Traverse City, Michigan Short-Term Rental Market
Traverse City STRs averaged $233/night at 38.1% occupancy in April 2026, with peak summer months reaching $348/night and 78.9% occupancy.
Quick Answer: Traverse City, Michigan is an active short-term rental market. average occupancy is 38%. average monthly revenue is $2,186. average daily rate is $233. the top operator is Vacasa with 179 listings. market score is 60/100 (grade C).
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
Traverse City’s short-term rental market had 5,178 active listings as of the latest snapshot, spread across a market with an overall score of 59.55 out of 100. In April 2026, the market-wide average daily rate was $232.71 and average occupancy was 38.1%, reflecting the city’s pronounced off-peak season. Revenue per available rental (RevPAR) came in at $88.63.
Year-over-year, April occupancy slipped 4.1 percentage points from the prior April, while ADR gained 4.7% and overall revenue was essentially flat, up 0.4%. This pattern of softening occupancy offset by rising rates has persisted since 2022. Annual average ADR reached $309 in both 2024 and 2025, up from $276 in 2021.
The listing mix is dominated by entire-place rentals, which account for 5,020 of the 5,178 active listings (97%). Private rooms make up the remaining 158 listings. By bedroom count, 2-bedroom units lead at 1,503, followed by 1-bedroom at 1,295, 3-bedroom at 1,231, 4-bedroom at 703, and 5-bedroom-plus at 440. The market serves a broad range of group sizes.
Channel distribution shows the market is spread across platforms. Of 5,178 listings, 2,923 appear on both Airbnb and VRBO, 1,472 are Airbnb-only, and 783 are VRBO-only. That means roughly 56% of listings have multi-platform presence.
The market’s investability score of 84.1 out of 100 and revenue growth score of 78.84 are its standout strengths. The seasonality score of 45.13 reflects the sharp concentration of demand in summer months. With 3 million annual visitors against a resident population of 15,782, demand drivers are overwhelmingly tourism-led rather than business travel.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 32% | $243 | $2,221 |
| Feb | 39% | $240 | $2,272 |
| Mar | 35% | $212 | $2,089 |
| Apr | 40% | $219 | $2,095 |
| May | 52% | $268 | $2,620 |
| Jun | 64% | $334 | $4,852 |
| Jul | 79% | $348 | $6,786 |
| Aug | 71% | $347 | $6,320 |
| Sep | 49% | $295 | $3,913 |
| Oct | 45% | $265 | $3,350 |
| Nov | 29% | $229 | $2,032 |
| Dec | 39% | $239 | $2,169 |
Top Short-Term Rental Operators in Traverse City
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | 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 pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 1,295 |
| 2 bed | 1,503 |
| 3 bed | 1,231 |
| 4 bed | 703 |
| 5 bed | 440 |
ADR by Property Tier
| Entire Home | $235 |
| Luxury | $425 |
| Professionally Managed | $233 |
Revenue by Dwelling Type
| Apartment | $1,699 |
| Entire Place | $2,203 |
| House | $2,527 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 28.4% |
| vrbo | 15.1% |
| both | 56.5% |
Investment Analysis
At a typical home value of $440,530 (Zillow, April 2026 snapshot), a Traverse City STR investment entry cost sits in the mid-range for Michigan resort markets. Monthly revenue for all listings averaged $2,186 in April 2026. Annualized, that projects to approximately $26,232 in gross revenue, implying a gross yield of roughly 6.0% at current home values. That figure reflects the off-peak month of April; annualizing peak-season revenue alone would overstate returns significantly.
Using 2025 annual average data, monthly revenue averaged $4,151 across all months in the year, which is skewed upward by summer peaks. The gap between April ($2,186) and July ($6,786) underscores the importance of aggressive seasonal pricing rather than static rates.
Tier performance in April 2026: the entire-home tier averaged $235.15/night versus $232.71 for all listings, a modest premium. The luxury tier averaged $425.02/night, indicating meaningful upside for well-positioned high-end properties. Professionally managed listings averaged $233.11/night, nearly identical to the market average.
Houses outperform other property types on revenue. Monthly revenue averaged $2,527 for house listings, $2,203 for entire-place listings broadly, and $1,699 for apartments. The house premium over apartments is $828 per month, or roughly 49%.
Median days to pending is 15, and the sale-to-list ratio is 0.860, suggesting negotiating room below list price. The median list price of $513,583 versus median sale price of $441,917 confirms buyers have been closing well below asking in this market.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
Traverse City guests book an average of 49.5 days in advance (approximately 7 weeks) and stay an average of 3.1 nights per booking. Both figures have direct implications for pricing strategy.
The 49-day lead time is moderately long for a leisure market, reflecting the deliberate planning behavior of Midwest visitors traveling for established seasonal events like the National Cherry Festival. Operators who lock in rates early and use advance-purchase discounts can capture volume during the 60-to-90-day booking window before peak summer dates fill. Rates can then be adjusted upward for remaining inventory closer to arrival.
The 3.1-night average stay is on the shorter side for a vacation rental market. It creates more frequent turnover, which increases cleaning and coordination costs but also creates more opportunities to re-price for changing demand. Properties priced for weekend-minimum stays (2-3 nights) align well with this guest behavior.
For revenue management, the combination of a 7-week lead window and 3-night stays suggests a pricing strategy that sets competitive rates at 8-10 weeks out and holds or raises rates as availability tightens in the final 2-3 weeks before arrival.
Short-Term Rental Regulations
Traverse City regulates short-term rentals under two separate frameworks in Chapter 870 of the city code, and the rules are significantly more restrictive than most Michigan municipalities.
Unhosted, non-owner-occupied rentals (Vacation Home Rental License): These require a city license at $200 initial and $200 annual renewal. Licenses expire December 31 and renew in the 90-to-30-day window before expiration. Only the property owner may hold the license. Crucially, these rentals are banned in all residential zones (R-1, R-2, R-3) and permitted only in commercial and development districts: C-3, C-4, D-1, D-2, D-3, Grand Traverse Commons, HR (Hotel Resort), and T (Transportation). C-1 and C-2 districts cap rentals at 25% of units. Operators must carry $1 million in liability insurance and pass a triennial fire marshal inspection. The city pursued 44 violations in 2024 and issued 6 civil infraction tickets. Non-compliance fines start at $500 per day.
Hosted, owner-occupied rentals (Tourist Home Permit): These are allowed in residential zones. Low Intensity permits cap guest stays at 84 nights per year (maximum 2 guest rooms, owner must be present during all stays). High Intensity permits allow more than 85 nights per year and up to 3 rooms, but require a 1,000-foot buffer from other tourist homes.
Tax: Michigan imposes a 6% state use tax on stays of 30 days or fewer. Platforms such as Airbnb collect and remit this on behalf of hosts.
Pending changes: As of early 2025, the Planning Commission was reviewing a 35% cap in C-3 and C-4 districts and additional restrictions in several subdistricts. These changes had not been enacted as of the most recent reporting.
Market Comparison
Traverse City’s April 2026 occupancy of 38.1% is below the US STR median occupancy of approximately 55%. This comparison is not apples-to-apples because April is a deep off-peak month in a highly seasonal Northern Michigan market. The annual average occupancy for 2025 was 48.1%, which is closer to but still below the national median, reflecting the market’s seasonal concentration.
ADR of $232.71 in April 2026 is modestly above the US median ADR of approximately $220, despite being an off-peak month. In peak summer months, Traverse City ADR reaches $347-$348, which is well above national medians for leisure markets of similar size. Revenue growth score of 78.84 and investability score of 84.1 (on a 100-point scale) place this market in the upper tier for Midwest seasonal markets.
The professional management landscape is led by Vacasa with 179 listings, followed by Elevated Homes and Hospitality (125 listings, 4.776 rating), The Mitten Group Property Management (109 listings, 4.787 rating), and True North Property Management (107 listings, 4.558 rating). Together the top 4 operators control 520 listings, roughly 10% of the active market. Evolve rounds out the top 5 at 94 listings.
The relatively fragmented PM landscape means independent operators face meaningful competition from professionally managed inventory, particularly in the summer peak window.
Frequently Asked Questions About Traverse City, Michigan
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