Midwest5.7% avg cap rateLive · 41 active listings

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.

5.7%
Avg Cap Rate
Net operating income / price
39%
Avg Occupancy
Annual average
$449
Avg Nightly Rate
All property types
$900K
Avg List Price
STR-viable properties

41 active listings in Traverse City are analyzed and ranked right now

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Estimated Annual Performance

Gross rental revenue
39% occ × $449/night
$63,096
Est. operating expenses
Mgmt, cleaning, supplies, insurance (~40%)
- $25,238
Est. net operating income
Before mortgage & depreciation
$37,858
At $900K avg price
Implied cap rate
4.2%

* 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

Traverse City STR investing, answered

Is Traverse City, MI a good short-term rental market?

Traverse City is a Midwest STR market averaging a 5.7% cap rate, 39% annual occupancy, and $449/night across STR-viable listings, based on 41 active listings. 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.

What is the average Airbnb occupancy rate in Traverse City?

STR-viable properties in Traverse City average about 39% occupancy across the year. Peak season is June - Sept (peaks: July Cherry Festival, Aug). Occupancy here reflects availability-adjusted booking performance, not raw calendar occupancy, so it represents what a full-time operated rental can realistically achieve.

How much do short-term rentals earn in Traverse City?

At $449/night and 39% occupancy, a typical Traverse City STR grosses roughly $63,096 per year before expenses, leaving an estimated $37,858 in net operating income against a $900K average price, an implied 4.2% cap rate. Individual results depend on property, amenities, and management.

What types of properties work best for STR in Traverse City?

The strongest-performing STR property types in Traverse City are Cottage, Single Family, Lakefront Home, Farmhouse. 100+ wineries across Old Mission and Leelanau peninsulas. Matching the local guest profile and the amenities that drive bookings in this market matters more than raw square footage.

What is the median STR-viable home price in Traverse City?

STR-viable listings in Traverse City average around $900K. Primary STR ZIP codes include 49684, 49686, 49685. Combined with the market's 5.7% average cap rate, that price level sets the return baseline you'd underwrite against.

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.Stats sourced from 41 active listings · last updated Sep 1, 2026

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