Lake City, Michigan Short-Term Rental Market
Lake City, MI area STRs averaged $232/night at 38.2% occupancy in April 2026, with July peaking at 78.9% occupancy and $6,783 average monthly revenue.
Quick Answer: Lake City, Michigan is an active short-term rental market. average occupancy in the Traverse City market area is 64%. average monthly revenue in the Traverse City market area is $6,344. average daily rate in the Traverse City market area is $411. the top operator in the Traverse City market area is Vacasa with 206 listings. market score is 59/100 (grade C).
Market data reflects the Traverse City regional market, which includes Lake City. Regulations, taxes, and permit details below are specific to Lake City.
Market Score Breakdown
Five dimensions StaySTRA evaluates per market.
Market Overview
The Lake City, Michigan market is centered on Lake Missaukee, a 1,880-acre lake in Missaukee County in the northern Lower Peninsula. The incorporated city of Lake City has a population of just 829, but the STR data covers the broader lake region and surrounding area. Tourism is overwhelmingly seasonal: summer brings boaters, anglers, and swimmers, while fall draws visitors for foliage and the area’s Christmas-tree heritage. The July 4th ‘Greatest Fourth in the North’ celebration is a major regional draw.
Approximately 5,222 active listings are tracked across the market. Entire-place rentals account for 5,064 (97%), with 158 private rooms. By bedroom count, 2-bedroom properties lead with 1,523 listings, followed by 1-bedrooms (1,303), 3-bedrooms (1,236), 4-bedrooms (711), and 5-bedrooms (443). Channel distribution is well-balanced with cross-platform: 2,936 listings appear on both Airbnb and VRBO, 1,475 are Airbnb-only, and 811 are VRBO-only.
As of April 2026, the average daily rate was $232.22 with occupancy at 38.2%, producing RevPAR of $88.73. Year-over-year, occupancy declined 3.7% versus April 2025, while ADR increased 4.6%, and total revenue was nearly flat at +0.2%.
Seasonal Patterns
| Month | Occupancy |
|---|---|
| Jan | 32% |
| Feb | 39% |
| Mar | 35% |
| Apr | 40% |
| May | 52% |
| Jun | 64% |
| Jul | 79% |
| Aug | 71% |
| Sep | 49% |
| Oct | 45% |
| Nov | 29% |
| Dec | 39% |
Month-by-month nightly rates and revenue figures for Lake City are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Top Short-Term Rental Operators in Traverse City market area
Ranked by total active listings. Useful for understanding the competitive landscape. Operator data is published for the Traverse City market as a whole, which includes Lake City, so these counts are not Lake City-only figures.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Vacasa | 206 | 5,978 | ★ 4.46 |
| 2 | Elevated Homes & Hospitality | 116 | 4,924 | ★ 4.76 |
| 3 | True North Property Management | 109 | 3,627 | ★ 4.54 |
| 4 | The Mitten Group Property Management | 108 | 9,528 | ★ 4.79 |
| 5 | Evolve | 94 | 4,171 | ★ 4.76 |
What Kind of STR Should I Buy in Lake City?
Revenue and nightly-rate breakdowns by bedroom count, property tier, and dwelling type for Lake 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 | 28.2% |
| vrbo | 15.5% |
| both | 56.2% |
Home Value Trends (Lake City)
Typical home values, median sale prices, and the 10-year price trend for Lake 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 Lake 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
The City of Lake City adopted Chapter 101, its Short-Term Rental Ordinance, effective late 2022. This ordinance applies within the incorporated city limits. Key provisions:
A hard cap of 15 STR properties is in effect citywide. Each permitted STR must be more than 500 feet from any other permitted STR. Once the cap is reached, new applicants are placed on a waiting list with a $100 non-refundable deposit. An STR Certificate of Compliance (rental license) is required before advertising or renting. Annual fees total $750 ($500 license fee plus $250 inspection fee).
Only single-family-zoned residences qualify. Non-residential structures are prohibited from operating as STRs. The owner or a designee must be able to respond on-site within 15 minutes. Quiet hours run from 11pm to 7am. Properties must meet 2018 International Property Maintenance Code standards, with smoke and CO detector requirements.
No owner-occupancy or primary-residence requirement is stated in the ordinance. There is no annual night cap.
Michigan levies a 6% state use tax on rentals under 30 days. No separate Lake City municipal lodging tax is noted. Enforcement is classified as strict: civil fines range from $100 to $500 plus court costs, with license revocation and Circuit Court injunction authority for unpermitted operators.
Note: The 5,200+ listings tracked in this market area extend significantly beyond the 15-property cap in the incorporated city. Missaukee County townships surrounding Lake Missaukee operate under separate, generally less restrictive, county-level rules. Investors should verify the jurisdiction of any specific property before assuming these caps apply.
Market Comparison
Nationally, STR markets average roughly 55% occupancy and $220 ADR. Lake City’s April 2026 occupancy of 38.2% is below the national average, though April is a shoulder month here; July peaks at 78.9%. ADR at $232 is slightly above the national median. The highly seasonal nature (45.2/100 seasonality score) is the defining characteristic that differentiates this market from more stable year-round markets.
The operator landscape is led by a mix of national and regional Michigan specialists. Vacasa leads with 206 listings and 5,978 reviews at a 4.46 rating. Elevated Homes and Hospitality holds 116 listings with a 4.76 rating. True North Property Management manages 109 listings (rating 4.54), and The Mitten Group Property Management holds 108 listings with the largest review count in the group at 9,528 and a 4.79 rating. Evolve rounds out the top five with 94 listings and a 4.76 rating.
The top five operators collectively manage 633 listings, representing about 12.1% of the 5,222-listing market. This moderate concentration reflects the presence of several established regional Michigan operators alongside a national platform. Revenue growth scores at 78.3/100 suggest the broader lake region has been growing its STR revenue in recent years despite the flat April 2026 year-over-year reading.
Frequently Asked Questions About Lake City, Michigan
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Is there a cap on short-term rentals in Lake City, Michigan?
What does an STR license cost in Lake City, Michigan?
How many short-term rental listings are active in the Lake City area?
How far in advance do guests book Lake City, MI STRs?
What is the typical annual revenue for a Lake City area STR?
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