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 in the Michigan East Coastal market area is 61%. average monthly revenue in the Michigan East Coastal market area is $3,990. average daily rate in the Michigan East Coastal market area is $272. the top operator in the Michigan East Coastal market area is MiCasa Stays with 95 listings. market score is 72/100 (grade B).
Market data reflects the Michigan East Coastal regional market, which includes Bay City. Regulations, taxes, and permit details below are specific to Bay City.
Market Score Breakdown
Five dimensions StaySTRA 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 |
|---|---|
| Jan | 36% |
| Feb | 42% |
| Mar | 43% |
| Apr | 44% |
| May | 49% |
| Jun | 61% |
| Jul | 74% |
| Aug | 67% |
| Sep | 41% |
| Oct | 39% |
| Nov | 39% |
| Dec | 40% |
Month-by-month nightly rates and revenue figures for Bay City are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Top Short-Term Rental Operators in Michigan East Coastal market area
Ranked by total active listings. Useful for understanding the competitive landscape. Operator data is published for the Michigan East Coastal market as a whole, which includes Bay City, so these counts are not Bay City-only figures.
| # | 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 nightly-rate breakdowns by bedroom count, property tier, and dwelling type for Bay City 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 | 40.3% |
| vrbo | 15.9% |
| both | 43.8% |
Home Value Trends (Bay City)
Typical home values, median sale prices, and the 10-year price trend for Bay City 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 Bay City — 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
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
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