Muskegon Short-Term Rental Regulations

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Permit & Licensing

Short-Term Rental License (Certificate of Short-Term Vacation Rental Registration)

This permit type does not require primary residence. Zoning restriction: Subject to the Short-Term Rental Overlay District: each of the City's 11 zones has its own numeric cap on licensed short-term rentals; properties within the Downtown Development Authority, Lakeside Business Improvement District, or Lakeside Corridor Improvement Authority boundaries are exempt from the caps; no parcel may have more than two short-term rentals abutting its property lines.

Application Process

Applicants apply to the Director of Public Safety (or designee) - the program is administered day-to-day by the Building & Inspections Department (contracted to SafeBuilt) - on a prescribed short-term rental registration form, providing owner/manager contact information, an emergency contact, insurance information, and (if the owner lives more than 30 miles from the property) a responsible local agent. Fees must be paid before an inspection is scheduled; scheduling runs 30-45 days out. If the property's overlay-district zone is at its license cap, the application is placed on a waitlist; otherwise licenses are issued on a first-come, first-served basis as slots open.

Tax Obligations

Combined rate: 11% of gross rental income.

Collection: Muskegon County's 5% accommodation tax is self-collected by the operator and remitted directly to the County Treasurer with a periodic report filed with the County Administrator; it is not collected by the county on the operator's behalf. Michigan's 6% use tax on lodging is likewise generally remitted by the person furnishing the accommodations to the Michigan Department of Treasury.

Filing: Muskegon County accommodation tax: monthly, due by the 15th of each month, for operators providing accommodations year-round; quarterly (due the 15th of the month following March, June, September, or December) for operators providing accommodations less than 12 months of the year.

Rental Limits

Muskegon does not impose an annual cap on the number of nights you can rent. Each individual stay must be less than 28 days.

Zoning & Restrictions

• City of Muskegon Zoning Ordinance Sec. 2314 creates a Short-Term Rental Overlay District dividing the city into 11 zones (drawn along U.S. Census tract lines), each capped at a fixed number of licensed short-term rentals: Zone 1 - 34, Zone 2 - 68, Zone 3 - 60, Zone 4 - 70, Zone 5 - 79, Zone 6 - 25, Zone 7 - 80, Zone 8 - 50, Zone 9 - 95, Zone 10 - 77, Zone 11 - 13. Properties within the Downtown Development Authority, Lakeside Business Improvement District, and Lakeside Corridor Improvement Authority boundaries are exempt from the caps (no maximum).
• No parcel may have more than two short-term rentals abutting its property lines.
• Existing licenses in good standing at adoption may continue and renew; new licenses beyond the cap are issued first-come, first-served only as slots open in a zone.
• Licenses terminate on transfer of ownership and are non-transferable, except for a one-time transfer allowed for licenses active before March 2024.

Insurance & Safety

Insurance

Operators must maintain at least $10,000 minimum dwelling fire insurance (plus general liability insurance coverage for the short-term rental).

Safety & Operating Requirements

• Fire extinguishers, smoke detectors and carbon monoxide detectors must be properly mounted and kept fully charged and in good working order at all times
• A copy of the short-term rental certificate must be displayed inside the dwelling in case of an emergency
• The address of the premises must be prominently displayed inside the main area of the dwelling
• Licensee's and local agent's name, address, phone number(s) and email address must be displayed prominently in the dwelling and supplied in writing to occupants
• General liability insurance coverage from a company licensed in Michigan insuring against risks arising from commercial rental activities on the premises

Penalties for Non-Compliance

Escalating civil infractions for short-term rental ordinance violations: 1st violation - $250 civil infraction; 2nd violation - $500 civil infraction; 3rd violation - $1,000 civil infraction plus revocation of the short-term rental license for up to one year. Separately, under the registration ordinance, registration fees unpaid within 30 days of the due date accrue a $15 per month late fee, up to a maximum of 6 months, after which a municipal civil infraction may be issued for each day the registration remains unfiled after May 31.

Market Snapshot

Demand context for Muskegon 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 Muskegon:

1. Meet safety requirements. Fire extinguishers, smoke detectors and carbon monoxide detectors must be properly mounted and kept fully charged and in good working order at all times. A copy of the short-term rental certificate must be displayed inside the dwelling in case of an emergency. The address of the premises must be prominently displayed inside the main area of the dwelling. Licensee's and local agent's name, address, phone number(s) and email address must be displayed prominently in the dwelling and supplied in writing to occupants. General liability insurance coverage from a company licensed in Michigan insuring against risks arising from commercial rental activities on the premises.
2. Obtain liability insurance. $10,000 minimum dwelling fire insurance (plus general liability insurance coverage for the short-term rental).
3. Apply for Short-Term Rental License (Certificate of Short-Term Vacation Rental Registration). Submit application + $500 fee.
4. Register for tax accounts. Set up lodging tax accounts with Michigan Department of Treasury; Muskegon County Administrator / County Treasurer. Register separately with the local city and/or county for their lodging taxes (self-administered — not collected by the state).
5. Collect and remit taxes. 11% on all bookings.
6. Renew annually. $500 renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Muskegon?

Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Muskegon requires a Short-Term Rental License.

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

A Short-Term Rental License in Muskegon costs $500 per year.

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

No. Muskegon 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 Muskegon?

Muskegon does not cap the total number of nights per year. Its short-term-rental rules apply when a stay is less than 28 days.

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

Short-term rental stays in Muskegon are subject to a combined 11% in lodging taxes. This combines 6% Michigan Use Tax (lodging/accommodations) + 5% Muskegon County Accommodations 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 Muskegon?

Penalties run up to $1,000 (see the Penalties section for the full schedule).