Petoskey, Michigan Short-Term Rental Market
Petoskey, MI sits in the Northern Michigan region, which averaged $382/night at 59.8% occupancy in June 2026.
Quick Answer: Petoskey, Michigan is an active short-term rental market. average occupancy in the Michigan North Coastal market area is 60%. average monthly revenue in the Michigan North Coastal market area is $5,178. average daily rate in the Michigan North Coastal market area is $382. 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 is a year-round Northern Michigan resort town on Little Traverse Bay, drawing an estimated up to 750,000 visitors during the summer months alone. Its STR performance data is tracked at the level of the Northern Michigan region rather than uniquely for Petoskey, so the figures below describe that broader region, which includes Petoskey, Alden, Boyne City, Harbor Springs, and Indian River.
The Northern Michigan region posted a $382 average daily rate and 59.8% occupancy in June 2026. Occupancy is roughly flat year over year (up 0.3%) and revenue is up 5.8% year over year to $5,178 per month, even as ADR is down 2.4% year over year. Multiplying June’s ADR by occupancy gives an implied RevPAR near $228 per night.
Bedroom mix, channel mix, market-score data, and top-operator data are also tracked at this same regional level rather than uniquely for Petoskey, so this profile omits them.
Multi-year data for the Northern Michigan region shows occupancy climbed from 39.63% in 2019 to a pandemic-era high of 50.49% in 2020, before settling in the mid-40s from 2022 through 2025. ADR climbed steadily from $226 in 2017 to $322 by 2025, keeping monthly revenue around $3,290 to $3,790 in recent full years, below June 2026’s much stronger figure. Petoskey’s own draws include Petoskey Stone hunting along Little Traverse Bay, the historic Gaslight District downtown, and proximity to Boyne Mountain’s SkyBridge Michigan and multiple ski resorts.
Seasonal Patterns
| Month | Occupancy |
|---|---|
| Jan | 35% |
| Feb | 43% |
| Mar | 25% |
| Apr | 28% |
| May | 45% |
| Jun | 60% |
| Jul | 75% |
| Aug | 67% |
| 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
Petoskey allows short-term rentals but regulates them tightly. A citywide cap limits total STR licenses to 40. When the current ordinance took effect, 33 existing rentals were grandfathered in, leaving only about 7 new slots; additional applicants are added to a waitlist.
Critically, new STRs are permitted only in commercial and business zoning districts, not in residential neighborhoods, a policy rooted in a 2014 ordinance and reinforced when the city lifted its rental moratorium on January 25, 2024. Operators must obtain a Short-Term Rental License from the City Clerk. Licenses run annually and expire March 31 each year, requiring annual renewal and re-application with fees. Licenses are non-transferable, and each dwelling unit needs its own license. Occupancy is generally limited, commonly two persons per bedroom plus additional guests.
On taxes, Michigan levies a 6% state use tax on rentals of 30 days or less, which the operator or platform must collect and remit. Michigan does not permit an additional local sales or lodging tax, though county convention and visitors bureau assessments can apply to larger lodging operations.
Petoskey placed a moratorium on new STR licenses in July 2023, then lifted it on January 25, 2024, replacing it with the current ordinance: a 40-license cap, commercial-district-only restriction for new rentals, and a waitlist. Investors should confirm license availability with the City Clerk before purchasing, since the cap and residential-district ban make new legal STRs scarce. Enforcement is rated strict.
Market Comparison
The Northern Michigan region’s 59.8% June 2026 occupancy runs above the roughly 55% median occupancy across StaySTRA-tracked US STR markets, while its $382 average daily rate is well above the roughly $220 national median ADR, among the higher rates StaySTRA tracks.
Top-operator data is tracked at this same regional level rather than uniquely for Petoskey, so this profile omits it. This market’s more than 51-point seasonal swing is the widest StaySTRA tracks in this batch, and Petoskey’s own citywide license cap (40 total, roughly 7 new slots remaining) is one of the strictest supply constraints StaySTRA has documented, comparable to Munising’s permit moratorium and Pacific City’s sub-area waitlist. Buyers should weigh the region’s strong pricing power against Petoskey’s specific, and currently very limited, path to a new legal STR.
Frequently Asked Questions About Petoskey, Michigan
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