Detroit vs Phoenix

Michigan Legal but Limited | Arizona Legal with Permit

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
Phoenix, Arizona
Status Legal with Permit
Permit Fee $250/year (non-refundable)
Tax Rate ~12.57% combined transient lodging tax (state + county + city)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $500 first violation; $1,000 second; $3,500 third; 12-month suspension after 3 violations

Phoenix has more favorable STR regulations overall.

Permits & Licensing

Detroit charges $500 annual license fee for STR licensing, while Phoenix charges $250/year (non-refundable). Detroit renewal is annual, and Phoenix renewal is annual. Overall, Phoenix has a more permissive regulatory environment (Legal with Permit) compared to Detroit (Legal but Limited).

Tax Obligations

In Detroit, hosts pay 6% Michigan use tax + 6% Detroit Accommodations Tax (12% combined). In Phoenix, hosts pay ~12.57% combined transient lodging tax (state + county + city). 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 Phoenix 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 Phoenix, violations can result in $500 first violation; $1,000 second; $3,500 third; 12-month suspension after 3 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 →

Phoenix Overview

Arizona SB 1168 (2022) grants cities enhanced enforcement while SB 1350 (2016) preempts outright bans. Phoenix requires STR permit, $500K liability insurance, neighbor notification, and prohibits STR use of accessory dwelling units.

Contact: Phoenix Planning & Development — (602) 534-9723

Full Phoenix guide →

Frequently Asked Questions

Is it easier to Airbnb in Detroit or Phoenix?
Detroit is classified as "Legal but Limited" while Phoenix is "Legal with Permit." Detroit's permit fee is $500 annual license fee compared to $250/year (non-refundable) in Phoenix. Overall, Phoenix has a more host-friendly regulatory environment.
Which city has higher STR taxes — Detroit or Phoenix?
Detroit charges 6% Michigan use tax + 6% Detroit Accommodations Tax (12% combined), while Phoenix charges ~12.57% combined transient lodging tax (state + county + city).
Which city has stricter fines for illegal short-term rentals?
Detroit: Up to $1,000–$1,200 per violation for unlicensed operation. Phoenix: $500 first violation; $1,000 second; $3,500 third; 12-month suspension after 3 violations. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Detroit and Phoenix have day limits for Airbnb?
Detroit limits STRs to 90 nights per year. Phoenix has no annual day limit.
Which city is better for first-time Airbnb hosts — Detroit or Phoenix?
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. Phoenix charges $250/year (non-refundable) with ~12.57% combined transient lodging tax (state + county + city). Automatic tax collection in Detroit and Phoenix makes compliance easier for beginners.