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.
Across 93 active STR-viable listings analyzed this month, Traverse City shows a 4.2% median cap rate at a $589K median list price, 38% occupancy, and $351/night. That ranks #17 of 57 markets in STRROI's live ranking. At typical prices, cash flow is tight: most listings only pencil out with a large down payment, a below-list purchase, or above-market nightly rates.
Traverse City real estate market right now
As of October 12, 2026, STRROI is tracking 93 homes for sale in Traverse City that could run as short-term rentals, at a median list price of $589,000. The middle half are priced between $425K and $950K. Homes here have been on the market 83 days on average, shorter than the 101 days typical across the 56 markets in STRROI's ranking, so well-priced homes here tend to go quickly.
These numbers cover the homes for sale STRROI analyzes as potential short-term rentals in Traverse City, mainly ZIP 49684. They are not every home sale in the area, so they can differ from MLS-wide figures. Month-by-month price history starts Oct 2026 and fills in as the market is re-checked each month.
What's for sale in Traverse City right now
Of the 93 homes for sale we analyzed in Traverse City, 6 (6%) project positive monthly cash flow with 20% down at a 7.5% rate, and none rate Buy or better on STRROI's 1-10 scale. 3-bedroom homes are the most common (35 for sale, median $700K). Returns are strongest in 2-bedroom homes at a 4.5% median cap rate, and weakest in 3-bedroom homes at 3.8%. By property type, single-family homes lead at a 4.2% median cap rate across 41 listings.
- Watch: 1
- Weak: 51
- Avoid: 41
| Beds | For sale | Median price | Cap rate |
|---|---|---|---|
| 1 | 9 | $350K | 4.3% |
| 2 | 22 | $465K | 4.5% |
| 3 | 35 | $700K | 3.8% |
| 4 | 23 | $749K | 4.2% |
| 5+ | 4 | $994K | 4.1% |
| Type | For sale | Median price | Cap rate |
|---|---|---|---|
| Single-family homes | 41 | $640K | 4.2% |
| Condos | 41 | $525K | 4.1% |
| Townhouses | 5 | $2.2M | 1.5% |
Top-ranked homes for sale in Traverse City this month
Scored 1-10 against real Airbnb comps. Addresses, photos and the full underwriting are in the app.
- #1Watch · 5/103 bd · 2 ba single-family homeZIP 49684 · listed at $399K
- Cap rate
- 7.1%
- Cash flow
- +$141/mo
- Nightly
- $381 at 38%
- #2Weak · 4/104 bd · 2 ba single-family homeZIP 49684 · listed at $349K
- Cap rate
- 9.1%
- Cash flow
- +$685/mo
- Nightly
- $447 at 38%
- #3Weak · 4/106 bd · 2 ba multi-family propertyZIP 49684 · listed at $385K
- Cap rate
- 8.8%
- Cash flow
- +$667/mo
- Nightly
- $224 at 38%
How Traverse City compares
Traverse City ranks #3 of 4 Midwest markets in STRROI's live ranking; Door County leads the region with a median cap rate of 5.7%. Its 4.2% cap rate is 1.3 points above the 2.9% median across all 57 ranked markets, and its $589K typical list price is pricier than the Midwest median of $450K.
| Rank | Market | Cap rate | Typical price |
|---|---|---|---|
| #4 | Door County, WI | 5.7% | $400K |
| #13 | Branson, MO | 4.4% | $265K |
| #17 | Traverse City, MI | 4.2% | $589K |
| #48 | Lake of the Ozarks, MO | 2.0% | $500K |
Rank is national, by median cap rate across active STR-viable listings. Cash flow uses STRROI's default financing assumptions. See the full ranking
Estimated Annual Performance
* Estimates based on market averages. Individual property performance varies. Always run a full underwriting analysis.
Why Investors Choose Traverse City
Traverse City STR investing, answered
Is Traverse City, MI a good short-term rental market?
Traverse City is a Midwest STR market with a 4.2% median cap rate, 38% annual occupancy, and $351/night across STR-viable listings, based on 93 active listings. It ranks #17 of 57 markets by median cap rate in STRROI's live ranking. This month none of its 93 homes for sale rate Buy or better.
What is the average Airbnb occupancy rate in Traverse City?
STR-viable properties in Traverse City average about 38% 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 $351/night and 38% occupancy, a typical Traverse City STR grosses roughly $48,299 per year before expenses, leaving an estimated $28,979 in net operating income. Across analyzed listings the median cap rate is 4.2%. Individual results depend on property, amenities, and management.
What types of properties work best for STR in Traverse City?
Among homes for sale right now, 2-bedroom homes post the strongest median cap rate by size (4.5%), and single-family homes lead by property type (4.2%). With guests, the best-performing STR types here are Cottage, Single Family, Lakefront Home, Farmhouse. Matching the local guest profile and the amenities that drive bookings matters more than raw square footage.
How many homes for sale in Traverse City cash flow as an Airbnb?
6 of 93 STR-viable listings (6%) project positive monthly cash flow after the mortgage, assuming 20% down at a 7.5% rate on a 30-year loan. The top-ranked listing this month is a 3-bedroom single-family home in ZIP 49684 listed at $399K, projecting a 7.1% cap rate and +$141 a month.
What is the median home price in Traverse City, MI right now?
The median list price of the 93 homes for sale STRROI tracks in Traverse City is $589,000, and the middle half are priced between $425K and $950K. These are homes that could run as short-term rentals, mainly ZIP 49684, not every sale in the area. Against a 4.2% median cap rate, that price level sets the return baseline you'd underwrite against.
How long do homes stay on the market in Traverse City?
Homes for sale in Traverse City have been listed 83 days on average, shorter than the 101 days typical across the 56 markets in STRROI's ranking, so well-priced homes here tend to go quickly.
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 93 active listings · last updated Oct 12, 2026
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