Market report

Traverse City, MI short-term rental market report (2026)

Grand Traverse County, Michigan. Rules, revenue, home values, demand, climate, reach and risk, each figure with its source.

42/100 Opportunity Score partial
  • RulesStrict (4/5)
  • 4-BR typical value$581K
  • FEMA riskRelatively Low
  • Demand drivers within 50 mi3
  • People within 300 mi30.5 million
  • ClimateSki-plus-summer
Data as of September 21, 2026 County figures: Grand Traverse County

Everything STR HUB holds on Traverse City, MI in one place, in the order an investor needs it: whether you can operate, what the numbers are, why and when people come, who can reach it, and what could go wrong.

Every figure comes from a named dataset listed under Sources and method, dated September 21, 2026. Where we do not hold a figure, that part of the report is left out rather than estimated. The Opportunity Score here is partial: it was calculated without revenue data, with the cash-flow component assumed to be below average, so it can understate the market.

Can you operate in Traverse City?

4/5 Strict

Traverse City's short-term rental rules rate 4 out of 5 (Strict), on a scale from 1 (relaxed) to 5 (very strict). This rating was derived from the regulation text we hold and has not yet been reviewed by a person (evidence confidence: high). Treat it as provisional.

What the rating rests on: in the C-1, C-2, and D-2 districts, no more than 25 percent of units in a multi-unit building (or one unit, whichever is greater) may operate as STRs.

Rules change, and a city rating does not cover HOA or deed restrictions. Confirm current requirements with the jurisdiction before you buy or list.

The numbers

We have not verified revenue figures for this market yet.

Home values in Grand Traverse County

Typical 4-bedroom home
$580,582
Michigan statewide: $417K
Typical home, all sizes
$418,758
Michigan statewide: $266K
One-year change, all homes
+2.4%
Michigan statewide: +4.0%

Zillow Home Value Index: county-wide typical values for Grand Traverse County, not list prices. A specific property can sit well above or below them.

What it costs to own

Effective property tax rate
1.03%
county median taxes paid divided by median home value, owner-occupied homes
Estimated annual tax, typical 4BR
$6,003
county effective rate times the typical 4-bedroom value; not a bill
Estimated annual tax, typical home
$4,330
county effective rate times the typical home value; not a bill
Expected annual hazard loss
$55
per $100,000 of building value (FEMA, county average); not an insurance premium

Screening figures, not a bill or a quote. The tax rate is a county-wide median for owner-occupied homes (U.S. Census Bureau, ACS 2018-2022); second homes and rentals are often taxed more heavily, and a purchase usually resets the assessed value. Expected annual loss is from the FEMA National Risk Index.

Housing market momentum

Momentum
Heating
score 67 of 100, relative to the other tracked markets

County-level, for-sale housing market: it says nothing directly about STR bookings. A relative ranking among tracked markets, not a forecast. Sources: Realtor.com Economic Research, U.S. Census Bureau, Zillow Home Value Index.

Why people come

3 demand drivers sit within 50 miles of Traverse City. Ordered by published attendance. Attendance appears only where a source publishes it.

Events

  • National Cherry Festival
    cultural · Traverse City, MI · 0 mi from Traverse City
    When
    Early July, 8 days
    Attendance
    500,000 (Over 500,000 attendees (per Wikipedia, no single specific year cited).)
    STR angle
    Traverse City's single largest annual event, filling Grand Traverse Bay-region lodging for an eight-day stretch every July.

Parks and public lands

  • Sleeping Bear Dunes National Lakeshore
    National Park Service unit · Empire, MI · 22 mi from Traverse City
    When
    Year-round; peaks June, July, August (by recreation-visit volume, 2025).
    Attendance
    1,601,747 (NPS recreation visits, full calendar year 2025)
    STR angle
    One of the strongest Great Lakes vacation-cottage markets in the country, centered on Glen Arbor and Empire.

Outdoor activities

  • Boyne Mountain, The Highlands & Nub's Nob
    skiing · Boyne Falls, MI · 44 mi from Traverse City
    When
    Winter ski season, roughly December through March, heavily weekend- and holiday-driven.
    STR angle
    Northern Michigan's ski cluster overlaps a premier summer lake-and-golf region, so properties near Petoskey, Harbor Springs and Boyne City can earn in both seasons. Group houses and resort condos both work.

When they come

Ski-plus-summer climate: at least three months bring six inches or more of snowfall, and May to September is comfortable. 5 of 12 months have an average high between 60°F and 88°F, and 5 months average six inches or more of snow. Warmest month: July (average high 78°F). Coldest: February (average low 17°F).

  1. Jan29°19°ColdSnow
  2. Feb29°17°ColdSnow
  3. Mar40°25°ColdSnow
  4. Apr51°34°Cool
  5. May64°44°Comfortable
  6. Jun74°55°Comfortable
  7. Jul78°62°ComfortableEvent
  8. Aug77°62°Comfortable
  9. Sep70°56°Comfortable
  10. Oct57°46°Cool
  11. Nov44°34°ColdSnow
  12. Dec36°28°ColdSnow
Monthly climate normals and event months for Traverse City, MI
MonthJanFebMarAprMayJunJulAugSepOctNovDec
Average high (°F)292940516474787770574436
Average low (°F)191725344455626256463428
Precipitation (in)2.22.23.03.13.62.73.02.53.64.72.92.6
Snowfall (in)12.812.27.63.21.00.00.00.00.00.98.011.2
Sunshine (hours a day)2.75.06.98.210.712.312.811.89.46.25.03.1
Event monthNoNoNoNoNoNoYesNoNoNoNoNo

Event months within 50 miles

  • July: National Cherry Festival

This is climate and events, not booking data. Monthly normals are 2019-2023 averages from the Open-Meteo Historical Weather API (ERA5 reanalysis) at the market pin. Event months come from the demand drivers listed above. We do not hold monthly occupancy or rate data for this market.

Who can reach it

People within 150 miles
3.8 million
roughly a 2.5 to 3 hour drive
People within 300 miles
30.5 million
roughly a 5 hour drive

Largest counties within 150 miles

Largest counties by population within 150 miles of Traverse City, MI
CountyPopulation
Kent County, MI657,321
Ottawa County, MI296,183
Brown County, WI268,393

County populations (U.S. Census Bureau, ACS 2018-2022) summed for every county whose centre lies within each straight-line radius. Straight lines are shorter than roads, so read these as generous upper bounds, not drive-time counts.

What could go wrong

FEMA National Risk Index
Relatively Low
overall rating for Grand Traverse County
Risk score
65.6
of 100, a national percentile: higher means more risk than more U.S. counties
Highest-scoring hazards
Winter weather, River flooding
of the hazards we track for Grand Traverse County
FEMA National Risk Index hazard ratings for Grand Traverse County
HazardFEMA ratingScore (0-100)
Winter weatherVery High98.0
River floodingRelatively Low58.0
HailRelatively Low53.1
TornadoRelatively Low43.0
Coastal floodingVery Low32.6
WildfireVery Low31.0
HurricaneVery Low18.1
EarthquakeVery Low15.0

This is a county-level index, not an insurance quote or a flood-zone determination. A coastal or wildfire-fringe rental can carry far more exposure than its county average suggests. Get property-level flood, wind and wildfire quotes before you buy.

Market context

Housing and jobs in Grand Traverse County

Vacation-home share
10.1%
Michigan statewide: 5.8%
Homes with 4+ bedrooms
21.5%
Michigan statewide: 21.0%
Jobs in tourism industries
10.9%
Michigan statewide: 8.9%

U.S. Census Bureau, American Community Survey 2018-2022. Vacation-home share is housing units held for seasonal, recreational or occasional use. All three describe the whole county, not one town or neighbourhood.

What is within 15 km of the Traverse City pin

Amenity score
77
of 100, relative to the other tracked markets
Restaurants, cafes and bars
212
Attractions
46
Outdoor features
373
Hotels, motels and resorts
58
competing lodging, not counted in the amenity score

Counts of features mapped in OpenStreetMap within 15 km of the market pin. A fixed radius favours dense metros, and map coverage varies by area.

Similar markets

The 4 tracked markets whose numbers sit closest to Traverse City's. Each links to its own report.

Closest by normalised distance across the figures both markets hold (typical 4BR value, revenue, occupancy, regulation rating, vacation-home share, tourism job share, 4+ bedroom share, amenity score, population within 300 miles, comfortable months and FEMA risk score). At most 2 of the 4 come from Michigan, so the list is not just the neighbours. Similar numbers do not mean similar rules: check each market's regulation section.

See Traverse City on the map

Open Traverse City on the National STR Map to see it against its neighbours, switch overlays and run the deal calculator on your own assumptions.

Traverse City STR questions, answered from the data

Is Airbnb legal in Traverse City?

STR HUB rates Traverse City's short-term rental rules 4/5 (Strict) on a scale from 1 (relaxed) to 5 (very strict). That rating was derived from the regulation text we hold and has not yet been reviewed by a person. Rules change, so confirm current requirements with the local jurisdiction before you buy or list.

How much does a 4-bedroom home cost in Traverse City?

The typical 4-bedroom home in Grand Traverse County is valued at $580,582 (Zillow Home Value Index), and the typical home of any size at $418,758, with all-home values up 2.4% over the past year. These are county-wide typical values, not list prices.

What brings visitors to Traverse City?

3 demand drivers sit within 50 miles of Traverse City: Sleeping Bear Dunes National Lakeshore (1,601,747 published attendance), National Cherry Festival (500,000 published attendance) and Boyne Mountain, The Highlands & Nub's Nob. Attendance is shown only where a source publishes it, and each driver's source is linked in the report.

What natural hazards affect Traverse City?

FEMA's National Risk Index rates Grand Traverse County "Relatively Low" overall, with a score of 65.6 out of 100 (a national percentile). The highest-scoring hazards we track there are winter weather and river flooding. It is a county-wide index, not an insurance quote or a flood-zone determination.

When is the weather best in Traverse City?

5 of 12 months have an average high between 60°F and 88°F (May, June, July, August and September). Ski-plus-summer climate: at least three months bring six inches or more of snowfall, and May to September is comfortable. These are 2019-2023 climate normals, not booking data.

Sources and method

  • Regulation summary and strictness rating: STR Agent HUB regulation research.
  • Home values: Zillow Home Value Index (ZHVI), county level. Data provided by Zillow Group.
  • Housing, employment and population figures: U.S. Census Bureau, American Community Survey (ACS) 5-year estimates, 2018-2022.
  • Natural hazard risk: FEMA National Risk Index, county level.
  • Amenity counts: © OpenStreetMap contributors.
  • Climate normals: Open-Meteo Historical Weather API (CC BY 4.0), 2019-2023 averages.
  • Park visitation: National Park Service, NPS Visitor Use Statistics.
  • Demand drivers: each entry links its own published source in the list above.

Figures come from the STR HUB national dataset dated September 21, 2026 and this page is regenerated whenever that dataset is rebuilt. County-level figures describe Grand Traverse County as a whole, not one street or neighbourhood. The Opportunity Score (0-100) is a screening heuristic that weighs revenue (35%), regulatory climate (25%), tourism employment (15%), nearby amenities (15%) and large-home supply (10%) relative to the other tracked markets.

Confirm before you act. Short-term rental rules change. Confirm current requirements with the jurisdiction, and work with a licensed local agent who knows which properties can legally operate. This report is screening data, not investment, legal or tax advice.

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