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Grand Rapids

Michigan · United States
Restricted
Last updated: 2026-07-29  ·  Last verified: 2026-07-29  ·  Region: US

At a Glance — Grand Rapids Airbnb & STR Rules

RuleDetails
Regulatory StatusRestricted — rules apply
Permit / License RequiredYes
Tax RateMichigan State Use Tax: 6% on stays of 30 nights or less. Kent County Hotel-Motel Tax: 5% on stays of 29 nights or less (must be remitted to county mo
Night / Day CapNo specific annual day cap stated in the city's published code; however, the one-room-only restriction and 200-license citywide cap effectively limit
Minimum StayNo minimum stay; STRs are overnight rentals. ADUs and non-owner-occupied properties are restricted to rentals of 30+ days.
Permit FeeHome Occupation Class B (one-room STR): FY2026 initial application fee $587; renewal fee $212. Home Occupation Class C (multiple rooms / B&B / rooming
PenaltiesOperating an unlicensed STR: fines starting at $500. Non-compliance with zoning or home occupation rules: enforcement by Code Compliance division. Bus
Primary Residence RequiredYes
Occupancy LimitOne-room rentals: maximum 2 adult guests at a time (children under 18 permitted in addition). Multiple-room STRs (Class C) may have different occupanc
Browse all 18 STR regulations in Michigan → Browse all 535 STR regulations in United States →

Grand Rapids Airbnb & Vacation Rental Regulation Overview

Grand Rapids Short-Term Rental Regulations Overview

Short-term rentals in Grand Rapids, Michigan are allowed but subject to significant restrictions under local regulations as of 2026. Hosts operating on Airbnb, VRBO, or other vacation rental platforms must obtain proper licensing: Yes. The associated permit fees are Home Occupation Class B (one-room STR): FY2026 initial application fee $587; renewal fee $212. Home .

Tax Requirements for Airbnb Hosts in Grand Rapids

Short-term rental operators in Grand Rapids should be aware of these tax obligations: Michigan State Use Tax: 6% on stays of 30 nights or less. Kent County Hotel-Motel Tax: 5% on stays of 29 nights or less (must be remitted to county monthly). Airbnb collects and remits both the Michigan Use Tax and Kent County Hotel-Motel Tax on beha.

Hosting Rules and Restrictions in Grand Rapids

Key operational rules for vacation rental hosts in Grand Rapids include: Primary residence requirement: Yes. Rental day cap: No specific annual day cap stated in the city's published code; however, the one-room-only restriction and 200-license c. Occupancy limit: One-room rentals: maximum 2 adult guests at a time (children under 18 permitted in addition). Multiple-room STRs (Class . Minimum stay: No minimum stay; STRs are overnight rentals. ADUs and non-owner-occupied properties are restricted to rentals of 30+ day.

Zoning and Location Requirements in Grand Rapids

Zoning considerations for short-term rentals in Grand Rapids: STRs restricted to owner-occupied single-family homes in qualifying residential zoning districts. A Special Land Use Permit (SLUP) from the Planning Department is required before the business license . Density rules: Hard citywide cap of 200 licenses issued per licensing year (per official One-Room Rental Checklist, City Code Chapters 61 and 116). No more than 200 . Insurance: Not explicitly stated as a standalone requirement in publicly available code; standard compliance wi.

Penalties for Non-Compliance in Grand Rapids

Hosts who fail to comply with Grand Rapids's short-term rental regulations may face enforcement action. Operating an unlicensed STR: fines starting at $500. Non-compliance with zoning or home occupation rules: enforcement by Code Compliance division. Businesses with complaints revert to higher (initial .

Platform Obligations in Grand Rapids

Platform obligations for services like Airbnb, VRBO, and Booking.com operating in Grand Rapids: Airbnb collects and remits Michigan Use Tax and Kent County Hotel-Motel Tax. Hosts are ultimately responsible for any taxes not collected by a platform and must register with the Michigan Department o.

Full Regulatory Details

Regulatory Status
Restricted
License / Registration
Yes
Tax Registration
Yes
Permit Fee
Home Occupation Class B (one-room STR): FY2026 initial application fee $587; renewal fee $212. Home Occupation Class C (multiple rooms / B&B / rooming house): FY2026 initial application fee $598; renewal fee $176. Businesses with complaints on file revert to the initial issuance fee cycle.
Primary Residence Rule
Yes
Night / Day Cap
No specific annual day cap stated in the city's published code; however, the one-room-only restriction and 200-license citywide cap effectively limit scale of operation.
Occupancy Limit
One-room rentals: maximum 2 adult guests at a time (children under 18 permitted in addition). Multiple-room STRs (Class C) may have different occupancy rules per zoning approval. ADUs explicitly cannot be used as STRs (City Code Chapter 61, Section 5.9 — ADUs may not be rented for less than 30 days).
Tax Rate
Michigan State Use Tax: 6% on stays of 30 nights or less. Kent County Hotel-Motel Tax: 5% on stays of 29 nights or less (must be remitted to county monthly). Airbnb collects and remits both the Michigan Use Tax and Kent County Hotel-Motel Tax on behalf of hosts; hosts responsible for any additional applicable taxes.
Zoning Restrictions
STRs restricted to owner-occupied single-family homes in qualifying residential zoning districts. A Special Land Use Permit (SLUP) from the Planning Department is required before the business license application is processed. ADUs are explicitly prohibited from STR use under City Code Ch. 61. Accessory structures also not approved for STR use.
Minimum Stay
No minimum stay; STRs are overnight rentals. ADUs and non-owner-occupied properties are restricted to rentals of 30+ days.
Density Rules
Hard citywide cap of 200 licenses issued per licensing year (per official One-Room Rental Checklist, City Code Chapters 61 and 116). No more than 200 Home Occupation Class B one-room rental licenses are issued annually.
Insurance Required
Not explicitly stated as a standalone requirement in publicly available code; standard compliance with Michigan and city codes applies.
Platform Obligations
Airbnb collects and remits Michigan Use Tax and Kent County Hotel-Motel Tax. Hosts are ultimately responsible for any taxes not collected by a platform and must register with the Michigan Department of Treasury as needed.
Compliance Notes
License must be displayed openly on the property. Rules and regulations are in City Code Chapter 61 (Zoning Ordinance) and Chapter 116 (Home Occupation). Owner must be the sole owner, joint tenant, or joint tenant by entireties. A floor plan with the rental room clearly labeled is required. Condominium association rules are not superseded by City Code — a letter of approval from the condo association is required. Rooms within accessory structures are not eligible. Businesses with complaints revert to initial issuance fee cycle every four years.
Effective Date
Home Occupation licensing framework predates 2021; 200-license cap confirmed in official city checklist. FY2026 fee schedule effective July 1, 2025.
Key Notes
Grand Rapids has one of Michigan's most restrictive STR frameworks for single-family residential hosts: owner-occupancy required, one-room-only for the standard Class B license, hard 200-license annual cap, and SLUP required. Multiple-room lodging (B&B, rooming house) requires a Class C license with a different fee structure. ADUs are explicitly barred from short-term rental use. Hosts should contact the City Clerk's Office at 616-456-3016 or grbusinesslic@grcity.us before purchasing or listing.
Penalties
Operating an unlicensed STR: fines starting at $500. Non-compliance with zoning or home occupation rules: enforcement by Code Compliance division. Businesses with complaints revert to higher (initial issuance) fee tier.
Additional Context
Grand Rapids was among Michigan tourist-destination cities that opposed state House Bill 4722 (which would have barred local bans on STRs). The city's restrictive local framework reflects a deliberate policy to limit STR proliferation. Kent County does not have county-level STR regulations that supersede city ordinances, but the 5% Hotel-Motel Tax applies countywide.
Sources
City of Grand Rapids Home Occupation Class C License: https://www.grandrapidsmi.gov/departments/clerks-office/business-licenses/apply-for-home-occupation-licenses/home-occupation-class-c-license/
Grand Rapids One-Room Rental Checklist (official PDF): https://www.grandrapidsmi.gov/files/assets/public/v/1/departments/city-clerk/files/business-licensing/one-room-rental-guide.pdf
Grand Rapids FY2026 Fee Schedule: https://www.grandrapidsmi.gov/media/fnqdjzue/fy26-fee-schedule.pdf
Grand Rapids Other Permits page: https://www.grandrapidsmi.gov/grow-and-thrive/development-center/permits/other-permits/
City Code Ch. 61 Zoning: https://www.grandrapidsmi.gov/files/assets/public/v/1/initatives/housing-now/commission-documents/article-9.pdf
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Frequently Asked Questions

Is Airbnb legal in Grand Rapids?

Airbnb and short-term rentals are legal in Grand Rapids but subject to restrictions. Hosts must comply with local permit requirements and zoning rules. License must be displayed openly on the property. Rules and regulations are in City Code Chapter 61 (Zoning Ordinance) and Chapter 116 (Home Occupation). Owner must be the sole owner, joint tenant, or

Do you need a permit for Airbnb in Grand Rapids?

Yes. Grand Rapids requires the following for short-term rental operation: Yes.

What taxes apply to short-term rentals in Grand Rapids?

Short-term rental hosts in Grand Rapids are subject to the following tax obligations: Michigan State Use Tax: 6% on stays of 30 nights or less. Kent County Hotel-Motel Tax: 5% on stays of 29 nights or less (must be remitted to county monthly). Airbnb collects and remits both the Michigan Use Tax and Kent County Hotel-Motel Tax on behalf of hosts; hosts responsible for any additional .

What are the penalties for illegal Airbnb hosting in Grand Rapids?

Hosts who operate without proper permits in Grand Rapids may face enforcement. Operating an unlicensed STR: fines starting at $500. Non-compliance with zoning or home occupation rules: enforcement by Code Compliance division. Businesses with complaints revert to higher (initial issuance) fee tier..

What are the key STR compliance requirements in Grand Rapids?

Grand Rapids has one of Michigan's most restrictive STR frameworks for single-family residential hosts: owner-occupancy required, one-room-only for the standard Class B license, hard 200-license annual cap, and SLUP required. Multiple-room lodging (B&B, rooming house) requires a Class C license with a different fee structure. ADUs are explicitly barred from short-term rental use. Hosts should cont

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