The City of Muskegon’s Short-Term Rental (STR) program is managed by the Building and Inspections Department. Please review the Short-Term Rental Guide and the City Zoning Ordinance for requirements and additional resources.
A Short-Term Rental is Defined in the City Zoning Ordinance: A property in which a tenant is allowed to lease the dwelling unit, without a host, for periods of less than 28 days but more than 24 hours in return for remuneration. A rental in which the host resides on premises shall not be considered a short-term rental, but shall still register with the city.
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The Short-Term Rental Overlay District is a designated area within the city that allows a limited number of licensed short-term rentals in each of its 11 zones. This district was established to help maintain a balance between short-term rentals and other types of property use.
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The maximum number of short-term rentals allowed varies by zone within the Overlay District:
- Zone 1 – 34 rentals
- Zone 2 – 68 rentals
- Zone 3 – 60 rentals
- Zone 4 – 70 rentals
- Zone 5 – 79 rentals
- Zone 6 – 25 rentals
- Zone 7 – 80 rentals
- Zone 8 – 50 rentals
- Zone 9 – 95 rentals
- Zone 10 – 77 rentals
- Zone 11 – 13 rentals
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Yes, properties within the Downtown Development Authority, Lakeside Business Improvement District, and Lakeside Corridor Improvement Authority boundaries are exempt from the rental caps. There is no maximum limit on short-term rentals in these areas.
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No. To prevent overcrowding, a property cannot have more than two short-term rentals on parcels directly next to it.
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Yes, all short-term rentals must have a valid short-term rental license to operate within the city.
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Current short-term rental license holders in good standing can continue operating as long as they renew their licenses annually.
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If there are remaining licenses in a zone, they will be issued on a first-come, first-served basis.
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No, short-term rental licenses generally cannot be transferred when ownership of the property changes. All licenses issued after the ordinance adoption are non-transferable and must be reapplied for by new owners.
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Yes, the Overlay District and its regulations may be reviewed periodically to ensure they continue to reflect the appropriate balance of short-term rentals within the community.
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Refer to Figure 23-3 in the City’s Zoning Ordinance to see the Overlay District boundaries and zone breakdowns.
