Grand Rapids, MI Short-Term Rentals: Primary-Residence-Only Rule (2026)
Key Facts
- Eligible dwelling
- owner-operator's principal residence only
- Non-owner-occupied use
- classified as Hotel/Motel instead
- Governing section
- Chapter 61 §5.16.02, Lodging Short Term
- License
- Class B/C Home Occupation License required
Summary
Grand Rapids limits short-term lodging licenses to owner-occupied homes: a one-room rental or bed and breakfast must be the operator's principal residence, so non-owner-occupied whole-home rentals do not qualify for these use categories.
ONE ROOM RENTAL. An owner-occupied dwelling in which a single room, couch, or other sleeping area is rented to no more than two adult guests overnight. The dwelling shall be the principal residence of the owner-operator and the owner-operator shall be on the premises when the rental activity is occurring. Subject to a Class B Home Occupation License.2.BED AND BREAKFAST. An owner-occupied detached dwelling in which the owner/operator rents rooms to overnight guests where incidental food and drink may be offered only to those guests. The dwelling shall be the principal residence of the owner/operator and the owner/operator shall be on the premises when the Bed and Breakfast is active. Subject to a Class C Home Occupation License.3.HOTEL AND MOTEL. An establishment where short-term lodging is offered for compensation, typically with a high level of guest services and may include on-site amenities such as pools, restaurants, fitness centers and similar features. Hotels and motels shall be considered five (5) or more bedrooms for the purposes of short-term lodging. LOT
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 70).
Full Breakdown
Under Chapter 61's short-term lodging definitions (§5.16.02), a One Room Rental is defined as 'an owner-occupied dwelling' where 'the dwelling shall be the principal residence of the owner-operator,' and a Bed and Breakfast carries the identical requirement that the dwelling be 'the principal residence of the owner/operator.' A non-owner-occupied home used for paid overnight stays instead falls under the Hotel and Motel use category defined in the same section, which is a different, more restrictive use only allowed in zone districts that permit hotels.
Violations & Fines
A short-term rental operated from a non-owner-occupied home without hotel/motel zoning approval is an unpermitted use under Chapter 61 §5.14.05, a municipal civil infraction escalating to a misdemeanor (up to $500 fine, 90 days) on a fourth offense, per §5.14.07.F.
Frequently Asked Questions
Can I rent out a Grand Rapids house I don't live in as a short-term rental?
Does Grand Rapids define whole-home rentals separately from owner-occupied stays?
Sources & Official References
Other rules in Grand Rapids
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