Short-Term Rentals in Farmington Hills, MI: What Residents Actually Need to Know

If you live in Farmington Hills or are thinking about moving there, short-term rentals are one of those things you probably won't think about until they affect you directly. Farmington Hills has 10 specific rules on the books covering different aspects of short-term rentals, and some of them might surprise you.

Taxes & Fees

Short-term rentals in Farmington Hills collect a single state-level lodging tax: the 6% Michigan Use Tax under MCL 205.92, applied to rooms or lodging furnished by hotels, motels, and other accommodations including vacation rentals for stays under 30 continuous days, remitted to the Michigan Department of Treasury. Oakland County does NOT impose a county-level accommodations or excise tax (unlike Washtenaw, Kent, and several Upper Peninsula counties), and Farmington Hills does not levy a separate municipal occupancy tax. The combined effective lodging tax burden on a Farmington Hills STR stay is therefore 6%. Operators also pay city-level fees that are not lodging taxes per se: a rental registration fee at initial registration and renewal, and a property maintenance inspection fee tied to the Certificate of Compliance (3-year term, reinspection required for renewal). Airbnb and VRBO generally collect and remit the 6% Michigan Use Tax on platform-booked stays under tax-collection agreements with the Michigan Department of Treasury; off-platform direct bookings remain the operator's responsibility.

Key details: Michigan State Use Tax: 6% (MCL 205.92). Oakland County Accommodations Tax: None (Oakland County does not levy a county-level lodging tax). Farmington Hills Municipal Occupancy Tax: None. Combined Effective Lodging Tax Burden: 6.0%. Continuous-Stay Exemption: 30+ days to the same person.

Failure to register with the Michigan Department of Treasury or to collect and remit the 6% Michigan Use Tax on STR receipts is enforceable by the Department of Treasury under MCL 205.91 et seq. with interest, late filing and late payment penalties, and ultimately tax liens against the operator and the property. Misclassifying a sub-30-day stay as a 'long-term' rental to avoid tax is tax evasion under Michigan law and can trigger civil and, in serious cases, criminal consequences. Operators relying solely on Airbnb's or VRBO's tax-collection arrangement should verify on the platform's tax-collection support page that the 6% Michigan Use Tax is in fact being collected and remitted for Farmington Hills bookings; the operator remains the taxpayer of record under MCL 205.92 if the platform does not remit. Off-platform direct bookings always require the operator to collect and remit the 6% Use Tax manually. Failure to pay the city's rental registration fee or inspection fees is treated as failure to maintain a current Certificate of Compliance, which is a Chapter 9 Housing Code violation enforceable by the Building Division and which terminates the operator's authority to host paying guests under the September 2023 zoning amendment. Operators sometimes encounter advocacy material referencing an 'Oakland County 5% accommodations tax' - this is not accurate; Oakland County does not impose a county-level lodging tax, and operators should not collect or remit a non-existent county tax. The proposed Short-Term Rental Regulation Act (HB 4722 of 2021, successor HB 5438 of 2024) does not change the state Use Tax framework or impose a new local lodging tax authority; it would only change zoning preemption.

Permit Requirements

In September 2023, the Farmington Hills City Council adopted Zoning Text Amendment 3, 2023 amending Chapter 34 (Zoning) - and related provisions in Chapter 9 (Community Development, Housing Code) - to prohibit non-owner-occupied short-term rentals in residential zoning districts. The amendment revised the definition of 'Motel' in Chapter 34, Article 2, Section 2.2 to capture commercial transient rental of residential dwellings as a motel use not permitted in residential districts. Owner-occupied STRs (host lives at the property as a permanent residence) remain allowed in residential districts, but must register through the Building Division as a rental dwelling, pass a property maintenance inspection, and obtain a Certificate of Compliance (valid up to 3 years; renewable on reinspection). Existing non-owner-occupied STRs that were properly registered before the September 2023 effective date received a 5-year amortization (sunset) window after which they must convert to owner-occupied or cease operation. The ordinance is permitted under MCL 125.3204 (Michigan Zoning Enabling Act) and Heydon v. Charter Twp. of Brighton (2014), which allow facially neutral local STR regulation. The proposed Short-Term Rental Regulation Act (HB 4722 of 2021) that would have preempted such bans never passed the Michigan Senate.

Key details: Ordinance Adopted: September 2023 (Zoning Text Amendment 3, 2023; 4-1 City Council vote). Code Sections: Chapter 34 (Zoning), Article 2, Section 2.2 (revised 'Motel' definition); Chapter 9 (Community Development), Article II (Housing Code) - rental registration. Non-Owner-Occupied STRs in Residential Districts: Prohibited (treated as motel use, not permitted). Owner-Occupied STRs: Permitted with rental registration and Certificate of Compliance. Amortization for Pre-Sept-2023 Registered Non-Owner-Occupied STRs: 5-year sunset (until approximately September 2028).

Operating a non-owner-occupied short-term rental in a Farmington Hills residential zoning district in violation of the Chapter 34 motel-use restriction is enforceable by the Code Enforcement division of the Building Division through notice and cure procedures, civil infraction citations, and ultimately injunctive relief in 47th District Court. Operating an owner-occupied STR without a current Certificate of Compliance is a Chapter 9 housing code violation enforceable by the same Building Division with civil infraction fines that escalate per occurrence. Failing the maintenance inspection and continuing to host paying guests is treated as operating an unregistered rental. Misrepresenting owner-occupied status (e.g., claiming the dwelling as a primary residence while actually living elsewhere) can result in revocation of the Certificate of Compliance and reclassification of the property as an unlawful non-owner-occupied STR subject to immediate cease-and-desist. Continued operation after a cease-and-desist order can be referred for nuisance abatement and ongoing daily fines. Operators within the 5-year amortization window (pre-September 2023 registered non-owner-occupied STRs) must maintain continuous registration and timely renewals through the sunset date; gaps in registration forfeit the grandfathered status and place the operator immediately under the new ordinance's ban. Failing to collect or remit the 6% Michigan Use Tax (MCL 205.92) on rental charges is enforceable by the Michigan Department of Treasury with interest, penalties, and tax liens. While certain advocacy summaries reference a 5% Oakland County accommodations tax, Oakland County does not in fact levy a county-level lodging or accommodations excise tax - the only statewide lodging tax is the 6% state Use Tax - so operators should not collect or remit a non-existent county tax.

This is not one of those rules that cities tend to ignore. Farmington Hills actively enforces its permit requirements requirements.

Night Caps

Farmington Hills does not codify an annual night cap on short-term rental operation (no 90-, 120-, or 180-night limit). Instead, the September 2023 ordinance restricts STR activity to owner-occupied dwellings where the host uses the property as a permanent primary residence, which functions as an implicit activity limit because the owner cannot simultaneously reside at the property and rent the entire dwelling year-round in absentia. The owner-occupied operator may host paying guests up to the full calendar year provided the host is also legitimately residing at the property; the home cannot be left vacant of the host while paying guests occupy it as a de facto whole-house rental. Pre-September-2023 registered non-owner-occupied STRs may operate without a night cap during the 5-year amortization window (through approximately September 2028), after which they must convert to owner-occupied or cease. HB 4722 of 2021, which would have constrained local night caps, never passed the Michigan Senate.

Key details: Annual Night Cap: None codified. Maximum Bookable Nights (Owner-Occupied): Up to 365 if host genuinely resides at property. Maximum Bookable Nights (Grandfathered Non-Owner-Occupied): Up to 365 during 5-year amortization (through approx. September 2028). Implicit Activity Limit: Owner-occupied/primary-residence requirement. Reclassification Risk: Extended absences can convert owner-occupied STR to unlawful non-owner-occupied.

Because Farmington Hills does not codify a numeric night cap, there is no codified violation for 'exceeding' a night limit. The operative enforcement risk is reclassification: an owner-occupied STR whose host is consistently absent while paying guests occupy the entire dwelling can be reclassified as an unlawful non-owner-occupied STR through evidence (neighbor complaints, utility usage patterns, vehicle/license-plate observations, social media posts) reviewed by Code Enforcement and the Building Division. Reclassification triggers cease-and-desist under Chapter 34 (the property is then deemed to be operating as a 'Motel' use not permitted in residential districts) and revocation of the Certificate of Compliance under Chapter 9. Continued operation after reclassification and cease-and-desist is a civil infraction with escalating per-day fines and is referrable for injunctive relief in 47th District Court. Pre-September-2023 grandfathered non-owner-occupied STRs that lapse in continuous registration during the 5-year amortization window forfeit their grandfathered status and become subject to the ban immediately, regardless of night count. Operators should not confuse the absence of a numeric night cap with permission for de facto absentee whole-house operation; the owner-occupied requirement is the operative control and is verified at each 3-year renewal. Future state legislation (a successor to HB 4722) could change this framework, but as of 2026 no such bill has passed both chambers.

The rules around night caps in Farmington Hills lean permissive, but that does not mean anything goes.

Noise Rules

Farmington Hills does not codify short-term-rental-specific quiet hours separate from its general noise framework. STR guests and operators are subject to Chapter 17 (Nuisances) and the general noise provisions of the Farmington Hills Code, which prohibit loud, disturbing, or unnecessary noises that disturb the peace and quiet of any neighborhood or any reasonable person of ordinary sensibilities. Enforcement is principally complaint-driven through the Farmington Hills Police Department (non-emergency 248-871-2610). The owner-occupied STR operator is personally on-site under the September 2023 ordinance framework, so noise complaints are directly traceable to the responsible host. Repeat verified noise or nuisance violations are tracked against the property's Certificate of Compliance under Chapter 9 (Housing Code) and can result in non-renewal or revocation of the certificate, effectively shutting down the STR. Prudent operators post 10 p.m. to 7 a.m. quiet hours in their house rules consistent with customary Michigan suburban norms.

Key details: STR-Specific Quiet Hours: Not codified; general noise/nuisance ordinance applies. Governing Provisions: Farmington Hills Code Chapter 17 (Nuisances) and general noise provisions. Measurement Standard: Plain audibility / reasonable-person disturbance. Active Disturbance Contact: Farmington Hills Police non-emergency (248) 871-2610. Operator Liability: Owner-occupied operator typically on-site; directly citable.

Violations of the Farmington Hills Chapter 17 (Nuisances) and general noise provisions are civil infractions enforceable by the Farmington Hills Police Department with citations and fines set by the city's general penalty schedule and adjudicated in 47th District Court. Both the noise maker (typically a guest) and the operator of record may be cited when the noise originates from STR activity; the owner-occupied operator's on-site presence under the September 2023 ordinance framework eliminates many traditional defenses. Patterns of verified noise or nuisance violations tied to an STR address are tracked by the Building Division and integrated with the property's rental registration record under Chapter 9; a pattern can result in non-renewal of the Certificate of Compliance at the 3-year reinspection or, in egregious cases, revocation mid-term with cease-and-desist of paid guest hosting. Continued operation after revocation is a Chapter 34 zoning violation (operating without authorization) and can be referred for injunctive relief. Repeat noise violations that escalate to disorderly persons offenses under Michigan law (MCL 750.167) are misdemeanors with potential jail exposure for the responsible individuals. Operators should not rely on the absence of an STR-specific quiet-hours ordinance as a permission slip for guest noise: the general nuisance and noise framework is fully operative, the registration regime creates a direct revocation pathway, and the absence of HB 4722 preemption (the bill never passed the Senate) means Farmington Hills retains full discretion to enforce these standards.

Parking Rules

Farmington Hills does not impose a separate short-term-rental-specific parking ratio because the September 2023 ordinance restricts STR activity to owner-occupied residential dwellings whose parking is already governed by the existing Chapter 34 (Zoning) Article 5 off-street parking standards for residential uses (typically 2 spaces per single-family dwelling, plus driveway capacity). STR guests use the same off-street capacity as long-term residents; the owner-occupied requirement means the operator's own vehicles share that capacity. Parking inadequacy can be cited at the Certificate of Compliance reinspection if the off-street facilities have been removed or are inoperable. On-street guest parking is subject to the Farmington Hills Code (Chapter 22 - Traffic and Motor Vehicles) and Michigan motor vehicle law: no blocking driveways, fire hydrants, intersections, or crosswalks, no parking against traffic, no overnight on-street parking on posted streets, and compliance with any neighborhood-specific time-limit or permit-zone restrictions. HOA covenants in Farmington Hills subdivisions (Independence Commons, Ramblewood, Independence Village) often impose stricter parking rules including bans on guest commercial vehicles and overnight on-street parking.

Key details: STR-Specific Parking Ratio: None (owner-occupied STR treated as ancillary to residential use). Underlying Single-Family Standard: Typically 2 off-street spaces per dwelling (Chapter 34 Article 5). Non-Owner-Occupied STR: Prohibited - treated as 'Motel' use not permitted in residential districts. On-Street Parking Rules: Farmington Hills Code Chapter 22 and Michigan Vehicle Code. Overnight On-Street Parking: Restricted on many residential streets (snow-removal season).

Operating an STR at a dwelling with fewer off-street spaces than the Chapter 34 Article 5 residential standard (typically two spaces per single-family dwelling) is a zoning violation enforceable by the Building Division through Chapter 34 enforcement and through the Chapter 9 rental registration inspection regime. Loss or removal of required off-street parking capacity (paving over a driveway, removing a garage, blocking spaces with permanent storage) can be cited at the Certificate of Compliance reinspection and the certificate's renewal can be conditioned on parking restoration. On-street parking violations by STR guests (blocking driveways or fire hydrants, parking within prohibited distances of intersections or crosswalks, parking against traffic, parking on sidewalks, overnight on-street parking on posted streets) are civil infractions under Chapter 22 (Traffic and Motor Vehicles) and Michigan motor vehicle law, enforceable by Farmington Hills Police with citations. Patterns of guest-parking complaints tied to a single STR address are tracked by the Building Division as evidence of the STR's incompatibility with the residential character of the neighborhood and can support non-renewal of the Certificate of Compliance at the 3-year reinspection mark; severe patterns can support mid-term revocation. HOA covenant parking violations are enforced privately by the HOA and operate independently of the city enforcement framework - some HOAs are substantially more aggressive than the city in pursuing covenant violations through fines, towing contracts, and litigation. Operators should not interpret the absence of an STR-specific parking ratio as a relaxation of parking compliance; the underlying residential standard is fully operative and integrated with the rental registration regime.

Occupancy Limits

Farmington Hills does not codify a single short-term-rental-specific occupancy formula (like 'two per bedroom plus two') separate from the general housing code framework. Maximum occupancy at a registered owner-occupied STR is governed by Chapter 9 (Community Development) Article II (Housing Code) standards and by the Michigan Building Code as adopted by the city: minimum sleeping-room sizes, code-conforming egress from each bedroom (door to exterior or egress window meeting Michigan Residential Code size and sill-height requirements), smoke alarms in each bedroom and on each floor, and CO detectors near sleeping areas in dwellings with fuel-burning appliances or attached garages (MCL 125.1504c). The property maintenance inspection at initial registration and at each 3-year Certificate of Compliance renewal verifies these standards. Operators must size guest capacity to rooms actually designed and built as bedrooms with code-conforming egress; marketing dens, basements without egress, or lofts as sleeping space can result in inspection failure and certificate non-renewal.

Key details: STR-Specific Occupancy Formula: Not codified (no 'two-per-bedroom-plus-two' rule). Governing Codes: Farmington Hills Chapter 9 Article II (Housing Code) + Michigan Residential Code + Michigan Building Code. Minimum Sleeping Room Size: Michigan Residential Code R304: 70 sq ft minimum, 7 ft minimum any horizontal dimension. Required Egress per Bedroom: Michigan Residential Code R310: door to exterior or egress window (5.7 sq ft min, 24 in height, 20 in width, 44 in sill). Required Smoke Alarms: Each bedroom, outside sleeping areas, each story (Michigan Residential Code R314).

Because Farmington Hills does not codify a single STR-specific occupancy cap, enforcement runs through the underlying Chapter 9 Housing Code and Michigan Residential Code standards. Overcrowding, inadequate sleeping-room size, or unsanitary conditions traced to high occupancy can be cited under Chapter 9 Article II and adjudicated as civil infractions in 47th District Court. Marketing or using non-bedroom rooms (dens, basements without code-conforming egress, lofts) as sleeping space is a Michigan Residential Code R310 (egress) violation - a serious life-safety issue - that can result in cease-and-desist of STR operation pending correction. Missing or inoperable smoke alarms in each sleeping room or on each story (R314), or missing CO detectors where required (R315, MCL 125.1504c), are likewise life-safety violations cited at inspection and can result in failed reinspection and non-renewal of the Certificate of Compliance. Pattern violations or repeat overcrowding complaints can support mid-term certificate revocation, terminating the operator's authority to host paying guests under the September 2023 zoning amendment. HOA covenant occupancy violations are enforced privately by the HOA and operate independently. Operators should not treat the absence of a single codified occupancy formula as a relaxation of overcrowding standards; the underlying Michigan Residential Code requirements are rigorously enforced at the rental registration inspection stage.

Insurance Requirements

Public summaries of the Farmington Hills September 2023 STR ordinance reference liability insurance as a requirement but do not publish a specific minimum coverage amount in the Municode text accessible to the public; operators should confirm the current insurance condition directly with the Building Division (248-871-2450) before listing. Regardless of the codified minimum, the standard Michigan homeowner's HO-3 policy contains a business-pursuits exclusion that voids coverage for paid short-term rental activity, leaving operators personally liable for guest injuries, property damage, and third-party claims unless they add a short-term-rental endorsement or carry a dedicated commercial STR policy. Platform host-protection programs (Airbnb AirCover, VRBO Liability Insurance) provide up to $1M but are supplemental and exclude off-platform direct bookings. Michigan no-fault auto law does not extend to STR liability. Common industry minimum coverage in the Detroit metro market is $1M-$2M general liability.

Key details: City-Mandated Insurance Minimum: Referenced in summaries; specific minimum confirmed with Building Division (248-871-2450). Standard Michigan HO-3 Policy: Excludes paid STR activity (business-pursuits exclusion). Recommended Coverage Forms: Short-term rental endorsement on HO-3 OR dedicated commercial STR policy. Common Industry Liability Limits: $1M-$2M general liability (Detroit metro market norm). Michigan STR Endorsement Carriers: Auto-Owners, Citizens, Foremost, Proper Insurance, Steadily, CBIZ.

Failure to maintain liability insurance as required by the rental registration administrative practice at the Farmington Hills Building Division can result in non-issuance or non-renewal of the Certificate of Compliance, terminating the operator's authority to host paying guests under the September 2023 zoning amendment. Continued operation after non-renewal becomes a Chapter 34 zoning violation referable for injunctive relief and civil infraction fines. Beyond the regulatory consequence, the financial-risk consequence of operating without proper STR-specific insurance is the principal exposure: a guest injury or property damage claim that the standard Michigan HO-3 policy declines under the business-pursuits exclusion can leave the operator personally responsible for defense costs (often $50,000-$200,000 for any serious claim) and any resulting judgment or settlement, which for serious bodily-injury claims in Oakland County can exceed $1,000,000. Operators relying solely on platform host-protection programs (AirCover, VRBO Liability Insurance) face documented coverage gaps including off-platform direct bookings (not covered at all), claim-handling delays, exclusions for intentional acts and certain property categories, and the supplemental rather than primary nature of the coverage. Some Farmington Hills HOA covenants independently require liability coverage and HOA additional-insured status; violation is enforceable privately by the HOA. Misrepresenting insurance status on the rental registration application can result in revocation of the Certificate of Compliance for misrepresentation in addition to the underlying coverage gap. Operators should verify the current city minimum directly with the Building Division and document compliance at registration and at each 3-year renewal.

Registration Rules

Under the September 2023 ordinance, every lawful Farmington Hills short-term rental (limited to owner-occupied dwellings, plus pre-September-2023 grandfathered non-owner-occupied operations through the 5-year amortization sunset) must be registered with the Building Division under Chapter 9 (Community Development), Article II (Housing Code), and must hold a current Certificate of Compliance. Registration requires a completed application, proof of ownership, proof of owner-occupied permanent residence (for new registrations after September 2023), driver's license/state ID for owner and authorized agent, registration fees, and a passing property maintenance inspection. The Certificate is valid up to 3 years and must be renewed through reinspection. Designation of a local contact is required if the owner will be away from the property during any rental period. Operating an STR without a current Certificate of Compliance is a Chapter 9 violation enforceable by civil infraction citations and ultimately cease-and-desist with injunctive relief.

Key details: Registration Required For: All lawful STR operations (owner-occupied + grandfathered non-owner-occupied). Governing Code: Chapter 9 (Community Development), Article II (Housing Code) - Farmington Hills. Application Submitted To: Farmington Hills Building Division (248-871-2450, code.enforcement@fhgov.com). Required Documents: Application, deed, primary-residence proof, driver's license/ID, local contact designation. Property Maintenance Inspection: Required at initial registration and each renewal.

Operating an STR in Farmington Hills without a current Certificate of Compliance is a Chapter 9 Article II (Housing Code) civil infraction enforceable by the Building Division's Code Enforcement function with civil infraction citations adjudicated in 47th District Court, with escalating per-occurrence and per-day fines. The September 2023 zoning amendment compounds the consequence: an unregistered STR is also operating in violation of Chapter 34 (Zoning) because lawful STR activity requires both the zoning use authorization (owner-occupied residential ancillary use) and the housing-code Certificate of Compliance. Continued operation after revocation or non-renewal of the Certificate is a Chapter 34 zoning violation referable for cease-and-desist and injunctive relief. Misrepresentation on the registration application (false claim of owner-occupied status, false residency documentation, false ownership claims) is a separate civil infraction and can support revocation of the Certificate plus reclassification of the property as an unlawful non-owner-occupied STR. Failure to designate a local contact, or designation of an unreachable or non-responsive contact, can result in registration denial or non-renewal. Failure to pass the property maintenance inspection requires remediation of all cited deficiencies before the Certificate issues; serious life-safety failures (missing smoke alarms in sleeping rooms, non-conforming egress, missing CO detectors where required) can result in stop-rental orders pending correction. Operating in violation of Chapter 17 (Nuisances), the noise ordinance, parking standards, or occupancy limits while holding a Certificate is tracked against the property's registration record and can support non-renewal at the 3-year mark or mid-term revocation in severe cases. Operators must also remain in good standing with the Michigan Department of Treasury for the 6% Michigan Use Tax (MCL 205.92) - while tax non-payment is enforced principally by the state, repeat tax-non-compliance evidence can support city refusal to renew the Certificate as evidence of failure to maintain the property as a lawful rental dwelling.

Compared to other cities, Farmington Hills takes a harder line on registration rules. The enforcement and penalty structure reflects that.

Host Presence Rule

Farmington Hills' September 2023 ordinance effectively requires host presence for all newly initiated STRs through the owner-occupied / primary-residence requirement. Lawful new STRs after September 2023 must be in dwellings the owner uses as their permanent primary residence, verified at registration and at each 3-year Certificate of Compliance renewal. While the ordinance does not require the host to be physically present at every moment of every rental, the host must genuinely reside at the property and cannot consistently leave the dwelling vacant of the host while paying guests occupy it as a de facto whole-house rental. The framework permits hosted home-share operation (rented bedrooms or ADUs while the host occupies the rest of the dwelling) and short hosted absences (host vacation during which guests occupy the dwelling), but is incompatible with the absentee-investor whole-house operating model. Pre-September-2023 grandfathered non-owner-occupied STRs operate without a host-presence requirement through the 5-year amortization sunset (approx. September 2028).

Key details: Continuous Host Presence Required: No (host need not be physically present at every moment). Owner-Occupied / Primary Residence Required: Yes - functions as effective host-presence rule for new STRs after September 2023. Permitted Operating Models: Hosted home-share (rented bedrooms/ADUs while host occupies dwelling) + short hosted absences. Prohibited Operating Model: Absentee-investor whole-house rental (host resides elsewhere). Verification at Registration: Michigan DL, utility bills, voter registration, vehicle registration at property address.

The host-presence framework is enforced principally through the owner-occupied / primary-residence verification regime under Chapter 34 and Chapter 9. Failure to maintain genuine primary residence at the property - documented by consistent host absence, conflicting primary-residence indicia (driver's license, utility bills, voter registration showing a different address), neighbor complaints, or evidence the host actually resides elsewhere - can result in reclassification of the dwelling as an unlawful non-owner-occupied STR. Reclassification triggers cease-and-desist under Chapter 34 (the property is then treated as 'Motel' use not permitted in residential districts) and revocation of the Certificate of Compliance under Chapter 9. Continued operation after cease-and-desist is a civil infraction with escalating per-day fines, referrable for injunctive relief in 47th District Court. Misrepresentation on the registration application (false claim of primary residence) is a separate civil infraction and can compound the consequences. Failure to designate a 24-hour-reachable local contact, or designation of an unreachable or non-responsive contact, is a Chapter 9 housing code violation cited at inspection and can result in non-renewal of the Certificate. Operators using property management firms or unaffiliated local contacts should ensure those contacts can actually respond within a short timeframe to emergencies and complaints; absent or non-responsive contacts are a frequent driver of non-renewal at the 3-year mark. The framework does not preclude legitimate short hosted absences (host vacation, business trip), but operators should document their continued primary-residence status to defend against reclassification.

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

Primary-Residence-Only Rule

The September 2023 Farmington Hills ordinance imposes an explicit primary-residence requirement on all newly initiated short-term rentals: the host must use the dwelling as their permanent primary residence, with no exceptions for second homes, vacation homes, investment properties, or LLC-held properties intended for absentee operation. Primary residence is verified at initial registration through Michigan driver's license at the property address, two or more utility bills in the host's name at the address, voter registration, and vehicle registration; and is re-verified at each 3-year Certificate of Compliance renewal through reinspection and updated documentation. Pre-September-2023 registered non-owner-occupied STRs receive a 5-year amortization (through approximately September 2028), after which they too must convert to primary-residence operation or cease. The ordinance is permitted under MCL 125.3204 and Heydon v. Charter Twp. of Brighton (2014); HB 4722 of 2021 (which would have preempted primary-residence requirements) never passed the Michigan Senate.

Key details: Primary Residence Required: Yes - for all STRs newly initiated after September 2023. Exceptions for Second Homes / Investment Properties: None for new registrations. LLC / Entity-Held Properties: Natural-person resident-owner treated as registrant; sham residence not permitted. Verification Documents (Initial): Michigan DL, 2+ utility bills, voter registration, vehicle registration. Verification Cadence: Each 3-year Certificate of Compliance renewal (reinspection + updated documents).

Failure to satisfy the primary-residence requirement at registration is grounds for denial of the rental registration application; the Certificate of Compliance will not issue without satisfactory documentation of primary residence. Misrepresentation on the application - false claim of primary residence, fabricated utility bills or voter registration, conflicting driver's license address - is a civil infraction under Chapter 9 enforceable by Code Enforcement with escalating fines, and can also constitute a separate offense under Michigan law for false statements to a public official. Misrepresentation is grounds for immediate revocation of any Certificate of Compliance that was issued based on the false documentation, and for cease-and-desist of STR operation pending resolution. Loss of primary-residence status during the 3-year Certificate term - the host moves out, takes a job in another state, transitions to using the property as a part-time vacation home, or otherwise ceases to genuinely reside at the address - requires the operator to either re-establish primary residence at the property before the next renewal or cease STR operation; continuing to operate after primary-residence status has lapsed is non-owner-occupied operation prohibited in residential districts. Reclassification evidence includes documentation showing the operator has registered to vote at a different address, changed driver's license to a different address, established utility service at a different address, or filed Michigan or federal income tax returns claiming a different address as primary residence. Pre-September-2023 grandfathered non-owner-occupied STRs forfeit their grandfathered status by allowing the Certificate to lapse or by failing a reinspection; upon forfeiture they become subject to the primary-residence requirement immediately and must convert or cease. Operators using LLC structures must ensure the natural person who registers as the host is genuinely the resident; structuring around the requirement through nominee residents or sham primary-residence claims is a misrepresentation civil infraction and can support revocation plus referral for further investigation.

Compared to other cities, Farmington Hills takes a harder line on primary-residence-only rule. The enforcement and penalty structure reflects that.

The Bottom Line

Farmington Hills is tougher than many cities when it comes to short-term rentals. Out of the 10 rules covered here, 4 are rated strict. If you are a homeowner, renter, or business owner in Farmington Hills, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

This guide is based on Farmington Hills's current municipal code. Local rules can and do change, so check the individual ordinance pages for the latest details, penalties, and FAQs.