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Generally Investor friendly
STRs are permitted but require a county SUP in commercial zones like D‑CM, including a public hearing and detailed site‑plan review, which adds complexity/uncertainty; state 6% tax is straightforward and there are no city caps or license, keeping costs manageable; HOA/covenants can still add local restrictions.
Local STR Agent
STR specialist · Indian River, MI
Indian River is a small unincorporated community and census-designed place in Cheboygan County, in the northern Lower Peninsula of Michigan. With a year-round population of roughly 1,500 to 2,000 residents, the community has a quiet, outdoorsy character, drawing visitors who come for its lake country setting rather than any urban energy. It sits along the I-75 corridor and is best known as a stopover on the way to Mackinaw City and Mackinac Island, about 25 miles to the north, or roughly a 25- to 30-minute drive. Because of that location, Indian River has long functioned as a gateway community for travelers heading north from cities like Detroit, Flint, and Saginaw, and it has a healthy share of motels, cabins, and seasonal rentals catering to that traffic.
Just a few minutes from the center of town, Burt Lake anchors the community's identity. As one of the larger inland lakes in northern Michigan, it offers boating, fishing, kayaking, and lakeside cottages, and it forms part of the historic Inland Waterway, a navigable chain of rivers and lakes that links Crooked Lake near Petoskey all the way to Lake Huron. The waterway is a popular route for kayakers, slow-speed boaters, and anglers, and its quiet stretches through Cheboygan County are one of the defining recreational draws of the area.
About 30 minutes north, Mackinaw City and Mackinac Island deliver the marquee tourist experience of the region. Mackinaw City serves as the mainland departure point for ferry crossings to Mackinac Island, a destination famous for banning automobile traffic and filling its streets with horse-drawn carriages, fudge shops, and the restored Fort Mackinac. Travelers based in Indian River can easily make the drive up I-75 for a day on the island, an evening at the Mackinaw City dinner theaters, or a stop at Colonial Michilimackinac before heading back to a quieter rental at the end of the day.
A bit farther afield, roughly 45 minutes to the southwest, lies the Petoskey area along Lake Michigan's Little Traverse Bay. The region offers Lake Michigan beaches, the Gaslight Shopping District in downtown Petoskey, and the chance to hunt for the Petoskey stone, the fossilized coral that is the state stone of Michigan. Charlevoix and Harbor Springs sit just to the west along the bay, giving Indian River-based visitors a full slate of harbor towns, vineyards, and shoreline drives within an easy day trip.
Indian River is a compelling base for short-term rentals precisely because it offers what many Michigan visitors are actually looking for: a quiet, lake-country setting within easy reach of the state's most iconic destinations. Owners benefit from a steady mix of Mackinac-bound travelers, summer lake vacationers, fall color seekers, and winter snowmobilers using the area's extensive trail network, while guests enjoy a peaceful retreat that still puts Mackinaw City, Mackinac Island, and the Petoskey coast within an easy drive.