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Grand Rapids imposes density caps by neighborhood: each Census tract has a cap on the number of permitted non-owner-occupied STRs equal to a small percentage (typically 1-2%) of housing units in that tract. Owner-occupied STRs are exempt from the cap. When a tract reaches its cap, no new non-owner-occupied STR licenses issue in that tract until existing licenses lapse. Tract caps are published and updated quarterly by the Grand Rapids Planning Department.
Grand Rapids Zoning Ordinance Sec 5.9.21 governs STRs. Owner-Occupied STRs allowed in all residential zones (LDR, MDR, MOR, TN-LDR, TN-MDR, TN-TBA, etc.) provided primary-residence test is met. Non-Owner-Occupied STRs allowed in the same zones but subject to the per-tract density cap. The downtown and Heritage Hill historic districts have additional review for any exterior modifications. Confirm current tract-level cap availability via the GR Planning portal before any offer — buying a property in an at-cap tract hoping for a future non-owner-occupied license is the most common GR investor trap.
Operators must hold a short-term rental permit before listing. See the official permit portal.
Grand Rapids Planning + Code Compliance jointly enforce. Annual license renewal with primary-residence re-verification (owner-occupied) or tract-cap re-verification (non-owner-occupied). Operating without a license: administrative citations starting at $250 escalating to $1,000+ per violation. The tract-cap creates a secondary market — properties holding a continuously-renewed non-owner-occupied license in an at-cap tract trade at a premium.
Combined short-term lodging tax in Grand Rapids is approximately 14.000% of gross nightly revenue (state sales + state TRT + local TRT + applicable resort/city options).
Michigan Use Tax 6% + Kent County Hotel Tax 5% + Grand Rapids tourism assessment 3% — combined ~14.0% on transient lodging
Verify the current combined rate via the Utah State Tax Commission before remitting — rates drift quarterly.
STR regulations vary by jurisdiction. Compare Grand Rapids against nearby markets.