Is Dundee, Michigan Good for Airbnb Investment?

To start an Airbnb in Dundee, Michigan, begin by researching Monroe County and Dundee Township zoning ordinances, as short-term rentals may require special permits or fall under specific residential use categories. Contact Dundee Township offices at (734) 529-3430 to verify current regulations and obtain necessary permits, which typically include a business license and may require a conditional use permit depending on your property's zoning. Find a suitable property in residential areas like near the Cabela's corridor or historic downtown Dundee, ensuring it meets Michigan's rental property standards including smoke detectors, carbon monoxide detectors, and proper egress windows. Furnish the space with quality furniture, linens, and amenities while ensuring compliance with Michigan's lead paint disclosure laws for properties built before 1978. Create your Airbnb listing with professional photos highlighting Dundee's proximity to outdoor recreation and shopping, setting competitive rates based on similar properties in Monroe County (typically $80-150/night). Register for Michigan sales tax through the Department of Treasury and collect the required 6% state sales tax plus any local taxes. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guests, and keeping detailed records for tax purposes while monitoring local ordinance changes that may affect short-term rental operations in this small Monroe County community.

To identify profitable short-term rental properties in Dundee, Michigan, focus on locations within walking distance of the Cabela's outdoor recreation store and near Irish Hills attractions, as these drive significant tourist traffic year-round. Target 2-4 bedroom single-family homes or lakefront cottages built after 1980 with modern amenities, full kitchens, outdoor spaces, and proximity to lakes like Round Lake or Wampler's Lake, as guests seek authentic Michigan lake experiences. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against similar properties in nearby Brooklyn and Onsted, aiming for $100-200 per night depending on seasonality, with peak rates during summer months and hunting seasons. Research competition by analyzing existing STR listings within a 10-mile radius, noting that limited inventory in Dundee creates opportunities but requires differentiation through unique amenities or experiences. Utilize tools like Rabbu for market analysis, STR Helper for performance tracking, and connect with local real estate agents familiar with Irish Hills tourism patterns, while monitoring seasonal demand fluctuations tied to Cabela's events, fishing seasons, and fall color tourism that typically peaks from June through October.

To obtain an Airbnb/STR permit in Dundee, Michigan, contact the Dundee Township offices at 13775 Rawsonville Road or call (734) 529-3647 to begin the application process, as the township likely regulates short-term rentals under their zoning ordinances. You'll need to submit a completed short-term rental application form, proof of property ownership or lease agreement, certificate of occupancy, proof of liability insurance (typically $1 million minimum), floor plan showing maximum occupancy, contact information for a local property manager if you're not local, and potentially a site plan. Required documents may also include a business license application, fire safety inspection certificate, and septic system inspection if applicable. Application fees typically range from $100-300 initially with annual renewal fees of $50-150, though exact amounts should be confirmed with township offices. The approval timeline generally takes 30-60 days depending on inspection scheduling and document completeness. Dundee-specific requirements likely include compliance with residential zoning restrictions, maximum occupancy limits based on bedrooms and septic capacity, parking requirements (usually 2 spaces minimum), noise ordinance compliance, and potentially restrictions on the number of rental days per year or requirement for owner occupancy during certain periods, so verify current township ordinances as regulations may have been updated since 2023.

Short-term rentals (STRs) in Dundee, Michigan are generally legal but subject to local regulations and zoning restrictions. As a small village in Monroe County, Dundee typically follows Michigan state law which allows STRs, but the village may have specific ordinances governing their operation including requirements for permits, occupancy limits, parking provisions, and noise restrictions. Most residential areas in Dundee likely permit STRs in single-family homes, though certain zoning districts or historic areas may have additional restrictions or prohibitions. Property owners typically need to comply with safety codes, obtain proper licensing, and may face limitations on the number of guests or vehicles allowed. Recent trends in Michigan municipalities have included increased regulation of STRs due to housing concerns and neighborhood impacts, so Dundee may have implemented or be considering stricter oversight including registration requirements, inspection protocols, and complaint procedures. Property owners should verify current regulations with Dundee's village offices and Monroe County planning department, as local ordinances can change and may include specific restrictions on density, operational standards, or designated zones where STRs are prohibited.

The best areas for Airbnb investment in Dundee, Michigan include the downtown historic district along Main Street, which attracts visitors interested in the town's 19th-century architecture and local antique shops, and properties near the Raisin River corridor, popular with fishing enthusiasts and nature lovers visiting for weekend getaways. The residential neighborhoods surrounding Dundee's parks like Memorial Park draw families attending youth sports tournaments and local festivals throughout the year. Areas within walking distance of local restaurants and the Dundee Mill antique mall perform well due to leisure travelers exploring southeastern Michigan's small-town charm. Properties near major transportation routes like US-23 and M-50 appeal to business travelers working in nearby Ann Arbor or Toledo who prefer quieter, more affordable accommodations outside the city centers, while still maintaining easy highway access for their daily commutes.

In Dundee, Michigan, Airbnb hosts are subject to Michigan's 6% state sales tax on lodging accommodations, which applies to short-term rentals under 30 days. Monroe County, where Dundee is located, imposes an additional 5% accommodations tax on lodging facilities, bringing the total tax rate to approximately 11% for Airbnb rentals. These taxes are typically collected from guests at the time of booking through Airbnb's automated tax collection system, which remits payments directly to the Michigan Department of Treasury on a monthly basis for registered hosts. Hosts must register with the Michigan Treasury Department and obtain a sales tax license, filing monthly returns by the 20th of the following month if collecting taxes independently. The city of Dundee does not impose additional local lodging taxes beyond county and state requirements. Exemptions may apply for rentals exceeding 30 consecutive days, which are considered long-term leases rather than short-term accommodations, and for certain nonprofit or government-related stays, though hosts should verify current exemption criteria with local tax authorities as regulations can change.

Starting an Airbnb in Dundee, Michigan requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000-180,000 based on median home prices in the area as of 2023-2024. Furnishing a 2-3 bedroom property typically runs $8,000-12,000 including beds, linens, kitchen essentials, living room furniture, and basic appliances. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-3,000. Permits and fees in Michigan generally cost $300-800 depending on local requirements and business registration. Insurance premiums for short-term rental coverage run approximately $1,200-2,000 annually, with $600-1,000 needed upfront. Utility deposits and initial connections cost around $500-800. First six months of operating costs including utilities ($150-250/month), cleaning supplies and services ($100-200/month), maintenance reserves ($200-300/month), platform fees, and marketing total approximately $3,000-5,000. Additional considerations include potential HOA fees, property taxes, and emergency repair funds which could add another $2,000-4,000 to initial costs.

Airbnb properties in Dundee, Michigan typically generate annual revenues between $15,000-$35,000 for single-family homes and $8,000-$18,000 for apartments, with occupancy rates averaging 45-60% due to the area's proximity to Ann Arbor and seasonal lake tourism. Operating expenses generally run 40-55% of gross revenue, including cleaning fees ($75-$125 per turnover), property management (15-25%), utilities ($150-$300 monthly), insurance ($1,200-$2,000 annually), and maintenance costs. Net profit margins typically range from 25-40% for well-managed properties, with higher-end lakefront rentals near Halfmoon Lake achieving margins closer to 45-50%. Success factors include strategic pricing during University of Michigan events and summer lake season, professional photography showcasing proximity to outdoor activities, and maintaining 4.8+ star ratings through consistent cleanliness and local amenities knowledge. Properties within 30 minutes of Ann Arbor and those offering lake access or outdoor recreational features consistently outperform the market, with some investors reporting ROI of 12-18% annually when factoring in property appreciation alongside rental income.

Airbnb investments in Dundee, Michigan typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, based on the area's proximity to Detroit Metro Airport and seasonal tourism from nearby lakes and outdoor recreation areas. Properties in Dundee generally achieve profitability within 18-24 months, with average daily rates of $85-120 depending on property size and amenities, supported by consistent demand from business travelers, weekend tourists visiting Irish Hills region, and guests attending events at Michigan International Speedway located 30 minutes away. The market benefits from lower property acquisition costs compared to Ann Arbor or Detroit while maintaining steady 65-75% occupancy rates throughout the year, with peak seasons during summer months and fall color tours driving higher returns, making initial investments of $150,000-250,000 for suitable properties potentially profitable with proper management and marketing strategies targeting both leisure and business segments.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Dundee, Michigan. Local real estate agents in the area who work with Airbnb investors include Keller Williams agents specializing in investment properties, Coldwell Banker Weir Manuel agents familiar with Monroe County markets, and RE/MAX Preferred Associates who understand vacation rental potential near Irish Hills and local lakes. National services like Mashvisor, AirDNA, and Rabbu provide market analysis and property identification tools for the Dundee area. BiggerPockets connects investors with local professionals, while companies like Awning and RedAwning offer property management services for short-term rentals. Local property management companies such as Great Lakes Property Management and Michigan Vacation Rentals can assist with operations, and investment-focused firms like Roofstock and Arrived Homes occasionally feature properties in southeastern Michigan markets. Real estate investment groups through Facebook and local REIA chapters in Monroe County also provide networking opportunities with agents and service providers specializing in Airbnb investments in the Irish Hills region.