Is Bessemer, Michigan Good for Airbnb Investment?

To start an Airbnb in Bessemer, Michigan, begin by researching local zoning laws and regulations through the City of Bessemer Planning Department, as the city may require short-term rental permits and compliance with residential zoning restrictions. Contact the Gogebic County Building Department to obtain necessary permits, which typically include a business license, fire safety inspection, and potentially a conditional use permit depending on your property's zoning classification. Find a suitable property by searching local real estate listings through companies like Coldwell Banker or RE/MAX, focusing on areas near popular attractions like the Copper Peak ski jump or Lake Gogebic, with properties typically ranging from $80,000-$200,000 in the Bessemer market as of 2023-2024. Furnish the property with durable, comfortable furniture suitable for vacation rentals, including essentials like linens, kitchen supplies, and outdoor gear appropriate for the area's recreational activities, budgeting approximately $15,000-$25,000 for a complete furnishing package. List your property on Airbnb and other platforms like VRBO, highlighting proximity to skiing, hiking, and lake activities while setting competitive rates around $100-$180 per night based on local market analysis. Manage the property by establishing cleaning protocols between guests, maintaining responsive communication, coordinating with local cleaning services like those available through Ironwood-area providers, and ensuring compliance with Michigan's 6% sales tax and any local lodging taxes that Bessemer may impose on short-term rentals.

To identify profitable STR properties in Bessemer, Michigan, focus on locations within 1-2 miles of ski resorts like Big Powderhorn Mountain and Blackjack Ski Resort, as well as properties near Lake Superior shoreline and snowmobile trail access points. Target 3-4 bedroom cabins or chalets with amenities like hot tubs, fireplaces, game rooms, and ski equipment storage, as these command premium rates during winter months (December-March) when nightly rates can reach $200-400. Analyze pricing using AirDNA and Mashvisor to compare seasonal rate fluctuations, with summer rates typically 30-40% lower at $120-250 per night. Research competition by monitoring existing STR listings within 10 miles, noting that Bessemer has approximately 50-80 active short-term rentals with average occupancy rates of 65-75% annually. Utilize tools like STR Helper for market analysis, Rabbu for revenue projections, and connect with local property management companies such as those serving the Gogebic County area. Properties should ideally generate 12-18% annual returns, with winter bookings driving 60-70% of annual revenue due to the area's reputation as a premier Midwest skiing destination.

To obtain an Airbnb/STR permit in Bessemer, Michigan, contact the Bessemer City Clerk's office at City Hall located at 411 South Sophie Street or call (906) 663-4411 to begin the application process. You'll need to submit a completed short-term rental application form, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, contact information for a local property manager if you're not local, and pay the required application fee of approximately $150-200 annually. The city requires STR properties to comply with zoning regulations (typically allowed in residential zones with restrictions), maintain occupancy limits based on bedrooms and square footage, provide adequate parking spaces, install smoke and carbon monoxide detectors, and ensure the property meets building and fire safety codes. Submit all documents to the City Clerk, schedule a required property inspection with the building department, and allow 30-45 days for processing and approval. Once approved, you must display your permit number in all online listings, maintain a guest registry, provide neighbors with contact information, and renew your permit annually by December 31st with updated documentation and fees.

Short-term rentals (STRs) are generally legal in Bessemer, Michigan, as the city does not have specific municipal ordinances prohibiting them as of 2024. However, STR operators must comply with Michigan state regulations and local zoning requirements, which typically restrict commercial activities in residential zones. Bessemer follows Gogebic County zoning ordinances where applicable, and most residential properties can accommodate STRs provided they meet safety standards, obtain proper permits, and comply with tax obligations including Michigan's 6% sales tax and local accommodation taxes. The city has not implemented recent changes specifically targeting STRs, but operators should verify current zoning compliance and may need special use permits in certain residential districts. Properties must also meet basic safety requirements including smoke detectors, carbon monoxide detectors, and adequate egress routes, while maintaining neighborhood character and parking requirements typical of residential areas.

The best areas for Airbnb investment in Bessemer, Michigan include the downtown historic district near the waterfront, which attracts tourists visiting the Ironwood area and offers proximity to local restaurants and shops. The neighborhoods near the Big Powderhorn Mountain ski resort (approximately 15 miles away) are highly attractive for winter sports enthusiasts and seasonal rentals, particularly during the December through March ski season. Areas close to the Ottawa National Forest boundaries provide excellent opportunities for outdoor recreation tourists interested in hiking, fishing, and hunting throughout the year. The residential districts near US Highway 2 offer convenient access for business travelers and tourists passing through the Upper Peninsula, while properties within walking distance of the Bessemer City Park and near Lake Superior shoreline areas (within 30 minutes) appeal to summer visitors seeking water activities and scenic views. The neighborhoods surrounding the annual Gogebic County Fair grounds and near the historic mining heritage sites attract visitors interested in local culture and history, making these areas particularly viable for short-term rental investments.

Airbnb properties in Bessemer, Michigan are subject to Michigan's 6% state sales tax on lodging accommodations, which is automatically collected by Airbnb through their platform and remitted directly to the Michigan Department of Treasury on behalf of hosts. Additionally, hosts may be subject to Gogebic County's local accommodation tax of approximately 2-3%, though collection and remittance procedures for county taxes may require manual handling by individual hosts through quarterly filings with the county treasurer's office. The City of Bessemer does not currently impose a separate municipal lodging tax beyond state and county requirements. Exemptions typically apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient accommodations, and properties rented for less than 15 days per year by owner-occupants may qualify for certain tax exemptions under federal guidelines, though state and local taxes may still apply.

The total cost to start an Airbnb in Bessemer, Michigan is approximately $185,000-$220,000. Property purchase costs around $120,000-$150,000 based on median home prices in the Upper Peninsula region. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, bedding, kitchen essentials, and decor to create an appealing rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations total $3,000-$5,000. Permits and fees vary but expect $500-$1,500 for business licenses, short-term rental permits, and local registration requirements. Insurance specifically for short-term rentals costs $1,200-$2,000 annually, significantly higher than standard homeowner's insurance. Utility setup and deposits for electricity, water, internet, and heating average $500-$800 initially. First six months of operating costs including utilities ($300-$500/month), cleaning services ($100-$150 per turnover), maintenance reserves ($200-$400/month), property management software ($50-$100/month), and marketing expenses total approximately $4,500-$7,500, assuming 40-60% occupancy rates typical for seasonal markets in northern Michigan.

Airbnb properties in Bessemer, Michigan show moderate profitability potential with average daily rates ranging from $75-120 depending on property type and seasonality, generating annual revenues of $15,000-35,000 for typical 2-3 bedroom homes with 40-60% occupancy rates. Operating expenses typically consume 35-50% of gross revenue, including cleaning fees ($40-60 per turnover), property management (10-20%), utilities ($150-250 monthly), insurance ($800-1,200 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties near outdoor recreation areas like the Gogebic Range or Lake Superior shoreline command premium rates during summer months (June-September) and winter snowmobile season (December-March), with successful hosts reporting net profit margins of 25-40% after all expenses. Key success factors include professional photography, responsive guest communication, strategic pricing during peak seasons, and proximity to attractions like ski hills, snowmobile trails, and fishing spots, with properties within 10 miles of recreational amenities typically outperforming urban locations by 20-30% in both occupancy and nightly rates.

Airbnb investments in Bessemer, Michigan typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the area's proximity to outdoor recreation including skiing at Big Powderhorn Mountain and summer lake activities. Properties near Lake Gogebic and the Ottawa National Forest command premium rates of $120-180 per night during peak summer and winter seasons, with occupancy rates averaging 55-65% annually. Initial investment recovery and profitability typically occurs within 3-4 years for well-positioned properties, with vacation rentals in downtown Bessemer or waterfront locations showing stronger performance due to consistent demand from tourists visiting the western Upper Peninsula. The market benefits from limited hotel inventory and growing interest in remote work destinations, though investors should account for seasonal fluctuations with winter months (December-March) and summer months (June-September) generating 70% of annual revenue.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance across Bessemer, Michigan. Local real estate agents specializing in investment properties include Coldwell Banker Schmidt Realtors and RE/MAX of Marquette, both established in the Upper Peninsula market since the 1980s. National services like Awning (founded 2017), RedAwning, and Vacasa offer end-to-end Airbnb investment solutions including property identification, purchase assistance, and management services. Regional companies such as Great Lakes Property Management and Superior Shores Realty focus specifically on vacation rental investments in Michigan's Upper Peninsula market. Additional specialized services include AirDNA for market analytics, Mashvisor for investment property analysis, and local firms like Iron Range Realty and Gogebic Range Properties that understand the unique seasonal rental dynamics of the Bessemer area's proximity to ski resorts and outdoor recreation attractions.