Mackinac Island Short-Term Rental Regulations

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Permit & Licensing

Rental Unit License

This permit type does not require primary residence.

Application Process

Owner files a written application with the city clerk on a city-council-approved form, names a locally-residing agent, and pays the license fee; the police chief, fire chief, and/or building inspector inspect the premises against an adopted inspection checklist before the license is granted; license is nontransferable and expires May 1 following issuance.

Tax Obligations

Combined rate: 6% of gross rental income.

Filing: Monthly, quarterly, or annual returns as required by the Michigan Department of Treasury

Rental Limits

Mackinac Island does not impose an annual cap on the number of nights you can rent.

Occupancy & Density Limits

No fixed citywide numeric cap; occupancy is limited to the number of occupants and areas of the unit declared by the owner in the rental license application

Zoning & Restrictions

The Zoning Ordinance (Ord. No. 278) classifies any rental of a dwelling, boardinghouse, or apartment for less than 30 continuous days as a 'hotel' use (Sec. 2.45), a distinct commercial use classification from ordinary single-family residential use. Separately and city-wide regardless of zoning district, Chapter 10, Article IV of the Code of Ordinances requires every rental unit on the island -- including single-family and multi-family homes rented on a short-term overnight basis -- to be inspected and licensed by the city as a 'rental unit,' independent of the zoning 'hotel use' classification.

Insurance & Safety

Insurance

Mackinac Island 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

• Owner must provide a floor plan depicting emergency evacuation routes, rooms, stairways, and paths of egress, displayed in every sleeping room
• Premises must be maintained and utilized in compliance with the NFPA Life Safety Code
• Pre-license inspection by the police chief, fire chief, and/or building inspector (or designees)

Penalties for Non-Compliance

• Operating a rental unit without a license: civil infraction, fine of not more than $500.00 for each offense plus costs of action
• Each day of operation without a license is a separate offense
• License revocation for uncorrected violations, 3+ qualifying violations within any 12-month period, material misrepresentation on the application, or refusal to allow inspection

Compliance Checklist

Follow these steps to legally operate a short-term rental in Mackinac Island:

1. Meet safety requirements. Owner must provide a floor plan depicting emergency evacuation routes, rooms, stairways, and paths of egress, displayed in every sleeping room. Premises must be maintained and utilized in compliance with the NFPA Life Safety Code. Pre-license inspection by the police chief, fire chief, and/or building inspector (or designees).
2. Apply for Rental Unit License. Submit application. Contact city for fee details.
3. Register for tax accounts. Set up lodging tax accounts with Michigan Department of Treasury.
4. Collect and remit taxes. 6% on all bookings.
5. Renew annually. Contact city for renewal fee details.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Mackinac Island?

Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Mackinac Island requires a Rental Unit License.

Does Mackinac Island require a short-term rental to be your primary residence?

No. Mackinac Island allows non-owner-occupied short-term rentals, so investment properties can qualify provided you hold the required permit.

How many days a year can you short-term rent in Mackinac Island?

Mackinac Island 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 Mackinac Island?

Short-term rental stays in Mackinac Island are subject to a 6% Michigan Use Tax (Lodging). The host is responsible for collecting and remitting it.

What happens if you run a short-term rental without a permit in Mackinac Island?

Operating without a permit can cost up to $500 per day.