Ludington Short-Term Rental Rules & Airbnb Laws (2026)
The strictest STR regime on this list. Hard citywide license cap (originally 30 licenses) with lottery + waitlist. One license per person, licenses void on sale — you cannot buy an existing STR business in Ludington. Underwrite as an LTR/MTR until a license comes through.
Status: Capped / waitlist. County: Mason County. Whole-home STRs: Yes, only with a rare and hard-capped license. Caps: Hard citywide cap (originally 30 licenses; possibly since raised — confirm with City Hall); lottery + waitlist when full and historically fully taken. Annual cost: $500 non-refundable application + $1,500 per 3-year license + $100/unit inspections. Lodging taxes: 6% (state use tax only).
Investor takeaway: Beautiful market, brutal entry. Get on the waitlist early and underwrite the property as a long-term or mid-term rental until (and unless) a license comes through.
Last verified July 2026. This page is general information, not legal advice — confirm current requirements directly with the municipality before purchasing.
Ludington at a glance
- Status
- Capped / waitlist
- County
- Mason County
- Whole-home STRs
- Yes, only with a rare and hard-capped license
- Cap / waitlist status
- Hard citywide cap (originally 30 licenses; possibly since raised — confirm with City Hall); lottery + waitlist when full and historically fully taken
- Annual cost
- $500 non-refundable application + $1,500 per 3-year license + $100/unit inspections
- Lodging taxes
- 6% (state use tax only)
- Citywide cap
- Hard — originally 30 licenses (possibly raised since; confirm current number with City Hall)
- When cap is full
- Lottery plus waiting list; historically fully taken
- One license per person
- No portfolios allowed
- Concentration limits
- Max 2 STRs per block; 150-ft separation between rentals
- Eligible property types
- Single-family and duplex only (3+ unit buildings excluded; one dwelling per duplex)
- License transfer on sale
- NON-transferable — TERMINATES ON SALE. You cannot buy an existing STR business in Ludington
- Application fee
- $500 non-refundable
- License fee
- $1,500 per 3-year term
- Inspections
- $100 per unit
- Local agent
- 24/7 required if the licensee doesn't live in Mason County
- Old exception removed
- The 14-day 'rent your own home' exception was repealed
- Program permanence
- Sunset clause removed in 2023 — program continues; confirm current cap and availability with City Hall
- Lodging taxes
- 6% Michigan state use tax only
The hardest entry on this list
Ludington's STR ordinance sets a hard citywide license cap — originally 30 licenses, possibly raised since (call City Hall to confirm the current number). When the cap is oversubscribed, the city allocates licenses via lottery with a waiting list. Historically the cap has been fully taken.
Layered on top of the cap are limits designed to prevent concentration: one license per person (no portfolios), a maximum of two STRs per block, and a 150-foot separation requirement between rentals. Only single-family and duplex properties are eligible — buildings with three or more units are excluded, and only one dwelling per duplex may be licensed.
You cannot buy an existing STR business
This is the single most important underwriting fact for Ludington: the license is non-transferable and terminates on sale. There is no path to buying an operating STR business with the license intact. At closing the license extinguishes and returns to the pool — the next applicant on the waitlist gets it.
That means any 'operating STR' listing in Ludington is really just a house with STR-friendly features; the license premium a seller might imply is not real.
Fees and requirements
The application fee is $500 (non-refundable) and the license runs $1,500 per 3-year term. Inspections are $100 per unit. A 24/7 local agent is required if the licensee doesn't live in Mason County. The old 14-day 'rent your own home' exception was repealed — there is no informal path.
The 2023 removal of the sunset clause means the program is not going away. Confirm current cap size and availability with City Hall before making any investment decision based on future license access.
Frequently asked questions
Can I buy a licensed STR in Ludington?
No — not in a way that preserves the license. Licenses are non-transferable and terminate on sale. The license goes to the next applicant on the waiting list; the buyer starts from zero.
How many STRs can one person own in Ludington?
One. The ordinance is one license per person. No portfolios.
What does it cost to apply?
$500 non-refundable application fee, then $1,500 per 3-year license term if issued, plus $100 per unit for inspections.
Is the STR program going to end?
No. The sunset clause was removed in 2023 and the program continues. Confirm current cap size and waitlist status with City Hall before making decisions based on future license access.
Investor takeaway
Beautiful market, brutal entry. Get on the waitlist early and underwrite the property as a long-term or mid-term rental until (and unless) a license comes through.
Sources
Last verified July 2026. General information, not legal advice — confirm current requirements with the municipality before purchasing.
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