Short-Term Rental Laws in Detroit, Michigan

Detroit permits STRs primarily through the existing Rental Property Registration framework — properties operating as short-term rentals must hold a current Rental Certificate of Compliance (Rental C of C) and a Business License (Group D — Short-Term Rental). Single-family and 2-family residential zones (R1, R2) permit STR with the dual-license stack. Multi-family and mixed-use zones permit STR more broadly. The 2018 Group D Business License was introduced specifically to formalize the platform-economy STR segment.

Detroit Zoning Code permits STR in R1, R2, R3, R5, R6, B1-B6, M1-M5, SD1-SD5 zones with proper licenses. The binding requirement is the Rental Certificate of Compliance — Detroit's standard rental-property registration requires lead-paint inspection (for pre-1978 housing, the bulk of Detroit stock), mechanical/plumbing/electrical inspection, and code-compliance certification. STR operators stack the Group D Business License ($300 first-year, $200 renewal) on top of this rental registration. Properties failing Rental C of C inspection cannot operate as STR until violations are abated.

Operators must hold a short-term rental permit before listing. See the official permit portal.

Detroit Buildings, Safety Engineering & Environmental Department (BSEED) + Building & Safety jointly enforce. Annual renewal of both Rental C of C and Group D Business License. Operating without either: administrative ticket + stop-rental order + fines starting at $500. The lead-paint inspection requirement is the single largest cost-of-entry for Detroit STR investors operating pre-1978 housing — budget $1-3k per property for the initial certification cycle. BSEED cross-references platform listings against the registry.

Combined short-term lodging tax in Detroit is approximately 15.000% of gross nightly revenue (state sales + state TRT + local TRT + applicable resort/city options).

Michigan State sales 6% (lodging exempt under MCL 205.54a) + Michigan Use Tax 6% on transient lodging + Detroit Hotel Tax 2% + Wayne County Accommodations Tax 2% + Convention Facility Tax 1% — combined ~15.0% on transient lodging

Verify the current combined rate via the Utah State Tax Commission before remitting — rates drift quarterly.