Grand Rapids Short-Term Rental Rules & Airbnb Laws (2026)
Whole-home short-term rentals under 30 days are effectively prohibited in Grand Rapids. The only STR pathway is a very narrow owner-occupied One-Room Rental license — not a pure investor play.
Status: Heavily restricted. County: Kent County. Whole-home STRs: No. Caps: 200 owner-occupied licenses citywide. Annual cost: $634 initial, $229 renewal. Lodging taxes: ~14% (6% state + 8% Kent County).
Investor takeaway: Grand Rapids is closed to pure STR investors. Two viable moves: run furnished 30+ day mid-term rentals inside the city, or buy your STR in a lakeshore town that welcomes investor operators.
Last verified July 2026. This page is general information, not legal advice — confirm current requirements directly with the municipality before purchasing.
Grand Rapids at a glance
- Status
- Heavily restricted
- County
- Kent County
- Whole-home STRs
- No
- Cap / waitlist status
- 200 owner-occupied licenses citywide
- Annual cost
- $634 initial, $229 renewal
- Lodging taxes
- ~14% (6% state + 8% Kent County)
- Whole-home STRs (<30 days)
- Effectively prohibited — no license category
- Only STR path
- Home Occupation One-Room Rental (owner-occupied, owner present, 1 room, max 2 adult guests)
- Citywide cap
- 200 One-Room Rental licenses per year
- Permit fees
- $634 initial, $229 annual renewal
- Owner-occupancy required?
- Yes — must be principal residence
- Lodging taxes
- 6% Michigan use tax + 8% Kent County lodging excise = ~14%
- Investor alternative
- 30+ day furnished mid-term rentals under the Rental Certification Program (no lodging taxes)
What's actually allowed in Grand Rapids
Grand Rapids does not have a whole-home STR license category. If you want to rent a house on Airbnb or Vrbo for stays under 30 days, there is no permit you can apply for — the activity is not permitted.
The only short-stay pathway inside city limits is the Home Occupation One-Room Rental license. It requires that the home be the owner's principal residence, the owner must be present during guest stays, only one room inside the main dwelling may be rented (an ADU does not qualify), and the maximum is two adult guests. The city caps these at 200 licenses per year.
What investors CAN do here
The investor-friendly path in Grand Rapids is mid-term rentals — furnished stays of 30 days or longer to traveling nurses, relocating professionals, and insurance-displaced tenants. These fall under the ordinary Rental Certification Program, not the STR ordinance, and lodging taxes do not apply.
If your goal is nightly-rate STR revenue, look to the lakeshore towns (Muskegon, Douglas, Grand Haven, South Haven) instead — several are actively open to investor STRs.
Fees, taxes, and what's coming
One-Room Rental fees are $634 for the initial license and $229 for annual renewal. Short stays are subject to the 6% Michigan state use tax plus an 8% Kent County lodging excise (raised from 5% on January 1, 2025) — roughly 14% combined.
Watch item: in February 2026, Mayor David LaGrand publicly called for an overhaul of the city's STR policy after reports surfaced of hundreds of unlicensed STRs operating in Grand Rapids. Rules could tighten or loosen as this debate plays out. Always verify current ordinance language before purchasing.
Frequently asked questions
Can I buy a house in Grand Rapids and run it as an Airbnb?
No — not for stays under 30 days. Grand Rapids has no license category for whole-home short-term rentals. If nightly-rate STR income is the goal, look at lakeshore towns like Muskegon, Douglas, Grand Haven, or South Haven where investor STRs are allowed.
What IS allowed in Grand Rapids?
Two things: (1) an owner-occupied One-Room Rental license — you must live there, be present during stays, rent one room only, max two adult guests, and there are only 200 licenses citywide; or (2) 30+ day furnished mid-term rentals, which are regulated as ordinary rentals and don't trigger lodging taxes.
What taxes apply to short stays in Grand Rapids?
Roughly 14% combined — the 6% Michigan state use tax plus an 8% Kent County lodging excise tax (increased from 5% on January 1, 2025).
Will Grand Rapids loosen its STR rules?
Uncertain. In February 2026, Mayor David LaGrand called for an STR policy overhaul after reports of hundreds of illegal STRs. The overhaul debate is underway as of 2026 — watch the City Commission agendas before making a purchase decision based on assumed rule changes.
Investor takeaway
Grand Rapids is closed to pure STR investors. Two viable moves: run furnished 30+ day mid-term rentals inside the city, or buy your STR in a lakeshore town that welcomes investor operators.
Sources
Last verified July 2026. General information, not legal advice — confirm current requirements with the municipality before purchasing.
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