Detroit vs San Diego

Michigan Legal but Limited | California 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
San Diego, California
Status Legal with Permit
Permit Fee Tier 1: $226; Tier 2: $317; Tier 3/4: $1,170 (includes application + license)
Tax Rate 11.75%–13.75% TOT (varies by zone proximity to Convention Center)
Day Limit 20 days/year
Renewal Biennial
Platform Tax Yes
Max Fine $1,000 per violation; criminal misdemeanor charges for continued violations

San Diego has more favorable STR regulations overall.

Permits & Licensing

Detroit charges $500 annual license fee for STR licensing, while San Diego charges Tier 1: $226; Tier 2: $317; Tier 3/4: $1,170 (includes application + license). Detroit renewal is annual, and San Diego renewal is biennial. Overall, San Diego 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 San Diego, hosts pay 11.75%–13.75% TOT (varies by zone proximity to Convention Center). Both cities benefit from automatic platform tax collection through Airbnb and similar services, simplifying compliance for hosts.

Day Limits & Restrictions

Both cities impose annual day limits: Detroit allows 90 nights/year, while San Diego allows 20 nights/year. Detroit's higher cap gives hosts more flexibility.

Fines & Enforcement

Hosts operating without a permit in Detroit face penalties including Up to $1,000–$1,200 per violation for unlicensed operation. In San Diego, violations can result in $1,000 per violation; criminal misdemeanor charges for continued 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 →

San Diego Overview

Four-tier license system with caps: Tier 3 limited to 1% of housing units; Tier 4 (Mission Beach) capped at 30% and at capacity. Only one license per host; licenses are non-transferable.

Contact: STRO Administration, City Treasurer — (619) 615-6120

Full San Diego guide →

Frequently Asked Questions

Is it easier to Airbnb in Detroit or San Diego?
Detroit is classified as "Legal but Limited" while San Diego is "Legal with Permit." Detroit's permit fee is $500 annual license fee compared to Tier 1: $226; Tier 2: $317; Tier 3/4: $1,170 (includes application + license) in San Diego. Overall, San Diego has a more host-friendly regulatory environment.
Which city has higher STR taxes — Detroit or San Diego?
Detroit charges 6% Michigan use tax + 6% Detroit Accommodations Tax (12% combined), while San Diego charges 11.75%–13.75% TOT (varies by zone proximity to Convention Center).
Which city has stricter fines for illegal short-term rentals?
Detroit: Up to $1,000–$1,200 per violation for unlicensed operation. San Diego: $1,000 per violation; criminal misdemeanor charges for continued violations. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Detroit and San Diego have day limits for Airbnb?
Detroit limits STRs to 90 nights per year. San Diego limits STRs to 20 nights per year.
Which city is better for first-time Airbnb hosts — Detroit or San Diego?
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. San Diego charges Tier 1: $226; Tier 2: $317; Tier 3/4: $1,170 (includes application + license) with 11.75%–13.75% TOT (varies by zone proximity to Convention Center). Automatic tax collection in Detroit and San Diego makes compliance easier for beginners.