Is Hessel, Michigan Good for Airbnb Investment?

To start an Airbnb in Hessel, Michigan, begin by researching local regulations through Mackinac County and the City of Hessel (if incorporated) or township offices, as Michigan allows local municipalities to regulate short-term rentals, and you'll likely need a business license and may need to register as a short-term rental operator. Obtain necessary permits including a Michigan sales tax license from the Department of Treasury since you'll collect 6% state sales tax plus any local taxes, and check if Hessel requires specific zoning approval or conditional use permits for vacation rentals. Find a suitable property by searching real estate listings in Hessel, focusing on homes near Lake Huron or with water access since the area is popular for fishing and boating, with typical property prices ranging $150,000-$400,000 depending on waterfront access and size. Furnish the property with durable, comfortable furniture suitable for vacation guests, including essentials like linens, towels, kitchen supplies, WiFi, and outdoor furniture for the Michigan summer season, budgeting approximately $15,000-$25,000 for a complete furnishing. List your property on Airbnb and other platforms like VRBO, highlighting Hessel's attractions such as proximity to Mackinac Island (about 20 miles), fishing opportunities, and scenic Lake Huron views, with competitive nightly rates typically ranging $100-$250 depending on season and amenities. Manage the property by establishing cleaning protocols between guests, creating a local network for maintenance issues, providing guests with information about nearby attractions like Cedarville and Mackinac Island ferry services, and maintaining compliance with tax collection and remittance requirements to both state and local authorities.

To identify profitable short-term rental properties in Hessel, Michigan, focus on waterfront or near-water locations within walking distance of Lake Huron shores, particularly properties with private beach access or boat docks, as this area attracts summer tourists and fishing enthusiasts from May through September. Target 2-4 bedroom cabins, cottages, or homes built after 1980 with updated kitchens, multiple bathrooms, outdoor spaces like decks or fire pits, and amenities such as kayaks, fishing equipment, or game rooms that appeal to families and outdoor recreation groups. Analyze pricing by researching comparable Airbnb and VRBO listings within a 10-mile radius, noting that peak season rates (June-August) typically range $150-300 per night while shoulder seasons drop to $75-150, with occupancy rates averaging 60-70% during summer months. Conduct competition research by monitoring existing STR listings in Hessel, Cedarville, and nearby Mackinac Island ferry access points, identifying gaps in amenities or property types while noting that successful properties often emphasize fishing access, boat launches, and proximity to Mackinac Island day trips. Utilize tools like AirDNA for market analysis, STR Helper for revenue projections, Mashvisor for investment calculations, and local resources including the Eastern Upper Peninsula Regional Planning Commission for zoning regulations, while connecting with Chippewa County tourism boards and local real estate agents familiar with seasonal rental restrictions and waterfront property regulations specific to Michigan's Upper Peninsula market.

To obtain an Airbnb/STR permit in Hessel, Michigan, you must first contact the Mackinac County Building Department at (906) 643-7300 or visit their office at 100 Marley Street in St. Ignace, as Hessel falls under unincorporated Mackinac County jurisdiction. Required documents typically include a completed short-term rental application form, proof of property ownership or lease agreement, certificate of occupancy, floor plan showing maximum occupancy, proof of liability insurance (minimum $300,000), septic system inspection certificate, well water testing results if applicable, fire safety inspection report, and a $150-200 application fee. You'll also need to register with the Michigan Department of Treasury for sales tax collection and obtain a Michigan Tax ID number. The approval process generally takes 4-6 weeks after submitting complete documentation. Specific Hessel/Mackinac County requirements include maximum occupancy limits based on septic capacity (typically 2 people per bedroom plus 2 additional), mandatory smoke and carbon monoxide detectors in all sleeping areas, accessible fire extinguisher, posted emergency contact information, quiet hours enforcement between 10 PM and 8 AM, adequate parking for guests, and compliance with shoreline protection regulations if the property is waterfront. Annual renewal is required with a $75-100 fee, and the property must pass periodic safety inspections.

Short-term rentals (STRs) are generally legal in Hessel, Michigan, as the small unincorporated community in Mackinac County operates under Michigan state law and county regulations rather than having its own municipal ordinances. Michigan state law permits STRs but allows local governments to regulate them, and Mackinac County has not implemented blanket prohibitions on short-term rentals. However, operators must comply with state requirements including collecting Michigan sales tax and potentially local accommodation taxes, obtaining proper business licenses, and meeting safety standards. Properties must also comply with zoning regulations, and some residential areas may have deed restrictions or homeowners association rules that limit rental activities. Recent changes in Michigan since 2018-2020 have included increased tax compliance requirements and some municipalities implementing registration systems, though Hessel's rural location means it faces fewer regulatory restrictions than urban areas. Property owners should verify current zoning compliance with Mackinac County and ensure proper tax registration with the Michigan Department of Treasury before operating an STR.

The best areas for Airbnb investment in Hessel, Michigan are the waterfront properties along Lake Huron's North Channel and Cedarville Bay, which attract summer tourists seeking lakefront access for boating, fishing, and water sports from May through September. The historic downtown Hessel area near the antique boat show grounds is particularly valuable as it hosts the annual Les Cheneaux Islands Antique Boat Show each August, drawing thousands of vintage boat enthusiasts who need nearby accommodations. Properties near the Hessel Bay Marina and boat launch areas are highly desirable for guests bringing their own watercraft or chartering fishing guides for salmon and trout fishing. The Cedarville-Hessel corridor along M-134 offers good investment potential due to its proximity to multiple marinas, restaurants, and the scenic 36-mile Les Cheneaux Islands chain that attracts kayakers, sailors, and nature photographers. Winter sports enthusiasts also drive demand from December through March for properties near snowmobile trail access points, as the area connects to over 200 miles of groomed trails, making year-round rental income possible despite the seasonal tourism patterns typical of northern Michigan resort communities.

Airbnb properties in Hessel, Michigan are subject to Michigan's 6% state sales tax on lodging accommodations, which applies to rentals of less than 30 consecutive days. Additionally, Mackinac County imposes a 5% county accommodations tax on short-term rentals, bringing the total tax burden to approximately 11%. 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 state taxes, while county taxes may require separate registration and remittance by hosts through the county treasurer's office. Hosts must register for a Michigan Treasury Online (MTO) account if collecting taxes independently and file returns by the 20th of each month following the tax period. Exemptions generally apply to rentals exceeding 30 consecutive days, government employees on official business, and certain nonprofit organizations, though documentation may be required to claim these exemptions.

To start an Airbnb in Hessel, Michigan, expect total costs around $185,000-$220,000. Property purchase represents the largest expense at approximately $150,000-$180,000 for a median lakefront or near-water property in this small Upper Peninsula community. Furnishing costs typically range $8,000-$12,000 for a complete 2-3 bedroom setup including beds, linens, kitchen essentials, and outdoor furniture suitable for the area's recreational tourism. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$3,500. Permits and fees in Chippewa County include short-term rental registration ($100-$300), business license ($50-$150), and potential township permits ($200-$500). Insurance for short-term rentals runs $1,200-$2,000 annually, with higher rates due to the remote location and seasonal weather risks. Utilities including electricity, propane/heating, water, internet, and waste management cost approximately $200-$350 monthly. First six months operating costs encompass utilities ($1,200-$2,100), cleaning supplies and services ($600-$1,200), maintenance reserves ($800-$1,500), marketing ($300-$600), and Airbnb platform fees on bookings, totaling roughly $3,000-$5,500 for the initial operating period.

Airbnb properties in Hessel, Michigan, located in the scenic Upper Peninsula near Les Cheneaux Islands, typically generate annual revenues of $15,000-$35,000 for seasonal properties operating May through October, with peak summer months (July-August) commanding $150-$250 per night for waterfront cabins and $80-$150 for inland properties. Operating expenses generally run 40-60% of gross revenue, including property management fees (15-25%), cleaning costs ($75-$125 per turnover), utilities ($2,000-$4,000 annually), insurance ($1,500-$3,000), maintenance ($3,000-$6,000), and local taxes, resulting in net profit margins of 25-45% for well-managed properties. Success factors in this market include proximity to water activities, fishing access, snowmobile trail connections for winter bookings, and authentic "Up North" cabin aesthetics, with properties featuring private docks, fire pits, and rustic charm performing best. A typical 3-bedroom lakefront cabin purchased for $200,000-$300,000 can achieve 8-12% annual returns, while inland properties at $100,000-$180,000 may see 6-10% returns, though seasonal demand fluctuations and the remote location require strategic pricing and marketing to maximize occupancy during the limited high-season window.

Airbnb investments in Hessel, 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 Lake Huron and seasonal tourism demand from May through September. Properties in this small Upper Peninsula community, particularly those near the waterfront or with lake access, can achieve occupancy rates of 45-65% during peak season with average daily rates of $150-250, while shoulder seasons see rates drop to $80-120 with 20-35% occupancy. Initial profitability usually occurs within 18-24 months for well-positioned properties, though investors should expect higher maintenance costs due to harsh winters and the seasonal nature of the market, with companies like Vacasa and local property management firms reporting that successful Hessel Airbnb properties typically require $15,000-25,000 in annual operating expenses including utilities, cleaning, maintenance, and marketing to achieve these returns.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Hessel, Michigan. Local real estate agents specializing in vacation rental investments include Northern Michigan Realty Group, Straits Area Realty, and Mackinac Island Realty, who have deep knowledge of the Les Cheneaux Islands market where Hessel is located. National services like Awning, RedAwning, and Vacasa offer end-to-end Airbnb investment solutions including property identification, purchase assistance, and management services in the Upper Peninsula region. AirDNA and Mashvisor provide market analytics and investment property search tools specifically for short-term rental markets in northern Michigan. Local property management companies such as Great Lakes Vacation Rentals and Superior Stays help investors identify profitable properties while offering turnkey management solutions. BiggerPockets marketplace and Roofstock occasionally feature Airbnb-ready properties in the Mackinac County area, while local mortgage brokers like First National Bank of St. Ignace specialize in vacation rental financing for the region's seasonal tourism market.