Rental Investment Guide

Muskegon Heights


Short-term & long-term rental regulations, fees, and investor resources for Muskegon County, Michigan.

Updated May 2026

Area Overview


Muskegon Heights is a city of roughly 10,000 residents [1] in Muskegon County, immediately south of the City of Muskegon and a few miles inland from Lake Michigan. Housing stock is predominantly older single-family homes and small multi-family buildings; the rental market is heavily long-term, with strong tenant turnover from the broader Muskegon-Norton Shores metro area.

The city does NOT have a separate short-term rental ordinance. Any dwelling unit not occupied by the owner is treated as a rental dwelling under Chapter 18, Section 501 of the City Code [2] and must register with the Inspections Department before being rented. The same rules apply whether a property is rented monthly to a tenant or nightly through Airbnb-style platforms. Investors should also note Muskegon Heights’ Sec. 18-290 dwelling-fire-insurance mandate ($10,000 minimum or escrow alternative) [2], a requirement that does not exist in most surrounding municipalities.

Quick Status Summary


Short-Term Rentals TREATED AS RENTAL

Muskegon Heights has no STR-specific ordinance. Any non-owner-occupied dwelling, including a property rented short-term, is a ‘rental dwelling’ under Chapter 18, Sec. 501 [2] and must register with the Inspections Department, pass an inspection, and carry the city’s $10,000 dwelling-fire-insurance requirement [2]. STR operators should also confirm Michigan’s 6% use tax on stays under 30 days [9] and verify zoning allows the residential dwelling use on the specific parcel.

Long-Term Rentals ALLOWED

Long-term rentals (any dwelling not occupied by the owner) are permitted citywide subject to annual rental registration under Chapter 18, Sec. 501 [2]. $100 registration fee + $68 inspection per single dwelling [3]. Owners must designate a local agent and carry $10,000 dwelling-fire-insurance (or qualifying escrow) per Sec. 18-290 [2]. No permit cap.

Rental Regulations


1 Where STRs Are Allowed (Zoning)

Muskegon Heights does not have a short-term rental ordinance. Whether STRs are allowed on a specific parcel turns on whether the underlying zoning district permits residential dwelling use, governed by the Muskegon Heights Zoning Ordinance (adopted 9/2019) [4].

The 2019 Zoning Ordinance is distributed as a single PDF and the use chart by district is the controlling reference. For any specific property, verify the zoning district on the map below, then confirm residential dwelling use is permitted by right (or grandfathered) with the Planning/Zoning Department.

๐Ÿ“„ Open Zoning Map (PDF)

2 Registration & Permit Process

Submit the city’s Rental Registration Form by mail or in person to the Inspections Department, 2724 Peck Street, Muskegon Heights, MI 49444 [3]. Muskegon Heights uses the same paper-form registration for short-term and long-term rentals; there is no separate STR portal.

Required on the registration form [3]:

  • Owner name, address, phone (LLCs must include identification)
  • Local agent name and address (if different from owner)
  • Number of bedrooms, number of units
  • Dwelling-fire-insurance company, policy number, expiration date, and coverage amount (minimum $10,000) โ€” OR an alternative escrow deposit
  • Owner/agent signature and driver’s license number
SubmissionIn person or mail to 2724 Peck Street
For STR operators: The form asks for number of bedrooms because the per-bedroom mix and occupancy will be checked against zoning and property-maintenance occupancy standards at inspection.
3 Fees & Penalties

Fees from the City of Muskegon Heights Fee Schedule (effective April 13, 2026) [3]. Fees may be paid by cash, check, or credit card (3.5% surcharge applies).

Rental Registration Fee$100
Single-Dwelling Inspection$68
Re-inspection (additional)$50
Final Inspection$50
1st No-Show Rescheduling Fee$25
2nd No-Show Rescheduling Fee$75
Certificate of Compliance$10
Failure to provide insurance info (Sec. 18-290 violation)Suspension of registration + $500 fine [2]

State of Michigan also imposes a 6% use tax on accommodations rented for less than 30 days [9]. Some Muskegon County jurisdictions add accommodation tax through the Convention Facility / Tourism Development Authority โ€” confirm current rate with Visit Muskegon’s STR partner page.

4 Inspections & Safety Requirements

Every rental dwelling must pass inspection before a Certificate of Compliance is issued [5]. The Chief Building Official enforces the Muskegon Heights Property Maintenance Code [6] together with the State of Michigan Building, Plumbing, Mechanical, and Electrical Codes.

Common items checked at rental inspection (compiled from the Property Maintenance Code [6]):

  • Working smoke detectors and carbon-monoxide detectors per code
  • Means of egress from each habitable room and from each floor
  • Electrical service in good condition; no open splices or missing covers
  • Plumbing fixtures functional; hot/cold water supplied
  • Heating system functional and adequate
  • Property exterior maintained (no peeling paint, intact gutters, weather-tight)
  • No chronic code-enforcement complaints unresolved
Pre-inspection tip: No-show rescheduling is $25 the first time and $75 the second [3], so confirm the inspection appointment when scheduled.
5 Local Agent & Dwelling Fire Insurance Requirement

If the owner does not live at the property, a local agent must be designated in writing on the registration form [3]. The agent’s name, address, and phone number become the city’s contact for any code-enforcement, public-safety, or tenant-complaint issue at the property.

Sec. 18-290 dwelling-fire-insurance requirement [2]: All commercial property owners and owners of two or more properties with zero percent Principal Residence Exemption (PRE) must obtain a minimum $10,000 fire-insurance policy on each rental property. The policy company name, policy number, and expiration date must be listed on the registration form, or a copy of the policy must be provided. Failure to provide insurance information results in suspension of the rental registration certificate AND a $500 fine.

Alternative escrow option [2]: Landlords of one-to-two-unit dwellings may instead deposit funds with the city in lieu of insurance:

  • Single-family or 1-2 units: $10,000 minimum escrow
  • 3-6 units: $15,000 minimum escrow
  • 7-12 units: $20,000 minimum escrow

Escrow funds may be withdrawn only for fire-related demolition or restoration; the landlord must replenish within 10 business days [2].

1 Where LTRs Are Allowed (Zoning)

Long-term rentals (any non-owner-occupied dwelling rented for residential use) follow the standard residential zoning districts in the Muskegon Heights Zoning Ordinance (adopted 9/2019) [4]. If a parcel is zoned for residential dwelling use, an LTR is permitted; rental status itself does not change a property’s zoning classification.

Where verification matters: For commercial-zoned properties, mixed-use buildings, or any conversion of a non-residential structure to a dwelling, confirm the zoning district on the map and verify dwelling use is permitted by right (or grandfathered) with the Planning/Zoning Department before purchase.

๐Ÿ“„ Open Zoning Map (PDF)

2 Annual Registration & Inspection Program

Submit the Rental Registration Form by mail or in person to the Inspections Department, 2724 Peck Street, Muskegon Heights, MI 49444 [3]. Online filing is not currently offered. Chapter 18, Sec. 501 governs registration; Chapter 10 of the City Code requires periodic inspection of rental properties and payment of all fees [3].

Required with the registration form [3]:

  • Owner and local-agent contact information
  • Number of units and number of bedrooms
  • Dwelling-fire-insurance company, policy number, expiration, coverage amount (or escrow proof โ€” see Sec. 18-290) [2]
  • Owner or agent driver’s license number and signature
SubmissionIn person or mail to 2724 Peck Street
Inspection schedulingCall 231-733-8860 after registration is processed
3 Fees & Penalties

Fees from the Muskegon Heights Fee Schedule (effective April 13, 2026) [3]. Same schedule applies whether the rental is long-term or short-term.

Rental Registration Fee$100
Single-Dwelling Inspection$68
Re-inspection (additional)$50
Final Inspection$50
1st No-Show Rescheduling$25
2nd No-Show Rescheduling$75
Certificate of Compliance$10
Vacant Building Registration (6 mo – 2 yr)$500 [3]
Vacant Building Registration (5+ years)$3,500 [3]

The vacant-building escalator matters for buy-and-hold investors: a property left vacant during a rehab can quickly accumulate registration fees on top of the rental program fees.

4 Inspections & Safety Requirements

The Chief Building Official inspects every rental dwelling under the Muskegon Heights Property Maintenance Code [6] and the State of Michigan Building, Plumbing, Mechanical, and Electrical Codes [5]. A Certificate of Compliance is issued only after a passing inspection AND payment of all fees owed on the property [3].

Items typically reviewed at inspection [6]:

  • Working smoke detectors and CO detectors per code
  • Two means of egress from each unit
  • Electrical service safe; no exposed wiring or missing covers
  • Hot and cold water supplied; plumbing functional
  • Adequate heating in all habitable rooms
  • Exterior weather-tight; no peeling paint or open soffits
  • Yard and accessory structures maintained
  • No open building permits or unresolved code complaints
5 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 covering leases, security deposits, repairs, and the eviction process [7]. These rules apply in Muskegon Heights and are not modified by local ordinance.

Tenants with code-enforcement concerns (heat, electrical, plumbing, mold, infestation) can report directly to the Inspections Department; the city’s Property/Building Complaint form provides an online intake [5].

Official Resources


Property Tax Treatment


i
Important for investors: A property used as a rental in Michigan is generally classified as non-homestead, which is taxed at the full local millage rate (no Principal Residence Exemption). Short-term rental income may also be subject to the Michigan Use Tax on transient accommodations. Consult a CPA before underwriting any deal โ€” these are not opinions, they are starting points for your own tax research.

Explore Rental Guides โ€” Muskegon County


Every municipality in Muskegon County. Click any to view its rental guide โ€” or request one if itโ€™s not yet live. View the Muskegon County hub โ†’


Buying, selling, or investing in Muskegon Heights?

Muskegon Heights' rental program is paperwork-heavy and the dwelling-fire-insurance requirement is a real underwriting line item. I help investors and homeowners navigate the city's rental rules across the wider Muskegon County market and the rest of southwest Michigan.

Sources & Downloads


  1. 1
    Population profile (~10,000 residents)
    Verified: 2026-05-15
  2. 2
    Muskegon Heights โ€” Rental Registration Form (2026, PDF) https://muskegonheights.us/downloads/rental-registrations/
    References Chapter 18, Sec. 501 of City Ordinance and Sec. 18-290 dwelling-fire-insurance requirement; defines rental dwelling, local agent, escrow alternative, and $500 violation fine.
    Verified: 2026-05-15
  3. 3
    Muskegon Heights โ€” City Fee Schedule (effective April 13, 2026, PDF) https://muskegonheights.us/downloads/fee-schedule-2/
    Rental registration $100, single-dwelling inspection $68, re-inspection $50, no-show fees $25/$75, vacant-building escalator $500-$3,500.
    Verified: 2026-05-15
  4. 4
    Muskegon Heights โ€” Zoning Ordinance 9-2019 (PDF) https://muskegonheights.us/downloads/muskegon-heights-zoning-ordinance-9-2019/
    Adopted 9/2019. Use chart by district controls residential dwelling permission citywide.
    Verified: 2026-05-15
  5. 5
    Muskegon Heights โ€” Inspections Department Page https://muskegonheights.us/inspections/
    Chief Building Official duties, contact info (231-733-8860), and reference to enforcement of Property Maintenance Code and state codes.
    Verified: 2026-05-15
  6. 6
    Muskegon Heights โ€” Property Maintenance Code (PDF) https://muskegonheights.us/downloads/muskegon-heights-property-maintenance-code/
    Inspection standards for rental dwellings.
    Verified: 2026-05-15
  7. 7
    Michigan Legislature โ€” A Practical Guide for Tenants & Landlords https://www.legislature.mi.gov/publications/tenantlandlord.pdf
    Statewide landlord-tenant law, leases, eviction process
    Verified: 2026-05-15
  8. 8
    Muskegon Heights โ€” Code of Ordinances (Municode Library) https://library.municode.com/mi/muskegon_heights
    Searchable codified ordinances, including Chapter 18 (Building & Building Regulations).
    Verified: 2026-05-15
  9. 9
    Visit Muskegon โ€” Short-Term Rental & Accommodation Tax Resources https://www.visitmuskegon.org/partner-resources/short-term-rentals/
    Michigan 6% use tax on stays under 30 days plus county-level accommodation tax guidance.
    Verified: 2026-05-15
How this guide is produced. This rental guide is researched and drafted with assistance from Claude, an AI model made by Anthropic, working from the official municipal sources linked in this page. AI can make mistakes โ€” any fact that would materially affect a purchase or rental decision should be verified against the official source cited above and confirmed directly with the municipality. See an error? Email a correction.