Dearborn's Short-Term Rentals: The Rules That Matter

Every city handles short-term rentals a little differently. In Dearborn, Michigan, there are 8 distinct rules that residents and property owners should be aware of. Some are stricter than what neighboring cities enforce, and others are more relaxed. Here is what you need to know.

Primary-Residence-Only Rule

Dearborn licenses three short-term rental types, and only two require owner-occupancy: an owner-occupied homestay or off-site applicant must swear under § 11-314(b)(6) that the unit is and will remain their principal residence, while a separately certified non-owner-occupied STR carries no such residency requirement.

Key details: Owner-occupied types: homestay and off-site only. Sworn statement required: principal residence for certificate duration. Non-owner-occupied STR: separately certified, no residency oath. Certificate term: 3 years (§ 11-315). First-offense fine: at least $500.

A false principal-residence statement, or any other violation of Division 1, is a civil infraction under § 11-322: a fine of at least $500 for a first offense, at least $750 for a first repeat within 12 months, and at least $1,000 for a second or later repeat, all plus costs. Three proven incidents in 12 months can trigger certificate revocation under § 11-324.

Taxes & Fees

Dearborn charges a non-refundable $750 application fee for every short-term rental certificate under § 11-314(b)(14), due with the sworn application before the Department of Economic Development schedules the compliance inspection needed to issue or renew a certificate.

Key details: Application fee: $750, non-refundable. Fee applies: each application and renewal. Certificate term: 3 years, § 11-315(a). Separate STR occupancy tax: none found in ordinance. Certificate barred if: owner delinquent on city debts.

Operating an STR without paying the $750 fee and obtaining the certificate is prohibited outright under § 11-314(a), and any violation of the division is a civil infraction under § 11-322: at least $500 for a first offense, $750 for a first repeat within 12 months, and $1,000 for a second or later repeat, all plus costs and other sanctions.

Noise Rules

Dearborn requires every short-term rental's local agent to respond within 30 minutes to noise and disorderly-conduct complaints, and separately holds STR occupants and guests directly responsible for violating the city's noise, fireworks, and public peace ordinances during their stay.

Key details: Local agent response time: within 30 minutes. Base fine: $500 civil infraction. Repeat fines: $750, then $1,000. Ordinance effective: January 1, 2026.

Civil infraction fine of at least $500, rising to $750 for a first repeat offense and $1,000 for later repeats within 12 months; three violations in a year can trigger certificate revocation.

Short-Term Rental Permits

Dearborn requires a detailed certificate application before any short-term rental can operate: owner and agent information, bedroom counts, smoke/CO detector and fire-extinguisher certifications, and a mandatory city inspection under Sec. 11-314(b).

Key details: Application fee: $750, non-refundable. Inspection: Required before certificate issues. Safety devices: Smoke + CO detector per bedroom. Enforcing dept: Dept. of Economic Development.

Filing an incomplete application or skipping the required inspection is grounds to withhold or revoke the certificate under Sec. 11-314(b)(16); operating without a valid certificate is a civil infraction carrying a minimum $500 fine under Sec. 11-322.

This is not one of those rules that cities tend to ignore. Dearborn actively enforces its short-term rental permits requirements.

Occupancy Limits

Dearborn sets no single headcount cap for short-term rentals. Sec. 11-317(h) instead ties STR occupancy to the city's existing dwelling-unit, zoning, and Michigan Building Code standards, including the floor-space formula already in the property maintenance code.

Key details: First occupant: 250 sq ft minimum. Each added occupant: +100 sq ft. Shared sleeping room: 50 sq ft/occupant. Fixed STR headcount number: none set.

Housing more occupants than the applicable floor-space and code standards allow is a division violation: a minimum $500 civil fine, rising with repeat offenses, and grounds for certificate action.

Host Presence Rule

Dearborn's short-term rental ordinance treats an owner-occupied homestay differently from an owner-occupied off-site rental: for a homestay, the property owner must serve as the STR's local agent and stay on-site for the entire guest stay.

Key details: Homestay rule: Owner must stay on-site. Off-site rule: Owner may be absent. Local agent: Owner is agent for homestay. Effective date: January 1, 2026.

Operating outside a certificate's homestay/off-site terms is a civil infraction under Sec. 11-322: minimum $500 fine, $750 for a first repeat, $1,000 for later repeats within 12 months, plus revocation after three violations in a year.

Repeat Violator Strikes

Dearborn escalates short-term rental fines with each repeat offense, $500, then $750, then $1,000, and requires the director to revoke the STR certificate once a property racks up three separate violations within any 12-month period.

Key details: 1st offense fine: $500 minimum. 1st repeat fine: $750 minimum. 2nd+ repeat fine: $1,000 minimum. Revocation trigger: 3 incidents in 12 months.

Minimum civil fines of $500, $750, and $1,000 for successive offenses within 12 months; a third violation in that period triggers mandatory certificate revocation under Sec. 11-324.

This is one of the stricter rules in Dearborn's municipal code. If you are unsure whether your situation complies, it is worth checking with the city before proceeding.

Insurance Requirements

Every Dearborn short-term rental certificate application must include a sworn statement that the owner has obtained liability insurance covering the STR use, one of sixteen certifications the Department of Economic Development reviews under § 11-314(b) before issuing or renewing a certificate.

Key details: Requirement: sworn liability-insurance certification. Governing item: 1 of 16 in § 11-314(b). Minimum coverage stated: none specified. Certificate term: 3 years, § 11-315(a). Change-of-info deadline: 14 calendar days, § 11-314(f).

A false insurance certification, or any other violation of Division 1, is a civil infraction under § 11-322: at least $500 for a first offense, $750 for a first repeat within 12 months, and $1,000 for a second or later repeat, plus costs. A revoked or unrenewed certificate for a false statement can be appealed to the building board of appeals within 20 days under § 11-325.

The Bottom Line

Dearborn is tougher than many cities when it comes to short-term rentals. Out of the 8 rules covered here, 2 are rated strict. If you are a homeowner, renter, or business owner in Dearborn, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

These rules come from Dearborn's publicly available municipal code. For complete penalty schedules, exemption details, and answers to common questions, see the individual ordinance pages throughout this guide.