Petoskey, Michigan Short-Term Rental Market
Petoskey caps rental licenses at 40; Northern Michigan September 2026 shows $355 ADR, 42.9% occupancy, $4,307 monthly revenue.
Quick Answer: Petoskey, Michigan is an active short-term rental market. average occupancy in the Michigan North Coastal market area is 43%. average monthly revenue in the Michigan North Coastal market area is $4,307. average daily rate in the Michigan North Coastal market area is $355. the top operator in the Michigan North Coastal market area is Northern Michigan Escapes with 198 listings. market score is 70/100 (grade C).
Market data reflects the Michigan North Coastal regional market, which includes Petoskey. Regulations, taxes, and permit details below are specific to Petoskey.
Market Score Breakdown
Five dimensions StaySTRA evaluates per market.
Market Overview
Petoskey sits on Little Traverse Bay in Northern Michigan, a resort town of 5,856 residents with demand across all four seasons. STR performance data for Petoskey is tracked at a shared regional level that also covers Harbor Springs, Boyne City, Indian River and Alden, so every performance figure on this page describes the Northern Michigan STR market rather than Petoskey alone. In September 2026, that market averaged an ADR of $355, occupancy of 42.9% and revenue of $4,307 per listing for the month. Entire-home listings averaged $359 per night. Year over year, occupancy rose 13.2%, ADR rose 10.8% and revenue rose 19.2%. The 2026 year to date figures (nine months) show 46.4% occupancy, a $358 ADR and $4,485 in monthly revenue, compared with 44.2%, $322 and $3,790 for full-year 2025. Over the longer run, annual ADR has climbed from $226 in 2017 to $322 in 2025, while occupancy has stayed in a narrower band between 38.7% and 50.5%. The pandemic year of 2020 lifted occupancy to 50.5%, and it has settled in the mid 40s since. Bedroom, channel and listing-type counts are tracked at a shared regional level rather than uniquely for Petoskey, so this profile omits them. Petoskey’s visitor base includes beachgoers hunting Petoskey Stones, golfers at Bay Harbor, ski traffic from the nearby Boyne resorts, and fall color tours. Local estimates cite up to roughly 750,000 visitors in the summer months. Buyers should treat the regulatory section as the main gate: the city caps licenses at 40 and limits new rentals to commercial zoning, which makes legal supply inside city limits unusually tight.
Seasonal Patterns
| Month | Occupancy |
|---|---|
| Jan | 35% |
| Feb | 43% |
| Mar | 25% |
| Apr | 28% |
| May | 45% |
| Jun | 59% |
| Jul | 75% |
| Aug | 66% |
| Sep | 41% |
| Oct | 39% |
| Nov | 24% |
| Dec | 46% |
Month-by-month nightly rates and revenue figures for Petoskey are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Top Short-Term Rental Operators in Michigan North Coastal market area
Ranked by total active listings. Useful for understanding the competitive landscape. Operator data is published for the Michigan North Coastal market as a whole, which includes Petoskey, so these counts are not Petoskey-only figures.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Northern Michigan Escapes | 198 | 9,917 | ★ 4.69 |
| 2 | Evolve | 136 | 6,096 | ★ 4.71 |
| 3 | Graham Management | 73 | 1,277 | ★ 4.74 |
| 4 | Pure Vacation Management | 61 | 339 | ★ 4.73 |
| 5 | Vacation Properties of Northern Michigan | 45 | 2,209 | ★ 4.89 |
What Kind of STR Should I Buy in Petoskey?
Revenue and nightly-rate breakdowns by bedroom count, property tier, and dwelling type for Petoskey 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 | 29.2% |
| vrbo | 17.7% |
| both | 53.1% |
Home Value Trends (Petoskey)
Typical home values, median sale prices, and the 10-year price trend for Petoskey 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 Petoskey — 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
Short-term rentals are permitted in the City of Petoskey, but the rules are strict and enforcement is rated strict. Operators need a City of Petoskey Short-Term Rental License from the City Clerk. Licenses are annual, expire March 31 each year, and require renewal and re-application with fees. The city caps total licenses at 40. When the current ordinance took effect, 33 existing rentals were grandfathered in, leaving roughly 7 new slots, and later applicants go on a waitlist. New short-term rentals are limited to commercial and business zoning districts, not residential districts. Licenses are non-transferable, and each dwelling unit needs its own license. Occupancy is generally limited to two persons per bedroom plus additional guests. The city placed a moratorium on new licenses in July 2023 and lifted it on January 25, 2024, replacing it with the cap, the zoning limit and the waitlist. Application materials were updated in late 2024. No owner-occupancy or primary-residence requirement applies. Michigan levies a 6% state use tax on rentals of 30 days or less, collected and remitted by the operator or the platform. The permit fee is not published in the data used here. These rules apply to the City of Petoskey; nearby towns have their own ordinances, so verify locally. Investors should confirm license availability before buying.
Market Comparison
The Northern Michigan region shows a seasonal profile with moderate occupancy and strong rates. September 2026 occupancy was 42.9% with a $355 ADR. The pattern is fewer booked nights at higher rates. In peak months the picture shifts: July occupancy reaches 75.4% and August 66.2%. The lowest-ADR month is April at $212, against $336 in July. The annual view shows the same pattern, with 2025 occupancy of 44.2% and an ADR of $322, and 2026 year to date at 46.4% and $358. Top operators are tracked at a shared regional level rather than uniquely for Petoskey, so this profile omits them. Investors should weigh the high rate against seasonal occupancy and the scarcity of licenses inside the city.
Frequently Asked Questions About Petoskey, Michigan
Are short-term rentals allowed in Petoskey, Michigan?
How many new STR licenses are available in Petoskey?
What is the average Airbnb rate and occupancy near Petoskey?
What is the best month for short-term rentals in Petoskey?
How much does a home cost in Petoskey?
How much annual revenue can a Northern Michigan STR earn?
What taxes apply to short-term rentals in Petoskey?
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