Detroit

No city permit

Detroit has no short-term rental permit, license or registration. A June 24, 2025 city report said no short-term rental ordinance had been enacted,[1] and a city page for an Oct 8, 2025 discussion still called the ordinance proposed.[2] The online city code lists no short-term rental ordinance among the adopted ordinances not yet codified, which run through Jan 2, 2026.[5]

Zoning bar

Section 50-12-492(d) of the zoning code says use of a dwelling to accommodate paid overnight guests is prohibited as a home occupation.[5] It still permits public accommodations, including bed and breakfast inns outside the R1 and R2 districts, as provided in Section 50-12-65.[5] In October 2024 the City Planning Commission advised not to repeal that prohibition until a short-term rental ordinance is ready for Council.[1]

Proposed license classes

A Jan 3, 2024 draft from the Legislative Policy Division would create four classes: a 14-day and a 90-day license open to any applicant, a one-year license for an owner who lives on site, and a one-year license for an owner who doesn't live there, limited to the greater downtown area.[3] Fees would be $250 to start and $125 a year to renew.[3] It is a draft, not law.[1, 2]

Landlord's rental registration

Detroit's rental ordinance has owners register each rental property in the Code Enforcement Module and get a certificate of compliance, valid three years at first and five on renewal.[7] An inspection costs $195 for a single unit or $225 for a duplex, plus a $20 processing fee.[7]

No operating rules

We found no city rules for short-term rentals on guest limits, signage or a local contact, because no ordinance has been enacted.[1]

Draft insurance and inspections

The 2024 draft would require liability insurance, shown by affidavit.[3] It would also let the city inspect on a complaint or other reasonable basis.[3]

Stay length

A city page defines a short-term rental as a stay of 27 consecutive days or less and excludes licensed hotels, bed and breakfasts and similar places.[2] The 2024 draft instead capped a stay at 90 cumulative days per guest.[3]

Rental safety inspection

The rental certificate needs a 15-point safety inspection that takes one to two hours.[7] Properties with one or two units book an approved inspection company, and buildings with three or more units call BSEED at 313-628-2451.[7] The first reinspection costs nothing extra if the property fails.[7]

State use tax

Michigan's use tax is 6%.[8] It covers rooms or lodging furnished by hotelkeepers, motel operators and other persons furnishing accommodations that are available to the public on the basis of a commercial and business enterprise, except rooms and lodging rented for a continuous period of more than 1 month.[9] The Treasury's sales and use tax page says use tax applies to hotel and motel accommodations.[10]

Short-term rental hosts

The Legislative Policy Division says the 6% use tax includes people providing short-term rental accommodation rented for less than 1 month.[1]

No city lodging tax

On July 3, 2025 the division said Detroit does not currently have authority to impose the 2% excise tax on businesses providing rooms for lodging, including short-term rentals.[4] The reason is that Public Act 263 of 1974 covers counties of 600,000 to 775,000 people, and Wayne County is larger.[4]

Who collects

We found no Michigan source saying whether booking platforms collect this use tax for you, so confirm with Treasury before you rely on a platform.

Prohibited use

The Legislative Policy Division says short-term rentals are currently prohibited in Detroit.[1] City planning staff described the home-occupation bar in 2024 as an attempt to ban short-term rentals in R1 and R2 districts that the Law Department found too vague to enforce.[6]

Rental violations

Under the rental ordinance, the city issues violation tickets that rise by $150 each, and unpaid tickets can become liens collected through tax bills.[7] Repeat violators face more frequent inspections.[7]

Draft penalties

The 2024 draft would treat violations as blight violations and allow a license to be suspended or revoked.[3] It is not law.[1, 2]

State zoning law

Under MCL 125.3207, a zoning ordinance can't have the effect of totally prohibiting a land use where there is a demonstrated need, unless no appropriate location exists or the use is unlawful.[11] The section doesn't name short-term rentals.[11]

State bills

Michigan House Bills 6026 and 6027 were introduced on June 2, 2026 and sent to the Government Operations committee.[12, 13] HB 6026 would set up a short-term rental registry and database, and HB 6027 would amend the zoning act section on total bans of a land use.[11, 12, 13] As of Oct 6, 2026, the last action listed on either page was June 3, 2026, and neither is law.[12, 13]