Detroit vs New Orleans

Michigan Legal but Limited | Louisiana Restricted

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

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
New Orleans, Louisiana
Status Restricted
Permit Fee NSTR ~$50 application (lottery); CSTR $1,000/year
Tax Rate 5% sales tax + 6.75% occupancy tax + $5–$12/night occupancy fee
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $1,000/violation; platforms fined $1,000/day per illegal listing

Detroit has more favorable STR regulations overall.

Permits & Licensing

Detroit charges $500 annual license fee for STR licensing, while New Orleans charges NSTR ~$50 application (lottery); CSTR $1,000/year. Detroit renewal is annual, and New Orleans renewal is annual. Overall, Detroit has a more permissive regulatory environment (Legal but Limited) compared to New Orleans (Restricted).

Tax Obligations

In Detroit, hosts pay 6% Michigan use tax + 6% Detroit Accommodations Tax (12% combined). In New Orleans, hosts pay 5% sales tax + 6.75% occupancy tax + $5–$12/night occupancy fee. 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 New Orleans has no annual cap — a significant advantage for high-volume hosts.

Fines & Enforcement

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

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 →

New Orleans Overview

Heavily restricted: French Quarter is banned (except parts of Bourbon St), permits limited to owner's primary residence via lottery, CSTR permits frozen since 2023, and one STR per block density cap applies.

Contact: New Orleans STR Administration — (504) 658-7144

Full New Orleans guide →

Frequently Asked Questions

Is it easier to Airbnb in Detroit or New Orleans?
Detroit is classified as "Legal but Limited" while New Orleans is "Restricted." Detroit's permit fee is $500 annual license fee compared to NSTR ~$50 application (lottery); CSTR $1,000/year in New Orleans. Overall, Detroit has a more host-friendly regulatory environment.
Which city has higher STR taxes — Detroit or New Orleans?
Detroit charges 6% Michigan use tax + 6% Detroit Accommodations Tax (12% combined), while New Orleans charges 5% sales tax + 6.75% occupancy tax + $5–$12/night occupancy fee.
Which city has stricter fines for illegal short-term rentals?
Detroit: Up to $1,000–$1,200 per violation for unlicensed operation. New Orleans: $1,000/violation; platforms fined $1,000/day per illegal listing. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Detroit and New Orleans have day limits for Airbnb?
Detroit limits STRs to 90 nights per year. New Orleans has no annual day limit.
Which city is better for first-time Airbnb hosts — Detroit or New Orleans?
For new hosts, consider the total cost of entry: Detroit charges $500 annual license fee for permits with 6% Michigan use tax + 6% Detroit Accommodations Tax (12% combined) in taxes. New Orleans charges NSTR ~$50 application (lottery); CSTR $1,000/year with 5% sales tax + 6.75% occupancy tax + $5–$12/night occupancy fee. Automatic tax collection in Detroit and New Orleans makes compliance easier for beginners.