Is Newberry, Michigan Good for Airbnb Investment?

To start an Airbnb in Newberry, Michigan, begin by researching local regulations through the Luce County zoning office and Newberry city hall, as most small Michigan municipalities require short-term rental permits and may have occupancy limits or parking requirements. Obtain necessary permits including a business license from the city clerk's office (estimated $50-100), a short-term rental permit if required (approximately $100-200 annually), and ensure compliance with Michigan's 6% sales tax and 5% use tax registration through the Department of Treasury. Find a suitable property by searching local real estate listings, focusing on homes near Tahquamenon Falls State Park or downtown Newberry to attract tourists, with average property prices ranging $80,000-150,000 for modest homes. Furnish the property with essential amenities including Wi-Fi, heating suitable for harsh winters, comfortable bedding for 2-6 guests, basic kitchen supplies, and outdoor gear storage given the area's recreational focus. List your property on Airbnb, VRBO, and local tourism websites, highlighting proximity to outdoor activities like snowmobiling, fishing, and hiking, with competitive pricing around $75-125 per night depending on season and capacity. Manage the property by establishing relationships with local cleaning services (budget $40-60 per turnover), maintenance contractors familiar with winter property care, and consider using property management software or hiring Vacasa or similar companies if you're not local, while maintaining responsive communication with guests about seasonal road conditions and local attractions.

To identify profitable short-term rental properties in Newberry, Michigan, focus on locations within 2-3 miles of Tahquamenon Falls State Park and along the shores of local lakes like McLeod Lake, as these areas attract the highest tourist traffic year-round. Target 2-4 bedroom cabins or homes built after 1980 with rustic charm, full kitchens, fireplaces, outdoor spaces, and amenities like hot tubs or fire pits that appeal to families and outdoor enthusiasts visiting for hiking, fishing, and snowmobiling. Analyze comparable properties on Airbnb and VRBO in the $80-150 nightly range, calculating potential annual revenue of $15,000-35,000 against acquisition costs under $200,000 to achieve 12-18% returns. Research competition by monitoring occupancy rates and pricing strategies of existing STRs within a 10-mile radius, noting seasonal demand peaks during summer months (June-August) and winter snowmobile season (December-March). Utilize AirDNA for market analytics, contact Luce County tourism boards for visitor data, monitor MLS listings through local realtors like Engel & Völkers or Century 21, and leverage tools like Mashvisor for investment analysis while ensuring compliance with Luce County's short-term rental regulations and obtaining proper permits before launching operations.

To obtain an Airbnb/STR permit in Newberry, Michigan, you must first contact the Newberry City Clerk's office at City Hall located at 1005 Newberry Avenue to inquire about their short-term rental ordinance and application process, as requirements were established around 2019-2020. You'll need to submit a completed STR permit application along with required documents including proof of property ownership or lease agreement, certificate of occupancy, proof of liability insurance (typically $1 million minimum), fire safety inspection certificate, and a site plan showing parking availability and property layout. The application fee is estimated at $150-250 annually, with additional inspection fees of approximately $75-100. You must also provide contact information for a local property manager if you live more than 50 miles away, comply with occupancy limits (typically 2 people per bedroom plus 2 additional), maintain adequate off-street parking (usually 1 space per bedroom), and ensure the property meets all building and fire codes. The approval timeline is generally 30-45 days after submitting a complete application, and you may need to attend a city council meeting for final approval. Additionally, you must register with the state of Michigan for sales tax collection and remittance, and comply with any homeowner association rules if applicable.

Short-term rentals (STRs) are generally legal in Newberry, Michigan, as the city does not have specific municipal ordinances prohibiting them as of 2024. However, STR operators must comply with Michigan state regulations and local zoning requirements, which typically restrict commercial activities in residential zones. Newberry, located in Luce County in the Upper Peninsula, has not enacted comprehensive STR regulations like larger Michigan cities such as Grand Rapids or Ann Arbor, meaning operations fall under general business licensing requirements and state tax obligations including the 6% sales tax and local accommodation taxes. Property owners should verify compliance with residential zoning restrictions and obtain necessary business licenses, as some residential areas may prohibit commercial lodging activities. The Michigan Legislature has considered statewide STR legislation in recent years, but local municipalities retain authority to regulate these properties within their jurisdictions, and Newberry's small size and tourism-dependent economy in the Tahquamenon Falls region generally supports vacation rental activities without extensive restrictions.

The best areas for Airbnb investment in Newberry, Michigan are the downtown historic district near the Tahquamenon Logging Museum and Main Street, which attracts tourists interested in local history and provides easy access to restaurants and shops. The neighborhoods near Tahquamenon Falls State Park (approximately 20 miles away) are highly attractive due to the park's status as one of Michigan's most visited natural attractions, drawing visitors year-round for hiking, camping, and viewing the famous waterfalls. Areas close to the Newberry Country Club and golf course appeal to recreational travelers and golf enthusiasts during the warmer months. Properties near the snowmobile and ATV trail systems, particularly those connecting to the extensive Upper Peninsula trail networks, are excellent investments as they cater to outdoor recreation enthusiasts who visit during both winter and summer seasons. The residential areas near Newberry High School and community facilities can attract families visiting for school events, sports tournaments, and local festivals, while properties with lake access or near smaller inland lakes in the surrounding area appeal to fishing enthusiasts and water recreation visitors seeking a quieter alternative to more crowded tourist destinations.

In Newberry, Michigan, Airbnb hosts are subject to Michigan's 6% state sales tax on lodging accommodations, which applies to rentals of less than 30 consecutive days. Schoolcraft County imposes an additional 5% accommodations tax on short-term rentals, bringing the total tax rate to approximately 11%. These taxes are typically collected from guests at the time of booking through Airbnb's automatic tax collection system, which remits the state sales tax directly to the Michigan Department of Treasury on behalf of hosts. However, hosts may need to register separately with Schoolcraft County to remit the local accommodations tax, usually on a monthly or quarterly basis depending on rental volume. The city of Newberry may also require a local business license for short-term rental operations. Exemptions generally apply to rentals exceeding 30 consecutive days, which are considered long-term stays rather than transient accommodations, and some exemptions may exist for certain types of guests such as government employees on official business, though specific exemption criteria should be verified with local tax authorities.

The total cost to start an Airbnb in Newberry, Michigan is approximately $185,000-$225,000. Property purchase costs around $120,000-$150,000 based on median home prices in the Upper Peninsula region. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees including business license, short-term rental permit, and potential zoning approvals cost $500-$1,500. Insurance for short-term rental coverage runs $2,000-$3,000 annually. Utilities including electricity, gas, water, internet, and cable average $300-$400 monthly or $1,800-$2,400 for six months. First six months operating costs including cleaning services, supplies, maintenance, marketing, and platform fees total $8,000-$12,000. Additional considerations include property taxes of approximately $2,000-$3,000 annually and potential HOA fees if applicable.

Airbnb properties in Newberry, Michigan typically generate modest profitability with average annual revenues ranging from $8,000-$15,000 for standard 2-3 bedroom properties, primarily driven by summer tourism and snowmobile season bookings from December through March. Operating expenses including property taxes ($1,200-$2,500 annually), utilities ($1,800-$3,000), cleaning fees ($40-$60 per turnover), insurance ($800-$1,200), and maintenance ($1,500-$2,500) typically consume 60-70% of gross revenue, leaving profit margins between 30-40% for well-managed properties. Success factors include proximity to Tahquamenon Falls State Park, snowmobile trail access, and competitive pricing around $80-$120 per night during peak seasons, with properties like lakefront cabins near Newberry achieving occupancy rates of 45-55% annually. Host success stories include converted hunting cabins generating $12,000-$18,000 annually with profit margins reaching 35-42% when owners handle their own maintenance and cleaning, while properties managed through companies like Vacasa or local property management services see reduced margins of 20-25% due to management fees of 15-25% of gross revenue.

Airbnb investments in Newberry, 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 Tahquamenon Falls State Park and seasonal tourism from outdoor enthusiasts visiting the Upper Peninsula. Properties in Newberry generally achieve profitability within 18-24 months, with peak earning potential during summer months (June-September) when occupancy rates reach 65-75% and average daily rates range from $85-120 for well-appointed cabins or homes. The market benefits from limited hotel inventory and strong demand from snowmobilers in winter and hikers, fishermen, and fall color tourists during other seasons, though investors should expect seasonal fluctuations with winter occupancy dropping to 35-45%, making annual cash-on-cash returns more conservative at 6-8% for typical 3-bedroom properties purchased at $150,000-200,000 with 25% down payments.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Newberry, Michigan. Local real estate agents like those at Century 21 and Coldwell Banker in the Upper Peninsula region have experience with vacation rental properties near the Tahquamenon Falls area. RE/MAX agents in Newberry and surrounding areas often work with investors seeking properties suitable for Airbnb conversions. National services include Mashvisor, which provides Airbnb analytics and property recommendations, and BiggerPockets marketplace where investors can find Michigan vacation rental opportunities. AirDNA offers market data and investment analysis for the Newberry area, while Awning provides end-to-end Airbnb investment services including property identification and management. Local property management companies like Superior Property Management and Great Lakes Vacation Rentals can assist with both finding properties and managing them post-purchase. RedAwning and Vacasa also operate in Michigan and can help identify investment opportunities in the Newberry market, particularly properties near outdoor recreation areas that attract tourists year-round.