Detroit, Michigan Short-Term Rental Market
Detroit STRs averaged $139/night at 58.3% occupancy in April 2026, with a 90-night annual cap limiting year-round operations.
Quick Answer: Detroit, Michigan is an active short-term rental market. average occupancy is 58%. average monthly revenue is $2,215. average daily rate is $139. the top operator is Evolve with 113 listings. market score is 96/100 (grade A).
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
The Detroit short-term rental market has approximately 6,648 active listings across a recovering urban core with strong event and leisure demand anchored by major sports venues, automotive heritage, and a growing cultural district. As of April 2026, operators averaged $139.49 per night at 58.3% occupancy, producing a RevPAR of $81.33.
Entire-place rentals account for 5,346 of 6,648 total listings (80%), with private rooms adding 1,288 units. One-bedroom units lead at 2,647 listings, followed by two-bedrooms (1,594), three-bedrooms (1,542), four-bedrooms (558), and five-plus bedrooms (276). Channel distribution strongly favors Airbnb: 4,152 listings are Airbnb-only, 2,256 appear on both Airbnb and VRBO, and 240 are VRBO-only.
Year-over-year performance in April 2026 is largely flat: occupancy slipped 0.7 percentage points, ADR rose 2.4%, and revenue edged up just 0.2% versus April 2025. The market carries a total score of 95.77 and an investability score of 95.75, the highest scores in this batch, driven primarily by very low home acquisition costs relative to revenue potential. The revenue growth score of 90.58 reflects the multi-year upward trend in per-listing revenue since 2019.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 48% | $102 | $1,468 |
| Feb | 55% | $103 | $1,444 |
| Mar | 57% | $109 | $1,709 |
| Apr | 58% | $115 | $1,807 |
| May | 62% | $124 | $1,959 |
| Jun | 64% | $131 | $2,254 |
| Jul | 66% | $131 | $2,369 |
| Aug | 63% | $131 | $2,330 |
| Sep | 60% | $122 | $2,014 |
| Oct | 59% | $118 | $1,965 |
| Nov | 55% | $117 | $1,750 |
| Dec | 54% | $117 | $1,776 |
Top Short-Term Rental Operators in Detroit
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Evolve | 113 | 1,891 | ★ 4.31 |
| 2 | Easy Stay | 67 | 2,503 | ★ 4.92 |
| 3 | Monty | 48 | 1,052 | ★ 4.13 |
| 4 | StayArbor | 46 | 1,274 | ★ 4.81 |
| 5 | Easy Stay Homes | 45 | 497 | ★ 4.93 |
What Kind of STR Should I Buy in Detroit?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 2,647 |
| 2 bed | 1,594 |
| 3 bed | 1,542 |
| 4 bed | 558 |
| 5 bed | 276 |
ADR by Property Tier
| Entire Home | $162 |
| Luxury | $254 |
| Professionally Managed | $167 |
Revenue by Dwelling Type
| Apartment | $2,014 |
| Entire Place | $2,513 |
| House | $2,339 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 62.5% |
| vrbo | 3.6% |
| both | 33.9% |
Investment Analysis
Detroit presents an unusual investment profile: some of the lowest STR acquisition costs in any major U.S. city, combined with a mandatory 90-rental-night annual cap imposed by the city’s licensing ordinance. The typical home value of $76,488 (Zillow, April 2026) is the lowest among the five markets in this analysis batch. April 2026 average monthly revenue of $2,215 reflects actual operator performance within the cap constraints.
Because the 90-night cap applies, the maximum gross revenue at the market average ADR of $139.49 is approximately $12,554 per year (90 nights times $139.49). Investors should model around this ceiling rather than annualizing the monthly revenue figure. Against a $76,488 home value, that produces a gross revenue-to-home-value ratio of roughly 16.4%, though actual net returns depend heavily on purchase price, renovation costs, and operating expenses.
Tier segmentation shows a narrower premium structure than coastal markets. All-listings ADR of $139.49 rises to $161.88 for entire-home units, $166.62 for professionally managed properties, and $254.06 for luxury-tier listings. The professionally managed premium over the market average is only $27/night (19%), the smallest management-tier premium in this batch. Investors should weigh the 90-night cap against Detroit’s very low entry price and compare net returns against alternative uses for the same capital.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
Detroit guests book approximately 31 days in advance on average, the shortest lead time among the five markets in this batch. An average length of stay of 4.66 nights reflects a mix of weekend event visitors, extended leisure trips, and business-travel stays.
The 31-day booking window is consistent with event-driven demand: sports fans, concert attendees, and auto show visitors tend to book closer to the event date than leisure vacationers. Operators should set rates early for known event dates (NFL home games at Ford Field, MLB at Comerica Park, NHL at Little Caesars Arena) and use dynamic pricing to capture last-minute premium within the final 3 weeks. The 90-night annual cap creates an incentive to prioritize the highest-rate bookings; operators should apply minimum-rate floors rather than discounting to fill marginal dates.
Short-Term Rental Regulations
Detroit requires all short-term rental operators to obtain a license from the Buildings, Safety Engineering and Environmental Department (BSEED). The license costs $500 and must be renewed annually. Rental activity is capped at 90 nights per calendar year, which is the most significant constraint on Detroit STR operations. Occupancy is limited to no more than 10 guests at a time.
Hosts must pass safety and property inspections, comply with city zoning requirements, and carry liability insurance. The city treats owner-occupied STRs more favorably than non-owner-occupied properties; non-owner-occupied rentals may face restrictions or prohibition in certain residential zones. Operators should verify parcel-level zoning eligibility directly with BSEED (313-224-2733).
On taxes, Michigan imposes a 6% state use (lodging) tax on stays under 30 days; Airbnb collects this state tax automatically in many cases. Detroit’s local hotel and tourist tax (raised to 3.5% effective January 1, 2025) applies to properties with 35 or more rooms and does not typically apply to residential STRs. Operators should confirm current tax obligations with both BSEED and the Michigan Department of Treasury.
In October 2024, Detroit’s City Council passed a new Rental Ordinance overhauling inspection requirements and penalties. BSEED ran an implementation pilot from February 15 to May 1, 2025, with full enforcement beginning May 1, 2025. Enforcement is described as moderate.
Market Comparison
Detroit operates below national STR benchmarks on ADR: the $139.49 average is well below the US STR median of approximately $220. Occupancy of 58.3% is near the national median of approximately 55%. The market’s low ADR reflects the broader cost structure of a recovering urban market with relatively low consumer accommodation price ceilings.
What distinguishes Detroit is its extreme low entry cost. The typical home value of $76,488 is a fraction of comparable urban markets, which produces unusually high gross revenue ratios on a price-paid basis. The investability score of 95.75 and total market score of 95.77 are among the highest possible, primarily capturing this entry-cost advantage.
Among professional operators, Evolve leads with 113 listings and 1,891 reviews at a 4.31 average rating. Easy Stay holds 67 listings with a 4.92 average rating and 2,503 reviews, the highest rating among the top operators. Monty manages 48 listings at 4.13. StayArbor holds 46 listings at 4.81. Together, the top three operators account for 228 listings, approximately 3.4% of total market inventory, indicating a highly fragmented market dominated by individual hosts.
Frequently Asked Questions About Detroit, Michigan
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