Airbnb Investing by City
Michigan
Marquette

Is Marquette, Michigan Good for Airbnb Investment?

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Marquette, Michigan market research

Marquette, Michigan Airbnb Investment Overview

$800–$2,200Typical monthly host earnings
8–14%Typical annual ROI
55–65%Average annual occupancy
VariesCombined taxes and local fees
Investment

Is Airbnb a Good Investment in Marquette, Michigan?

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

  • Presents a potentially favorable opportunity, largely driven by the city's appeal as a four-season tourist destination in the Upper Peninsula.
  • Current market conditions in Marquette show a steady demand for short-term rentals, fueled by visitors drawn to outdoor activities like skiing, hiking, and exploring Lake Superior.
  • While property values in Marquette are generally more affordable compared to larger metropolitan areas, they have seen consistent growth, suggesting a solid long-term investment potential.
  • Tourism trends indicate consistent visitor numbers throughout the year, with peaks during summer and winter sports seasons, contributing to good occupancy rates.
  • The investment potential is further enhanced by Marquette's growing reputation as a hub for outdoor recreation and a desirable place to visit.
Earnings

How Much Does an Average Airbnb Earn in Marquette?

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

  • Based on available market data and rental analytics, Airbnb hosts in Marquette, Michigan typically earn between $800-$2,200 per month.
  • Summer months (June through August) represent peak earning potential with monthly revenues often reaching $2,500-$3,500 for well-positioned properties.
  • Properties within walking distance of Lake Superior, downtown Marquette, or Northern Michigan University command premium rates averaging $85-$150 per night during peak season.
  • Key factors influencing earnings include proximity to outdoor recreation areas like Pictured Rocks National Lakeshore, property size and amenities, seasonal events such as winter sports activities and summer festivals.
  • Occupancy rates generally range from 35-45% annually, with summer months achieving 65-80% occupancy while winter months may drop to 20-35%.
ROI Analysis

Airbnb Return on Investment in Marquette

Potentially strong, with a typical annual ROI of 8–14%.

  • Typically generate ROI between 8-14% annually, with higher-end properties near Lake Superior and downtown achieving 12-16% returns during peak summer months.
  • The average payback period ranges from 7-10 years, significantly influenced by Marquette's seasonal tourism patterns driven by Northern Michigan University students, outdoor recreation.
  • Properties within walking distance of the university or lakefront command premium rates of $120-180 per night during summer and fall.
  • Compared to traditional long-term rentals yielding 6-9% ROI in Marquette's market, short-term rentals outperform by 2-5 percentage points annually.
  • The strongest performing Airbnb properties are typically 2-4 bedroom homes or condos priced between $150,000-300,000, with investors seeing break-even points around 18-24 months after accounting for furnishing.
Occupancy Rate

Average Airbnb Occupancy Rate in Marquette

Marquette, Michigan averages 55–65% annual occupancy, with seasonal variation.

  • Marquette, Michigan Airbnb properties typically maintain an average annual occupancy rate of approximately 55-65%.
  • Peak occupancy occurs during summer months (June through August) when rates climb to 75-85% due to warm weather activities, hiking, and lake access.
  • Spring and fall represent shoulder seasons with occupancy rates dropping to 40-50% as weather transitions limit outdoor activities.
  • Marquette's occupancy rates generally exceed Michigan's statewide Airbnb average of 50-55% due to its unique position as both a college town and outdoor recreation hub.
Best Neighborhoods

Best Neighborhoods for Airbnb in Marquette

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

  • The downtown Marquette area near the harbor and Third Street corridor offers the strongest Airbnb potential due to its walkability to restaurants, breweries, and Lake Superior waterfront.
  • The South Beach/Lakeshore Boulevard neighborhood provides excellent investment opportunities with direct beach access and stunning lake views.
  • The Marquette Mountain area appeals to winter sports enthusiasts and offers year-round rental potential with proximity to skiing and hiking trails.
  • The historic Upper Harbor district combines charm with convenience, featuring Victorian-era homes near Presque Isle Park and the ore dock.
  • The Northern Michigan University vicinity caters to visiting families, alumni, and academic travelers.
  • The Founder's Landing area offers newer construction with modern amenities while maintaining lake proximity, attracting business travelers and tourists at $140-220 per night.
  • The residential neighborhoods around McCarty's Cove provide a quieter alternative with lake access and family-friendly appeal.
Regulations

Short-term Rental Regulations in Marquette

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

  • Marquette, Michigan requires short-term rental operators to obtain a business license and register their properties with the city.
  • Occupancy limits are generally restricted to two people per bedroom plus two additional guests, with a maximum of 10-12 occupants depending on the property size and available parking spaces.
  • The city does not currently mandate owner-occupancy requirements, allowing both resident and non-resident property owners to operate short-term rentals.
  • Zoning restrictions permit short-term rentals in most residential districts but may require special use permits or conditional use permits in certain zones.
  • The registration process involves submitting an application with property details, proof of insurance, emergency contact information, and payment of applicable fees.
  • Recent regulatory changes implemented around 2020-2022 have included stricter noise ordinances, mandatory posting of house rules and emergency contacts, requirements for 24/7 local contact availability.
Fees and Taxes

Short-term Rental Fees and Taxes in Marquette

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

  • Short-term rentals in Marquette, Michigan are subject to several fees and taxes including Michigan's 6% state sales tax and 6% state use tax on rental income.
  • Property owners must obtain a short-term rental permit from the City of Marquette costing around $150-200 annually, along with a business license fee of approximately $25-50.
  • Registration with the Michigan Department of Treasury is required for tax collection purposes, typically involving a $20 registration fee.
  • Additional costs may include a one-time zoning compliance review fee of $100-150 and potential inspection fees of $75-100.
  • Property owners are also responsible for standard property taxes which average 1.5-2% of assessed value annually in Marquette County.
Common questions

Marquette, Michigan Airbnb investment FAQs

How to start an Airbnb in Marquette, Michigan?

To start an Airbnb in Marquette, Michigan, begin by researching local regulations through the City of Marquette Planning Department.

Launch checklist

  • 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.
  • 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 to 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.
What's the best way to identify good STR properties in Marquette, Michigan?

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.

What to prioritize

  • Target 2 to 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 to 150 typical for the market), occupancy rates (peak summer months 70 to 85%, winter 40 to 60%), and seasonal demand patterns driven by university calendar, summer tourism.
  • 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.
How to get an Airbnb permit in Marquette, Michigan?

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.

Documents and approvals

  • 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.
  • The application fee is typically around $200 to 400, and you may need additional permits from the Building Department for safety inspections costing approximately $100 to 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.
  • The approval process generally takes 4 to 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.
Is it legal to operate a short-term rental in Marquette, Michigan?

Short term rentals (STRs) are legal in Marquette, Michigan, but operate under specific regulations established by the city.

Core operating requirements

  • 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.
What are the best places to invest in Airbnb in Marquette, Michigan?

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.

Areas to research

  • 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.
  • 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 and lodging taxes in Marquette, Michigan

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.

Taxes and filing responsibilities

  • 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 to 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 to 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 in preference to transient accommodations.
Total cost to purchase, furnish and operate an Airbnb in Marquette, Michigan

The total cost to start an Airbnb in Marquette, Michigan is approximately $185,000 to $220,000.

Cost breakdown

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

Airbnb properties in Marquette, Michigan typically generate annual revenues of $15,000 to $35,000 for well positioned units, with average daily rates ranging from $80 to $150 depending on proximity to Lake Superior and Northern Michigan University.

Profitability indicators

  • Operating expenses generally consume 40 to 60% of gross revenue, including cleaning fees ($30 to 50 per turnover), property management (15 to 25% of revenue), utilities ($150 to 300 monthly), insurance ($1,200 to 2,000 annually), and maintenance costs.
  • Properties near the lakefront or downtown historic district achieve higher occupancy rates of 65 to 75% during peak summer months (June September) when tourism peaks.
  • Successful operators like those managing converted Victorian homes near Presque Isle Park report net profit margins of 25 to 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 to 4,000 monthly gross revenues during peak seasons.
What is the expected return on investment for an Airbnb in Marquette, Michigan?

Airbnb investments in Marquette, Michigan typically generate annual ROI of 12 to 18% due to the city's proximity to Lake Superior and Northern Michigan University, which drives consistent demand from tourists and visiting families.

Return planning figures

  • Cash on cash returns generally range from 8 to 14% annually, with properties near the waterfront or downtown area achieving the higher end of this range.
  • Most investors reach profitability within 18 to 24 months, particularly those targeting 2 to 4 bedroom properties priced between $150,000 to $300,000.
  • The market benefits from strong seasonal demand during summer months (June September) when nightly rates can reach $120 to $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 to 75% annually, contributing to the favorable ROI metrics in this Upper Peninsula market.
What company can help me find and buy a profitable Airbnb in Marquette, Michigan?

STRSearch is a national platform that helps investors identify profitable short term rental properties in Marquette, Michigan, providing market analysis and property recommendations.

Companies and resources

  • 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.
  • Local property management companies that also help with acquisitions include Superior Stays Property Management and Great Lakes Vacation Rentals, both established around 2018 to 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.
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