Ann Arbor, MI short-term rental license
Commercial short-term rentals running in Ann Arbor before March 1, 2021 may continue in residential districts as legal nonconforming uses. Others are generally prohibited there. Every commercial short-term rental also needs a Certificate of Compliance.[7]
Every rule below links to the official source it comes from, verified October 2, 2026.
Can you rent short term in Ann Arbor?
Get a license first
What you apply for: Short-term rental license
- Seasonal homes
- 425
- Housing units
- 54,399
- Residents
- 122,036
U.S. Census Bureau, 2024 ACS 5-year estimates
- City ruleLicense required
- City fee$500
- Tax on each stay6%
- Seasonal homes8 per 1,000
Ann Arbor short-term rental license
Every Ann Arbor unit rented for 30 consecutive days or less needs a short-term rental license. The fee is $500 per unit per year, paid before review and kept if the city denies the application. Review can take up to 21 business days. In zones whose names start with R, only principal residence properties may apply, with a sworn statement of principal residency. Accessory dwelling units cannot be licensed, and third-party companies cannot apply.[5]
What Ann Arbor asks of you
Chapter 97 covers any dwelling unit rented for 30 consecutive days or less. The renters are people other than its owner or permanent resident.[6]
The city issues one license per dwelling unit. Only the owner or the permanent resident of the property can hold it.[6]
The license costs $500 per unit per year, paid with the application. The fee is not refunded when an application is denied.[5]
Each license is renewed every year, one year from its date of issuance.[5]
A principal residence host files a sworn statement with the application, then again each year within 30 days of the license anniversary.[6]
In residential zones, those whose names start with R, only principal residence properties may apply.[5]
To judge permanent residency, the city looks at the principal residence exemption, the voter registration address and the driver's license address.[7]
A non-principal residence rental needs a Certificate of Compliance and is inspected under the Housing Code. Principal residence rentals need no inspection.[7]
A commercial rental established before March 1, 2021 may continue in a residential district as a legal nonconforming use, under Section 5.33.6.[7]
Accessory dwelling units cannot be used as short-term rentals, and the city denies any application found to be for one.[5]
Third-party companies cannot apply for a license under any circumstances.[5]
The zoning code allows 4 persons plus their offspring in any district. Multiple-family and mixed-use districts allow 6 persons living as a single unit.[7]
Every ad must include the license number and the maximum occupancy permitted in the unit.[6]
The host is responsible for all nuisance and enforcement complaints at the property.[6]
A violation is a civil infraction with a fine of up to $500 plus costs. Each day of violation counts separately.[6]
What Michigan asks wherever you host
These rules apply at this address whatever the city decides.
Michigan levies a 6% use tax on rooms or lodging offered to the public. A stay of more than one month by the same tenant owes none.[1]
Treasury's guidance puts private homeowners renting a house or a room under that tax, like hotels. A host who owes it registers with the Department of Treasury.[2]
Lodging furnished by a host already registered for use tax falls outside Michigan's definition of a marketplace facilitator sale.[3]
Renting the whole home for most of the year ends its principal residence status for property tax. Renting bedrooms while living in over half the home does not.[4]
What a guest pays on top of your nightly rate in Ann Arbor
Each layer is set by a different authority, and not all of them are collected by the platform.
| Layer | Rate | Remitted to |
|---|---|---|
| Michigan state use tax[1] | 6% | The state revenue department |
| Total on a taxable stay | 6% |
What the census counts
How much of Ann Arbor is already a second home
The Census Bureau counts 425 of Ann Arbor's 54,399 homes as vacant for seasonal, recreational or occasional use. That is 8 out of every 1,000. It ranks Ann Arbor 5th of the 5 Michigan cities on this site for the share of its housing stock kept for part-year use.
- Rank in the state
- 5th of 5
- Share of housing
- 8 per 1,000
- Median home value
- $453,400
U.S. Census Bureau, 2024 ACS 5-year estimates, tables B25004, B25001, B01003 and B25077.
Nearby and comparable
Where Ann Arbor sits among its neighbors
South Haven, MI
License required
1,136 seasonal homes, 319 per 1,000 housing units.
South Haven short-term rental rulesDouglas, MI
Registration required
558 seasonal homes, 432 per 1,000 housing units.
Douglas short-term rental rulesTraverse City, MI
Allowed by zone
604 seasonal homes, 71 per 1,000 housing units.
Traverse City short-term rental rulesNew Buffalo, MI
Allowed by zone
747 seasonal homes, 446 per 1,000 housing units.
New Buffalo short-term rental rulesFAQ
Ann Arbor short-term rental questions
How much does an Ann Arbor short-term rental license cost?
Can I rent an Ann Arbor house I don't live in?
How many guests can stay in an Ann Arbor short-term rental?
Sources
- Use Tax, Michigan Department of Treasury, read on October 2, 2026
- Treasury Update, Volume 1, Issue 2, February 2016, sharing economy and use tax on accommodations, Michigan Department of Treasury, read on October 2, 2026
- Marketplace Facilitator & Marketplace Seller FAQs, Michigan Department of Treasury, read on October 2, 2026
- Partial Principal Residence Exemption, Michigan Department of Treasury, read on October 2, 2026
- Short-Term Rentals, City of Ann Arbor, Rental Housing Services, read on October 2, 2026
- City Code, Chapter 97, Short-Term Rentals, Sections 7:650 to 7:655, City of Ann Arbor, read on October 2, 2026
- Guide to Short-Term Rentals, revised May 13, 2024, City of Ann Arbor, Rental Housing Services, read on October 2, 2026
This page is not legal advice. It summarizes the official sources listed on this page as they read on October 2, 2026. Rules can change after that date, so check with the issuing office before you apply or publish a listing.
Before you list
Free tools for new hosts
Short-term rental agreement generator
Parties, dates, rent, deposit checked against your state's cap, and the house rules clauses you enforce. A signed-ready PDF for direct and Vrbo bookings.
Airbnb host fee calculator
What Airbnb takes on a booking under the 15.5% host-only fee or the old split fee, what the guest pays on top, and the payout that reaches you.
Airbnb profit calculator
Nightly rate, occupancy, Airbnb fee, management, mortgage, taxes and depreciation. You get cash flow, cash-on-cash return and what is left after the IRS.
Airbnb house rules
Generate a complete PDF house rules document for your property: rules, schedule, amenities, emergency contacts.