Is Highland, Michigan Good for Airbnb Investment?

To start an Airbnb in Highland, Michigan, begin by researching local zoning laws through Highland Township's planning department, as short-term rentals may require special permits or be restricted in certain residential zones. Contact Oakland County for any county-level requirements and obtain necessary business licenses, including a Michigan sales tax license since you'll collect taxes on bookings. Find a suitable property by purchasing or leasing in areas zoned for short-term rentals, ensuring the property meets fire safety codes and has proper egress windows in bedrooms. Furnish the space with quality, durable furniture, essential amenities like Wi-Fi, kitchen supplies, linens, and safety equipment including smoke detectors, carbon monoxide detectors, and fire extinguishers as required by Michigan law. Create your Airbnb listing with professional photos, competitive pricing based on similar Highland properties (typically $80-150/night), and highlight proximity to lakes, outdoor activities, and Detroit metro area attractions. Register for Michigan's 6% sales tax and Oakland County's accommodation tax if applicable, then manage bookings through automated messaging, professional cleaning services, and regular property maintenance while maintaining liability insurance coverage that specifically includes short-term rental activities, as standard homeowner's policies may not cover commercial use.

To identify profitable short-term rental properties in Highland, Michigan, focus on waterfront locations near the numerous lakes including Duck Lake, Pettibone Lake, and Maceday Lake, as these command premium rates of $200-400 per night during peak summer months. Target 3-4 bedroom single-family homes or cabins with 1,500-2,500 square feet, private lake access, docks, fire pits, and modern amenities like updated kitchens and WiFi, as these features attract families and groups willing to pay $150-300 nightly. Analyze comparable properties using AirDNA and Mashvisor to identify areas with 65-80% occupancy rates and average daily rates above $180, while avoiding oversaturated zones near Milford and White Lake where competition from 200+ listings drives rates down 20-30%. Research local competition through Airbnb, VRBO, and STRDataLabs to identify gaps in luxury amenities or unique property types like A-frame cabins or historic farmhouses that can command 15-25% rate premiums. Utilize tools like Rabbu, PriceLabs for dynamic pricing, and consult Highland Township zoning regulations since some residential areas restrict STRs, while focusing on properties within 10 minutes of outdoor recreation areas and 30 minutes from metro Detroit to capture both leisure and business travelers year-round.

To obtain an Airbnb/STR permit in Highland, Michigan, you must first contact the Highland Township Planning Department at 2200 N. Milford Road to determine specific zoning compliance, as Highland operates under township jurisdiction rather than city regulations. Submit an application for a Special Land Use permit along with required documents including property deed, site plan showing parking and egress routes, proof of liability insurance (typically $1 million minimum), fire safety inspection certificate from Oakland County, and septic system compliance verification if applicable. The application fee ranges from $300-500 plus additional inspection fees of approximately $150-250. You'll need to attend a Planning Commission hearing where neighbors can provide input, and the entire process typically takes 60-90 days from submission to approval. Highland Township requires STR properties to maintain minimum parking spaces (usually 2 per unit), comply with noise ordinances, provide 24/7 contact information to the township, limit occupancy based on septic capacity, and may restrict the number of rental days per year. Additional requirements include annual permit renewal, compliance with Michigan's STR tax collection laws, and adherence to Oakland County health department regulations for water and waste systems.

Short-term rentals (STRs) are generally legal in Highland, Michigan, but are subject to local zoning regulations and state requirements. Highland Township, located in Oakland County, allows STRs in residential areas but requires operators to obtain proper permits and comply with zoning ordinances that may limit the number of guests, require adequate parking, and ensure properties meet safety standards. The township has implemented registration requirements and may impose restrictions on the frequency of rentals or require owner occupancy in certain zones. Recent changes in Michigan state law around 2021-2022 have provided more framework for local municipalities to regulate STRs while preventing outright bans, giving Highland Township authority to establish reasonable regulations for noise control, occupancy limits, and property maintenance standards. Property owners must also comply with state tax requirements and may face restrictions in certain residential districts where STRs could conflict with neighborhood character, though complete prohibitions are limited under current Michigan legislation.

The best areas for Airbnb investment in Highland, Michigan include the waterfront neighborhoods around Highland Lake and Duck Lake, which attract summer tourists, fishing enthusiasts, and water sports visitors from Detroit metro area seeking weekend getaways. The downtown Highland district near Milford Road offers proximity to local restaurants, shops, and easy highway access for business travelers working in nearby automotive facilities. Areas close to Highland Recreation Area draw outdoor enthusiasts year-round for hiking, camping, and cross-country skiing, while properties near the Huron Valley Rail Trail appeal to cyclists and nature lovers. The residential neighborhoods between M-59 and the lakes provide a sweet spot for families visiting the region's numerous lakes and parks, particularly during peak summer months when lake activities and local festivals drive demand. Properties within walking distance of Highland's small downtown core benefit from the area's growing reputation as a charming lakeside community, attracting visitors who want authentic small-town Michigan experiences while remaining accessible to Detroit, Pontiac, and other major employment centers.

Highland, Michigan imposes a 6% state sales tax on short-term rental accommodations including Airbnb properties, which is collected by the Michigan Department of Treasury and must be remitted monthly by hosts who exceed $15,000 in annual rental income. Oakland County, where Highland is located, levies an additional 5% accommodation tax on lodging stays under 30 days, bringing the total tax burden to approximately 11% for most Airbnb rentals. Hosts are required to register with both the state and county tax authorities, collect taxes from guests at the time of booking or check-in, and file returns by the 20th of each month following the tax period. The city of Highland itself does not impose a separate lodging tax as of 2023, though hosts must obtain a short-term rental permit and comply with zoning regulations. Exemptions typically apply to stays exceeding 30 consecutive days, rentals to permanent residents, and properties rented fewer than 15 days per year where the host also uses the property as their primary residence. Payment can be made online through Michigan's Treasury Online system for state taxes and Oakland County's tax portal for county obligations, with penalties of 5% per month applied to late payments up to a maximum of 25%.

The total cost to start an Airbnb in Highland, Michigan is approximately $285,000-$320,000. Property purchase costs around $250,000 based on median home prices in the Highland area as of 2023-2024. Furnishing a 2-3 bedroom property requires $15,000-$20,000 for quality furniture, bedding, kitchen essentials, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total $2,000-$3,000. Permits and fees in Highland Township include short-term rental registration ($200-$500), business license ($100-$300), and potential zoning compliance costs ($500-$1,000). Insurance for short-term rentals runs $1,500-$2,500 annually, with the first year paid upfront. Utility setup and deposits for electricity, gas, water, internet, and cable cost approximately $1,000-$1,500. First six months of operating costs including utilities ($900/month), cleaning services ($150 per turnover, estimated 8 turnovers), maintenance reserves ($200/month), platform fees (3% of estimated $2,000 monthly revenue), and marketing expenses total approximately $8,000-$12,000.

Airbnb properties in Highland, Michigan typically generate annual revenues between $15,000-$35,000 for single-family homes and $8,000-$18,000 for condos, with average daily rates ranging from $80-$150 depending on property size and lakefront proximity. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($50-$75 per turnover), property management (15-25% of revenue), utilities ($200-$400 monthly), insurance ($1,500-$3,000 annually), and maintenance costs averaging $2,000-$4,000 yearly. Properties near Highland Recreation Area or with lake access achieve higher occupancy rates of 60-75% compared to 45-60% for standard residential properties, resulting in net profit margins of 15-25% for well-managed properties. Success factors include proximity to outdoor recreation areas, professional photography, competitive pricing during peak summer months (May-September), and maintaining 4.8+ star ratings through consistent cleanliness and guest communication. A typical 3-bedroom lakefront property purchased for $250,000 and generating $28,000 in annual revenue with $18,000 in expenses would yield a 4% cash-on-cash return, making Highland's Airbnb market moderately profitable for investors who can maintain high occupancy through effective marketing and property management.

Airbnb investments in Highland, Michigan typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the market. Properties near Highland Recreation Area and local lakes tend to perform better, with vacation rentals achieving occupancy rates of 60-75% during peak summer months and 40-50% year-round. Initial investment recovery and profitability usually occurs within 18-24 months for well-positioned properties, with average daily rates ranging from $85-150 depending on property size and amenities. The Highland market benefits from proximity to Detroit metro area guests seeking weekend getaways, with properties requiring initial investments of $150,000-300,000 typically generating $12,000-25,000 in annual net rental income after expenses including property management, cleaning, and maintenance costs.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Highland, Michigan. Local real estate agents in the area include Keller Williams agents who focus on investment properties, RE/MAX professionals with vacation rental expertise, and Coldwell Banker agents specializing in lakefront properties around Highland's numerous lakes. National services include Awning (formerly RedAwning) which provides end-to-end Airbnb investment services, Mashvisor for property analysis and market data, AirDNA for short-term rental analytics, and Roofstock which occasionally features Michigan investment properties. Local property management companies like Great Lakes Property Management and Michigan Vacation Rentals can assist with both acquisition and ongoing management of Airbnb properties. Additionally, BiggerPockets marketplace and local real estate investment groups in Oakland County often have members specializing in Highland area vacation rental properties, particularly those near Highland Recreation Area and the chain of lakes that make this market attractive for short-term rental investments.