Airbnb City Guide: The Best Places To Invest in Detroit, Michigan

Airbnb Rules and Regulations in Detroit, Michigan

Detroit has a set of regulations for short-term rentals, including those listed on Airbnb, VRBO, and other short-term rental platforms. Hosts must obtain a $500 annual license and undergo a property inspection to ensure compliance with safety standards. The city prohibits short-term rentals in most residential zones, limiting them to specific commercial and mixed-use districts. Hosts are required to manage noise levels and prevent disturbances, with quiet hours typically enforced from 10 pm to 7 am.

The controversial House Bill 4722, which aimed to protect short-term rentals under Michigan's zoning act, has sparked ongoing debates between property owners and local officials seeking to preserve neighborhood character. Despite the challenges, many Detroit hosts continue to navigate the evolving regulatory landscape, offering unique accommodations to visitors while contributing to the local economy.

Detroit Airbnb Market Data:

• Average Revenue – $23.3K per year
• Average Daily Rate – $169.5 per night
• Average Occupancy Rate – 43%
• Average RevPAR – $75.5
• Average Home Prices – $68,379

1. Top Place to Invest in Detroit, Michigan - Downtown Detroit

Downtown Detroit, the heart of the city, has undergone a remarkable transformation in recent years, making it an attractive destination for Airbnb and short-term rental investors. This vibrant area offers a perfect blend of history, culture, and modern amenities, drawing in visitors from around the world.

Downtown Detroit Airbnb Market Data:

• Average Revenue – $26.9K per year
• Average Daily Rate – $161.9 per night
• Average Occupancy Rate – 51%
• Average RevPAR – $86.6

Convenience - 8/10

Downtown Detroit boasts excellent walkability, with many restaurants, shops, and attractions within easy reach. The area is well-connected by public transportation, including the QLine streetcar and the People Mover, making it convenient for guests to explore the city without relying on a car.

Tourist Attractions - 9/10

The downtown area is home to numerous iconic landmarks and must-see attractions. Visitors can explore the Detroit Institute of Arts, catch a game at Comerica Park or Ford Field, or take in a show at the historic Fox Theatre. The Riverwalk offers stunning views of the Detroit River and is a perfect spot for a leisurely stroll.

Things to Do - 9/10

Downtown Detroit has something for everyone, from world-class museums and galleries to trendy restaurants and bars. Guests can immerse themselves in the city's rich musical heritage at the Motown Museum, shop at the bustling Eastern Market, or enjoy a night out at one of the many live music venues.

Average Home Prices - 7/10

As of 2024, the median home price in Downtown Detroit is $350,000, according to Zillow data. This represents a 5% appreciation rate over the past year, indicating a stable and growing market. While prices are higher than in some other areas of the city, the potential for strong rental income and long-term appreciation makes Downtown Detroit an attractive investment opportunity.

Proximity to Work-Related Travel - 9/10

Downtown Detroit is a hub for business and commerce, with numerous corporate headquarters, hospitals, and convention centers located in the area. The TCF Center (formerly Cobo Center) hosts major events and conferences throughout the year, drawing in thousands of visitors. The proximity to these work-related destinations makes Downtown Detroit ideal for business travelers and convention-goers.

X-Factor - 8/10

What sets Downtown Detroit apart is its unique blend of history and innovation. The area is home to beautifully restored historic buildings, such as the Guardian Building and the Book Cadillac Hotel, alongside modern developments like the Little Caesars Arena. This juxtaposition of old and new creates a captivating atmosphere that appeals to a wide range of visitors.

2. Top Place to Invest in Detroit, Michigan - Midtown

Midtown Detroit, a thriving neighborhood just north of Downtown, has emerged as a top destination for Airbnb and short-term rental (STR) investors. With its diverse mix of cultural institutions, trendy restaurants, and vibrant community, Midtown offers a unique and exciting experience for visitors to the Motor City.

Midtown Airbnb Market Data:

• Average Revenue – $31.5K per year
• Average Daily Rate – $199.8 per night
• Average Occupancy Rate – 48%
• Average RevPAR – $99.6

Convenience - 9/10

Midtown is one of the most walkable neighborhoods in Detroit, with a wide array of amenities and attractions within easy reach. The area is well-served by public transportation, including the QLine streetcar and several bus routes, making it easy for guests to explore the city without the need for a car.

Tourist Attractions - 8/10

Midtown is home to some of Detroit's most renowned cultural institutions, including the Detroit Institute of Arts, the Charles H. Wright Museum of African American History, and the Michigan Science Center. Visitors can also explore the historic Detroit Public Library or take in a show at the iconic Majestic Theatre.

Things to Do - 9/10

From browsing the boutiques and galleries along the Cass Corridor to sampling the diverse culinary offerings at Selden Standard or Avalon Bakery, Midtown offers a wealth of activities for visitors. The area is also home to Wayne State University, which brings a youthful energy and a variety of cultural events to the neighborhood.

Average Home Prices - 8/10

According to Zillow data, the median home price in Midtown Detroit as of 2024 is $280,000, representing a 6% appreciation rate over the past year. While prices are slightly lower than Downtown, the strong demand for housing in the area and the potential for long-term appreciation make Midtown an attractive investment opportunity for the success of your Airbnb business in the long run.

Proximity to Work-Related Travel - 7/10

Midtown is located just north of Downtown Detroit, providing easy access to the city's major business districts and convention centers. The area is also home to the Detroit Medical Center, a major employer and a hub for medical professionals visiting the city for conferences and training.

X-Factor - 9/10

What sets Midtown apart is its vibrant and eclectic community, which combines the best of Detroit's past and present. The neighborhood is home to diverse residents, including artists, students, and professionals, creating a dynamic and engaging atmosphere that appeals to visitors from all walks of life. The area's stunning architecture, from historic mansions to modern lofts, adds to its unique character and charm.

3. Top Place to Invest in Detroit, Michigan - Corktown

Corktown, Detroit's oldest neighborhood, has undergone a remarkable revitalization in recent years, making it an increasingly popular destination for Airbnb and short-term rental investors. With its rich history, charming architecture, and a growing number of amenities, Corktown offers a unique and authentic Detroit experience for visitors.

Corktown Airbnb Market Data:

• Average Revenue – $25.8K per year
• Average Daily Rate – $182.6 per night
• Average Occupancy Rate – 44%
• Average RevPAR – $80

Convenience - 7/10

Corktown is located just west of Downtown Detroit, providing easy access to the city's major attractions and business districts. While the neighborhood is somewhat walkable, with a growing number of restaurants and shops, guests may need to rely on public transportation or ride-sharing services to explore other parts of the city.

Tourist Attractions - 7/10

Corktown is home to several notable attractions, including the historic Michigan Central Station, which is currently being redeveloped by Ford Motor Company into a hub for innovation and mobility. Visitors can also explore the Maltese Cross Building, a former fire station turned community center, or take a stroll through the charming residential streets lined with Victorian-era homes.

Things to Do - 8/10

Corktown offers a variety of dining and entertainment options, from classic Detroit institutions like Slows Bar BQ and Nemo's Bar to newer additions like Takoi and Lady of the House. The neighborhood also hosts several annual events, including the Corktown Strut and the Detroit St. Patrick's Day Parade, which draw visitors from across the region.

Average Home Prices - 8/10

According to Zillow data, the median home price in Corktown as of 2024 is $250,000, representing a 7% appreciation rate over the past year. While prices have risen in recent years due to the neighborhood's growing popularity, they remain relatively affordable compared to other areas of the city, making Corktown an attractive option for Airbnb and STR investors.

Proximity to Work-Related Travel - 6/10

Corktown is located just a short drive from Downtown Detroit, providing easy access to the city's major business districts and convention centers. However, the neighborhood itself is primarily residential and does not have a significant concentration of office buildings or work-related destinations.

X-Factor - 9/10

What sets Corktown apart is its unique blend of history and innovation, as the neighborhood continues to evolve while preserving its distinctive character and charm. From the stunning Victorian homes to the repurposed industrial buildings, Corktown offers a glimpse into Detroit's past while embracing its future. The neighborhood's strong sense of community and local pride also adds to its appeal, creating a welcoming and authentic experience for visitors.

4. Top Place to Invest in Detroit, Michigan - Boston-Edison

The historic Boston-Edison neighborhood in the heart of Detroit has long been a sought-after residential area known for its stunning architecture and strong sense of community. In recent years, the neighborhood has seen a resurgence of interest from Airbnb and short-term rental investors, drawn to its unique charm and growing potential.

Boston-Edison Airbnb Market Data:

• Average Revenue – $20.7K per year
• Average Daily Rate – $171.7 per night
• Average Occupancy Rate – 40%
• Average RevPAR – $68.5

Convenience - 6/10

Boston-Edison is primarily a residential neighborhood, with limited walkability to commercial areas and attractions. However, the area is well-connected by public transportation, with several bus routes running through the neighborhood and providing access to other parts of the city. Guests may need to rely on ride-sharing services or personal vehicles to fully explore Detroit.

Tourist Attractions - 5/10

While Boston-Edison itself is not home to major tourist attractions, but the neighborhood's stunning architecture draws visitors interested in historic homes and design. The area is known for its impressive collection of early 20th-century mansions, including the Fisher and Motown, which offer a glimpse into Detroit's rich architectural heritage.

Things to Do - 5/10

As a primarily residential area, Boston-Edison has limited options for dining, entertainment, and activities within the neighborhood itself. However, the area is just a short drive from many of Detroit's top attractions, including the Detroit Institute of Arts, the Charles H. Wright Museum of African American History, and the Motown Museum.

Average Home Prices - 7/10

According to Zillow data, the median home price in Boston-Edison as of 2024 is $180,000, representing a modest 3% appreciation rate over the past year. While prices in the neighborhood have remained relatively stable, the area's historic homes and growing popularity among investors suggest the potential for long-term appreciation.

Proximity to Work-Related Travel - 5/10

Boston-Edison is located several miles from Downtown Detroit and the city's major business districts, convention centers, and hospitals. While the neighborhood is easily accessible by car or public transportation, it may not be the most convenient location for guests traveling to Detroit, primarily for work-related purposes.

X-Factor - 8/10

Boston-Edison's incredible collection of historic homes and its strong sense of community pride sets it apart. The neighborhood's architecture, which includes a mix of Tudor Revival, Colonial Revival, and Italian Renaissance styles, creates a unique and captivating atmosphere that appeals to visitors seeking an authentic Detroit experience. The area's active neighborhood association and community events also contribute to its charm and desirability.

5. Top Place to Invest in Detroit, Michigan - New Center

New Center, a historic neighborhood located just north of Midtown, has emerged as a promising location for starting up a short-term rental. With its iconic architecture, growing number of amenities, and convenient location, New Center offers a unique blend of old-world charm and modern convenience.

New Center Airbnb Market Data:

• Average Revenue – $22.8K per year
• Average Daily Rate – $165.2 per night
• Average Occupancy Rate – 42%
• Average RevPAR – $73.9

Convenience - 8/10

New Center is well-connected to other parts of the city, with the QLine streetcar and several bus routes running through the neighborhood. The area is also easily accessible by car, with I-94 and M-10 providing quick access to Downtown Detroit and other major destinations. Visitors will find a growing number of restaurants, shops, and services within walking distance.

Tourist Attractions - 7/10

New Center is home to several notable attractions, including the historic Fisher Building, a stunning example of Art Deco architecture that houses a theater, shops, and offices. Visitors can also explore the Motown Museum, which celebrates the legacy of the iconic record label, or take in a show at the Detroit Repertory Theatre.

Things to Do - 7/10

In addition to its cultural attractions, New Center offers a variety of dining and entertainment options. The area is home to several popular restaurants, including Cuisine Restaurant and the Northern Lights Lounge, as well as a growing number of bars and nightlife spots. The neighborhood also hosts several annual events, such as the New Center Park Summer Series and the Detroit Festival of Books.

Average Home Prices - 8/10

According to Zillow data, the median home price in New Center as of 2024 is $220,000, representing a 5% appreciation rate over the past year. While prices have risen in recent years due to the neighborhood's growing popularity, they remain relatively affordable compared to other areas of the city, making New Center an attractive option for Airbnb and STR investors.

Proximity to Work-Related Travel - 9/10

New Center is a major hub for business and commerce, with several large office buildings and corporate headquarters located in the neighborhood. The area is also home to the Henry Ford Health System, one of the largest employers in the region, and is just a short drive from the Detroit Medical Center and Wayne State University.

X-Factor - 8/10

What sets New Center apart is its unique blend of history and innovation as the neighborhood continues to evolve while preserving its iconic architecture and cultural heritage. From the stunning Art Deco buildings to the thriving arts and entertainment scene, New Center offers visitors a distinctive and memorable experience. The area's convenient location and growing amenities make it an increasingly attractive destination for leisure and business travelers.

6. Top Place to Invest in Detroit, Michigan - Bagley

Bagley, a vibrant neighborhood located on Detroit's northwest side, has recently caught the attention of Airbnb and short-term rental investors. With its diverse community, affordable housing options, and convenient location, Bagley offers a promising opportunity for those looking to invest in Detroit's growing real estate market.

Bagley Airbnb Market Data:

• Average Revenue – $24.3K per year
• Average Daily Rate – $217.3 per night
• Average Occupancy Rate – 35%
• Average RevPAR – $78.1

Convenience - 7/10

Bagley is well-connected to other parts of the city, with several major roads and highways providing easy access to Downtown Detroit and other key destinations. The neighborhood is served by several bus routes, making it convenient for visitors to explore the city without a car. While the area has a growing number of local businesses, guests may need to venture outside the neighborhood for some amenities.

Tourist Attractions - 5/10

As a primarily residential area, Bagley has limited tourist attractions within its boundaries. However, the neighborhood is just a short drive from many of Detroit's top destinations, including the Detroit Institute of Arts, the Charles H. Wright Museum of African American History, and the Motown Museum. Visitors can also explore the nearby Avenue of Fashion, a historic commercial district known for its unique shops and restaurants.

Things to Do - 6/10

Bagley offers a variety of local parks and green spaces, including Eliza Howell Park and the Brightmoor Neighborhood Garden, which provide opportunities for outdoor recreation and community events. The neighborhood also has a growing number of local businesses, including coffee shops, restaurants, and boutiques, which offer a taste of Detroit's diverse culture and cuisine.

Average Home Prices - 9/10

According to Zillow data, the median home price in Bagley as of 2024 is $120,000, representing a modest 2% appreciation rate over the past year. The neighborhood's affordable housing options and potential for long-term appreciation make it an attractive choice for Airbnb and STR investors looking to enter the Detroit market without breaking the bank.

Proximity to Work-Related Travel - 6/10

Bagley is located several miles from Downtown Detroit and the city's major business districts, convention centers, and hospitals. While the neighborhood is easily accessible by car or public transportation, it may not be the most convenient location for guests traveling to Detroit, primarily for work-related purposes. However, its proximity to the University of Detroit Mercy and Marygrove College may appeal to visitors with ties to these institutions.

X-Factor - 7/10

What sets Bagley apart is its strong sense of community and neighborhood pride. The area is known for its active community organizations and events, which bring residents together and foster a welcoming atmosphere for visitors. The neighborhood's diverse population and affordable housing options also make it an attractive choice for investors looking to tap into Detroit's growing Airbnb and STR market while supporting the city's ongoing revitalization efforts.