City of Muskegon

STRs are permitted only in the Short-Term Rental Overlay District (Section 2314 of the Zoning Ordinance), subject to a 4% cap per zone ^[2][3]. The Overlay splits the City’s residential land into 11 zones that match U.S. Census Bureau tracts; the number of STR licenses in each zone is limited to 4% of that zone’s total housing units. When a zone is at cap, no new licenses are issued there.

Cap-exempt areas: Properties inside the Downtown Development Authority (DDA), Lakeside Business Improvement District, or Lakeside Corridor Improvement Authority boundaries are exempt from the cap ^[3]. Owners in those districts can still register, but the 4% ceiling does not apply.

Beachwood-Bluffton example: The Beachwood-Bluffton neighborhood (Muskegon Lake / Lake Michigan waterfront) historically held about 73 STRs; the 4% cap reduces that to roughly 39, creating a long waitlist in that zone ^[3].

Click the map to open the interactive City Zoning Viewer.

Submit the Short-Term Rental Registration form to City Building & Inspections at 933 Terrace Street, Suite 204, Muskegon, MI 49440, or by mail to the same address ^[5]. Applications go to the Building & Inspections Department, which administers the STR program and schedules the required initial inspection.

STR registration uses a flat annual fee that includes one inspection ^[5].

The City Commission may adjust fees by resolution. Confirm the current schedule with Building & Inspections at (231) 724-6715 before submitting an application.

Every STR must pass an initial inspection before the license is issued, and re-inspections are scheduled if violations are found ^[5]. The inspector applies the City’s general Rental Inspection Minimum Requirements (smoke and CO alarms, egress, electrical, plumbing, exterior, life safety) ^[6].

• Smoke / CO alarms: Working alarms required on every level and in each sleeping room, installed per the Michigan Residential Code.
• Egress windows: Each sleeping room must have a compliant egress window or door.
• Electrical, plumbing, heating: Must be in safe working order with no open-knob splices, no missing covers, working GFCI in wet locations.
• Exterior: Roof, siding, porches, stairs, handrails, and grounds maintained per the Property Maintenance Code.
• Posting: The current STR license must be displayed inside the rental unit.

STR operators are bound by the Short-Term Rental Overlay (Sec. 2314), Chapter 10 of the Code, and the City’s general nuisance, noise, and parking ordinances ^[2][7].

• Definition. A short-term rental is a dwelling unit rented without a host on premises for periods of more than 24 hours but less than 28 days for remuneration ^[2]. Rentals where the host resides on premises are not classified as STRs but still must register with the City.
• Occupancy. Maximum occupancy is based on the unit’s bedrooms and egress capacity under the Michigan Residential Code; the STR registration sets the cap for the specific unit.
• Quiet hours. Citywide quiet-hour and noise rules apply under Chapter 92 of the Code; guests must comply.
• Parking. On-site parking required per the underlying zoning; on-street guest parking is subject to neighborhood parking rules.
• Advertising. Listings on Airbnb, Vrbo, and similar platforms must reflect the registered occupancy limit; the City has used platform-side complaint mechanisms in enforcement.

The STR Registration form requires every applicant to designate a local contact (“responsible local agent”) who can be reached 24 hours a day for the duration of any rental period ^[5]. The agent’s name, address, phone, and email are listed on the registration and may be requested by the City or neighbors during a complaint.

• Out-of-area owners: If you don’t live within reasonable response distance, retain a local property manager (or qualifying individual) who can meet the response standard.
• Complaint response: Failure to respond to a verified complaint about noise, parking, or guest conduct can be grounds for license suspension or non-renewal under Chapter 10.
• Public lookup: The City publishes a Rental Registration Search showing whether a specific address is registered — use it to verify your own registration is active before each season.

Muskegon’s STR rules were rewritten in 2024 after a multi-year public process and an enforcement pause.

• Pre-2024: STRs operated under a simple registration framework (Chapter 10) without zoning-level caps.
• 2023–2024 STR pause: The City paused new STR registrations to study the impact on housing supply, extending the pause to October 8, 2024 while the ordinance was finalized ^[8].
• October 22, 2024: City Commission adopted the Short-Term Rental Overlay District (Sec. 2314 of the Zoning Ordinance), capping STR licenses at 4% of housing units per Census-tract zone ^[3].
• November 8, 2024: Ordinance took effect; the registration pause ended for zones below the cap ^[3].
• DDA / Lakeside BID / Lakeside Corridor IA exemptions: Compromise added during ordinance debate to preserve STR activity in commercial / mixed-use districts where it was already concentrated ^[3].

Context: City planners cited STR concentration in waterfront neighborhoods (Beachwood-Bluffton in particular) as the driver, on the theory that excessive STR density removes year-round rental supply from a tight market.