Traverse City, MI Short-Term Rental ROI Calculator
Analyze your Airbnb investment with live Traverse City market data. Pre-populated with real ADR, occupancy, and revenue benchmarks.
Investor Quick Take
Strengths
- Competitive ADR — $198/night market rate
- Accessible entry point — median home $395K
- STR-friendly regulations — low compliance burden
Risks
- Rising competition — 18% more listings vs last year
- High seasonality — significant off-season revenue drop
- Below-average occupancy — careful underwriting required
Moderate Market
Based on ADR, occupancy, and supply metrics
Traverse City is a beach market with 50% average occupancy and $198 ADR.
We've pre-populated this calculator with Traverse City's market averages. Adjust the values to match your specific property.
Traverse City Short-Term Rental Market Overview
Traverse City is one of the nation's premier beach destinations, attracting millions of visitors annually seeking sun, surf, and waterfront accommodations. Demand peaks sharply in summer but the mild climate extends the shoulder season well into spring and fall, giving STR operators a longer revenue window than inland markets.
The average STR in Traverse City generates approximately $36,200 in annual revenue, with an average daily rate of $198 and a 50% occupancy rate across the year. These metrics position Traverse City as an accessible entry-point STR market — particularly attractive to investors seeking consistent year-round cash flow.
Active listings in Traverse City grew by 18% year-over-year, currently sitting at approximately 2,800 active STR units. This rapid supply growth warrants attention — markets with accelerating inventory can see downward pressure on occupancy as new listings compete for the same pool of guests. Investors should track supply trends quarterly using tools like AirDNA or Rabbu before committing capital.
Key considerations for Traverse City investors: regulatory risk is rated low — Traverse City currently has minimal STR regulation, making it an investor-friendly market from a compliance perspective. Monitor local policy, as regulations can change. Property management costs, cleaning turnover for short stays, and platform fee optimization are the primary levers operators use to improve net margin in this market.
Market Metrics
Traverse City Airbnb Revenue by Property Size
| Property Size | Avg ADR | Avg Occupancy | Avg Annual Revenue | Est. Cap Rate Range |
|---|---|---|---|---|
| Studio | $99 | 50% | $18K | 2.1–2.9% |
| 1BR | $139 | 50% | $26K | 3.1–4.2% |
| 2BR | $208 | 50% | $40K | 4.7–6.4% |
| 3BR | $301 | 50% | $59K | 6.9–9.4% |
| 4BR+ | $436 | 50% | $87K | 10.3–13.9% |
Traverse City STR Revenue Calendar
Seasonal Insight: Peak season runs July, June, and August. Expect up to 58% higher revenue during peak months. Plan for January and November as your slowest period — approximately 32% below the annual average.
Is Traverse City a Good Market for Short-Term Rentals?
Why investors choose Traverse City
- ✓Solid revenue potential: market average of $36,200 per year with upside for well-managed properties
- ✓Premium pricing power: Traverse City's destination appeal supports $198/night average — significantly above national STR average of ~$180
- ✓Growing market: 18% annual listing growth signals strong investor and visitor confidence
Key risks to consider
- !High seasonality: Traverse City has significant off-peak periods where revenue can drop 40–60% — cash reserves are essential
- !Below-average occupancy: 50% market average means careful property selection and pricing strategy are critical to profitability
Traverse City STR Regulatory Overview
ModerateTraverse City and Grand Traverse County have implemented STR registration and area-specific restrictions as the market has grown rapidly.
Key Requirements
- ·City registration required
- ·Annual renewal and inspection
- ·Michigan use tax on rental income
- ·Noise and occupancy compliance
Source: City of Traverse City Planning · Last verified: 2026-01. Regulations change frequently — always verify current requirements with local authorities before investing.
Compare Traverse City to Similar Markets
View market →
View market →
View market →
| Metric | Traverse City | Chicago | Branson | Lake of the Ozarks |
|---|---|---|---|---|
| ADR | $198 | $198 | $142 | $178 |
| Occupancy | 50% | 57% | 58% | 52% |
| Avg Revenue | $36K | $41K | $30K | $34K |
| Median Home Value | $395K | $385K | $245K | $285K |
| Regulatory Risk | Low | High | Low | Low |
Traverse City Short-Term Rental FAQs
Is Traverse City a good market for short-term rentals?+
Traverse City, MI is an accessible US STR markets. With an average daily rate of $198 and 50% occupancy, the average listing earns approximately $36,200 per year. Market performance varies significantly by property type, location within the city, and management quality — this calculator helps you model your specific scenario.
What is the average Airbnb income in Traverse City?+
The average STR listing in Traverse City generates approximately $36,200 in gross annual revenue at a $198 average daily rate and 50% occupancy. Top-performing listings with premium amenities, strong reviews, and professional management can earn 30–50% above the market average. After platform fees (3–5%), cleaning costs, and other expenses, net revenue typically ranges 60–75% of gross.
What occupancy rate can I expect for an Airbnb in Traverse City?+
The market-average occupancy in Traverse City is approximately 50%. New listings typically underperform the market average for the first 3–6 months while accumulating reviews. Properties with professional photography, competitive pricing, and consistently high ratings can reach 62–68% occupancy. This market is highly seasonal — plan for meaningful variation between peak and off-peak months.
What are the STR regulations in Traverse City?+
Regulatory risk in Traverse City is rated Low. Traverse City currently has minimal STR regulation, making it investor-friendly from a compliance standpoint. Always verify current requirements — local policies can change. Regulations change frequently; always confirm current rules with local authorities.
What type of property performs best as an Airbnb in Traverse City?+
In Traverse City, the highest-performing STR properties are typically 3-bedroom beach houses and condos with ocean views. Guests in Traverse City prioritize proximity to key attractions, unique character, and outdoor space. The premium segment by revenue-per-dollar-invested is typically the 2-bedroom category.
What is the best season for Airbnb in Traverse City?+
Traverse City sees peak STR demand during June through August. During peak season, top properties can command rates 58% above their annual average. The off-peak period sees materially lower rates and occupancy — conservative underwriting should assume 40–50% of peak revenue during the slowest months.
How much does it cost to buy an STR investment property in Traverse City?+
The median home value in Traverse City is approximately $395,000. With a 20% down payment, you'd invest roughly $91K in cash (including closing costs and setup). At the market-average revenue of $36,200/year, a property at median value would generate a gross revenue yield of approximately 9.2%. Use this calculator to model your specific purchase price, financing terms, and expense assumptions.
How does Traverse City compare to other STR markets?+
Traverse City offers accessible entry points relative to premium coastal markets. The $198 ADR is near the national STR average of roughly $185. For comparison, markets like Aspen and Malibu exceed $450 ADR but require significantly higher acquisition costs. Traverse City offers a lower barrier to entry with reliable occupancy fundamentals.
Ready to run your numbers?
← Browse all marketsUse main calculator →