Grand Rapids, MI Short-Term Rentals: Insurance Requirements (2026)

Grand Rapids regulates short-term rentals primarily through Chapter 116 (Home Occupation) of the City Code and Chapter 61 (Zoning Ordinance). The relevant license for renting a single room in an owner-occupied home is the Home Occupation Class B / One-Room Rental License, issued by the City Clerk's Office at 300 Monroe Avenue NW. The application checklist published by the Clerk requires a completed Home Occupation Class B Application (Parts I and II), a floor plan of the home with the rented room labeled, payment of the application fee, and a fire safety inspection scheduled through the Code Compliance Department. The City caps the program at approximately 200 active Class B Home Occupation licenses citywide. Whole-home rentals and ADU short-term rentals are prohibited: Section 5.9.03 of Chapter 61 expressly states that no ADU shall be leased for less than thirty (30) days or used as a short-term rental. The City Code itself does not set a specific liability-insurance dollar threshold (such as $1,000,000) as a condition of issuance for the Class B license, and the City Clerk's published one-room rental guidance does not require a certificate of insurance to issue the license. However, hosts should treat liability coverage as a practical necessity: most standard Michigan homeowner's policies exclude transient lodging or business use, and Airbnb/Vrbo platform 'host protection' is supplemental rather than primary coverage. State law (Michigan's transient accommodations regime) requires Use Tax (currently 6%) on stays under 30 days, and the Michigan Lodging Tax framework also applies. Hosts in Kent County must additionally remit the 5% Kent County Hotel/Motel Excise (Accommodations) Tax administered by the Kent County Treasurer.