South Haven Short-Term Rental Rules & Airbnb Laws (2026)
The biggest STR market on this stretch (~700 STRs), but also the highest regulatory churn. A new two-class licensing ordinance adopted in March 2025 sits on top of a long-standing ~1-in-4 density cap. Do not underwrite a purchase without written license-availability confirmation from Building Services.
Status: Capped / waitlist. County: Van Buren/Allegan County. Whole-home STRs: Yes, with license. Caps: ~1-in-4 dwellings citywide (~20%) — historically lottery when full; relicensing backlog as of Mar 2026. Annual cost: License fees per class (confirm current amounts with city). Lodging taxes: 6% (state use tax only).
Investor takeaway: Highest demand and highest regulatory risk on the lakeshore. Verify license availability in writing before you buy — do not assume an STR-in-use today will re-license tomorrow.
Last verified July 2026. This page is general information, not legal advice — confirm current requirements directly with the municipality before purchasing.
South Haven at a glance
- Status
- Capped / waitlist
- County
- Van Buren/Allegan County
- Whole-home STRs
- Yes, with license
- Cap / waitlist status
- ~1-in-4 dwellings citywide (~20%) — historically lottery when full; relicensing backlog as of Mar 2026
- Annual cost
- License fees per class (confirm current amounts with city)
- Lodging taxes
- 6% (state use tax only)
- STRs legal citywide?
- Yes — under March 2025 licensing ordinance
- License classes
- Class I: unlimited nights, max 2 stays/7-day period, annual inspection, $1M liability insurance | Class II: max 6 stays or 28 rental days/year, lighter inspections
- License term
- ~2 years, NON-transferable — purchase restarts the process
- Citywide density cap
- ~1-in-4 rentable dwellings (~20% of housing stock), recalculated annually; historically lottery when oversubscribed
- Backlog status
- As of March 2026, city still working through relicensing backlog — conditional licenses issued to get operators through the season
- Local agent
- Required within 45 miles, 45-minute complaint response
- Parking
- Off-street guest parking only
- Fines
- Up to $1,000 per violation; 24/7 complaint hotline
- Lodging taxes
- 6% Michigan state use tax only
Two license classes — and neither is turnkey
South Haven's March 2025 ordinance created two STR classes. Class I is the full-time investor license: unlimited rental nights, capped at a maximum of two stays per any 7-day period, annual inspection, and $1 million liability insurance required. Class II is for occasional/personal use — a hard limit of six stays or 28 rental days per year with lighter inspections.
Both classes are non-transferable and run roughly 2-year terms. A purchase restarts the process; the license does not convey with the property.
The density cap and the backlog
On top of the licensing regime sits a long-standing citywide density cap of roughly one in four rentable dwellings — about 20% of housing stock — recalculated annually. When the cap is oversubscribed the city has historically used a lottery to allocate licenses.
As of March 2026, the city was still working through a relicensing backlog and had issued conditional licenses to get existing operators through the season. Because of this, availability of a new license for a new buyer is genuinely uncertain today.
Do not underwrite blind
The single most important step in any South Haven STR purchase: call Building Services and get written confirmation of license availability at the specific address before writing an offer. The combination of the density cap and the backlog means a property that could operate as an STR six months ago may not be licensable today.
Operational rules that bite
Beyond licensing, the operational rules that most frequently generate violations are the 45-minute local agent complaint response, off-street guest parking only (no on-street), a required Good Neighbor Guide, and the $1,000-per-violation fine schedule enforced via a 24/7 hotline. Professional local management is effectively mandatory.
Frequently asked questions
Can I buy a house in South Haven and get a new STR license today?
Uncertain. The citywide density cap plus the ongoing relicensing backlog mean new license availability is not guaranteed. Get written confirmation from Building Services before writing an offer — this is not a market to underwrite blind.
Does an existing South Haven STR license convey with the property?
No. Licenses are non-transferable — the sale restarts the process for the new owner, subject to the current cap and backlog.
What's the difference between Class I and Class II?
Class I is the full investor license: unlimited nights, max two stays per 7-day period, annual inspection, and $1M liability insurance. Class II is for occasional use — max six stays or 28 rental days per year with lighter inspections.
Which operating rules bite hardest?
The 45-minute local-agent response requirement, off-street guest parking only, and the $1,000-per-violation fine schedule enforced through a 24/7 hotline. Professional management is effectively mandatory.
Investor takeaway
Highest demand and highest regulatory risk on the lakeshore. Verify license availability in writing before you buy — do not assume an STR-in-use today will re-license tomorrow.
Sources
Last verified July 2026. General information, not legal advice — confirm current requirements with the municipality before purchasing.
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