Muskegon Short-Term Rental Rules & Airbnb Laws (2026)
STRs are legal citywide in Muskegon under an 11-zone cap system adopted in October 2024. The Zone 1 beachfront is waitlisted, but zones 2–11 and the downtown/Lakeside business districts remain open to investors.
Status: Open to investors. County: Muskegon County. Whole-home STRs: Yes. Caps: Zone 1 (beach) full — waitlist; Zones 2–11 open; no cap in DDA/BID. Annual cost: $500–$2,000/yr (single-family to quadplex). Lodging taxes: 11% (6% state + 5% Muskegon County).
Investor takeaway: Muskegon is open and workable — buy where zone capacity remains (or in the uncapped downtown/Lakeside business districts), not the waitlisted beach zone.
Last verified July 2026. This page is general information, not legal advice — confirm current requirements directly with the municipality before purchasing.
Muskegon at a glance
- Status
- Open to investors
- County
- Muskegon County
- Whole-home STRs
- Yes
- Cap / waitlist status
- Zone 1 (beach) full — waitlist; Zones 2–11 open; no cap in DDA/BID
- Annual cost
- $500–$2,000/yr (single-family to quadplex)
- Lodging taxes
- 11% (6% state + 5% Muskegon County)
- STRs legal citywide?
- Yes — under 11-zone cap system (adopted Oct 2024)
- City STR definition
- Unhosted rental >24 hours and <28 days
- Zone 1 (Beachwood/Bluffton lakefront)
- Cap 34 — waitlist only
- Zones 2–11 caps
- 13–95 licenses; currently open
- No-cap areas
- Downtown DDA, Lakeside BID, Lakeside Corridor
- Adjacent-parcel rule
- Max two STRs on directly adjacent parcels
- Annual fees
- $500 single-family up to $2,000 quadplex (includes one inspection)
- Local agent required?
- Yes, 24/7, if owner lives outside Muskegon County
- License transfer on sale?
- Generally no (pre-March-2024 licensees got a one-time transfer right)
- Lodging taxes
- 6% Michigan state + 5% Muskegon County (self-remitted) = 11%
The 11-zone cap system
In October 2024 Muskegon adopted a zone-based STR ordinance that carves the city into 11 residential zones plus uncapped business districts. Each zone has its own STR ceiling, so availability depends entirely on which street you're buying on.
Zone 1 covers the Beachwood and Bluffton lakefront neighborhoods — capped at 34 and waitlisted. Zones 2 through 11 (Lakeside, Nims, Campbell Field, Downtown, McLaughlin, Angell, Getty, Marquette, Sheldon Park, and East Muskegon) carry caps ranging from 13 to 95 and are currently open. The Downtown DDA, Lakeside BID, and Lakeside Corridor have no caps at all.
A separate parcel-level rule limits STRs to a maximum of two on directly adjacent parcels.
Requirements and fees
Annual fees run $500 for a single-family through $2,000 for a quadplex and include one inspection per year. Requirements include liability insurance, a 24/7 local agent if the owner lives outside Muskegon County, furnace and water-heater CO certification, and a posted Good Neighbor Guide covering quiet hours (11pm–7am) and paved-driveway parking only.
Licenses are generally non-transferable — the exception is that STR owners licensed before March 2024 received a one-time transfer right. Assume any newer license dies at closing and price accordingly.
Penalties and taxes
Enforcement escalates: $250, $500, then $1,000 fines, with revocation for up to one year available. Total lodging taxes are 11% — the 6% Michigan state use tax plus a 5% Muskegon County accommodation tax. Airbnb collects the state portion; the county tax is self-remitted, so hosts must register and file directly.
Frequently asked questions
Can I still get an STR license in Muskegon?
Yes in Zones 2–11 and in the Downtown DDA, Lakeside BID, and Lakeside Corridor business districts. Zone 1 (Beachwood/Bluffton lakefront) is waitlisted.
What does a Muskegon STR cost annually?
$500 per year for a single-family up to $2,000 for a quadplex. That fee includes one annual inspection.
Does the license transfer when I buy an operating STR?
Generally no. Only owners licensed before March 2024 received a one-time transfer right. On most sales the buyer must re-apply, and re-issuance depends on zone capacity at closing.
What are the total lodging taxes?
11% — the 6% Michigan state use tax plus a 5% Muskegon County accommodation tax. Airbnb remits the state tax automatically; the county tax must be self-remitted by the host.
Investor takeaway
Muskegon is open and workable — buy where zone capacity remains (or in the uncapped downtown/Lakeside business districts), not the waitlisted beach zone.
Sources
Last verified July 2026. General information, not legal advice — confirm current requirements with the municipality before purchasing.
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