Rental Investment Guide

City of Buchanan


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

Updated June 2026

Location: City of Buchanan (red outline) over OpenStreetMap. © OpenStreetMap contributors.

Area Overview


The City of Buchanan sits in southern Berrien County along the St. Joseph River, about 20 miles southwest of St. Joseph and 90 minutes from Chicago. Housing stock is predominantly traditional single-family homes in walkable neighborhoods surrounding a small downtown core. The city has roughly 4,400 residents and draws a steady flow of visitors to its historic Redbud district, McCoy Creek Trail, and nearby Clark Equipment / Tyler Refrigeration heritage sites.

Rental rules changed meaningfully across 2025โ€“2026. The city adopted a Residential Rental Registration program under Ordinance 2025.03/441 (effective April 19, 2025) [1] and a short-term rental regulatory ordinance (Ordinance 2025.09/443, effective October 10, 2025) [2], then replaced its 2003 zoning ordinance with a new Unified Development Code adopted in December 2025 [3]. That code was amended by the Short-Term Rental Overlay District ordinance (Ordinance 2026.04/448), adopted April 13, 2026 and effective May 8, 2026, which confines short-term rentals to a mapped overlay district [7]. Long-term rentals are allowed by right in any legally existing dwelling; short-term rentals are allowed only inside the Short-Term Rental Overlay District โ€” not in single-family residential neighborhoods.

Quick Status Summary


Short-Term Rentals LIMITED

Allowed only inside the mapped Short-Term Rental Overlay District (Ordinance 2026.04/448, effective May 8, 2026), building on Ordinance 2025.09/443. Prohibited in single-family residential districts, and use variances for STRs outside the overlay are barred. Annual registration is $120. Verify parcel eligibility with Community Development before purchasing any property intended for STR use.

Long-Term Rentals ALLOWED

Allowed by right in any legally existing dwelling for stays of one month or longer. Annual registration required ($35), with biennial inspections under the International Property Maintenance Code.

Rental Regulations


1 Where STRs Are Allowed (Zoning)

City of Buchanan Zoning Map

Short-term rentals are not allowed in single-family residential districts. As of May 8, 2026 they are confined to a mapped Short-Term Rental Overlay District (STROD) created by Ordinance 2026.04/448, which amended the Unified Development Code [7]. The overlay is superimposed over portions of the Neighborhood Center (NC), Downtown (D), General Neighborhood (GN), and Industrial (I) districts following the Chapter 14 Short-Term Rental Permitted Area Map; the UDC lodging matrix (Table 71-J) now lists short-term rentals, hotels/motels, and bed-and-breakfasts as uses permitted only within that overlay, and use variances for STRs outside the overlay are prohibited [7].

This overlay builds on Ordinance 2025.09/443 [2], which first restricted STRs to designated areas, grandfathered the short-term rentals that were properly registered and actively listed as of the March 2025 moratorium date, and permitted a limited additional number of new STRs in the non-single-family areas [4]. Because eligibility is defined by the overlay map and the underlying Unified Development Code districts [3], investors must confirm parcel-level eligibility with Community Development before relying on any property for STR use.

2 Registration & Permit Process

Submit a completed rental registration application in person at 302 N. Redbud Trail or by mail to the Community Development Department with the $120 annual STR fee [5]. Registration runs on an annual July cycle. Before applying, the city recommends contacting staff to confirm the specific property’s eligibility under the designated-area map [5].

SubmissionIn person or by mail to 302 N. Redbud Trail
Annual renewal windowJuly (annually)
Inspection cycleBiennial (every 2 years)
Book inspectionOnline booking portal or 269-695-3844 ext. 12
For investors: Confirm with Community Development before making an offer on any property you intend to operate as an STR. Zoning eligibility โ€” not just willingness to pay the fee โ€” is the gating factor.
3 Fees & Penalties
STR registration fee$120.00 annually
LTR registration fee (for reference)$35.00 annually
Rental inspection feeNo fee (biennial)
Fee dueAt time of application submittal

Fees published on the city’s Residential Rental Registration Program page [5]. Operating without registration in a designated STR area, or operating an STR in a prohibited district, is a code-enforcement violation under Chapter 14, Article IX and the Unified Development Code.

4 Inspections & Safety Requirements

Inspections are conducted under the International Property Maintenance Code (IPMC) and cover basic equipment, light and ventilation, heating, sanitation, and fire safety [5]. New registrations are inspected on a biennial cycle; there is no separate inspection fee.

The city publishes its inspection checklist so owners can self-assess before a scheduled visit.

5 Operating Rules & Recent Changes

Buchanan’s STR framework was built in four steps across 2025โ€“2026:

  • March 2025 โ€” Ordinance 2025.03/441 established a city-wide residential rental registration program (Chapter 14, Article IX of the city code) and imposed a temporary moratorium on new STR registrations while the city studied long-term regulation [1].
  • October 10, 2025 โ€” Ordinance 2025.09/443 replaced the moratorium with a designated-area STR framework, restricting STRs to specific zones defined on an accompanying map and grandfathering existing registered STRs [2][4].
  • December 2025 โ€” Unified Development Code (UDC) replaced the 2003 zoning ordinance with a form-based code, aligning STR use permissions with the 2025.09/443 designated locations [3].
  • May 8, 2026 โ€” Short-Term Rental Overlay District (Ordinance 2026.04/448) amended the UDC to confine STRs, hotels/motels, and bed-and-breakfasts to a mapped overlay district (UDC Table 71-J) and prohibited use variances for STRs outside the overlay. Adopted April 13, 2026; effective May 8, 2026 [7].

For current operators, the practical implications are straightforward: register annually, stay within the Short-Term Rental Overlay District, and expect the UDC’s form-based standards to govern any physical changes to the property (signage, accessory structures, exterior modifications).

1 Where LTRs Are Allowed (Zoning)

City of Buchanan Zoning Map

Long-term rentals (stays of one month or longer) are allowed in any legally existing dwelling by right [5]. There is no zoning restriction on LTR use beyond the underlying residential dwelling use being permitted on the parcel. Because the Unified Development Code adopted in December 2025 (amended effective May 8, 2026) introduced new district names and form-based standards, any new construction or change of use should be verified against the current UDC and zoning map [3].

2 Registration & Permit Process

Submit the Residential Rental Registration application in person at 302 N. Redbud Trail or by mail with the $35 annual fee [5]. The program is codified in Chapter 14, Article IX of the Buchanan City Code under Ordinance 2025.03/441 [1]. Registration runs annually in July, and inspections are performed biennially under the International Property Maintenance Code.

SubmissionIn person or by mail to 302 N. Redbud Trail
Annual renewal windowJuly (annually)
Inspection cycleBiennial (every 2 years)
Inspection bookingsetmore.com or 269-695-3844 ext. 12
3 Fees & Penalties
LTR registration fee$35.00 annually
Rental inspection feeNo fee (biennial)
Fee dueAt time of application submittal

Fees published on the city’s Residential Rental Registration Program page [5]. Unregistered rental operation is a code-enforcement violation under Chapter 14, Article IX.

4 Inspections & Safety Requirements

Inspections follow the International Property Maintenance Code (IPMC) โ€” minimum requirements for existing buildings including basic equipment, light and ventilation, heating, sanitation, and fire safety [5]. Existing LTRs are inspected every two years; new registrations get an initial inspection before issuance.

The city publishes its inspection checklist so owners can address items before the visit.

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 [6] that covers leases, security deposits, repairs, and the eviction process. These rules apply in Buchanan and are not modified by local ordinance.

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€” Berrien County


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

STRs Allowed
STRs Capped/Limited
STRs Heavily Restricted
STRs Not Allowed
Unverified
Guide Coming Soon

Thinking about buying a rental in Buchanan?

Buchanan's STR zoning is now district-specific โ€” pre-verifying parcel eligibility before you write an offer is the single biggest risk-reducer. I help investors navigate the post-2025 rules across Southwest Michigan.

Sources & Downloads


  1. 1
    City of Buchanan โ€” Ordinance 2025.03/441 (Rental Registration, effective 4/19/2025) https://www.cityofbuchanan.com/sites/default/files/fileattachments/community_development/page/5289/rental_ordinance_2025.03-441.pdf
    Full ordinance text (PDF) adopting Chapter 14, Article IX
    Verified: 2026-04-21
  2. 2
    STR regulatory ordinance with allowable-locations map
    Verified: 2026-04-21
  3. 3
    City of Buchanan โ€” Unified Development Code (Zoning Ordinance) and Zoning Map https://www.cityofbuchanan.com/comm-dev/page/buchanan-unified-development-code-zoning-ordinance-and-zoning-map
    UDC landing page; replaces 2003 zoning ordinance, adopted December 2025 and amended (STR Overlay District) effective 5/8/2026
    Verified: 2026-06-07
  4. 4
    Context: grandfathered existing STRs, designated downtown/non-SFR areas, cap framework
    Verified: 2026-04-21
  5. 5
    City of Buchanan โ€” Residential Rental Registration Program https://www.cityofbuchanan.com/comm-dev/page/residential-rental-registration-program
    Fees, IPMC reference, submission process, inspection scheduling
    Verified: 2026-04-21
  6. 6
    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: 2026-04-21
  7. 7
    City of Buchanan โ€” Short-Term Rental Overlay District (Ordinance 2026.04/448); amended UDC effective 5/8/2026 https://www.cityofbuchanan.com/comm-dev/page/buchanan-unified-development-code-zoning-ordinance-and-zoning-map
    Adopted 4/13/2026; effective 5/8/2026. Creates the STR Overlay District (STROD) over portions of NC/D/GN/I per the Chapter 14 STR Permitted Area Map; UDC Table 71-J lists STR/hotel-motel/B&B as overlay-only uses and bars use variances for STRs outside the overlay. Codified in the city's posted 'amended 04132026 effective date 05082026' UDC and zoning map.
    Verified: 2026-06-07
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.