Detroit vs New York City

Michigan Legal but Limited | New York Effectively Banned

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 York City, New York
Status Effectively Banned
Permit Fee $145 registration fee (OSE)
Tax Rate 5.875% hotel room occupancy tax + state/city sales tax
Day Limit No limit
Renewal Every 2 years
Platform Tax Yes
Max Fine $5,000 first offense; up to $7,500 for subsequent violations

Detroit has more favorable STR regulations overall.

Permits & Licensing

Detroit charges $500 annual license fee for STR licensing, while New York City charges $145 registration fee (OSE). Detroit renewal is annual, and New York City renewal is every 2 years. Overall, Detroit has a more permissive regulatory environment (Legal but Limited) compared to New York City (Effectively Banned).

Tax Obligations

In Detroit, hosts pay 6% Michigan use tax + 6% Detroit Accommodations Tax (12% combined). In New York City, hosts pay 5.875% hotel room occupancy tax + state/city sales tax. 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 York City 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 York City, violations can result in $5,000 first offense; up to $7,500 for subsequent violations. 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 York City Overview

Local Law 18 (2023) requires hosts to register with OSE, be present during stays, and limits guests to 2. Entire-apartment rentals under 30 days are effectively banned. Only hosted stays with the owner present are permitted.

Contact: NYC Mayor's Office of Special Enforcement — (212) 676-4101

Full New York City guide →

Frequently Asked Questions

Is it easier to Airbnb in Detroit or New York City?
Detroit is classified as "Legal but Limited" while New York City is "Effectively Banned." Detroit's permit fee is $500 annual license fee compared to $145 registration fee (OSE) in New York City. Overall, Detroit has a more host-friendly regulatory environment.
Which city has higher STR taxes — Detroit or New York City?
Detroit charges 6% Michigan use tax + 6% Detroit Accommodations Tax (12% combined), while New York City charges 5.875% hotel room occupancy tax + state/city sales tax.
Which city has stricter fines for illegal short-term rentals?
Detroit: Up to $1,000–$1,200 per violation for unlicensed operation. New York City: $5,000 first offense; up to $7,500 for subsequent violations. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Detroit and New York City have day limits for Airbnb?
Detroit limits STRs to 90 nights per year. New York City has no annual day limit.
Which city is better for first-time Airbnb hosts — Detroit or New York City?
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 York City charges $145 registration fee (OSE) with 5.875% hotel room occupancy tax + state/city sales tax. Automatic tax collection in Detroit and New York City makes compliance easier for beginners.