Is Highland, Michigan Good for Airbnb Investment?

Potentially—Highland, Michigan combines visitor demand with long-term real estate upside.

• Presents a nuanced opportunity.
• While Highland benefits from its natural beauty and recreational activities, drawing visitors for outdoor pursuits, it's crucial to assess current market conditions carefully.
• Property values in Highland may be more stable compared to major urban centers, but the demand for short-term rentals will heavily depend on specific local attractions and event calendars rather than broad tourism trends.
• Investment potential hinges on identifying properties that appeal to this niche market and understanding any local regulations that might impact profitability.

$1,200–$2,800, based on location, season, and property quality.

• Based on available market data and regional analysis, Airbnb properties in Highland, Michigan typically generate average monthly revenues ranging from $1,200 to $2,800, with most hosts earning between $1,500 to $2,200 per month depending on property size and amenities.
• Seasonal variations show peak earnings during summer months (June through August) when revenues can increase by 25-40% due to proximity to lakes and outdoor recreation activities.
• Properties near Highland Recreation Area and lakefront locations command premium rates of $120-180 per night.
• Key factors affecting earnings include proximity to water bodies, property size (with 3-4 bedroom homes performing best), quality of amenities, professional photography, responsive host communication.
• Revenue potential is also influenced by the property's distance from Detroit metropolitan area attractions and major highways, with properties offering unique features like hot tubs, fire pits.

Potentially strong—typical annual ROI is 8–12%.

• Typically generate ROI between 8-12% annually, with properties averaging $120-180 per night during peak seasons and 60-70% occupancy rates throughout the year.
• The payback period for most Highland Airbnb investments ranges from 7-10 years, depending on initial investment and property type.
• Compared to traditional long-term rentals in Highland which typically yield 6-8% ROI with monthly rents averaging $1,200-1,800 for similar properties.
• The Highland market benefits from proximity to Detroit metro area weekend visitors and summer lake tourism, with successful Airbnb properties generating $25,000-45,000 in annual gross revenue.

Highland, Michigan averages 65–70% annual occupancy, with seasonal variation.

• Highland, Michigan Airbnb properties typically maintain an average annual occupancy rate of approximately 65-70%.
• Spring and fall shoulder seasons generally hover around 60-65% occupancy.
• Highland's performance slightly exceeds Michigan's statewide Airbnb average of approximately 62% annual occupancy.
• Compared to the national Airbnb average of roughly 48-52%, Highland performs significantly better, benefiting from Michigan's strong tourism industry and the region's appeal as a weekend getaway destination for urban residents from Detroit, Flint, and surrounding areas, though it doesn't quite reach the occupancy levels of premier vacation destinations that can achieve 75-80% annual averages.

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

• The downtown Highland area near the Huron River offers excellent Airbnb potential due to its proximity to Highland Recreation Area and Proud Lake Recreation Area.
• The Duck Lake neighborhood provides waterfront appeal with direct lake access properties commanding premium rates of $150-250 nightly.
• The Wardlow Road corridor benefits from easy highway access and newer housing stock, appealing to business travelers and families visiting nearby Milford with moderate pricing around $100-150 per night.
• The Highland Township residential areas near M-59 offer larger homes perfect for group rentals, with strong demand from wedding parties and corporate retreats at $200-300 per night for whole-house rentals.
• The Teggerdine Road area provides a balance of rural charm and accessibility, attracting guests seeking peaceful retreats while remaining close to shopping and dining.
• The neighborhoods surrounding Highland State Recreation Area maximize outdoor recreation appeal, drawing camping alternatives and nature lovers willing to pay $130-200 per night for comfortable accommodations.
• Finally, the areas near White Lake Road benefit from proximity to multiple lakes and golf courses, creating consistent demand from recreational visitors and supporting strong occupancy rates with pricing between $125-190 per night.

Yes, but only where zoning permits short-term rentals and every required license is current.

• Highland, Michigan currently operates under Oakland County's short-term rental regulations, which require hosts to obtain a business license and register with the county before operating.
• Properties must comply with zoning ordinances that typically restrict short-term rentals to residential zones, with some areas requiring conditional use permits.
• Occupancy limits are generally set at two persons per bedroom plus two additional guests, with a maximum of 12 occupants total.
• Owner-occupancy requirements vary by specific zoning district, but many areas allow non-owner-occupied rentals with proper permits.
• The registration process involves submitting an application to Oakland County, paying fees ranging from $100-300 annually, providing proof of insurance, and passing safety inspections.
• Violations can result in fines of $500-2,500 and permit revocation, with the township increasingly focusing on enforcement through complaint-driven investigations and periodic compliance checks.

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

• Short-term rentals in Highland, Michigan are subject to Michigan's 6% state sales tax and the state's 6% use tax on lodging, totaling 12% in state taxes.
• Oakland County, where Highland is located, imposes an additional 5% accommodation tax, bringing the total lodging tax rate to approximately 17%.
• The city of Highland requires short-term rental operators to obtain a business license costing around $50-75 annually.
• Fire safety inspections are typically required every two years at a cost of approximately $75-100 per inspection.
• Additionally, operators may need to pay for zoning compliance verification fees of roughly $25-50, and there may be administrative processing fees of $25-35 for permit applications.
• Some properties may also be subject to special assessment district fees if located in designated tourism or improvement areas.