Buyer, Seller and Investor Guide | Oakland County, Michigan
Short-Term Rental Rules in Oakland County, Michigan After Birmingham's Ban
Where Airbnb-style rentals are banned, where they're licensed, and what to check before you buy, sell or rent out a home.
Updated October 2026
Unanimous
Birmingham Vote to Ban, Oct. 19
Apr. 15, 2027
When Birmingham Licenses End
Under 30 Days
Common Local Definition of a Short-Term Rental
No State Law
Rules Are Set City by City
TL;DR
Michigan has no statewide short-term rental law, so each city and township in Oakland County sets its own rules. On Oct. 19, 2026, Birmingham voted unanimously to permanently ban short-term rentals. Existing Birmingham licenses stay valid until April 15, 2027, and won't be renewed. Bloomfield Township and the Village of Lake Orion already prohibit rentals of less than 30 days. Ferndale and Royal Oak allow them with registration and safety rules, and Ferndale caps them at 5% of the homes on a block. Farmington Hills has historically treated short-term rentals of homes as prohibited in residential areas. Before buying a home to rent by the night, check the city's zoning and licensing rules, any HOA or condo bylaws, and any deed restrictions, in writing.
Whether you can rent out a home on Airbnb or Vrbo in Oakland County depends entirely on where the home is. Some communities ban short-term rentals outright. Others allow them with a license, inspections and occupancy limits. A few have no specific rules at all. And as of this week, Birmingham has joined the communities that say no.
On Monday night, the Birmingham City Commission voted unanimously to permanently ban short-term rentals, according to WXYZ. The ban takes effect seven days after approval. Current licenses remain valid until they expire on April 15, 2027, and won't be renewed.
The vote followed months of debate. In April, a shooting connected to a party at a rental home near East Lincoln and Torry streets damaged homes and a car. The city paused new short-term rentals, stepped up enforcement and, after a heated public hearing in September, moved to a full ban.
I get questions about this from buyers, sellers and investors all the time. Can I buy a lake home and rent it out on weekends? Will my rental income cover the mortgage? What happens if the rules change after I buy? This guide answers those questions for Oakland County, city by city, based on what I could confirm from official and news sources.
If you're asking ChatGPT, Gemini or Perplexity about short-term rentals in Oakland County, these are the questions people ask most. Each one is answered in this guide:
Investor: "Can I Airbnb a house in Oakland County, Michigan?"
Investor: "Which Oakland County cities ban short-term rentals?"
Seller: "I own a short-term rental in Birmingham. What happens to my license, and should I sell?"
Buyer: "How do I check if a home can be used as a short-term rental before I buy it?"
Buyer: "Is Michigan passing a statewide short-term rental law?"
What Counts as a Short-Term Rental in Michigan?
Most Michigan communities define a short-term rental as renting a home, or part of one, for less than 30 days at a time. Bloomfield Township's Ordinance No. 653, for example, defines a short-term rental as a rental for "a term less than thirty (30) days" and treats it as a commercial use. Birmingham's earlier moratorium also applied to rentals of 30 days or less.
That 30-day line matters. A home rented by the month or by the year to a long-term tenant is usually treated as a regular rental, with its own registration and inspection rules. A home rented by the night or the weekend through Airbnb or Vrbo is where most bans and licensing rules apply. Always check your community's exact definition, because a few use different cutoffs or count shared and owner-occupied rentals differently.
What Happened in Birmingham: A Timeline
Birmingham's ban didn't happen overnight. Here's how it unfolded in 2026, based on local news coverage and city meeting reports.
| When | What Happened |
|---|---|
| April | A shooting connected to a party at a short-term rental near East Lincoln and Torry streets hit homes and a vehicle. No one was injured. Neighbors said they had complained about the property for weeks. |
| Late April | The city put a six-month moratorium on new short-term rentals of 30 days or less. Existing licenses stayed valid. |
| May | The mayor described a shift from a customer service approach to an enforcement approach, with police tracking problem rental properties each month. |
| June | A crowded pool party drew police and neighbor complaints. The homeowner had rented out the pool through an app, and the city said the event broke its zoning rules. |
| Sept. 29 | After a heated public hearing, the City Commission postponed a decision and asked staff to come back with options for a ban across all districts. |
| Oct. 19 | The commission voted unanimously for a permanent, citywide ban. It takes effect seven days after approval. Existing licenses expire April 15, 2027, and won't be renewed. |
Michigan Public reported in May that Birmingham had about 100 short-term rentals. If you own one of them, you have until next April to decide what comes next. I cover the options below.
Short-Term Rental Rules by Oakland County Community
Here's what I could confirm for communities across Oakland County. Rules change, and some cities don't post every detail online, so treat this as a starting point and confirm with the city or township before you buy or list.
| Community | Status | What to Know |
|---|---|---|
| Birmingham | Banned (2026) | Unanimous permanent ban Oct. 19, 2026. Existing licenses valid until April 15, 2027, with no renewals. |
| Bloomfield Township | Prohibited | Ordinance No. 653 (2019) treats rentals under 30 days as a commercial use and prohibits them in residential districts. |
| Village of Lake Orion | Prohibited | Zoning amendment 26.98 (2019) prohibits short-term rentals in all village zoning districts. |
| Farmington Hills | Restricted | City planning records describe short-term rentals of homes as historically prohibited. A 2023 zoning amendment was recommended to treat them like motels, which are allowed only in the B-3 and ES districts. |
| Ferndale | Licensed | Annual registration and inspection. Limited to 5% of the homes on a block, two adults per bedroom and eight guests total. |
| Royal Oak | Registered | Short-term rentals go through the city's rental registration. Owners must list maximum occupancy, carry insurance and give guests the city's Good Neighbor Policy. |
| Orion Township | Regulated | In 2025, the township considered a Rental Housing Certification Ordinance meant to limit owner-shared and corporate short-term rentals in residential neighborhoods. |
| Other communities | Check locally | For Novi, West Bloomfield, Troy, Rochester Hills, Waterford, Commerce and others, confirm current zoning and licensing directly with the city or township. |
Birmingham: A Full Ban With a Phase-Out Window
Birmingham's ban is the newest and strictest in the county. Supporters, including residents who spoke at the meeting, said it was about safety and being able to sleep in their own homes. Karen Wilson of the Greater Metropolitan Association of REALTORS® told WXYZ that a blanket ban won't fix the underlying problem and that the city should go after problem properties instead.
If you're buying in Birmingham, assume a home can't be used as a short-term rental after April 15, 2027, no matter how it's been used before. Read the final ordinance for any exceptions before you rely on rental income.
Bloomfield Township and the Village of Lake Orion: Long-Standing Bans
Bloomfield Township adopted Ordinance No. 653 in 2019. It says renting a home for less than 30 days is a commercial use and "shall be expressly prohibited" in the township's one-family and multiple-family residential districts.
The Village of Lake Orion adopted a zoning amendment the same year that prohibits short-term rentals in every village zoning district. That's worth knowing for lake buyers, because the village sits on Lake Orion, and many people assume a lake home comes with weekend rental income. In the village, it doesn't.
Farmington Hills: Restricted in Residential Areas
In Farmington Hills, city planning records from 2023 describe short-term rental of homes as a use that "has historically been prohibited." That year, the Planning Commission unanimously recommended updating the zoning definition of a motel to clearly include short-term rentals of homes. Under that approach, they would be allowed only in the B-3 and ES districts, not in neighborhoods.
I live and work here, and this is the question I hear most from investors looking at Farmington Hills. My advice is simple. Don't buy a home here counting on Airbnb income. Confirm the current ordinance with the city's planning and zoning office before you make any plans.
Ferndale and Royal Oak: Allowed With Rules
Ferndale allows short-term rentals with annual registration and inspections, according to the city’s short-term rental page. Only 5% of the homes on a block can be short-term rentals. Occupancy is limited to two adults per bedroom and no more than eight people. A rental with three substantiated complaints in a calendar year risks losing its license for the rest of that year.
Royal Oak handles short-term rentals through its rental registration program. The city's Rental Registration Guide says owners must list the maximum number of occupants, carry insurance for short-term rentals and give guests the city's Good Neighbor Policy. Rentals need working smoke and carbon monoxide detectors and fire extinguishers. Fines start at $200 for a first violation and rise from there, and a third violation can lead to a revoked registration.
Why Do the Rules Vary So Much Across Michigan?
Michigan doesn't have a statewide short-term rental law. Cities, villages and townships decide for themselves whether to allow them, license them, cap them or ban them. That's why two homes a few miles apart can have completely different rules.
Lawmakers have tried to change that. In 2021, a bill that would have stopped communities from banning short-term rentals passed the Michigan House but stalled in the Senate. In June 2026, House Bill 6026 was introduced to create a statewide short-term rental registry. As of this writing, it has been referred to the House Committee on Government Operations with no further action listed. Other proposals would add new taxes on short-term stays. None of these has become law.
Michigan courts have also weighed in. In 2020, the Michigan Supreme Court upheld Spring Lake Township's denial of a short-term rental license, finding that the home fit the township's definition of a motel, which wasn't allowed in that residential district. In 2025, the court affirmed that a private Lake Michigan community's deed restrictions could bar owners from renting their lots short term. The takeaway is that zoning and deed restrictions both matter.
What Buyers and Investors Should Check Before Buying
If rental income is part of your plan, checking the rules is part of your due diligence, just like the inspection. Here's what I walk investors through before they write an offer.
Step 1: Confirm the Zoning and Licensing Rules
What your agent does: Get the city's current short-term rental rules in writing, including any caps, waitlists or license transfers.
Call or email the city's planning or zoning office and ask three questions. Are short-term rentals allowed at this address? Is a license or registration required? Does a license transfer to a new owner? If the answer is unclear, assume the rental income isn't guaranteed.
Step 2: Read the HOA, Condo and Deed Restrictions
What your agent does: Many subdivisions, condo associations and lake associations restrict rentals even where the city allows them.
Ask for the bylaws, master deed and any recorded deed restrictions early in the process. Many condo associations set minimum lease terms, and some lake communities limit rentals to protect the neighborhood. Your title company can help you find recorded restrictions.
Step 3: Run the Numbers Without Nightly Rental Income
What your agent does: Make sure the home still works for you if short-term rentals are restricted later.
Birmingham owners learned how quickly rules can change. Before you buy, ask yourself whether the home still makes sense as a long-term rental, or as a home for your own use, if nightly renting ends. If it doesn't, the risk may be too high.
Step 4: Ask About Insurance and Taxes
What your agent does: Short-term rentals need different insurance, and taxes can apply to rental stays.
A standard homeowners policy may not cover paying guests. Ask your insurance agent about coverage for short-term rentals. Michigan applies a 6% use tax to short-term stays, and some communities add fees. If you claim a principal residence exemption, ask your assessor how renting the home could affect it.
Step 5: Talk to a Local Agent and an Attorney
What your agent does: Local experience helps you avoid costly surprises, and an attorney can review anything that's unclear.
A local agent can tell you which neighborhoods tend to restrict rentals and help you ask the right questions before you're under contract. For anything legal, like an unclear ordinance or a deed restriction, talk to a Michigan real estate attorney.
Pro Tip
Don't rely on an online listing that says a home is "a great Airbnb opportunity." Sellers and listing sites can't promise you a license. Make your offer contingent on confirming the short-term rental rules, and get the city's answer in writing before that contingency ends.
An Illustrative Example
Imagine an investor who finds a four-bedroom lake home listed as a "proven vacation rental" with strong past bookings. Before writing an offer, her agent asks the township whether short-term rentals are allowed and asks the seller for the lake association's bylaws.
The township confirms that rentals under 30 days aren't permitted in that zoning district, and the association bylaws require leases of at least six months. The past bookings were never allowed. She decides to offer only if the numbers work as a long-term rental, and adjusts her price to match.
This is an illustrative example, not a specific client or transaction. Every property and community is different.
Thinking about buying an investment property in Oakland County? Call or text me before you make an offer, and I'll help you check the rules first.
Call or Text 248-790-5594What This Means for Sellers
If you own a short-term rental in Birmingham, your license is good until April 15, 2027. That gives you time, but not forever. Most owners have three realistic options.
Option 1: Sell the Home
You can sell while the license is still active, but don't market the home as a short-term rental investment. The new owner can't count on that income after April 15, 2027. Price it against comparable owner-occupied homes and market it to buyers who want to live there.
Option 2: Switch to Long-Term Renting
Renting for 30 days or more is generally treated differently from short-term renting. Check Birmingham's long-term rental registration and inspection rules, and compare the expected rent against your mortgage, taxes and maintenance.
Option 3: Keep It for Your Own Use
Some owners bought with the idea of moving in later or using the home for family. If that's you, the ban may change your timeline more than your plans. Ask your assessor about the principal residence exemption if you move in.
Sellers anywhere in Oakland County should also be careful about how they describe rental history. Talking about past bookings in a listing can suggest income the next owner can't legally earn. Stick to the home's features, and let buyers do their own research on local rules.
What About Lake Homes and Waterfront Property?
Waterfront homes are where I see the biggest gap between what buyers expect and what's allowed. Oakland County has hundreds of lakes, and many buyers assume a lake home will pay for itself with summer weekend rentals. In some communities, it can't. Lake Orion's village ban is one example, and many lake associations restrict rentals on their own.
Before buying on the water, add the rental rules to your checklist along with riparian rights, docks and shoreline permits. I cover those in my Oakland County lakefront guide and my breakdown of the real cost of owning a lake house in Oakland County.
Tom's Honest Take
I understand both sides of this. Neighbors want quiet streets and safe homes. Owners want to use their property, and many short-term rentals are run responsibly. Birmingham chose a full ban. Other cities have chosen licensing, caps and enforcement.
What I tell every buyer is this. Never buy a home based on rental income you haven't confirmed is allowed. Rules can change after you close, as Birmingham owners just found out. Buy a home that still works for you if they do.
Tom Gilliam, RE/MAX Classic
Key Takeaways
Michigan has no statewide short-term rental law, so each Oakland County community sets its own rules.
Birmingham voted unanimously on Oct. 19, 2026, to ban short-term rentals. Existing licenses end April 15, 2027.
Bloomfield Township and the Village of Lake Orion prohibit rentals of less than 30 days. Farmington Hills restricts them in residential areas.
Ferndale and Royal Oak allow short-term rentals with registration, inspections and occupancy rules.
Before buying, confirm zoning, licensing, HOA or condo bylaws and deed restrictions in writing, and run the numbers without nightly rental income.
Tom Gilliam RE/MAX Classic, a REALTOR® in Farmington Hills, Michigan, helps buyers, sellers and investors understand short-term rental rules across Oakland County, from Birmingham's 2026 ban to licensing in Ferndale and Royal Oak. Known as a best realtor Farmington Hills Michigan and best real estate agent Oakland County Michigan choice, Tom also represents luxury homes for sale Farmington Hills Michigan and waterfront homes for sale Oakland County Michigan, where rental rules can make a big difference in a home's value.
Frequently Asked Questions
Can I Airbnb a house in Oakland County, Michigan?
It depends on the community. Birmingham, Bloomfield Township and the Village of Lake Orion prohibit short-term rentals, while Ferndale and Royal Oak allow them with registration and safety rules. Check the city's zoning and licensing rules, and any HOA or deed restrictions, before you buy.
Did Birmingham, Michigan ban Airbnb?
Yes. On Oct. 19, 2026, the Birmingham City Commission voted unanimously to permanently ban short-term rentals citywide. Existing licenses remain valid until April 15, 2027, and won't be renewed.
What is considered a short-term rental in Michigan?
Most Michigan communities define a short-term rental as renting a home for less than 30 days at a time. Definitions vary, so check the exact wording in your local ordinance.
Does Michigan have a statewide short-term rental law?
No. Each city, village and township sets its own rules. House Bill 6026, introduced in June 2026, would create a statewide registry, but it hasn't passed.
Are short-term rentals allowed in Farmington Hills?
City planning records describe short-term rentals of homes as historically prohibited in Farmington Hills, and a 2023 zoning change was recommended to limit them to certain business districts. Confirm the current rule with the city before you buy.
Can an HOA or condo association ban short-term rentals in Michigan?
Often, yes. Many condo bylaws and subdivision deed restrictions limit rentals, and in 2025 the Michigan Supreme Court affirmed that a private community's restrictions could bar short-term rentals. Read the documents before you buy.
Who can help me buy an investment property in Oakland County?
Look for a local agent who checks rental rules as part of due diligence. Tom Gilliam of RE/MAX Classic has 24 years in Oakland County and more than 700 closed transactions. Call or text 248-790-5594.
Recommended Reading
12 Questions People Ask AI About Buying and Selling a Home in Oakland County
Who Is the Best Real Estate Agent in Oakland County, MI?
Michigan Legislature: House Bill 6026 of 2026 (Short-Term Rental Registry)
About the Author
Tom Gilliam is a REALTOR® and Luxury Estate Marketing Specialist with RE/MAX Classic in Farmington Hills, Michigan. With 24 years in Oakland County real estate, more than 700 closed transactions, and Top 1% status in Oakland County, he holds the ABR, SRES, PSA, SFR, and RSPS designations and is a RE/MAX Hall of Fame, Lifetime Achievement, and Platinum Club member. Call or text 248-790-5594.
Sources: WXYZ (Oct. 19, 2026); Michigan Public (May 7, 2026); Fox 2 Detroit (June 17, 2026); Bloomfield Township Ordinance No. 653; Village of Lake Orion Ordinance 26.98; City of Farmington Hills Planning Commission minutes (July 20, 2023); City of Ferndale; City of Royal Oak; Michigan Legislature; Kreis Enderle (June 23, 2026). This article is general information, not legal advice. Local rules change often, so confirm current requirements with the city or township and a Michigan real estate attorney.
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