Detroit vs Scottsdale

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
Scottsdale, Arizona
Status Legal with Permit
Permit Fee $250/year
Tax Rate ~14.27% combined transient occupancy tax (state + county + city)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $500 first violation; $1,000 second; $3,500 third; license suspension after 3 in 12 months

Scottsdale has more favorable STR regulations overall.

Permits & Licensing

Detroit charges $500 annual license fee for STR licensing, while Scottsdale charges $250/year. Detroit renewal is annual, and Scottsdale renewal is annual. Overall, Scottsdale 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 Scottsdale, hosts pay ~14.27% combined transient occupancy 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 Scottsdale 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 Scottsdale, violations can result in $500 first violation; $1,000 second; $3,500 third; license suspension after 3 in 12 months. 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 →

Scottsdale Overview

Ordinance 4566 caps occupancy at 6 adults plus dependent children, requires 1 off-street parking space per bedroom, $500K liability insurance, and neighbor notification within 30 days. Special events and commercial uses prohibited.

Contact: Scottsdale Code Enforcement — (480) 312-2546

Full Scottsdale guide →

Frequently Asked Questions

Is it easier to Airbnb in Detroit or Scottsdale?
Detroit is classified as "Legal but Limited" while Scottsdale is "Legal with Permit." Detroit's permit fee is $500 annual license fee compared to $250/year in Scottsdale. Overall, Scottsdale has a more host-friendly regulatory environment.
Which city has higher STR taxes — Detroit or Scottsdale?
Detroit charges 6% Michigan use tax + 6% Detroit Accommodations Tax (12% combined), while Scottsdale charges ~14.27% combined transient occupancy 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. Scottsdale: $500 first violation; $1,000 second; $3,500 third; license suspension after 3 in 12 months. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Detroit and Scottsdale have day limits for Airbnb?
Detroit limits STRs to 90 nights per year. Scottsdale has no annual day limit.
Which city is better for first-time Airbnb hosts — Detroit or Scottsdale?
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. Scottsdale charges $250/year with ~14.27% combined transient occupancy tax (state + county + city). Automatic tax collection in Detroit and Scottsdale makes compliance easier for beginners.