Is Fillmore, Michigan Good for Airbnb Investment?

To start an Airbnb in Fillmore, Michigan, begin by researching local zoning laws and regulations through Allegan County's planning department, as Fillmore is an unincorporated community that falls under county jurisdiction rather than having its own municipal regulations. Contact Allegan County at (269) 673-0440 to verify short-term rental requirements, which typically include business licensing, safety inspections, and potential occupancy limits. Obtain necessary permits including a business license from Allegan County (approximately $50-100 annually), ensure your property meets fire safety codes with proper smoke detectors and carbon monoxide alarms, and verify your homeowner's insurance covers short-term rentals or purchase additional coverage through companies like Proper Insurance or CBIZ. Find a suitable property by searching rural areas near Allegan State Game Area or properties with lake access to Lake Michigan beaches within 30 minutes, focusing on 2-4 bedroom homes priced between $150,000-$300,000 that offer privacy and natural attractions. Furnish the space with durable, mid-range furniture from retailers like Ashley Furniture or Wayfair, including quality mattresses, basic kitchen appliances, WiFi setup, and outdoor amenities like fire pits or kayaks to attract nature-loving guests. List your property on Airbnb and VRBO with professional photos highlighting the rural Michigan setting, competitive pricing around $80-150 per night depending on season and amenities, and emphasize proximity to outdoor activities, wineries, and Lake Michigan beaches. Manage the property by establishing cleaning protocols between guests, responding to inquiries within an hour, coordinating key exchanges through lockboxes or smart locks, and maintaining the property regularly while building relationships with local cleaning services and maintenance contractors in the Allegan area.

To identify profitable short-term rental properties in Fillmore, Michigan, focus on locations within 2-3 miles of Gull Lake and nearby recreational areas, as waterfront or lake-view properties typically command 30-40% higher nightly rates ($150-250 vs $100-180 for inland properties). Target 3-4 bedroom homes built after 1990 with modern amenities, outdoor spaces, and parking for 4+ vehicles, as families and groups visiting the lake region prefer these features. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds long-term rental income by at least 40%, typically requiring nightly rates above $120 during peak season (May-September). Research competition within a 5-mile radius using Airbnb and VRBO searches, looking for gaps in availability during high-demand periods like summer weekends and holidays. Utilize local resources including Kalamazoo County property records, work with realtors familiar with the Gull Lake market like Coldwell Banker or RE/MAX agents, and monitor seasonal occupancy patterns through STR data platforms, as successful properties in this market typically achieve 60-70% occupancy rates during peak months and 30-40% in off-season.

To obtain an Airbnb/STR permit in Fillmore, Michigan, you must first contact the Fillmore Township office at their municipal building or through their official website to submit an application for a short-term rental license. Required documents typically include a completed STR application form, proof of property ownership or lease agreement, certificate of occupancy, fire safety inspection certificate, general liability insurance policy (minimum $1 million coverage), floor plan of the rental unit, emergency contact information, and parking plan documentation. The application fee is estimated at $150-300 initially with annual renewal fees of approximately $100-200, though exact amounts should be confirmed with township officials. The approval timeline generally takes 30-60 days from submission of a complete application, depending on inspection scheduling and any required corrections. Specific Fillmore requirements likely include maximum occupancy limits based on bedrooms and square footage, mandatory smoke and carbon monoxide detectors in all sleeping areas, compliance with township zoning ordinances, designated off-street parking spaces for guests, 24/7 local contact person availability, guest registration logs, and adherence to noise ordinances with quiet hours typically from 10 PM to 8 AM. You must also ensure the property meets all building and health codes, maintain current business registration with the state of Michigan, and may need to collect and remit local accommodation taxes depending on township regulations.

Short-term rentals (STRs) in Fillmore, Michigan are generally legal but subject to local zoning regulations and state requirements. As a small unincorporated community in Allegan County, Fillmore falls under county jurisdiction rather than having its own municipal STR ordinances. Property owners must comply with Michigan's state tax requirements including the 6% sales tax and local accommodation taxes, obtain proper business licenses, and ensure their properties meet safety standards including smoke and carbon monoxide detectors. Allegan County has implemented basic regulations requiring STR operators to register their properties and maintain liability insurance, while prohibiting rentals in certain residential zones without special permits. The county has seen increased STR activity since 2020, particularly near Lake Michigan shoreline areas, leading to discussions about potential stricter regulations regarding noise, parking, and occupancy limits. Recent changes in 2023 included enhanced enforcement mechanisms and clearer guidelines for complaint procedures, though the overall regulatory framework remains relatively permissive compared to larger Michigan municipalities.

The best areas for Airbnb investment in Fillmore, Michigan are concentrated around the rural countryside properties near the Kalamazoo River corridor, particularly along 35th Street and surrounding farmland areas, which attract visitors seeking peaceful retreats and outdoor recreation like fishing, kayaking, and hiking. The residential neighborhoods near Sprinkle Road offer good potential due to proximity to Western Michigan University in nearby Kalamazoo, drawing parents visiting students, prospective families touring the campus, and business travelers to the university. Properties near the Van Kal-Ama Trail system are attractive for outdoor enthusiasts and cyclists exploring the regional trail network. The areas closest to I-94 provide convenient access for travelers passing through between Chicago and Detroit, making them suitable for overnight stays. Rural properties with larger lots and privacy appeal to families seeking vacation rentals away from urban areas, while still being within reasonable driving distance of Kalamazoo's amenities, restaurants, and cultural attractions like the Kalamazoo Institute of Arts and Bell's Brewery.

Airbnb properties in Fillmore, Michigan are subject to Michigan's 6% state sales tax on lodging accommodations, which applies to short-term rentals under 30 days. The state requires hosts to register for a sales tax license and remit taxes monthly if collections exceed $720 annually, with payments due by the 20th of the following month through Michigan's Treasury Online system. Allegan County, where Fillmore is located, imposes an additional 5% accommodations tax on lodging establishments, though enforcement and collection procedures for short-term rentals vary by local jurisdiction. Hosts must collect these taxes from guests at the time of booking or check-in and maintain detailed records of all transactions. Properties rented for 30 days or longer are typically exempt from these lodging taxes, and some jurisdictions may provide exemptions for rentals to permanent residents or government employees. Airbnb began collecting and remitting Michigan state sales tax automatically for hosts starting in 2019, but hosts remain responsible for local county taxes and must ensure compliance with all applicable registration and reporting requirements.

To start an Airbnb in Fillmore, Michigan, expect total costs around $180,000-$220,000. Property purchase will be the largest expense at approximately $150,000-$180,000 based on median home prices in rural Michigan communities. Furnishing costs typically range $8,000-$15,000 for a complete 2-3 bedroom setup including beds, linens, kitchen essentials, and living room furniture from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$4,000. Permits and fees vary by township but expect $500-$1,500 for business licenses, short-term rental permits, and inspections. Insurance premiums for short-term rental coverage run $1,200-$2,000 annually through companies like Proper Insurance or CBIZ. Utility setup and deposits for electricity, water, internet, and cable total approximately $800-$1,200. First six months operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance reserves ($200/month), platform fees to Airbnb and VRBO ($300/month based on 60% occupancy), and marketing expenses ($150/month) will require approximately $8,100 in working capital.

Airbnb properties in Fillmore, Michigan show moderate profitability potential with average nightly rates ranging from $75-120 depending on property size and amenities, generating approximately $18,000-35,000 in annual gross revenue for properties with 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($25-40 per turnover), property management (10-15%), utilities ($150-250 monthly), insurance ($800-1,200 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins generally fall between 15-25% for well-managed properties, with successful hosts in the area reporting annual net profits of $4,000-8,000 per property. Success factors include proximity to Lake Michigan attractions (within 30 minutes), professional photography, responsive guest communication, and competitive pricing strategies that adjust for seasonal demand peaks during summer months when rates can increase 25-40%. Properties featuring amenities like hot tubs, fire pits, or lake access command premium rates and achieve higher occupancy, with some hosts near Allegan County parks reporting occupancy rates exceeding 75% and profit margins approaching 30% through strategic positioning and guest experience optimization.

Based on Fillmore, Michigan market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the area. Properties near recreational areas like gun lake or outdoor attractions tend to perform at the higher end of this range, while standard residential properties average closer to 8-9% annual returns. Initial profitability usually occurs within 18-24 months for well-positioned properties, with break-even on cash investment typically achieved in 10-12 years. The market benefits from seasonal tourism and proximity to Grand Rapids, with average daily rates of $85-120 and occupancy rates of 45-65% annually, though summer months can see occupancy spike to 75-85% for lakefront or recreation-adjacent properties.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Fillmore, Michigan. For local expertise, Keller Williams and RE/MAX agents in the Kalamazoo-Portage area often work with Airbnb investors, while Century 21 and Coldwell Banker have agents familiar with vacation rental markets in Southwest Michigan. National services like Awning, RedAwning, and Vacasa provide end-to-end Airbnb investment services including property identification and management. AirDNA and Mashvisor offer market analysis tools for the Fillmore area, while BiggerPockets connects investors with local real estate professionals. Local property management companies such as Michigan Vacation Rentals and Great Lakes Property Management can assist with both acquisition and ongoing operations. Real estate investment firms like Roofstock and Arrived Homes occasionally feature Michigan properties, and platforms like Fundrise and YieldStreet offer indirect exposure to Michigan real estate markets including areas near Fillmore.