How Detroit Handles Short-Term Rentals: A Practical Guide

Detroit maintains 197 local ordinances across all categories, and 13 of those deal specifically with short-term rentals. Here is a breakdown of what the city actually requires, what is prohibited, and where Detroit falls on the strict-to-permissive spectrum compared to other cities.

Host Presence Rule

Detroit Ord. 2018-08 distinguishes hosted from unhosted short-term rentals. When the operator is present at the property during the guest's stay, no annual night cap applies, but registration with the Buildings Department is still mandatory.

Key details: Host must be on-site: Entire booking duration. Annual cap: None for hosted. Registration: BSEED, annually. Tax remittance: Required.

Operating hosted STR without registration: $250 first offense, $500 repeat. False hosted-status claim treated as unregistered unhosted operation, citation up to $2,500.

Primary-Residence-Only Rule

Detroit Ord. 2018-08 restricts short-term rentals to the operator's primary residence, blocking investor-owned whole-home Airbnb portfolios. Only one STR registration is allowed per natural person citywide, with proof of homestead exemption required.

Key details: Primary residence: Required. Registrations per person: One citywide. PRE tax filing: Verified each year. Entity ownership: Not eligible.

Registering a non-primary residence as STR: revocation plus $1,000 fine. Continued operation after revocation: $2,500 per booking and possible nuisance abatement injunction.

This is not one of those rules that cities tend to ignore. Detroit actively enforces its primary-residence-only rule requirements.

When the host is absent, Detroit caps short-term rentals at 14 unhosted nights per calendar year per dwelling. Booking platforms must transmit nightly stay counts to BSEED, and exceeding the cap voids the registration immediately.

Key details: Annual unhosted cap: 14 nights. Reset date: January 1. Platform reporting: Automatic to BSEED. Hosted nights: Uncapped.

Exceeding 14 unhosted nights: registration revocation, $1,500 first booking over cap, $2,500 per subsequent night. Falsifying log: $5,000 + criminal misdemeanor referral.

Compared to other cities, Detroit takes a harder line on extended home share. The enforcement and penalty structure reflects that.

Repeat Violator Strikes

Detroit's STR ordinance imposes a three-strike framework: three substantiated violations in 12 months trigger automatic registration revocation and a two-year ban from re-registering at any Detroit address.

Key details: Strike threshold: Three in 12 months. Operator ban: Two years citywide. Appeal window: 14 days. Public dashboard: BSEED enforcement portal.

Three substantiated violations in 12 months: revocation + 2-year operator ban. Listing on platforms after revocation: $5,000 per night and possible misdemeanor charge.

Compared to other cities, Detroit takes a harder line on repeat violator strikes. The enforcement and penalty structure reflects that.

Host Platform Liability

Airbnb, VRBO, and similar booking platforms operating in Detroit must verify each listing carries an active BSEED registration number before accepting bookings, and must remit occupancy taxes directly under MI Public Act 2024-12.

Key details: Validation API: Required pre-booking. Tax remittance: Direct to MI Treasury. Public display: Registration number on listing. Per-booking fine: $5,000 unregistered.

Listing unregistered property: $5,000 per booking against platform. Failing to display registration number: $1,000 per listing per day. Tax remittance failure: triple-damages action by MI Treasury.

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

Noise Rules

Detroit has not codified short-term-rental-specific quiet hours, decibel schedules, or party-house penalties; STR guests are governed by the general noise control provisions of Detroit City Code Chapter 38, Article II, which prohibits unreasonable noise that disturbs the peace, comfort, or repose of others at any time and imposes more specific limits between 10:00 p.m. and 7:00 a.m. The January 3, 2024 draft STR ordinance would add a 10 p.m. to 7 a.m. quiet-hours provision specifically tied to the proposed STR license, but that draft has not been adopted. Until adoption, complaints route through the Detroit Police Department non-emergency line and BSEED's blight/rental enforcement.

Key details: Codified STR Quiet Hours: None; draft 10 p.m.-7 a.m. proposed January 2024 not adopted. Governing Chapter: Detroit City Code Chapter 38 (Offenses), Article II (Noise Control). Standard: Noise that unreasonably disturbs peace, quiet, comfort, or repose. Stricter Nighttime Window: 10:00 p.m. - 7:00 a.m.. Primary Enforcer: Detroit Police Department (active disturbance).

Chapter 38, Article II noise violations are misdemeanors and civil infractions enforceable by the Detroit Police Department, with on-scene citations to the disturbing occupants and possible referral to the Department of Administrative Hearings for adjudication. Where the underlying use is an unregistered or non-compliant rental, BSEED layers additional rental-ordinance enforcement under Sec. 8-15-36 (blight violation) and Sec. 8-15-82 (unlawful occupancy without Certificate of Compliance), which are adjudicated administratively with escalating civil fines and can result in tenant rent-escrow deposits under the 2024 amendments. Repeat complaints at the same address build a compliance file BSEED uses when evaluating Certificate of Compliance renewal and, prospectively, any STR license application if the draft ordinance is adopted.

Taxes & Fees

Detroit does not impose a city-level accommodations or transient occupancy tax. Short-term rentals of fewer than 30 days inside the City of Detroit are subject to the 6% Michigan Use Tax on accommodations under MCL 205.93a, administered by the Michigan Department of Treasury. A 2% Wayne County convention and tourism marketing assessment is collected, on an opt-in basis, only from larger lodging facilities (generally 35 or more rooms) under the Michigan Convention and Tourism Marketing Act (MCL 141.1351 et seq.) and does not apply to a typical residential STR. Permit fees on the rental property itself are the $150 annual rental program fee under Detroit City Code Chapter 8, Article XV.

Key details: Michigan State Use Tax: 6% on stays under 30 days (MCL 205.93a). Wayne County Tourism Assessment: Up to 2%, opt-in, 35+ rooms only (MCL 141.1351 et seq.). City of Detroit STR Tax: None codified. Rental Program Fee (Chapter 8, Art. XV): $150/year covering registration and inspection program. Tax Administrator: Michigan Department of Treasury (SUW account).

Failure to collect or remit the 6% Michigan use tax under MCL 205.93a is enforced by the Michigan Department of Treasury, which may issue tax assessments, late-filing penalties, and interest, and which may pursue audit and lien remedies against the operator. Platform-collected tax (Airbnb, Vrbo) does not cover direct-booking revenue, so operators with off-platform bookings carry independent reporting and remittance obligations. Failure to pay the $150 annual rental program fee under Chapter 8, Article XV blocks issuance of the Certificate of Registration, and operating without a Certificate of Registration triggers Sec. 8-15-36 blight-violation enforcement and the rent-escrow provisions added in the 2024 amendments. Wayne County opt-in convention assessment compliance is enforced contractually by Visit Detroit and the County; default exposes the participating facility to back-assessment and removal from the marketing program.

Occupancy Limits

Detroit has not codified a short-term-rental-specific occupancy cap such as a fixed maximum number of guests. Occupancy is governed by the bedroom-area and dwelling-unit-area provisions of the Detroit Property Maintenance Code in Chapter 8, Article XV, which incorporates the standard International Property Maintenance Code (IPMC) minimum-area-per-occupant rule: a bedroom must provide at least 70 square feet for one occupant and at least 50 additional square feet for each additional occupant. The January 3, 2024 draft Short Term Rental Ordinance would add a fixed 10-person STR cap, but that draft is not yet adopted.

Key details: Codified STR Headcount Cap: None; draft 10-person cap proposed January 2024 not adopted. Governing Standard: IPMC bedroom and dwelling area tables as adopted by Detroit City Code Chapter 8, Article XV. Dwelling Unit Minimum: 150 sq ft for first occupant, +100 sq ft per additional occupant. Bedroom Minimum (1 occupant): 70 sq ft. Bedroom Minimum (2+ occupants): 50 sq ft per occupant.

Overcrowding is enforced by BSEED under Chapter 8, Article XV; an inspector observing more occupants than the IPMC area tables permit may cite the operator, refuse to issue or renew the Certificate of Compliance, and refer the matter to the Department of Administrative Hearings as a blight violation under Sec. 8-15-36 with civil fines. Where the operator is also unregistered, Sec. 8-15-82 makes occupancy without a Certificate of Compliance independently unlawful. The 2024 amendments authorize tenants to deposit rent into a city-managed escrow account where the property is non-compliant, and escrowed funds may be retained by the tenant if compliance is not achieved.

Registration Rules

Detroit registers short-term rentals through the same Certificate of Registration system that governs all rental property under Detroit City Code Chapter 8, Article XV, administered by the Buildings, Safety Engineering and Environmental Department (BSEED). Operators apply through BSEED's online portal, pay the $150 annual rental program fee adopted in the October 29, 2024 amendments, and obtain a Certificate of Compliance after passing a 15-point property condition inspection. The Certificate of Compliance is valid for three years for residential rental property, and the certificate must be in place before any occupancy under Sec. 8-15-82. There is no separately codified STR-only registry as of May 2026.

Key details: Registration Vehicle: Certificate of Registration under Detroit City Code Sec. 8-15-81 (formerly Sec. 9-1-81). Occupancy Vehicle: Certificate of Compliance under Detroit City Code Sec. 8-15-82. Annual Program Fee: $150 covering registration and 15-point inspection program. Certificate Validity: 3 years for residential rental property. Inspection Type: BSEED 15-point property condition inspection.

Sec. 8-15-82 makes it unlawful for a rental property required to be registered to be occupied without a Certificate of Compliance issued by BSEED. Violations are blight violations under Sec. 8-15-36 adjudicated by the Department of Administrative Hearings with civil fines that escalate for continued non-compliance. The 2024 amendments authorize tenants in non-compliant properties to deposit rent into a city-managed escrow account; if the landlord fails to come into compliance, escrowed funds may be retained by the tenant and the landlord may not lawfully collect rent for the period of non-compliance. The City may also file liens against the property and refer the matter to the Law Department for civil action. Failure to re-register on transfer of ownership under Sec. 8-15-81 is enforced in the same manner. Airbnb and other platforms are not currently required by Detroit ordinance to verify a Certificate of Compliance at the listing stage, but BSEED uses third-party listing-monitoring tools to identify likely unregistered STRs and can refer matters to the Department of Administrative Hearings.

Night Caps

Detroit does not cap the number of STR nights per year. Unlike tourist-heavy jurisdictions, Detroit permits year-round STR operation subject to Chapter 31 noise and BSEED housing standards.

Key details: Annual Night Cap: None. Hosted Requirement: Not required. State Law: MI Public Act 359 of 2020. Compliance Req.: Noise, occupancy, zoning.

Specific penalty amounts for this ordinance are not published in a publicly accessible fine schedule. Contact [Detroit code enforcement](https://www.google.com/search?q=Detroit%20code%20enforcement) directly for current fines, enforcement procedures, and hearing options.

If you are coming from a city with tighter rules, you will find Detroit gives residents more flexibility on night caps.

Parking Rules

Detroit imposes no dedicated STR parking ordinance. Properties must follow Chapter 55 (Traffic) rules including no blocking of driveways and Chapter 50 zoning off-street parking minimums.

Key details: Zoning Minimum: 1 space per dwelling (R1/R2). On-Street Overnight: Allowed except snow events. Driveway Blocking: Prohibited per Ch. 55. Vacant Lot Parking: Prohibited without paving.

Detroit is more permissive than most cities when it comes to parking rules. That said, there are still limits.

Insurance Requirements

Detroit does not require STR-specific liability insurance by ordinance. Hosts should verify that homeowner or landlord policies explicitly cover commercial short-term rental activity.

Key details: City Requirement: None. Recommended Minimum: $1,000,000 liability. Airbnb AirCover: $1M host liability included. Governing State Law: MCL 500.2101 et seq..

Detroit is more permissive than most cities when it comes to insurance requirements. That said, there are still limits.

Permit Requirements

As of May 2026, Detroit has no separately codified short-term rental ordinance in the Detroit City Code. A draft STR ordinance was released by BSEED on January 3, 2024 and has been discussed by City Council but has not been formally adopted. Until a dedicated STR chapter is enacted, every dwelling unit rented to non-owner occupants - including for any period - is regulated as 'rental property' under Detroit City Code Chapter 8, Article XV (the comprehensively amended Property Maintenance Code Rental Ordinance passed October 29, 2024 and effective January 1, 2025, which renumbered the prior Chapter 9, Article I provisions). Operators must obtain a Certificate of Registration and Certificate of Compliance from the Buildings, Safety Engineering and Environmental Department (BSEED), and the property must satisfy Chapter 50 (Zoning) use restrictions for the underlying district.

Key details: Codified STR Chapter: None as of May 2026; January 3, 2024 draft remains pending. Governing Chapter: Detroit City Code Chapter 8, Article XV (Rental Ordinance, eff. January 1, 2025). Permit Type: Certificate of Registration + Certificate of Compliance. Annual Fee: $150 (combined city rental program fee under 2024 amendments). Certificate Validity: 3 years for residential rental property.

Under Detroit City Code Sec. 8-15-82 (formerly Sec. 9-1-82), it is unlawful for any rental property required to be registered to be occupied without a Certificate of Compliance issued by BSEED. Sec. 8-15-36 classifies rental registry violations as blight violations subject to administrative adjudication and civil fines through the City of Detroit Department of Administrative Hearings, including escalating fines for continued unregistered operation. Tenants of non-compliant properties may, under the 2024 amendments, deposit rent into a city-managed escrow account; if the landlord fails to achieve compliance, escrowed funds may be retained by the tenant, and the landlord may not lawfully collect rent for the period of non-compliance. The City may also file liens against the property and refer matters to the Law Department for civil action. Operating a transient lodging use in a zoning district where it is not permitted is a separate violation of Chapter 50 enforceable by BSEED Zoning and the Department of Administrative Hearings.

The Bottom Line

Detroit is tougher than many cities when it comes to short-term rentals. Out of the 13 rules covered here, 4 are rated strict. If you are a homeowner, renter, or business owner in Detroit, 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 Detroit's publicly available municipal code. For complete penalty schedules, exemption details, and answers to common questions, see the individual ordinance pages throughout this guide.