Is Freeport, Michigan Good for Airbnb Investment?

To start an Airbnb in Freeport, Michigan, begin by researching local zoning laws and regulations through Barry County's planning department, as Freeport typically falls under county jurisdiction rather than having its own municipal short-term rental ordinances. Contact Barry County at (269) 948-4800 to verify if short-term rentals are permitted in your specific zoning district and obtain any required business licenses or permits, which may include a home occupation permit costing approximately $50-100. Find a suitable property by searching rural areas, lakefront homes, or properties near outdoor recreation spots like Fort Custer Recreation Area, with average home prices ranging $150,000-$300,000 in the region. Furnish the property with essential amenities including Wi-Fi, linens, towels, kitchen supplies, and outdoor furniture to appeal to visitors seeking rural Michigan experiences, budgeting $5,000-$15,000 for initial furnishing. Create your Airbnb listing with high-quality photos showcasing the rural setting, nearby lakes, and outdoor activities, setting competitive rates of $80-$150 per night based on local market analysis. For ongoing management, establish cleaning protocols between guests, respond promptly to inquiries, maintain the property regularly, and consider hiring local cleaning services from nearby Kalamazoo or Battle Creek if needed, while ensuring compliance with Michigan's 6% sales tax and any applicable local accommodation taxes that Barry County may implement.

To identify profitable short-term rental properties in Freeport, Michigan, focus on waterfront locations near Lake Michigan beaches, properties within walking distance of downtown attractions, and homes with lake views or access to recreational activities like fishing and boating. Target 3-4 bedroom properties with modern amenities, full kitchens, outdoor spaces like decks or fire pits, and unique features such as historic charm or contemporary updates that appeal to vacationers seeking authentic Michigan experiences. Conduct pricing analysis by researching comparable Airbnb and VRBO listings within a 10-mile radius, examining seasonal rate fluctuations with peak summer months commanding $200-400 per night while off-season rates drop to $100-200, and calculate potential annual revenue against acquisition and operating costs. Research competition by analyzing occupancy rates, guest reviews, and booking patterns of existing STRs in the area, particularly focusing on properties near popular attractions like Warren Dunes State Park and local wineries. Utilize tools like AirDNA for market analytics, Mashvisor for investment analysis, and local resources including the Berrien County tourism board data, Michigan Association of Realtors market reports, and networking with local property management companies that specialize in vacation rentals to gain insights into seasonal demand patterns, regulatory requirements, and operational best practices specific to the Southwest Michigan market.

To obtain an Airbnb/STR permit in Freeport, Michigan, you must first contact the Freeport Township office or Barry County Planning Department as Freeport is an unincorporated community in Barry County. Submit an application for a short-term rental permit along with required documents including property deed or lease agreement, proof of insurance with minimum $1 million liability coverage, floor plan of the rental unit, septic system inspection certificate, well water testing results if applicable, fire safety inspection report, and a $150-300 application fee. The property must comply with zoning regulations (typically residential zones), maintain adequate parking for guests, provide emergency contact information to neighbors, and ensure the rental meets all building and health codes. The review process typically takes 30-60 days and may require a public hearing if neighbors object. Once approved, you'll receive a permit valid for one year with annual renewal required at approximately $100-200. Additional requirements may include occupancy limits based on bedrooms and septic capacity, quiet hours enforcement, and maintaining a guest registry. Contact Barry County at 269-948-4810 or visit their planning department at 220 W State St, Hastings, MI 49058 to begin the application process.

Short-term rentals (STRs) in Freeport, Michigan are generally legal but subject to local zoning regulations and state requirements. As a small unincorporated community in Barry County, Freeport falls under county jurisdiction rather than having its own municipal STR ordinances. Property owners must comply with Michigan's state tax requirements for short-term rentals, including collecting and remitting sales tax and accommodations tax. Barry County does not appear to have specific countywide STR restrictions, though properties must conform to existing zoning classifications and may require permits for commercial use in residential areas. The Michigan Legislature passed comprehensive STR legislation in 2022 that generally prevents local governments from completely banning short-term rentals while allowing reasonable regulations for health, safety, and welfare. Property owners should verify compliance with any homeowners association rules, obtain proper business licenses, and ensure adequate insurance coverage, as rural areas like Freeport may have specific considerations regarding septic systems, well water, and fire safety that could affect STR operations.

The best areas for Airbnb investment in Freeport, Michigan include the downtown historic district near Main Street, which attracts visitors interested in the area's small-town charm and antique shopping, particularly during summer festivals and fall color tours. The lakefront properties along nearby lakes such as Thornapple Lake and surrounding waterfront areas are highly desirable for vacation rentals, drawing families and groups seeking recreational activities like fishing, boating, and swimming from May through September. Areas near the Barry State Game Area and Fort Custer Recreation Area appeal to outdoor enthusiasts, hunters, and nature lovers year-round, with peak demand during hunting seasons in fall and winter. Properties within walking distance of local wineries and the emerging agritourism corridor benefit from wine tourism and harvest season events, typically seeing increased bookings from August through October. The residential neighborhoods near Highway 37 and Interstate 94 corridors offer convenient access for business travelers visiting nearby Kalamazoo and Battle Creek, providing steady mid-week occupancy, while still being close enough to recreational amenities to attract weekend leisure guests.

Airbnb properties in Freeport, Michigan are subject to Michigan's 6% state sales tax on lodging accommodations, which applies to all short-term rental stays under 30 days and is typically collected by Airbnb directly from guests and remitted to the Michigan Department of Treasury on behalf of hosts through their automated tax collection system implemented in 2018. Additionally, Barry County (where Freeport is located) may impose a local accommodations tax of up to 5%, though the specific rate varies by municipality and is often around 2-3% for most areas in the county. Hosts must register with the Michigan Treasury Department if they collect taxes independently, file monthly returns by the 20th of the following month, and maintain records of all transactions for at least four years. Properties rented for 30 days or longer are generally exempt from these transient occupancy taxes, and some municipalities may offer exemptions for certain types of accommodations or during specific periods, though hosts should verify current local ordinances with Barry County and any applicable township or city authorities as tax rates and collection procedures can change annually.

Starting an Airbnb in Freeport, Michigan requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000 based on median home prices in rural Michigan markets as of 2023-2024. Furnishing a 2-3 bedroom property typically runs $15,000-25,000 including beds, linens, kitchen essentials, living room furniture, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total approximately $2,000-3,000. Permits and fees vary by local jurisdiction but expect $500-1,500 for business licenses, short-term rental permits, and inspection fees. 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 cable run $500-800 initially. First six months of operating costs including utilities ($300-500/month), cleaning services ($75-100 per turnover), maintenance reserves ($200-400/month), platform fees (3% of bookings), and marketing expenses total approximately $8,000-12,000, assuming moderate occupancy rates during the initial launch period.

Airbnb properties in Freeport, Michigan show moderate profitability potential with average nightly rates ranging from $85-$150 depending on property size and amenities, generating approximately $15,000-$35,000 in annual revenue for properties with 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($30-50 per turnover), property management (10-15%), utilities ($150-250 monthly), insurance ($1,200-2,000 annually), and maintenance costs ($2,000-4,000 yearly). Properties near Lake Michigan or with unique features like waterfront access achieve higher profit margins of 25-35%, while standard residential properties average 15-25% net profit margins. Success factors include strategic pricing during peak summer months (June-August) when rates can increase 30-40%, professional photography, responsive guest communication, and maintaining 4.8+ star ratings. A typical 3-bedroom lakefront property in the area generates around $28,000 annually with $18,000 in expenses, yielding approximately $10,000 net profit, while inland properties might see $20,000 revenue with $13,000 expenses for $7,000 net profit, making the investment viable for owners who can maintain consistent bookings and control operational costs effectively.

Airbnb investments in Freeport, Michigan typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by seasonal tourism from nearby Lake Michigan attractions and outdoor recreation activities. Properties within 2-3 miles of waterfront access command premium rates of $120-180 per night during peak summer months (June-August), while off-season rates drop to $80-120 per night. Initial profitability usually occurs within 18-24 months for well-positioned properties, with average occupancy rates of 65-75% annually. The market benefits from proximity to Grand Rapids (45 minutes) and Kalamazoo (30 minutes), attracting weekend getaway travelers, though investors should expect higher vacancy rates during winter months (November-March) when occupancy can drop to 40-50%. Properties requiring minimal renovation typically achieve faster break-even points, while those needing significant updates may extend profitability timelines to 30-36 months but can achieve higher long-term returns of 12-15% annually once established.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Freeport, Michigan, using data analytics and market insights. Local real estate agents like Lakeshore Realty Group and West Michigan Properties specialize in vacation rental investments in the area, while Coldwell Banker Schmidt and RE/MAX of Grand Rapids have agents experienced with Airbnb property acquisitions. National services include Awning, which provides end-to-end Airbnb investment services, Mashvisor for property analysis and market data, and BiggerPockets for investor networking and deal sourcing. RedAwning offers vacation rental investment consulting, while AirDNA provides market analytics specifically for short-term rentals in the Freeport area. Local property management companies like Vacasa and RedAwning Property Management can assist with both acquisition and ongoing management of Airbnb investments. Additional services include Roofstock for turnkey rental properties, Fundrise for real estate crowdfunding opportunities, and local mortgage brokers like Great Lakes Mortgage who understand investment property financing in Michigan's vacation rental markets.