Detroit vs Palm Springs

Michigan Legal but Limited | California Legal but Limited

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
Palm Springs, California
Status Legal but Limited
Permit Fee $1,072/year Vacation Rental Certificate; $642/year Junior Certificate
Tax Rate 12.5% combined (11.5% TOT + 1% TBID)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $5,000 for operating without certificate + permanent ineligibility; 3 violations = 2-year suspension

Both cities have comparable STR regulatory environments.

Permits & Licensing

Detroit charges $500 annual license fee for STR licensing, while Palm Springs charges $1,072/year Vacation Rental Certificate; $642/year Junior Certificate. Detroit renewal is annual, and Palm Springs renewal is annual. Both cities share a similar regulatory stance, classified as "Legal but Limited."

Tax Obligations

In Detroit, hosts pay 6% Michigan use tax + 6% Detroit Accommodations Tax (12% combined). In Palm Springs, hosts pay 12.5% combined (11.5% TOT + 1% TBID). 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 Palm Springs 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 Palm Springs, violations can result in $5,000 for operating without certificate + permanent ineligibility; 3 violations = 2-year suspension. 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 →

Palm Springs Overview

Limited to 26 rental contracts per year (28 nights or shorter each). Neighborhood density cap of 20% — multiple neighborhoods already at capacity. One permit per owner; occupancy based on bedroom count. $500,000 liability insurance required.

Contact: Dept. of Special Program Compliance — (760) 322-8383

Full Palm Springs guide →

Frequently Asked Questions

Is it easier to Airbnb in Detroit or Palm Springs?
Detroit is classified as "Legal but Limited" while Palm Springs is "Legal but Limited." Detroit's permit fee is $500 annual license fee compared to $1,072/year Vacation Rental Certificate; $642/year Junior Certificate in Palm Springs. Both cities have comparable regulatory frameworks.
Which city has higher STR taxes — Detroit or Palm Springs?
Detroit charges 6% Michigan use tax + 6% Detroit Accommodations Tax (12% combined), while Palm Springs charges 12.5% combined (11.5% TOT + 1% TBID).
Which city has stricter fines for illegal short-term rentals?
Detroit: Up to $1,000–$1,200 per violation for unlicensed operation. Palm Springs: $5,000 for operating without certificate + permanent ineligibility; 3 violations = 2-year suspension. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Detroit and Palm Springs have day limits for Airbnb?
Detroit limits STRs to 90 nights per year. Palm Springs has no annual day limit.
Which city is better for first-time Airbnb hosts — Detroit or Palm Springs?
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. Palm Springs charges $1,072/year Vacation Rental Certificate; $642/year Junior Certificate with 12.5% combined (11.5% TOT + 1% TBID). Automatic tax collection in Detroit and Palm Springs makes compliance easier for beginners.