Bay City, Michigan Short-Term Rental Market
Bay City, MI STRs averaged $161/night at 42.3% occupancy in April 2026 across 1,948 active listings.
Quick Answer: Bay City, Michigan is an active short-term rental market. average occupancy is 42%. average monthly revenue is $1,588. average daily rate is $161. the top operator is MiCasa Stays with 95 listings. market score is 72/100 (grade B).
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
Bay City’s short-term rental market comprises 1,948 active listings on the Saginaw Bay waterfront in Michigan’s Great Lakes Bay Region. In April 2026, the market posted an average daily rate of $161, occupancy of 42.3%, and revenue per available rental (RevPAR) of $68.
The listing supply skews heavily toward entire-place accommodations: 1,893 listings (97.2% of total) are entire-place rentals, with only 55 private rooms. Two-bedroom properties make up the largest share at 691 listings, followed by three-bedrooms (570), one-bedrooms (373), four-bedrooms (186), and five-bedrooms (128).
Channel distribution shows broad dual-platform reach. Of the 1,948 listings, 853 appear on both Airbnb and VRBO, 786 are Airbnb-only, and 309 are VRBO-only, indicating most active operators maintain a multi-channel presence.
Year-over-year, the April 2026 data reflects a market under some demand pressure. Occupancy fell 8.25 percentage points compared to the same month a year prior, and revenue dropped 11.0% year-over-year. ADR, however, rose 5.9% year-over-year to $161, suggesting operators have maintained rate discipline even as bookings softened. This ADR-up/occupancy-down pattern is consistent with a market where supply grew faster than near-term demand, common in seasonal lake markets post-pandemic normalization.
Looking at the 2025 annual average, the market was in a stronger position: occupancy averaged 49.2%, ADR averaged $200, and average monthly revenue reached $2,757. The April 2026 snapshot reflects the seasonal off-peak period rather than full-year performance.
Market scores from the latest snapshot: investability 99.0, revenue growth 76.7, regulation 69.5, rental demand 61.6, total score 71.9, with seasonality scoring 49.1, reflecting the meaningful summer concentration documented below.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 36% | $144 | $1,528 |
| Feb | 42% | $147 | $1,500 |
| Mar | 43% | $141 | $1,611 |
| Apr | 44% | $147 | $1,534 |
| May | 50% | $186 | $1,803 |
| Jun | 62% | $223 | $3,113 |
| Jul | 74% | $230 | $4,424 |
| Aug | 67% | $229 | $4,105 |
| Sep | 41% | $197 | $2,283 |
| Oct | 39% | $167 | $1,912 |
| Nov | 39% | $154 | $1,667 |
| Dec | 40% | $157 | $1,738 |
Top Short-Term Rental Operators in Bay City
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | MiCasa Stays | 95 | 3,709 | ★ 4.69 |
| 2 | Evolve | 63 | 1,955 | ★ 4.54 |
| 3 | Creative Conservation | 24 | 482 | ★ 4.67 |
| 4 | Hunger & Ransom | 22 | 827 | ★ 4.65 |
| 5 | LiveSuites | 16 | 526 | ★ 4.23 |
What Kind of STR Should I Buy in Bay City?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 373 |
| 2 bed | 691 |
| 3 bed | 570 |
| 4 bed | 186 |
| 5 bed | 128 |
ADR by Property Tier
| Entire Home | $166 |
| Luxury | $274 |
| Professionally Managed | $197 |
Revenue by Dwelling Type
| Apartment | $1,256 |
| Entire Place | $1,608 |
| House | $1,674 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 40.3% |
| vrbo | 15.9% |
| both | 43.8% |
Investment Analysis
Bay City presents a compelling entry-point case on acquisition cost alone. The typical home value is $123,251, with a median sale price of $126,667 and median list price of $129,583. At April 2026’s average monthly STR revenue of $1,588, the annualized gross revenue run rate is approximately $19,051. That implies a gross revenue yield of roughly 15.5% on a typical acquisition, before expenses. This is a notably high yield ratio relative to most coastal or urban STR markets where home values are 3 to 10 times higher.
However, April is an off-peak month. The 2025 annual average of $2,757 per month produces an annualized gross of approximately $33,084, implying a gross yield closer to 26.8% on a $123,251 home, though investors should underwrite a realistic annual average rather than peak-season figures.
Tier comparisons sharpen the ROI picture. Entire-home listings averaged $166/night in April (vs. $161 all-listings), luxury-tier listings averaged $274/night, and professionally managed listings averaged $197/night. Operators who invest in professional management or position into the luxury tier capture ADRs 22% to 70% above the market average.
Year-over-year revenue fell 11.0% in April 2026, and occupancy fell 8.25 points. This context is important: investors entering now face a market where post-pandemic demand normalization is ongoing. That said, the 2024 and 2025 annual averages ($2,559 and $2,757 respectively) show that the market sustained growth in prior years. The investability score of 99.0 reflects the favorable price-to-revenue ratio rather than a guarantee of occupancy.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
Run a Free Address Analysis
Skip the market averages. Get revenue projections, comp analysis, and ROI for your specific property address. Free, instant, no signup required.
Analyze My Property →Home Value Trends (Bay City)
Booking Insights
Bay City STR guests book an average of 33 days in advance, with an average length of stay of 3.9 nights. These two metrics together shape how operators should manage their pricing and availability windows.
A 33-day average lead time means the majority of bookings are not made months out. This is typical for regional lake markets where guests make decisions closer to the travel date. Operators benefit from keeping calendars open well past the 30-day mark and using dynamic pricing tools that adjust rates as the arrival date approaches. Holding firm on high rates too far in advance can leave inventory unfilled.
At 3.9 nights average stay, Bay City guests are primarily short-break vacationers rather than extended-stay renters. This produces more frequent turnovers than markets with 7-night minimum stays and increases cleaning and supply costs per booking. Operators should factor cleaning fees and turnover time into pricing to maintain net margins, particularly during peak summer weeks when back-to-back bookings are most common.
Short-Term Rental Regulations
Bay City requires an annual Short-Term Rental License under Chapter 26, Article XVI of the City Code. The license must be renewed each year before operating. Bay City’s fee schedule (updated November 21, 2025) confirms the annual STR license fee is in effect, but the exact dollar amount was not publicly accessible at the time of research. Operators should contact Bay City Community Development at 301 Washington Ave, Suite 207, or 989-894-8156 to confirm the current fee.
At the state level, Michigan imposes a 6% use tax on all short-term rentals under 30 days. Airbnb collects and remits this tax on behalf of hosts on that platform. Operators using VRBO or direct bookings must self-remit.
Bay County does not appear to have enacted a separate local lodging excise tax as of 2025, though it is eligible under Michigan law to levy up to 5% under Public Act 263 of 1974. Operators should verify whether any county-level tax has been adopted since then.
No confirmed maximum nights per year, owner-occupancy requirement, or primary residence requirement was found in publicly accessible sources for Bay City STR licenses. The city also runs a separate Rental Registration and Inspection program requiring all rental properties to be registered and inspected before occupancy, which may apply in parallel to the STR license.
Enforcement severity is rated moderate. On pending state legislation: Michigan House Bill 4722, if enacted, would classify STRs as a residential use permissible in all residential zones, potentially limiting local zoning authority. As of May 2026, operators should verify the implementation status of this bill directly with Bay City Community Development.
Market Comparison
Measured against national STR benchmarks, Bay City sits below median on occupancy but above median on affordability of entry. The US STR market median occupancy is approximately 55%; Bay City’s 2025 annual average of 49.2% and April 2026 reading of 42.3% both trail that benchmark. The national median ADR is approximately $220; Bay City’s April 2026 ADR of $161 and 2025 annual average of $200 reflect the pricing power typical of a smaller Midwest lake market rather than a coastal or mountain destination.
The key competitive differentiator for Bay City is acquisition cost. At a typical home value of $123,251, the capital required to enter the Bay City STR market is a fraction of comparable waterfront markets in Michigan (Traverse City, Charlevoix) where typical home values exceed $400,000 to $600,000.
Among professional operators, MiCasa Stays leads with 95 listings and 3,709 reviews at a 4.69 rating, making it the dominant local manager. Evolve is the second-largest operator with 63 listings and 1,955 reviews (4.54 rating), representing a national management platform with a Bay City presence. Creative Conservation holds third with 24 listings and a 4.67 rating. Together, the top three operators account for 182 listings, roughly 9.3% of the total active market.
Frequently Asked Questions About Bay City, Michigan
What is the average daily rate for STRs in Bay City, MI?
What is the occupancy rate for Bay City Airbnb rentals?
How much can you earn from a short-term rental in Bay City?
Do I need a license to operate a short-term rental in Bay City, MI?
When is the best time of year for Bay City short-term rentals?
What types of properties perform best for STR in Bay City?
Who are the top property managers in Bay City, MI?
Analyze Bay City Rentals
Use our free calculator to estimate Airbnb revenue for any property in Bay City.
Free Bay City STR Calculator →
