Detroit vs Sedona

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
Sedona, Arizona
Status Legal with Permit
Permit Fee $210/year
Tax Rate 13.3%–13.9% combined (varies by county portion — Yavapai vs Coconino)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $500 first violation; $1,000 second; $3,500 third; up to $1,000/month without permit

Sedona has more favorable STR regulations overall.

Permits & Licensing

Detroit charges $500 annual license fee for STR licensing, while Sedona charges $210/year. Detroit renewal is annual, and Sedona renewal is annual. Overall, Sedona 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 Sedona, hosts pay 13.3%–13.9% combined (varies by county portion — Yavapai vs Coconino). 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 Sedona 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 Sedona, violations can result in $500 first violation; $1,000 second; $3,500 third; up to $1,000/month without permit. 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 →

Sedona Overview

Sedona straddles Yavapai and Coconino counties, so tax rates vary. Each unit needs its own permit. Special events (weddings, retreats) strictly prohibited. 24/7 complaint hotline: (928) 203-5110.

Contact: Sedona Community Development — (928) 203-5198

Full Sedona guide →

Frequently Asked Questions

Is it easier to Airbnb in Detroit or Sedona?
Detroit is classified as "Legal but Limited" while Sedona is "Legal with Permit." Detroit's permit fee is $500 annual license fee compared to $210/year in Sedona. Overall, Sedona has a more host-friendly regulatory environment.
Which city has higher STR taxes — Detroit or Sedona?
Detroit charges 6% Michigan use tax + 6% Detroit Accommodations Tax (12% combined), while Sedona charges 13.3%–13.9% combined (varies by county portion — Yavapai vs Coconino).
Which city has stricter fines for illegal short-term rentals?
Detroit: Up to $1,000–$1,200 per violation for unlicensed operation. Sedona: $500 first violation; $1,000 second; $3,500 third; up to $1,000/month without permit. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Detroit and Sedona have day limits for Airbnb?
Detroit limits STRs to 90 nights per year. Sedona has no annual day limit.
Which city is better for first-time Airbnb hosts — Detroit or Sedona?
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. Sedona charges $210/year with 13.3%–13.9% combined (varies by county portion — Yavapai vs Coconino). Automatic tax collection in Detroit and Sedona makes compliance easier for beginners.