Short-term rentals are not a single “Michigan rule.” In West Michigan, the practical answer to “Can I Airbnb it?” changes block by block because zoning, licensing, caps, and inspection programs are set locally. The difference between a legal short-term rental and an “it’s listed online” short-term rental can be the difference between a clean closing and a future enforcement problem that wrecks your numbers.
This 2026 guide focuses on three places where I get the question constantly: Grand Rapids, the City of Holland, and the City of Grand Haven. I’ll also flag one common trap: Townships next door can be much stricter than the city (example: Holland Charter Township).
Start with the definition: “Less than 30 days” is the line that triggers most rules
Most municipal programs and tax rules treat stays shorter than about a month as “transient lodging.” Michigan Treasury’s use-tax guidance specifically calls out lodging and notes that no tax is due when a room is rented to the same tenant for a continuous period of more than one month. ([michigan.gov](https://www.michigan.gov/taxes/business-taxes/sales-use-tax/use-tax-1))
That “30 days” concept shows up again in local excise taxes. In Kent County, for example, the hotel/motel tax applies to stays of less than 30 consecutive days. ([kentcountymi.gov](https://www.kentcountymi.gov/872/Hotel-Motel-Tax))
Grand Rapids: the short-term rental pathway is (mostly) a one-room, owner-occupied license
If your plan is to buy a property in the City of Grand Rapids and operate it as a whole-home short-term rental, understand the city’s current structure before you write an offer.
What Grand Rapids clearly allows (in plain English)
- Owner-occupied, principal-residence, one-room rentals under a Home Occupation Class B approach.
- The city’s checklist describes it as an owner-occupied dwelling where a single room, couch, or other sleeping area is rented overnight to no more than two adult guests, and the owner-operator must be in residence when renting. ([grandrapidsmi.gov](https://www.grandrapidsmi.gov/files/assets/public/v/1/departments/city-clerk/files/business-licensing/one-room-rental-guide.pdf))
- There is a citywide limit: the checklist states no more than 200 licenses will be issued during a licensing year. ([grandrapidsmi.gov](https://www.grandrapidsmi.gov/files/assets/public/v/1/departments/city-clerk/files/business-licensing/one-room-rental-guide.pdf))
Two Grand Rapids “gotchas” that surprise homeowners
- PRE (principal residence) impact: the city’s checklist warns that homeowners will not be able to claim 100% Principal Residence Exemption while renting out space in their home, and it directs owners to the Assessor for clarification. ([grandrapidsmi.gov](https://www.grandrapidsmi.gov/files/assets/public/v/1/departments/city-clerk/files/business-licensing/one-room-rental-guide.pdf))
- Condo rules still apply: the checklist states condominium association rules and regulations are not superseded by city code. ([grandrapidsmi.gov](https://www.grandrapidsmi.gov/files/assets/public/v/1/departments/city-clerk/files/business-licensing/one-room-rental-guide.pdf))
Practical takeaway: In Grand Rapids, many “Airbnb-style” business plans fail because buyers assume the city treats short-term rentals like a standard investment use. Under today’s framework, underwriting needs to match what is actually licensable (often meaning: the owner is on-site, it’s a room, and the license cap is not already fully allocated).
City of Holland: clearer categories (owner-occupied vs investor-owned) plus caps and spacing rules
Holland is a good example of a municipality that has tried to separate “home sharing” from “investor-owned vacation rental” in a way the average person can understand.
Holland’s baseline: a short-term rental is less than 30 consecutive days per occupant
The City of Holland describes a short-term rental as a dwelling unit offered for rent in part or in its entirety for less than 30 consecutive days per occupant, and it states a Short Term Rental Certificate of Compliance is required. ([cityofholland.com](https://www.cityofholland.com/848/Rental-Certification-Licensing-Guide))
Owner-occupied short-term rentals in Holland
Holland’s guide states owner-occupied short-term rentals (the owner’s primary residence) can include renting one room while the owner lives there, or renting the entire home while the owner is away, and that this is allowed in any zone district. ([cityofholland.com](https://www.cityofholland.com/848/Rental-Certification-Licensing-Guide))
Investor-owned short-term rentals in Holland
Holland’s guide states investor-owned short-term rentals (where the owner does not live there and rents the entire home to visitors) are allowed in certain districts, and it also allows them in residential districts with additional constraints including a maximum of 25 properties and a 500-foot separation distance. The guide notes that there are currently not any openings at this time for that residential-district pathway. ([cityofholland.com](https://www.cityofholland.com/848/Rental-Certification-Licensing-Guide))
One more Holland nuance: Tulip Time
The City of Holland guide also describes a “Tulip Time” category where a dwelling can be offered for not more than 10 days during the designated Tulip Time festival in May and states no inspection or certificate is required for that limited window. ([cityofholland.com](https://www.cityofholland.com/848/Rental-Certification-Licensing-Guide))
Practical takeaway: In Holland, your underwriting should start with which bucket you’re in (owner-occupied vs investor-owned), then confirm which zoning districts apply, and then confirm whether the cap and spacing requirements make a new certificate realistically obtainable before you close.
City of Grand Haven: short-term rental certification is district-specific, fee-based, and mapped
Grand Haven’s approach is more geographically constrained. It’s not enough to like the house. You need to like the zoning district, the off-street parking reality, and the city’s certification status.
Definition and annual registration fees
Grand Haven’s Rental Housing Program states all rental property must be registered annually and lists a $165 registration fee per short term rental unit (and $115 for long term). ([grandhaven.org](https://grandhaven.org/departments/public-safety/rental-housing/))
It defines a short-term rental as providing transient accommodations for periods of less than one month, more than three times per year. ([grandhaven.org](https://grandhaven.org/departments/public-safety/rental-housing/))
Where Grand Haven allows new certifications
Grand Haven states short-term rentals are only permitted in specific zoning districts. It lists the districts and certain location limitations (for example, parts of Southside and Old Town, and other districts with special use approval), and it highlights that even if the property is in the right district, it must be a legal conforming use and have sufficient off-street parking to be eligible. ([grandhaven.org](https://grandhaven.org/departments/public-safety/rental-housing/))
Transferability matters
Grand Haven also notes that existing certified short-term rentals may continue and transfer to new owners. ([grandhaven.org](https://grandhaven.org/departments/public-safety/rental-housing/))
Practical takeaway: In Grand Haven, a “this house has been a rental” statement is not enough. If the business plan depends on STR income, you want to verify (in writing, through the city process) whether you can obtain certification, or whether you are buying a property with a certificate that is actually transferable under the city’s rules.
The township trap: Holland Charter Township example (STRs not permitted)
One of the most common West Michigan mistakes is assuming the rules in a city carry over into the surrounding township.
Holland Charter Township’s March-April 2026 newsletter states that short-term rentals such as VRBO, Airbnb, Homestay, and individual room rentals within a dwelling are not permitted in the township. It adds that properties offering stays of 14 consecutive days or less with the owner/operator on the premises may apply to operate as a Bed and Breakfast with an approved Special Land Use Permit. ([hct.holland.mi.us](https://hct.holland.mi.us/newsletter-archive/1381-march-april-2026/file))
Practical takeaway: If your search area includes “Holland” in a casual sense, make sure you separate City of Holland from Holland Charter Township early. They are not interchangeable for STR purposes.
Taxes: Michigan’s 6% use tax and Kent County’s 8% lodging excise tax (if applicable)
Taxes are not the sexy part of STR ownership, but they can kill a pro forma quickly if you ignore them.
Michigan use tax on lodging
Michigan Treasury’s use-tax guidance states that use tax is due on rooms or lodging furnished by hotelkeepers, motel operators, and other persons furnishing accommodations available to the public as a commercial enterprise, and that no tax is due if the room is rented for a continuous period of more than one month to the same tenant. ([michigan.gov](https://www.michigan.gov/taxes/business-taxes/sales-use-tax/use-tax-1))
Separately, Airbnb’s Michigan tax page states guests booking Michigan listings pay Use Tax: 6% of the listing price including cleaning fee for reservations 30 nights and shorter in Michigan (as part of the reservation). ([airbnb.com](https://www.airbnb.com/help/article/2310?utm_source=openai))
Kent County Hotel/Motel tax: 8% rate effective January 1, 2025
If your property is in Kent County, Kent County’s Treasurer page states the tax is levied at a rate of 8% and applies to accommodations for transient guests staying less than 30 consecutive days. It also explains that the rate increased from 5% to 8% effective January 1, 2025 following voter approval and action by the County Board of Commissioners. ([kentcountymi.gov](https://www.kentcountymi.gov/872/Hotel-Motel-Tax))
Important: Platforms sometimes collect and remit certain taxes, but you should not assume they collect every local excise tax in every jurisdiction. Underwrite taxes and filing obligations as part of your due diligence, and confirm with the municipality, county, and a qualified tax professional based on your exact address and how you will list the property.
A buyer’s due diligence checklist (what I want confirmed before you remove contingencies)
- Exact jurisdiction: city vs township vs village (this alone changes outcomes).
- Zoning and use: is STR a permitted use, a special use, or prohibited?
- License or certificate availability: caps, spacing rules, waiting lists, and whether new permits are being issued.
- Transferability: if the seller is operating legally, can their certificate transfer to you (and under what conditions)? Grand Haven explicitly discusses transferability for existing certified STRs. ([grandhaven.org](https://grandhaven.org/departments/public-safety/rental-housing/))
- On-site requirements: owner occupancy, principal residence, guest limits. (Grand Rapids is very specific here.) ([grandrapidsmi.gov](https://www.grandrapidsmi.gov/files/assets/public/v/1/departments/city-clerk/files/business-licensing/one-room-rental-guide.pdf))
- Building and fire requirements: inspections, egress, smoke and CO detectors, posted emergency information.
- HOA or condo restrictions: they can be stricter than the city. Grand Rapids explicitly notes condo rules are not superseded. ([grandrapidsmi.gov](https://www.grandrapidsmi.gov/files/assets/public/v/1/departments/city-clerk/files/business-licensing/one-room-rental-guide.pdf))
- Tax stack: state use tax, county excise tax (Kent County), and any city fees or registration costs.
- Insurance and financing: confirm your insurer and lender will allow the intended use and what documentation they need.
Seller strategy: if STR value is part of the price, prove it cleanly
If you are selling a property where STR income or STR eligibility is part of the story, your goal is to make the buyer’s due diligence easy and verifiable:
- Provide copies of current licenses, certificates of compliance, inspection reports, and renewal history.
- Document whether the permit is transferable and the steps the buyer must take post-closing (if any).
- Be careful with marketing language. “Airbnb ready” is not a substitute for legal eligibility.
My bottom line for 2026: underwrite the rule risk like you would underwrite the roof
In West Michigan, short-term rental value is often real, but it is also fragile because it depends on local rules that can be district-specific, capped, and enforced after complaints. If the numbers only work with STR income, then STR legality cannot be a casual assumption. It has to be a documented condition of your purchase strategy.
If you want a second set of eyes on a specific address, I’ll help you structure a plan to verify jurisdiction, zoning, licensing path, and tax exposure before you get too deep into inspection and appraisal spend.