City Watch
Short-term rental rules in Traverse City, MI
How Traverse City regulates short-term rentals: the rules that apply, their sources, and pending changes.
Rules here limit which homes may operate as short-term rentals, how many, where, or for how many nights a year.
- Residential-zoning exclusion
- Density cap (1,000 ft)
- License required
- Inspection required
Based on: Traverse City Code Ch. 870 (Vacation Home Rental License, eff 2019-07-01); Zoning Code Ch. 1320/1332/1334/1347 (current
Summary of the rule
§1332.01 (R-1a/R-1b Low Density Residential "Uses allowed", current per Ord. No. 1207 passed 2023-10-16) lists 'Tourist homes' as an allowed use but does NOT list 'Vacation home rental' — confirming VHR is not a permitted use in the R-1a/R-1b districts. §1334.01 (R-2 Mixed Density Residential "Uses allowed", current per Ord. No. 1225 passed 2025-06-02) incorporates 'R-1 District Uses' and likewise does not separately list Vacation home rental. §1320.07 defines Vacation home rental as 'a commercial use of a dwelling where the dwelling is rented or sold for any term less than 30 consecutive days.' §1347.01 permits VHR by right in the D-2 Development District (non-residential), capped at the greater of 1 or 25% of dwellings per parcel — confirming VHR's home is the commercial/development-district use tables, not the residential ones.
View the ordinance source ↗✓ Verified
Last reviewed Sep 10, 2026 · Sources · Report an error
Pending legislation
Monitoring Traverse City · system last checked Oct 25, 2026
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City Watch provides good-faith summaries of publicly available information as of the review date shown. Rules, enforcement, and permit availability can change, and summaries may contain errors or omissions. Ratings describe the general regulatory environment; they do not establish whether a particular property or stay is permitted. This is general information, not legal advice. Before buying, listing, or hosting, verify applicable requirements with the responsible authorities and review any HOA, condominium, deed, or lease restrictions.