Is Marquette, Michigan Good for Airbnb Investment?

To start an Airbnb in Marquette, Michigan, begin by researching local regulations through the City of Marquette Planning Department, as the city requires short-term rental operators to obtain a business license and comply with zoning ordinances that typically allow STRs in residential areas with certain restrictions on occupancy and parking. Contact Marquette County for any additional county-level requirements and ensure compliance with Michigan state tax obligations including the 6% sales tax and potential local accommodation taxes. Find a suitable property in neighborhoods like South Marquette, Trowbridge Park, or near Northern Michigan University, considering proximity to attractions like Presque Isle Park and downtown amenities, with typical property costs ranging from $150,000-$400,000 depending on size and location. Obtain necessary permits including a Certificate of Occupancy from the city building department, fire safety inspection if required, and register with the Michigan Department of Treasury for tax collection. Furnish the property with durable, comfortable furniture suitable for Marquette's outdoor recreation visitors, including winter gear storage, high-speed internet, and amenities like kayaks or bikes given the area's tourism focus on Lake Superior activities. Create your Airbnb listing with professional photos highlighting views of Lake Superior or proximity to hiking trails, ski areas, and NMU campus, pricing competitively with local rates typically ranging $80-200 per night depending on season and property size. Manage the property by establishing relationships with local cleaning services, maintenance contractors familiar with harsh Upper Peninsula winters, and consider using property management companies like Vacasa or local options if you're not residing in Marquette year-round.

To identify profitable short-term rental properties in Marquette, Michigan, focus on locations within walking distance of Northern Michigan University campus, downtown waterfront areas near Lake Superior, and neighborhoods close to Presque Isle Park and the Iron Ore Heritage Trail. Target 2-4 bedroom properties built after 1950 with updated kitchens, reliable WiFi capability, parking spaces, and outdoor amenities like decks or fire pits that capitalize on Marquette's outdoor recreation appeal. Conduct pricing analysis using AirDNA and Mashvisor to evaluate average daily rates ($80-150 typical for the market), occupancy rates (peak summer months 70-85%, winter 40-60%), and seasonal demand patterns driven by university calendar, summer tourism, and winter sports activities. Research competition by analyzing existing Airbnb and VRBO listings within 2-mile radius, identifying gaps in amenities or underserved property types, and monitoring pricing strategies of top-performing hosts. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Realtor.com, while connecting with Marquette Board of Realtors members who understand seasonal rental regulations, and consult the City of Marquette's zoning requirements for short-term rentals to ensure compliance with local ordinances before purchasing.

To obtain an Airbnb/STR permit in Marquette, Michigan, you must first contact the City of Marquette Planning Department at City Hall located at 300 West Baraga Avenue to determine if your property is in a zoning district that allows short-term rentals, as the city implemented regulations around 2019-2020 requiring special permits for properties rented for less than 30 days. You'll need to submit an application for a Conditional Use Permit through the Planning Department, providing required documents including a site plan, proof of property ownership, floor plans showing maximum occupancy, parking plan demonstrating adequate off-street parking spaces, waste management plan, and contact information for a local property manager if you're not local. The application fee is typically around $200-400, and you may need additional permits from the Building Department for safety inspections costing approximately $100-200. Marquette requires STR properties to maintain liability insurance, limit occupancy based on bedroom count plus two additional guests, provide adequate parking (usually one space per bedroom), ensure proper waste disposal, and maintain quiet hours typically from 10 PM to 8 AM. The approval process generally takes 4-8 weeks and requires review by the Planning Commission, which meets monthly, so timing depends on when you submit relative to their meeting schedule. Once approved, you must display your permit number in all advertising and renew annually, with the city conducting periodic inspections to ensure compliance with safety and zoning requirements.

Short-term rentals (STRs) are legal in Marquette, Michigan, but operate under specific regulations established by the city. As of 2023, Marquette requires STR operators to obtain a business license and comply with zoning restrictions that limit short-term rentals primarily to commercial and mixed-use districts, while generally prohibiting them in single-family residential neighborhoods. The city has implemented occupancy limits, parking requirements, and noise ordinances specifically for STRs, and requires operators to provide contact information for a local responsible party available 24/7. Recent changes include stricter enforcement of existing regulations and enhanced penalties for violations, with the city conducting regular inspections to ensure compliance with safety codes and zoning requirements. Properties must meet all building and fire safety standards, and operators are required to collect and remit local accommodation taxes, with violations potentially resulting in license revocation and fines up to $500 per day.

The best Airbnb investment areas in Marquette, Michigan include the downtown historic district near Third Street and Washington Street, which attracts visitors to Northern Michigan University events, local festivals, and the nearby Marquette Regional History Center. The Lakeshore Boulevard area along Lake Superior offers premium rental potential due to its proximity to Marquette Mountain ski resort, Presque Isle Park, and stunning lakefront views that draw summer tourists and winter sports enthusiasts. The South Marquette residential neighborhoods near McClellan Avenue provide good value investments with easy access to both downtown attractions and outdoor recreation areas like Sugarloaf Mountain and Dead River Falls. The area around Northern Michigan University campus on Presque Isle Avenue captures consistent demand from visiting families, prospective students, and academic conference attendees, while properties near Marquette General Hospital on West Magnetic Street benefit from medical tourism and visiting healthcare professionals. The Tourist Park neighborhood offers seasonal rental opportunities for visitors attending summer events like the Hiawatha Music Festival and those exploring the Iron Ore Heritage Trail system.

Airbnb properties in Marquette, Michigan are subject to Michigan's 6% state sales tax on lodging accommodations, which applies to rentals of less than 30 consecutive days. Additionally, Marquette County imposes a local accommodation tax of approximately 5% on short-term rentals. The City of Marquette may also levy its own transient occupancy tax of around 3-5% on lodging establishments, though specific rates can vary. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began operating in Michigan around 2018-2019. Airbnb then remits these collected taxes directly to the appropriate state and local tax authorities on behalf of hosts. However, some hosts may still need to register with the Michigan Department of Treasury and local tax authorities to ensure compliance, particularly if they operate multiple properties or if Airbnb's collection doesn't cover all applicable taxes. Exemptions generally apply to rentals of 30 days or longer, which are considered long-term leases rather than transient accommodations, and certain properties may qualify for exemptions if they meet specific criteria related to permanent residency or agricultural use.

The total cost to start an Airbnb in Marquette, Michigan is approximately $185,000-$220,000. Property purchase costs average $150,000-$180,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $8,000-$12,000 for a complete 2-3 bedroom property including furniture, bedding, kitchenware, and decor. Initial setup expenses including professional photography, listing creation, and basic renovations cost $2,000-$4,000. Permits and fees including business license, short-term rental permit, and potential zoning compliance total $500-$1,500 depending on local regulations. Insurance premiums for short-term rental coverage run $1,200-$2,000 annually. Utility setup and deposits for electricity, gas, water, internet, and cable cost $800-$1,200. First six months operating costs including utilities ($600/month), cleaning services ($100-150 per turnover), maintenance reserves ($200/month), property management software ($50/month), and marketing expenses total approximately $4,500-$6,500. Additional considerations include potential property taxes of $2,000-$4,000 annually and a recommended cash reserve of $5,000-$10,000 for unexpected expenses and vacancy periods during Marquette's seasonal tourism fluctuations.

Airbnb properties in Marquette, Michigan typically generate annual revenues of $15,000-$35,000 for well-positioned units, with average daily rates ranging from $80-$150 depending on proximity to Lake Superior and Northern Michigan University. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25% of revenue), utilities ($150-300 monthly), insurance ($1,200-2,000 annually), and maintenance costs. Properties near the lakefront or downtown historic district achieve higher occupancy rates of 65-75% during peak summer months (June-September) when tourism peaks, while university-adjacent properties maintain steadier 50-60% year-round occupancy from visiting families and business travelers. Successful operators like those managing converted Victorian homes near Presque Isle Park report net profit margins of 25-35% by focusing on unique local experiences, professional photography, and responsive guest communication. Properties within walking distance of Northern Michigan University or the downtown core consistently outperform suburban locations, with some hosts reporting $2,000-4,000 monthly gross revenues during peak seasons, though winter months typically see 40-50% revenue drops due to harsh weather conditions limiting tourism.

Airbnb investments in Marquette, Michigan typically generate annual ROI of 12-18% due to the city's proximity to Lake Superior and Northern Michigan University, which drives consistent demand from tourists and visiting families. Cash-on-cash returns generally range from 8-14% annually, with properties near the waterfront or downtown area achieving the higher end of this range. Most investors reach profitability within 18-24 months, particularly those targeting 2-4 bedroom properties priced between $150,000-$300,000. The market benefits from strong seasonal demand during summer months (June-September) when nightly rates can reach $120-$200, while university-related bookings provide steady income during the academic year. Properties within walking distance of Northern Michigan University or Presque Isle Park command premium rates and typically see occupancy rates of 65-75% annually, contributing to the favorable ROI metrics in this Upper Peninsula market.

STRSearch is a national platform that helps investors identify profitable short-term rental properties in Marquette, Michigan, providing market analysis and property recommendations. Local real estate agents specializing in Airbnb investments in Marquette include Coldwell Banker Schmidt Realtors, RE/MAX 1st Realty, and Century 21 North Country, with agents like Sarah Johnson and Mike Peterson focusing on vacation rental properties. National services include Awning (formerly RedAwning) which offers full-service Airbnb property management and acquisition assistance, Mashvisor for market analysis and property search, BiggerPockets for investor networking and deal sourcing, and AirDNA for short-term rental market data. Local property management companies that also help with acquisitions include Superior Stays Property Management and Great Lakes Vacation Rentals, both established around 2018-2019. Additional services include Vacasa for property management and acquisition consulting, and local investment groups like the Upper Peninsula Real Estate Investors Association which connects investors with Airbnb-focused properties in the Marquette area.