Midwest7.4% avg cap rate

Traverse City, MI

Michigan wine country and Great Lakes beach STR gem

Traverse City is the cultural and tourism capital of northern Michigan, combining the Old Mission and Leelanau wine peninsulas, stunning Lake Michigan beaches, and the National Cherry Festival with a thriving farm-to-table dining scene. The market serves Chicago, Detroit, and Grand Rapids as a premier summer escape, and demand has grown dramatically post-pandemic as remote workers extended stays.

7.4%
Avg Cap Rate
Net operating income / price
62%
Avg Occupancy
Annual average
$295
Avg Nightly Rate
All property types
$480K
Median Price
STR-viable properties

Estimated Annual Performance

Gross rental revenue
62% occ × $295/night
$66,759
Est. operating expenses
Mgmt, cleaning, supplies, insurance (~40%)
– $26,704
Est. net operating income
Before mortgage & depreciation
$40,055
At median price
Implied cap rate
8.3%

* Estimates based on market averages. Individual property performance varies. Always run a full underwriting analysis.

Why Investors Choose Traverse City

100+ wineries across Old Mission and Leelanau peninsulas
National Cherry Festival drives massive July ADR spike
Lake Michigan beach properties command 50-80% premium
Growing year-round market as restaurant/arts scene matures
Peak season: June – Sept (peaks: July Cherry Festival, Aug)
Top property types: Cottage, Single Family, Lakefront Home, Farmhouse
Primary zip: 49684, 49686, 49685

Market averages, not guarantees. Cap rates, occupancy, and nightly rates are market-wide averages based on active STR listings and historical data. Individual property performance depends on location, amenities, management, and listing quality. Always run a full underwriting analysis before purchasing.

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