Ann Arbor

As of May 2026, Ann Arbor, Detroit, Ypsilanti have 966 active Airbnb and VRBO listings. This represents a 8% decrease from the previous year.

The average Airbnb or VRBO in Ann Arbor generates $41K per year. High-performing properties earn $98K/year, while low-performing properties earn $19K/year. The substantial revenue spread suggests that market performance is highly polarized, indicating that top listings capture a disproportionate share of demand despite the 38% annual revenue contraction.

Average home prices in Ann Arbor vary by property size: 1-bedroom properties cost approximately $217K, 2-bedroom homes average $277K, 3-bedroom properties are around $383K, and 4+ bedroom homes average $496K. These prices reflect median home values across the Ann Arbor, Detroit, Ypsilanti area.

Airbnb and VRBO can be profitable in Ann Arbor, with an average gross yield of 10% across all properties. High-performing properties achieve yields up to 24%, which is considered top for short-term rental investment. This yield variance highlights that even with a shrinking revenue environment, top-tier assets maintain significant profitability buffers compared to the market average.

The average occupancy rate for Airbnbs and VRBOs in Ann Arbor is 36%. This occupancy level, combined with an average nightly rate of $300, results in a RevPAR (revenue per available room) of $75 per day.

4+ bedroom properties demonstrate the strongest performance in Ann Arbor, with an average gross yield of 15% and annual revenue of $78K. These properties balance purchase price ($496K), operating costs, and rental demand most effectively in the Ann Arbor market.

Short-term rental regulations vary by jurisdiction in the Ann Arbor area. Ann Arbor: Strict. Registration required, owner-occupancy mandatory, max 2 unrelated guests, 180-day cap for non-owner-occupied. Active enforcement with complaints investigated. Detroit: Lenient. Business license and safety inspection required. No owner-occupancy rule. Light enforcement, many operate without permits. Ypsilanti: Moderate. Permit required, owner-occupancy mandatory, annual inspections. Moderate enforcement, some unpermitted activity exists. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Ann Arbor Airbnb and VRBO market is currently showing balanced conditions. Supply has declined 8% year-over-year, while RevPAR has decreased 38%. This indicates balanced supply-demand dynamics. The simultaneous contraction in both supply and revenue suggests a period of market adjustment where the reduction in available inventory has yet to stabilize broader income trends.

Launch around April, 2-3 months before peak fall season (July peaks). This pre-peak timing lets you build reviews when competition is -22% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (March-January) when gaining traction is harder.

The most common amenities in Ann Arbor listings include: Air Conditioning (99%), Kitchen (96%), Tv (88%), Washing Machine (79%), Heating (73%). Amenities that boost revenue the most include Hot Tub, Bbq, Washing Machine, with Hot Tub properties earning approximately 79% more ($113K/year vs $63K/year).

Monthly estimated revenue per listing in Ann Arbor over the last 12 months: May: $3K, June: $3K, July: $3K, August: $3K, September: $2K, October: $3K, November: $2K, December: $2K, January: $1K, February: $1K, March: $2K, April: $2K. These figures are based on RevPAR (revenue per available room) multiplied by the number of days in each month.

The overall average nightly rate in Ann Arbor is $300, up 11% year-over-year. By property size: 1-bedroom properties average $145/night, 2-bedroom properties average $232/night, 3-bedroom properties average $369/night, 4+ bedroom properties average $615/night. Rates peak in October and are lowest in January.

Guests in Ann Arbor book an average of 33 days in advance, down 22% from last year. By property size: 1-bedroom: 30 days, 2-bedroom: 32 days, 3-bedroom: 35 days, 4+ bedroom: 38 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Ann Arbor Airbnb and VRBO market has seen the following changes: supply declined 8%, revenue per listing decreased 38%, occupancy fell 19%, average nightly rates increased 11%, and lead time decreased 22%. These metrics reveal a market shifting toward shorter booking windows and lower utilization, suggesting that hosts are raising rates to compensate for softening occupancy.

In Ann Arbor, Saturday sees the highest booking demand while Monday has the lowest. Nightly rates peak on Saturday and are lowest on Wednesday. Weekends show 44% higher occupancy than weekdays.