Grand Rapids Short-Term Rental Regulations

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Permit & Licensing

Home Occupation Class B License (One-Room Rental)

The property must be your primary residence. This means investment properties are not eligible for this permit type.

Zoning restriction: Permitted as a Class B Home Occupation (Director Review) in single-family and two-family residential zones; owner-occupied dwelling only, room must be within the main dwelling unit (not an accessory structure).

Home Occupation Class C License (Bed & Breakfast / Rooming or Boarding House)

The property must be your primary residence. This means investment properties are not eligible for this permit type.

Zoning restriction: Requires Special Land Use approval from the Planning Commission; owner-occupied only, no more than 500 feet from another bed and breakfast.

Application Process

Apply through the City Clerk's Office (Citizen Access online portal, paper form, or in person); submit a floor plan showing the room to be rented; Fire Department inspection scheduled as needed; 5-10 business days to process. Capped at 200 licenses issued per year, so early application is advised.

Note: Document requirements vary by permit type. See individual permit sections above for eligibility details.

Tax Obligations

Combined rate: 14% of gross rental income.

Collection: State use tax and county lodging tax must generally be self-collected and remitted by the host/operator (Michigan Treasury registration required); platforms do not uniformly collect and remit both layers.

Filing: Monthly (quarterly available by request) for the Kent County lodging tax, due the 15th of the following month

Rental Limits

Grand Rapids does not impose an annual cap on the number of nights you can rent.

Occupancy & Density Limits

One-room rental: max 2 adult guests overnight. Bed and breakfast: max 2 adults per guest room, up to 5 guest rooms.

Zoning & Restrictions

• No zoning path exists for a non-owner-occupied whole-home short-term rental in residential zones.
• The Zoning Ordinance recognizes only three short-term lodging types: One Room Rental (owner-occupied, Class B Home Occupation, max 2 guests), Bed and Breakfast (owner-occupied, Class C Home Occupation, Special Land Use approval), and Hotel/Motel (5+ bedrooms, commercial use).
• Accessory Dwelling Units are explicitly barred from short-term rental use.

Insurance & Safety

Insurance

Grand Rapids does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Safety & Operating Requirements

• Single-station or multiple-station smoke alarms required in the residence
• At least one properly selected, installed, and maintained fire extinguisher in a conspicuous, unobstructed location
• Fire Department inspection required as part of licensing

Penalties for Non-Compliance

Any violation of the Home Occupation ordinance may be grounds for denial, suspension, or revocation of the license. A one-room rental or bed-and-breakfast license is automatically denied, suspended, or revoked if the property carries a 0% Principal Residence Exemption or is held as tenants in common.

Market Snapshot

Demand context for Grand Rapids from official government and tourism statistics — the latest published annual figures, not a projection of rental income.

Reminder: permit availability is constrained in this market (see the caveat near the top of this page) — demand figures do not mean a new permit is obtainable.

Figures are the latest annual statistics published by the linked official sources (retrieved 2026-07-13). Visitor counts cover the geography stated by each source, which can be wider than the city itself. Regulations above — not market conditions — determine whether and how you may operate.

Compliance Checklist

Follow these steps to legally operate a short-term rental in Grand Rapids:

1. Determine your permit type. Grand Rapids has 2 permit types. Identify which applies to your property (Home Occupation Class B License (One-Room Rental), Home Occupation Class C License (Bed & Breakfast / Rooming or Boarding House)).
2. Meet safety requirements. Single-station or multiple-station smoke alarms required in the residence. At least one properly selected, installed, and maintained fire extinguisher in a conspicuous, unobstructed location. Fire Department inspection required as part of licensing.
3. Apply for your STR permit. Submit application. Fees vary by type: Home Occupation Class B License (One-Room Rental) $634; Home Occupation Class C License (Bed & Breakfast / Rooming or Boarding House) $646. See permit types above to determine which applies.
4. Register for tax accounts. Set up lodging tax accounts with Michigan Department of Treasury; Kent County Treasurer.
5. Collect and remit taxes. 14% on all bookings.
6. Renew annually. Renewal fees vary by permit type ($229 / $190). See permit types above.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Grand Rapids?

Yes. Grand Rapids requires a short-term rental permit to operate an Airbnb or Vrbo, and there are 2 permit types. See the permit types above to find which applies to your property.

How much does a short-term rental permit cost in Grand Rapids?

Permit costs in Grand Rapids vary by type: Home Occupation Class B License (One-Room Rental) $634; Home Occupation Class C License $646.

Does Grand Rapids require a short-term rental to be your primary residence?

Yes. Every Grand Rapids permit type requires the property to be your primary residence, so investment or non-owner-occupied rentals generally are not eligible.

How many days a year can you short-term rent in Grand Rapids?

Grand Rapids does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.

What taxes do you pay on a short-term rental in Grand Rapids?

Short-term rental stays in Grand Rapids are subject to a combined 14% in lodging taxes. This combines 6% Michigan Use Tax (accommodations) + 8% Kent County Hotel/Motel (lodging excise) Tax. Hosts are legally responsible; many booking platforms collect and remit them automatically on the host's behalf.

What are the penalties for short-term rental violations in Grand Rapids?

Any violation of the Home Occupation ordinance may be grounds for denial, suspension, or revocation of the license.