Traverse City, Michigan Short-Term Rental Market
Traverse City bans unhosted STRs in residential zones; area STRs hit $461 nightly, 68.9% occupancy, $8,569 monthly in August 2026.
Quick Answer: Traverse City, Michigan is an active short-term rental market. average occupancy in the Traverse City market area is 50%. average monthly revenue in the Traverse City market area is $5,258. average daily rate in the Traverse City market area is $382. the top operator in the Traverse City market area is Vacasa with 179 listings. market score is 60/100 (grade C).
Market data reflects the wider Traverse City market, which covers 18 areas. Regulations, taxes, and permit details below are specific to Traverse City.
Market Score Breakdown
Five dimensions StaySTRA evaluates per market.
Market Overview
Traverse City limits where short-term rentals can operate. Unhosted vacation home rentals are banned in all residential zones inside the city and allowed only in commercial and development districts. Traverse City also shares its STR data with 5 nearby Michigan communities: Grawn, Interlochen, Rapid City, Thompsonville, and Williamsburg. The figures below therefore describe the Traverse City area STR market, not the city limits alone, and other municipalities in the area follow their own rules.
In August 2026, the Traverse City area market averaged a $460.67 daily rate and 68.94% occupancy, with average monthly revenue of $8,569. Compared with August 2025, daily rate was up 5.8% and revenue was up 3.7%, while occupancy was down 2.1%. Calendar-year averages show a rising rate. The daily rate moved from $222 in 2017 to $310 in 2025. Occupancy peaked at 54.39% in 2020 and 2021 and was 47.98% in 2025. Average monthly revenue was $4,148 in 2025, up from $4,012 in 2024.
For the first eight months of 2026, the averages are 50.91% occupancy, a $332 daily rate, and $4,666 monthly revenue. That period leaves out the weaker autumn months, so it does not compare directly with full-year figures.
Traverse City has a population of 15,782, and the area profile cites about 3 million annual visitors. The National Cherry Festival draws roughly 500,000 visitors in one week each July. Other draws include Sleeping Bear Dunes National Lakeshore, wine trails on the Old Mission and Leelanau peninsulas, and skiing at nearby resorts.
Listing counts, bedroom mix, booking channel mix, and listing-type mix are tracked at a shared regional level rather than uniquely for Traverse City, so this profile omits them.
Seasonal Patterns
| Month | Occupancy |
|---|---|
| Jan | 32% |
| Feb | 39% |
| Mar | 35% |
| Apr | 40% |
| May | 52% |
| Jun | 64% |
| Jul | 79% |
| Aug | 70% |
| Sep | 49% |
| Oct | 45% |
| Nov | 29% |
| Dec | 39% |
Month-by-month nightly rates and revenue figures for Traverse 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 Traverse City, so these counts are not Traverse City-only figures.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Vacasa | 179 | 5,712 | ★ 4.46 |
| 2 | Elevated Homes & Hospitality | 125 | 4,924 | ★ 4.78 |
| 3 | The Mitten Group Property Management | 109 | 9,508 | ★ 4.79 |
| 4 | True North Property Management | 107 | 3,603 | ★ 4.56 |
| 5 | Evolve | 94 | 4,157 | ★ 4.76 |
What Kind of STR Should I Buy in Traverse City?
Revenue and nightly-rate breakdowns by bedroom count, property tier, and dwelling type for Traverse 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 | 28.4% |
| vrbo | 15.1% |
| both | 56.5% |
Home Value Trends (Traverse City)
Typical home values, median sale prices, and the 10-year price trend for Traverse 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 Traverse 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
Traverse City regulates STRs under two frameworks in Chapter 870 of the city code. Unhosted vacation home rentals are banned in all residential zones (R-1, R-2, R-3) and hospital districts. They are permitted in C-3, C-4, D-1 through D-3, Grand Traverse Commons, HR Hotel Resort, and T Transportation districts. C-1 and C-2 districts cap rentals at 25% of units. Only an owner may hold the license, which costs $200 initially and $200 each year. It expires December 31, requires $1 million in liability insurance, and requires a fire marshal inspection every three years.
Hosted tourist homes are allowed in residential zones. Low Intensity permits allow up to 2 rooms and 84 guest nights per year, and the owner must be present during all stays. High Intensity permits allow up to 3 rooms and more than 84 nights, and they require a 1,000-foot buffer from other tourist homes.
Enforcement is rated moderate. The city pursued 44 violations in 2024 and issued 6 tickets. Civil infraction fines start at $500, and each day counts as a separate offense. Michigan applies a 6% state use tax to stays of 30 days or fewer, and platforms such as Airbnb collect it. As of early 2025, the Planning Commission was reviewing caps for the C-3, C-4, D-1, and D-3 districts, and a May 2025 hearing package proposed a 35% cap in C-3. These changes had not been enacted in the most recent reporting, so verify current status with the city.
Market Comparison
The Traverse City area market ran 68.94% occupancy in August 2026. The commonly cited US median is about 55%, so the market sits 13.9 points above it. The daily rate of $460.67 is about twice the national median of roughly $220, or $240.67 higher.
The full-year picture is different. Occupancy averaged 47.98% in 2025, which is 7.0 points below the national figure. The 2025 daily rate of $310 was still about 41% above $220. The market therefore wins on price and trails on year-round demand, because summer carries the occupancy.
Top property managers are tracked at a shared regional level rather than uniquely for Traverse City, so this profile omits operator rankings. Benchmark figures are approximate national medians. Local performance depends on property type, zoning, and management quality. The 2025 average monthly revenue of $4,148 gives investors a full-year reference that is less sensitive to season than any single month.
Frequently Asked Questions About Traverse City, Michigan
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