The era of "buy it and put it on Airbnb" is over. Up and down both coasts, townships have drawn lines, set caps, and in a few places closed the door entirely. Here is where those lines actually fall, town by town, so you know what an address can and can't do before you fall in love with it.
Most people shopping for a Michigan lake place are really buying a feeling: coffee on the dock, the kids learning to swim off the same shoreline you did, a place that more than pays for itself a few weeks a year. That is the thriving version. Fine is a cabin you can't legally rent. Thriving is a place that works the way you planned.
The gap between those two is almost never the house. It is the township ordinance, the village boundary, and one question most buyers never think to ask: does the rental permit survive the sale? In a lot of these markets, it does not. You can buy a home with a flawless rental history and discover the right to rent it died at the closing table.
I moved here because I believe where you live changes everything, and that conviction is exactly why I refuse to let a client buy into a surprise. I find creative solutions to the hard stuff: the stretch budget, the tricky timing, the deal that looks impossible until it isn't. But step one is always the same. Know the rules before you write the offer.
I work with buyers and sellers to understand their rights and responsibilities through the process. This guide is where that starts.
Short-term rental rules in Michigan change at the speed of a township board meeting. Every status here is a snapshot as of June 2026, built from each municipality's own ordinances and current local reporting. Some figures (exact fees, current cap counts, whether a pending ordinance passed) could not be confirmed from a primary source, and those are flagged honestly rather than guessed.
So here is my honest disclaimer: do not write an offer on the strength of this guide alone. Confirming a property's current short-term rental rules is the buyer's due diligence, ideally before you make an offer and always before you close. I do that verification with you, checking the live ordinance, cap status, septic limits, and any pending changes directly with the jurisdiction, and that is part of how I work, not an add-on. The responsibility to confirm still rests with you and your own advisors, and nothing here is legal, tax, or financial advice.
A "Suttons Bay," "Holland," "Frankfort," or "Stevensville" address tells you almost nothing. The village or city inside a township is a separate government with its own rules, often the strict ones. A 49424 Holland address is usually Holland Charter Township, where STRs are banned outright. Always pull the parcel's exact jurisdiction first.
In most capped markets the permit is tied to the owner, not the house. Sell the home and the new owner reapplies, often onto a full waitlist. An existing rental's income history can be worth nothing to you. A few places (Crystal Lake Township, the City of Grand Haven) let permits transfer. Most do not.
Plenty of townships permit STRs on paper but have already hit their cap with a waitlist. Legal in theory, impossible in practice. Chikaming, East Bay, Elmwood, and the Village of Suttons Bay are all "open" and all effectively shut to new entrants right now.
Little or no STR-specific regulation. Often just a registration. Verify zoning still allows it.
Allowed, but you need a license, an inspection, and to follow operating rules. No hard cap.
A fixed number of permits. May be full with a waitlist, which means closed to new entrants.
Allowed only in certain zones or overlays, or under a long minimum-stay. Most residential parcels excluded.
STRs prohibited in residential zones. Existing ones may be grandfathered. Buying for STR income is a non-starter.
No clear ordinance found. Could be genuinely open or quietly restricted by zoning. Confirm directly before relying on it.
Michigan has no statewide short-term rental law as of June 2026. Bills to create a state registry and bar local bans (HB 4722, HB 5438, and the 2025 local-option tax package) have not passed. That means every rule below is purely local, and the Michigan Supreme Court (Reaume v. Township of Spring Lake, 2020) has affirmed that a township can bar STRs as a commercial use in a residential zone. That single ruling is why the bans in Park, Peninsula, Garfield, and Holland Charter Townships hold up.
One more number to budget for: the 6% Michigan use tax applies to stays under 30 days statewide. Airbnb collects and remits it; on VRBO and direct bookings, that is on you. Muskegon County adds its own 5% county accommodation tax on top.
All three are welcome here. Sign up for a custom search and I'll send listings that actually fit what you're after, straight to your inbox. No pressure, no pestering, and I'll tell you honestly if the timing's off.
Harbor Country up to Ludington. This is my home coast, and it runs the full range: wide-open inland townships, capped resort villages, and two of the toughest STR bans in the state.
Michigan's STR front line. Tight regulation and high demand, with a hard cap that has already shut one township to new buyers. The city-versus-township split here is brutal, so confirm the parcel's exact jurisdiction before anything else.
South Haven is one of the most heavily regulated STR markets on the lake and is mid-transition right now, with a license deadline that landed in spring 2026. The surrounding townships are looser but still permit-based.
The Saugatuck and Douglas area is the deepest-regulated cluster in the county, with per-district caps that have closed the most popular zones. Several townships rewrote their rules in 2025 and 2026, so timing matters here more than almost anywhere.
The widest spread in the guide. One township will hand you a permit county-wide; the one next door bans STRs outright and is now fining operators. The "Holland" name and the Spring Lake village-versus-township split cause more confusion here than anywhere on the coast.
County-wide, Muskegon levies a 5% accommodation tax on every stay of 30 nights or less, on top of the 6% state tax, and you register with the county even where the city asks for nothing. Regulation is patchier than down south, with a couple of cities still drafting.
The northern end of my home coast. Pentwater and Ludington are small, beloved, and tightly capped, with permits that do not survive a sale. The surrounding townships range from a couple of allowed zones to wide open.
Grand Traverse down through the Chain of Lakes and the Sleeping Bear corridor. The most expensive, most restrictive lake markets in the state, plus a few interior townships still wide open. The village-versus-township trap is sharpest up here.
The economic hub. Most townships near water are regulated, and three have banned STRs in residential zones outright, with Peninsula Township now issuing fines that climb to $5,000.
The most expensive and restrictive market in the guide. "Friendly" here usually means permit-required plus strict septic limits, and one rule runs through nearly every capped jurisdiction: the permit does not transfer when you sell.
A study in contrasts: the villages are the strict ones, while the townships that hold most of the lakefront are looser, several with stale ordinances that could tighten at any meeting. Torch Lake itself is effectively closed.
A patchwork, and personally my favorite stretch of coast. Inland runs open; Crystal Lake and the Betsie Bay waterfronts are tight. The three-way Frankfort / Crystal Lake Township / Elberta split around the bay catches almost everyone.
The lowest entry prices in the north. Most townships are open, but one has already frozen new entrants, and the naming overlap up here is a genuine hazard.
Status as of June 2026. "Transfers on sale" is the question that decides whether an existing rental's history is worth anything to you. When in doubt, the answer is no. Confirm every figure before you write.
| Jurisdiction | County | Status | Transfers on sale? | The headline |
|---|---|---|---|---|
| Chikaming Twp | Berrien | Capped, full | No | 550 cap reached, no waitlist; permit dies on sale |
| City of New Buffalo | Berrien | Restricted | Unconfirmed | Residential banned; commercial OK; transfer unsettled |
| New Buffalo Twp | Berrien | Permit | No | 1 per parcel, township-wide; reapply on sale |
| Village of Three Oaks | Berrien | Capped, full | Unconfirmed | 10% R-1 cap, over limit, waitlist |
| City of St. Joseph | Berrien | Restricted | Unconfirmed | Water-Rec / Downtown only; residential banned |
| City of Bridgman | Berrien | Restricted | Unconfirmed | 6-month minimum lease in R-1 (verify) |
| Village of Stevensville | Berrien | Restricted | Nonconforming only | Owner-occupied OK; investor banned in residential |
| Lincoln Charter Twp | Berrien | Verify / open | n/a | No ordinance found mid-2025 |
| City of South Haven | Van Buren | Capped | Verify track | 1:4 cap; mid-transition, May 2026 deadline |
| South Haven Charter Twp | Van Buren | Permit | Unconfirmed | Single-family only; 1 term/week, no cap |
| Covert Twp | Van Buren | Permit | Unconfirmed | $500/yr; annual registration |
| City of Bangor | Van Buren | Verify / open | n/a | No STR ordinance found |
| City of Saugatuck | Allegan | Capped | No | 20% per R-1 district; popular zones full |
| City of Douglas | Allegan | Permit | Unconfirmed | $350 / 3-yr; no confirmed cap |
| Laketown Twp | Allegan | Restricted | Grandfathered only | Standalone STRs banned in residential (2026) |
| Saugatuck Twp | Allegan | Permit | Unconfirmed | Rental certificate; don't apply city caps |
| City of Fennville | Allegan | Permit | Unconfirmed | Special-land-use; STR-friendly, no cap |
| Ganges Twp | Allegan | Moratorium | n/a | Pause ends ~June 30, 2026; verify now |
| Park Twp | Ottawa | Banned, enforcing | n/a | Won in court Nov 2025, now fining; appeals pending |
| Holland Charter Twp | Ottawa | Banned | n/a | Only owner-occupied B&B; the "49424" trap |
| City of Holland | Ottawa | Capped | No | 25 investor slots, full; owner-occupied any zone |
| Port Sheldon Twp | Ottawa | Permit | Re-register | Open township-wide, single-family; friendliest |
| City of Grand Haven | Ottawa | Permit | Yes | ~350 STRs; certificate transfers with sale |
| Grand Haven Charter Twp | Ottawa | Restricted | No | Overlay only; 16 certified; $1M insurance |
| Village of Spring Lake | Ottawa | Restricted | Yes | Overlay; new STRs banned on 3 streets (2025) |
| Spring Lake Twp | Ottawa | Restricted | Unconfirmed | ~6-block overlay only (Strawberry Point) |
| City of Ferrysburg | Ottawa | Permit | Unconfirmed | 7-day minimum stay; $215 permit |
| City of Muskegon | Muskegon | Capped | No | 4% per-zone cap, 11 zones; downtown exempt |
| City of Montague | Muskegon | Permit | Unconfirmed | $50 / 2-yr; 120 operating days/yr |
| City of Whitehall | Muskegon | Verify / drafting | n/a | Ordinance being drafted 2025-26 |
| Norton Shores / Laketon Twp | Muskegon | Verify | n/a | No STR ordinance confirmed |
| Village of Pentwater | Oceana | Capped | No | ~100 licensed; cap by resolution; max 12 |
| City of Ludington | Mason | Capped, full | No | 30 citywide, 2/block, waitlist; dies on sale |
| Pere Marquette Twp | Mason | Restricted | No | Only A/R & Epworth Heights zones |
| Hamlin Twp | Mason | Capped | Unconfirmed | 80 licenses (cut from 110, Oct 2024) |
| Acme Twp | Grand Traverse | Permit, avail. | Unconfirmed | 50 tourist + 50 vacation licenses |
| East Bay Twp | Grand Traverse | Capped, full | Unconfirmed | 145 cap, full; attrition only |
| Peninsula Twp | Grand Traverse | Banned, fines | n/a | Fines $500-$5,000/day; high enforcement |
| Garfield Twp | Grand Traverse | Banned | n/a | Residential banned; commercial path pending |
| Whitewater Twp | Grand Traverse | Banned, pending | n/a | New ordinance proposed Aug 2025 |
| Long Lake / Green Lake Twp | Grand Traverse | Permit | Unconfirmed | Septic-bound occupancy; no fixed cap |
| Union Twp | Grand Traverse | Verify | n/a | No ordinance found; common misattribution |
| Village of Suttons Bay | Leelanau | Capped, over | No | 45 cap, 53 issued; no new permits |
| Suttons Bay Twp | Leelanau | Capped, room | No | 150/yr, usually available; $200/yr |
| Elmwood Twp | Leelanau | Capped, full | No | 93 cap, full, waitlist |
| Bingham Twp | Leelanau | Capped, tight | No | 86 cap, near full |
| Cleveland Twp | Leelanau | Capped, lottery | No | Cap # unstated; apply within 30 days of deed |
| Leland Twp | Leelanau | Open | Re-register | Registration only, no cap; <75 days/yr |
| Leelanau Twp | Leelanau | Permit | Unconfirmed | Septic occupancy; Northport village separate |
| Glen Arbor Twp | Leelanau | Verify | n/a | No ordinance; zoning-specific |
| Village/Twp of Empire | Leelanau | Verify, pending | Unconfirmed | Registration ordinance awaiting council |
| Torch Lake Twp | Antrim | Banned | n/a | Residential banned; pre-1983 grandfathered |
| Village of Elk Rapids | Antrim | Capped, full | No | ~61 cap, full, waitlist; dies on sale |
| Elk Rapids Twp | Antrim | Open | n/a | Non-owner-occupied STR unregulated |
| Forest Home / Helena / Central Lake / Bellaire | Antrim | Open | n/a | No STR ordinance found; some stale, verify |
| Crystal Lake Twp | Benzie | Capped | Yes (sale year) | 75 cap; transfers within calendar year |
| Village of Elberta | Benzie | Capped | Unconfirmed | 25 cap; likely some room |
| City of Frankfort | Benzie | Permit | Unconfirmed | No confirmed cap; verify (not Frankfort, KY) |
| Village of Lake Ann | Benzie | Permit | No | No cap stated; dies on ownership change |
| Village of Beulah | Benzie | Permit | Unconfirmed | Registration; 3 overlapping jurisdictions |
| Homestead / Platte Twp | Benzie | Verify | n/a | No ordinance found; rules may be coming |
| Clearwater Twp | Kalkaska | Permit | No | No cap; license dies on ownership change |
| Blue Lake Twp | Kalkaska | Capped, closed | Assume no | No new until count drops below 35 |
| Bear Lake Twp | Kalkaska | Verify | n/a | County-zoned; no township ordinance |
Park Township (Ottawa). The most active STR-specific fight on this coast. A court upheld the township's residential ban in November 2025, the township started fining operators, and as of June 2026 both a Court of Appeals appeal and a federal damages lawsuit are pending. If you are looking anywhere in Park Township, this is the first call we make.
Peninsula Township (Grand Traverse). The roughly $50 million winery zoning judgment is on appeal and is not an STR case, but it signals exactly how hard this township enforces its zoning. The STR ban itself is enforced through civil fines.
Every jurisdiction here is a moving target, and a guide is a snapshot. Before you commit, we verify the live ordinance, the current cap count, the septic limits, and whether the permit survives the sale, straight from the people who enforce it. That way you never buy into a surprise.
Negotiation is my actual superpower, certified and all, and a tricky STR market is exactly where it earns its keep: structuring the offer around a permit timeline, building in the right contingencies, knowing when "no" from a township is really "not yet." I find creative solutions to the hard stuff.
Whether you are buying your first cottage, adding to a portfolio, or selling one you have outgrown, your goals drive every decision. Reach out. If the timing's off, I'll tell you.