Fennville Short-Term Rental Rules & Airbnb Laws (2026)
STRs are legal in R-1, R-2, B-1, and CBD districts but require special land use approval plus an annual permit. Caps are 5% in R-1 and 10% in R-2 — small numbers in a small city. Notable loophole: ADU-based STRs are allowed in any district and do not count against the caps.
Status: Open with caps. County: Allegan County. Whole-home STRs: Yes, with special land use approval in R-1, R-2, B-1, CBD. Caps: 5% R-1 / 10% R-2 (ADUs exempt). Annual cost: ~$25 registration + $75 inspection (confirm with city). Lodging taxes: 6% (state use tax only).
Investor takeaway: Cheap inland entry near Saugatuck's wine and orchard country. The ADU exemption is the interesting play — it can be a workable path even when the primary caps are full.
Last verified July 2026. This page is general information, not legal advice — confirm current requirements directly with the municipality before purchasing.
Fennville at a glance
- Status
- Open with caps
- County
- Allegan County
- Whole-home STRs
- Yes, with special land use approval in R-1, R-2, B-1, CBD
- Cap / waitlist status
- 5% R-1 / 10% R-2 (ADUs exempt)
- Annual cost
- ~$25 registration + $75 inspection (confirm with city)
- Lodging taxes
- 6% (state use tax only)
- Districts allowed
- R-1, R-2, B-1, and CBD
- Approval required
- Special land use from the Planning Commission (public hearing) + annual permit
- Caps
- 5% of residential units in R-1; 10% in R-2 (confirm remaining capacity with City Hall)
- ADU loophole
- ADU-based STRs allowed in ANY district and do NOT count against caps
- Occupancy
- Set by Fire Department
- Inspections
- Annual fire inspection
- Parking
- Paved off-street parking keyed to bedroom count
- Trash
- Extra container required for 5+ bedroom rentals
- Fees (published?)
- Not published — reported ~$25 registration + $75 inspection; confirm with city (269-561-8321)
- Lodging taxes
- 6% Michigan state use tax only
The special land use step
Fennville allows STRs in R-1, R-2, B-1, and CBD districts, but the approval path is not a simple registration. You need special land use approval from the Planning Commission — which involves a public hearing — plus an annual permit on top.
Because Fennville is a small city, the 5% and 10% caps translate to a small number of available slots. Always call City Hall at 269-561-8321 to confirm remaining capacity before you write an offer.
The ADU angle
The most interesting feature of the Fennville ordinance for investors is the ADU exemption: STRs operated out of an Accessory Dwelling Unit are allowed in any district and do not count against the R-1 or R-2 caps.
For a small-check investor who wants inland exposure near Saugatuck's wine and orchard country, an ADU on a suitable lot can be a workable path even when the primary caps are full.
Operating requirements
Occupancy is set by the Fire Department and an annual fire inspection is required. Paved off-street parking must be keyed to bedroom count, and rentals with five or more bedrooms need an extra trash container. Fee amounts are not published on the city website — reported at roughly $25 registration and $75 inspection — call City Hall to confirm current numbers.
Lodging tax is the 6% Michigan state use tax only.
Frequently asked questions
Is it just a registration in Fennville?
No — you need special land use approval from the Planning Commission (public hearing) before you can obtain an annual STR permit.
Are there caps?
Yes. 5% of residential units in R-1 and 10% in R-2. ADU-based STRs are exempt from the caps. Confirm remaining capacity with City Hall at 269-561-8321.
Can I run an STR out of an ADU?
Yes — in any district, and it does not count against the 5%/10% caps. This is the most interesting angle in the Fennville ordinance for investors.
What are the fees?
Fees are not published on the city website. Reported at approximately $25 registration and $75 inspection — call City Hall (269-561-8321) to confirm current amounts before you underwrite.
Investor takeaway
Cheap inland entry near Saugatuck's wine and orchard country. The ADU exemption is the interesting play — it can be a workable path even when the primary caps are full.
Sources
Last verified July 2026. General information, not legal advice — confirm current requirements with the municipality before purchasing.
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