Last updated on March 17th, 2023
best places to airbnb in michigan
Key Takeaways:
- Detroit is fueled by a stable economy that continues to grow in the coming years, making it a viable market for any business including short-term rentals.
- Investors can make a calculated risk by studying the figures first before buying a rental property in Detroit and nearby cities.Â
Introduction:
If you think Detroit is all hustle, think again. There is simply more to it other than being the Motor City. Granted, it’s hard to miss its automotive heritage that has driven the progress of America and the rest of the world. Its financial center is also a force to be reckoned with, being home to the biggest and most trusted institutions.Â
But locals can take a break on Belle Isle, a recreational island of almost a thousand acres that deserves its name. There’s nothing you can’t do on the island. It has a museum, a conservatory, athletic courts, a zoo, and a giant slide. All of these are surrounded by lush greeneries which you can enjoy by simply walking around Belle Isle.Â
The city planning was well thought out because it considered both work and play. This is what makes Detroit investment properties so interesting. And looking for a profitable place to invest in Detroit should be a walk in Belle Isle park. So, we created a list of valuable Airbnb Markets in and around Detroit City.Â
Why investing in Detroit real estate is a great idea
Detroit real estate investment opportunities become more enticing because of the following reasons:
Home to Big Financial Institutions
Detroit is not only limited to the automobile industry. The city is also a player in finance having all of the Big Four Accounting Firms. The massive corporate headquarters of Ally Financial can be found on Woodward Avenue. Detroit also has the major business hubs of Bank of America, JP Morgan Chase & Company. This indeed makes Detroit a major financial center in the United States. Â
Resilient Economy
Detroit’s economy is actually more than resilient. The projections are optimistic due to the city’s stable workforce which is expected to grow every year from 2023-2027. This can steer clear of the effects of a national recession.
Best Places to Airbnb in Detroit, Michigan
Airbtics Discovery Tool provides a few Detroit real estate investing leads by filtering the best areas for Airbnb in and around the city. This feature shows the following areas:
1. Detroit
Airbnb operations are allowed in Detroit. While the regulation of the short-term rental industry in the city is still under deliberation, rest assured that businesses of this kind will remain legal. Â
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $56,492
- Airbnb Annual revenue: $31,489
- Gross rental yield: 51.81%
2. Ann Arbor
Ann Arbor regulates short-term rentals in the city, thereby requiring registration of the property. Ann Arbor is 41 miles east of Detroit (43 minutes drive).
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $426,436
- Airbnb Annual revenue: $117,991
- Gross rental yield: 27.67%
3. Cleveland
Cleveland allows short-term rental operations. The city is 91 miles from Detroit (2 hours and 44 minutes drive)
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $113,194
- Airbnb Annual revenue: $52,082
- Gross rental yield: 46.01%
4. Columbus
Hosts must secure a permit for a short-term rental business in Columbus. The city is located 162 miles from Detroit (3 hours and 13 minutes drive).Â
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $240,772
- Airbnb Annual revenue: $46,671
- Gross rental yield: 19.38%
5. South Bend
Hosts must obtain a short-term rental permit from the local government of Indiana is required to operate an Airbnb. South Bend is located about 172 miles from Detroit (3 hours & 20 minutes drive).Â
- Best bedroom size: 4 bedrooms
- Median property price (4 bedrooms): $228,200
- Airbnb Annual revenue: $100,778
- Gross rental yield: 44.16%
6. Pittsburgh
The local government of Pittsburgh requires registration of short-term rentals. Hosts have to apply for a license at the Department of Permits, Licenses, and Inspections. Pittsburgh is 205 miles from Detroit (4 hours and 22 minutes drive)
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $174,912
- Airbnb Annual revenue: $39,435
- Gross rental yield: 22.55%
7. Traverse City
Hosts must get a license from the Traverse City Clerk’s Office. The city is located about 211 miles from Detroit (4 hours drive)
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $327,394
- Airbnb Annual revenue: $67,320
- Gross rental yield: 20.56%
8. Buffalo
The City Of Buffalo requires a business license for short-term rental operations. Download the application form here. Buffalo is 216 miles away from Detroit (4 hours and 14 minutes).
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $175,041
- Airbnb Annual revenue: $39,106
- Gross rental yield: 22.34%
9. IndianapolisÂ
Indiana regulates short-term rental operations in the entire state. Indianapolis is 239 miles from Detroit (4 hours and 27 minutes drive)Â Â
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $152,871
- Airbnb Annual revenue: $46,072
- Gross rental yield: 30.14%
Conclusion
Airbtics Discovery Tool has presented us with useful and accurate data to lead Detroit real estate investors on their next real estate investment journey. We discovered the profitable Airbnb markets in Detroit and neighboring cities with insights into the best property size and gross rental yield. All of these figures and more are accessible with just a click!Â
Have you always wanted to align your real estate investment decisions with solid data, but don’t know where to start?Â
Then meet our Airbnb Income Calculator, used by beginners and pros in the short-term rental industry!
Ramon Meris is a content writer for Airbtics. Guided by data analytics, he produces articles on various US short-term rental markets. Outside work, he is a reader, animal lover, and foreign language learner.
