| Month | Occupancy |
|---|---|
| Jan | 49% |
| Feb | 57% |
| Mar | 61% |
| Apr | 61% |
| May | 51% |
| Jun | 66% |
| Jul | 68% |
| Aug | 72% |
| Sep | 59% |
| Oct | 55% |
| Nov | 50% |
| Dec | 45% |
Month-by-month nightly rates and revenue figures for Ann Arbor are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Top Short-Term Rental Operators in Ann Arbor market area
Ranked by total active listings. Useful for understanding the competitive landscape. Operator data is published for the Ann Arbor market as a whole, which includes Ann Arbor, so these counts are not Ann Arbor-only figures.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Goldilocks | 32 | 3,553 | ★ 4.81 |
| 2 | 4M Team | 27 | 6,060 | ★ 4.78 |
| 3 | StayArbor | 22 | 730 | ★ 4.64 |
| 4 | LiveSuites | 16 | 831 | ★ 4.78 |
| 5 | Evolve | 10 | 233 | ★ 4.66 |
What Kind of STR Should I Buy in Ann Arbor?
Revenue and nightly-rate breakdowns by bedroom count, property tier, and dwelling type for Ann Arbor are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 64.1% |
| vrbo | 4.2% |
| both | 31.7% |
Home Value Trends (Ann Arbor)
Typical home values, median sale prices, and the 10-year price trend for Ann Arbor are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Booking Insights
Booking-window and length-of-stay analysis for Ann Arbor — how far ahead guests book and how to price around it — is available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Short-Term Rental Regulations
Ann Arbor’s rules are strict and shape who can operate. Short-term rentals are permitted, but non-principal-residence (investor-owned) whole-home STRs are banned in all residential zones, effective March 1, 2021. They are allowed only in mixed-use or commercial zoning districts. Owner-occupied primary residences may rent the whole home while the owner is away, in both residential and mixed-use zones. Homestays, where rooms are rented while the owner is on site, are allowed in residential and mixed-use zones. Accessory dwelling units cannot be licensed as STRs, and third-party companies cannot hold or apply for licenses. Every STR needs an annual license from the City of Ann Arbor at $500 per unit, which is non-refundable even if denied. Applications go through the city’s STREAM portal, with up to 21 business days for review. Requirements include proof of principal residency, floor and site plans, parking documentation, a certificate of occupancy, a current fire inspection, and proof of at least $1 million in liability insurance. Listings must display the city license number and maximum occupancy. No annual night cap is codified. Taxes include a 5% city accommodations tax paid monthly, plus Michigan’s 6% state use tax on stays under 30 days. Airbnb collects the state tax automatically, while other platforms require self-remittance. Enforcement severity is rated strict. Recent changes: the Green Rental Housing Ordinance took effect January 6, 2026, requiring rental units, including STRs, to meet minimum energy efficiency standards at inspection. Michigan HB 5438, a 2024 state framework bill, remained in committee as of early 2026 and does not affect local rules.
Market Comparison
Ann Arbor’s September 2026 figures stand out on rate, with a $368 ADR and 57.1% occupancy. Year over year, revenue is up 34.6%, which suggests the market is recovering strongly from the flat 2023 to 2025 period, when annual occupancy sat between 55.4% and 56.2%. The market is dominated by entire places at 81.2% of the 1,042 entire-place listings out of 1,284 total, which supports the higher ADR. In the Ann Arbor area STR market, the top operators by listing count are Goldilocks with 32 listings and a 4.81 rating, 4M Team with 27 listings and 6,060 reviews, StayArbor with 22 listings, LiveSuites with 16 listings and a 4.78 rating, and Evolve with 10 listings. The market score is 56.75 overall, with regulation at 71.75, rental demand at 72, and investability at 63.3. The higher price point reflects both strong demand tied to the University of Michigan and a supply limited by the investor ban in residential zones.
Frequently Asked Questions About Ann Arbor, Michigan
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