Denver vs Detroit

Colorado Legal with Permit | Michigan Legal but Limited

Disclaimer: General information only — not legal advice. Verify with your local government.

Denver, Colorado
Status Legal with Permit
Permit Fee $100 license fee
Tax Rate 10.75% Lodger's Tax (combined city/county/state)
Day Limit No limit
Renewal Every 2 years
Platform Tax Yes
Max Fine $999/day for unlicensed operation
Detroit, Michigan
Status Legal but Limited
Permit Fee $500 annual license fee
Tax Rate 6% Michigan use tax + 6% Detroit Accommodations Tax (12% combined)
Day Limit 90 days/year
Renewal Annual
Platform Tax Yes
Max Fine Up to $1,000–$1,200 per violation for unlicensed operation

Denver has more favorable STR regulations overall.

Permits & Licensing

Denver charges $100 license fee for STR licensing, while Detroit charges $500 annual license fee. Denver renewal is every 2 years, and Detroit renewal is annual. Overall, Denver has a more permissive regulatory environment (Legal with Permit) compared to Detroit (Legal but Limited).

Tax Obligations

In Denver, hosts pay 10.75% Lodger's Tax (combined city/county/state). In Detroit, hosts pay 6% Michigan use tax + 6% Detroit Accommodations Tax (12% combined). Both cities benefit from automatic platform tax collection through Airbnb and similar services, simplifying compliance for hosts.

Day Limits & Restrictions

Detroit imposes a 90-night annual limit, while Denver has no annual cap — a significant advantage for high-volume hosts.

Fines & Enforcement

Hosts operating without a permit in Denver face penalties including $999/day for unlicensed operation. In Detroit, violations can result in Up to $1,000–$1,200 per violation for unlicensed operation. Both cities actively enforce their STR regulations, so securing proper licensing before listing is essential in either market.

Denver Overview

Only primary residences may be used as STRs. Hosts must obtain a Short-Term Rental license. No cap on rental days. Accessory dwelling units on the same lot are also eligible.

Contact: Denver Excise & Licenses — (720) 913-1311

Full Denver guide →

Detroit Overview

90-day annual rental cap; max 10 guests at any time; principal residence requirement. Liability insurance required and properties must pass safety inspection.

Contact: BSEED — (313) 224-2733

Full Detroit guide →

Frequently Asked Questions

Is it easier to Airbnb in Denver or Detroit?
Denver is classified as "Legal with Permit" while Detroit is "Legal but Limited." Denver's permit fee is $100 license fee compared to $500 annual license fee in Detroit. Overall, Denver has a more host-friendly regulatory environment.
Which city has higher STR taxes — Denver or Detroit?
Denver charges 10.75% Lodger's Tax (combined city/county/state), while Detroit charges 6% Michigan use tax + 6% Detroit Accommodations Tax (12% combined).
Which city has stricter fines for illegal short-term rentals?
Denver: $999/day for unlicensed operation. Detroit: Up to $1,000–$1,200 per violation for unlicensed operation. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Denver and Detroit have day limits for Airbnb?
Denver has no annual day limit. Detroit limits STRs to 90 nights per year.
Which city is better for first-time Airbnb hosts — Denver or Detroit?
For new hosts, consider the total cost of entry: Denver charges $100 license fee for permits with 10.75% Lodger's Tax (combined city/county/state) in taxes. Detroit charges $500 annual license fee with 6% Michigan use tax + 6% Detroit Accommodations Tax (12% combined). Automatic tax collection in Denver and Detroit makes compliance easier for beginners.