City of New Buffalo
Short-term & long-term rental regulations, fees, and investor resources for Berrien County, Michigan.
Area Overview
The City of New Buffalo sits at the southwest corner of Berrien County on Lake Michigan, directly at the Indiana border. It is the commercial and lodging hub of Harbor Country and the gateway for weekend traffic from the Chicago metro, roughly 70 minutes away. Housing stock is a mix of small-lot single-family homes, downtown mixed-use buildings, and lakefront and near-lakefront second homes. The 2020 Census population was 1,708.
Short-term rental activity is a defining feature of the local housing market and is now actively restricted by zoning. Under Ordinance 253 (adopted November 23, 2021), new STRs are prohibited in the City's R-1, R-2, and R-3 residential districts; existing STRs registered under Chapter 11 as of that date may continue as nonconforming uses. New STRs remain available in other zoning districts that contain dwelling units (commercial/mixed-use). Long-term rentals remain permitted throughout the City but require registration.
Quick Status Summary
Permitted and regulated under Chapter 11, but NEW short-term rentals are prohibited in the R-1, R-2, and R-3 residential districts per Ordinance 253 (11/23/2021). Existing registered STRs in those districts are preserved as nonconforming. New STRs are allowed in other zoning districts that contain dwelling units. All STRs require an annual City permit, annual inspection, and a designated local agent within 20 miles.
Permitted citywide. All long-term residential rental property owners and property managers must register with the City. Failure to register may result in penalties. Confirm current registration fee and renewal cycle with Building Services before underwriting.
Rental Regulations
Where STRs Are Allowed (Zoning)
Ordinance 253 amended Sections 2-3, 6-2, 7-2, and 8-2 and added Section 20-8 to the Zoning Ordinance to prohibit new short-term rental units in the R-1, R-2, and R-3 residential districts. The ordinance was adopted by the City Council on November 23, 2021 by a 3-0 vote.
- R-1 Single-Family, R-2, R-3: New STRs prohibited.
- All other zoning districts with dwelling units (including commercial/mixed-use districts): new STRs allowed subject to Chapter 11 registration and operating rules.
- Existing nonconforming use: STRs that existed and were registered under Chapter 11 as of 11/23/2021 may continue in R-1, R-2, or R-3 as nonconforming uses, provided they operate in compliance with Section 20-8.
Verify the zoning district of a specific parcel via the City’s Zoning Ordinance (Chapter 74, eCode360) before underwriting an STR-based valuation.
Registration & Permit Process
Short-term rentals in the City are governed by Chapter 11 of the Code of Ordinances. Operating an STR without a current City permit is a violation of the ordinance.
The City Council sets the annual administrative fee by resolution and may adjust it from year to year. Confirm the current amount with City Hall before submitting an application.
Inspections & Safety Requirements
Every short-term rental unit is subject to annual inspection for compliance with applicable building, fire, and property-maintenance codes and with Chapter 11.
- Smoke detectors: Owners and local agents are responsible for the installation of UL-approved smoke detectors/alarms in each rental unit, installed in accordance with the Michigan Residential Code and NFPA Standards.
- General safety features: Units must meet the occupancy and egress requirements of the Michigan Construction Code.
- Inspection scheduling: Building Services (contracted since January 1, 2025 to Municipal Inspection Authority / MIA) coordinates permit inspections. Permit applications may be emailed to permits@cityofnewbuffalomi.gov, mailed to City Hall, or dropped off during business hours.
Occupancy, Advertising & Operating Rules
Chapter 11 sets the maximum occupancy for every permitted STR unit and requires the permit to state that maximum.
- Advertising. An STR unit may not be advertised for an occupancy higher than the maximum calculated under § 11-9. Online platform listings must state that maximum.
- Permit posting. The current permit must be displayed inside the rental unit as required by Chapter 11.
- Reasonably prudent business practices. Owners are required to take reasonable steps to ensure occupants and guests do not create disturbances or violate applicable laws, rules, or regulations while on the premises.
Chapter 11 also addresses noise, parking, trash, and nuisance conduct by reference to the City’s general ordinances. Review the full Chapter 11 text before first operation.
Local Agent / 24-Hour Contact Requirement
Every short-term rental must have a designated local agent. The local agent requirement is one of the most tightly written parts of Chapter 11 and is aimed squarely at remotely-managed, investor-owned properties.
- Residency. The local agent must be a natural person who resides within 20 miles of the geographic boundaries of the City of New Buffalo.
- Availability. During each rental term, the local agent must be available 24 hours per day, 7 days per week.
- Response time. The local agent must respond within 30 minutes to complaints regarding the condition, operation, or conduct of occupants or their guests.
- Duty to remediate. Upon notification of unreasonable noise, disorderly conduct, parking violations, or other applicable-law violations, the local agent must respond in a timely and appropriate manner to halt the violation and prevent its recurrence.
Recent Changes & Regulatory History
- November 23, 2021: City Council adopted Ordinance 253 (3-0 vote) amending the Zoning Ordinance to prohibit new STRs in the R-1, R-2, and R-3 residential districts; existing registered STRs preserved as nonconforming under § 20-8.
- January 1, 2025: Building Services contracting transitioned to Municipal Inspection Authority (MIA). Permit issuance, inspections, and plan review now run through MIA via the City Building Department.
The STR permit framework in Chapter 11 (registration, inspection, local agent, occupancy) has been in place since before Ord. 253; Ord. 253 layered the zoning-district restriction on top of that framework rather than replacing it.
Where LTRs Are Allowed (Zoning)
Long-term rentals (rentals under a lease) are permitted throughout the City’s residential and mixed-use zoning districts. The Ord. 253 zoning restriction applies only to short-term rentals — it does not restrict long-term rental use of homes in R-1, R-2, or R-3.
For any non-residentially-zoned property, confirm residential rental use against the City Zoning Ordinance use chart before underwriting.
Registration Requirement
All long-term residential rental property owners and property managers must submit a residential rental property registration with the City. Failure to register may result in penalties imposed by the City.
Registration fees, renewal cycle, and inspection frequency for long-term rentals are set and published by the City and may change by Council resolution. Confirm current figures with Building Services before underwriting.
Tenant Rights & Eviction Resources
Michigan landlord-tenant relationships are governed by state law (MCL 554.601 et seq.) and the summary proceedings act for evictions. The State Bar of Michigan publishes a free Practical Guide for Tenants and Landlords that covers leases, security deposits, repairs, and the eviction process. These rules apply in the City of New Buffalo and are not modified by local ordinance.
Special Regulations
New Buffalo's Lake Michigan shoreline is subject to state-level High Risk Erosion Area and Critical Dune designations under MDEGLE jurisdiction. Septic and well compliance is administered by the Berrien County Health Department. Investors evaluating lakefront or unsewered parcels should account for both.
High Risk Erosion Areas & Critical Dunes
Portions of New Buffalo’s Lake Michigan shoreline fall within Michigan EGLE (formerly MDEQ) High Risk Erosion Area and/or Critical Dune designations. Construction, modification, and shoreline protection structures (sandbags, geotubes, seawalls) in these areas require state permits in addition to local approvals.
Before closing on any lakefront or near-shore property, verify HREA/Critical Dune status directly with EGLE and factor any needed shoreline-protection permits into your rehab budget.
Septic & Well (Berrien County Health Department)
Older homes in the City and adjacent near-city areas may be on private septic and/or well. The Berrien County Health Department administers permitting and inspection for both. Request the most recent inspection records from BCHD before closing — failed or undersized septic systems are a common and expensive surprise on older coastal properties.
Official Resources
Property Tax Treatment
Explore Rental Guides — Berrien County
All 39 municipalities in Berrien County. Click any to view its rental guide — or request one if it’s not yet live.
- Bainbridge TownshipTownshipSTRs Capped/Limited
- BarodaVillageSTRs Allowed
- Baroda TownshipTownshipSTRs Restricted
- Benton Charter TownshipTownshipSTRs Allowed
- Benton HarborCitySTRs Restricted
- Berrien SpringsVillageSTRs Allowed
- Berrien TownshipTownshipSTRs Allowed
- Bertrand TownshipTownshipSTRs Allowed
- BridgmanCitySTRs Restricted
- BuchananCitySTRs Restricted
- Buchanan TownshipTownshipSTRs Restricted
- Chikaming TownshipTownshipSTRs Capped/Limited
- ColomaCitySTRs Allowed
- Coloma Charter TownshipTownshipSTRs Allowed
- Eau ClaireVillageSTRs Allowed
- GalienVillageSTRs Allowed
- Galien TownshipTownshipSTRs Allowed
- Grand BeachVillageSTRs Allowed
- Hagar TownshipTownshipSTRs Allowed
- Lake Charter TownshipTownshipSTRs Allowed
- Lincoln Charter TownshipTownshipSTRs Allowed
- MichianaVillageSTRs Capped/Limited
- New BuffaloCitySTRs Restricted
- New Buffalo TownshipTownshipSTRs Allowed
- NilesCitySTRs Allowed
- Niles Charter TownshipTownshipSTRs Restricted
- Oronoko Charter TownshipTownshipSTRs Allowed
- Pipestone TownshipTownshipSTRs Allowed
- Royalton TownshipTownshipSTRs Allowed
- Saint JosephCitySTRs Restricted
- Saint Joseph Charter TownshipTownshipSTRs Restricted
- ShorehamVillageSTRs Allowed
- Sodus TownshipTownshipSTRs Allowed
- StevensvilleVillageSTRs Restricted
- Three OaksVillageSTRs Capped/Limited
- Three Oaks TownshipTownshipSTRs Allowed
- WatervlietCitySTRs Allowed
- Watervliet Charter TownshipTownshipSTRs Allowed
- Weesaw TownshipTownshipSTRs Allowed
Thinking about an investment in New Buffalo?
I help investors evaluate short-term and long-term rental opportunities across Southwest Michigan, including Harbor Country and the Lake Michigan shoreline. Zoning-district verification before you offer is critical in New Buffalo.