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Leroy, MI

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STR Regulations for Leroy, Michigan

Overview: Are STRs allowed in Leroy, MI?

  • Explicit answer: Yes, short-term rentals are allowed in Leroy Township, but only when operated as a Bed and Breakfast Inn. This is the form of transient lodging recognized in the Leroy Township Zoning Ordinance (effective May 8, 2022).
  • The Zoning Ordinance treats a Bed and Breakfast Inn as any dwelling that provides overnight accommodations and a morning meal for transient guests for compensation. It must be a single-family dwelling with only one set of kitchen facilities, may employ only those living in the house or up to one additional employee, and must maintain a facade style consistent with surrounding homes.
  • Bed and Breakfast Inns are a permitted principal residential use, not an accessory use, and therefore do not operate under “home occupation” rules. They are permitted in single-family dwellings located in residential zoning districts (e.g., R-1, RM-1, RA, and AG). They are not permitted in mobile home park (MP) districts (mobile home parks are regulated under separate state licensing and are not designed or approved for transient lodging as a primary use).

What do Airbnb hosts actually earn in Leroy?

Leroy hosts earn a median $30,725/year with $210 ADR and 57% occupancy.

Top performers pull in $52,896+ per year.

See the full Leroy market breakdown

How to start a short-term rental business in this market

  • Confirm zoning district: Verify that the property is in an approved district for Bed and Breakfast Inn (e.g., AG, RA, R-1, RM-1). Mobile home park (MP) districts are unsuitable.
  • Confirm dwelling type: The property must be a single-family dwelling (owner-occupied is typically expected for B&Bs). Multi-family structures and mobile homes are not appropriate under this classification.
  • Zoning compliance: Confirm that the Bed and Breakfast Inn use and the building footprint are permitted in the target zoning district.
  • Obtain permits: Apply for any required building, electrical, mechanical, and plumbing work if alterations are needed to safely accommodate guests.
  • Tax setup: Register for any applicable Michigan taxes (e.g., sales/use tax) via the Michigan Department of Treasury if hosting is conducted as a taxable lodging business.
  • Business registration: If operating as a separate business entity, register with the Michigan Department of Licensing and Regulatory Affairs (LARA) as applicable.
  • Insurance: Secure property and liability coverage appropriate for transient lodging.
  • Ongoing compliance: Ensure the operation meets all dimensional, performance, and safety standards in the Zoning Ordinance.

Required documents, permits, licenses, and guidelines

  • Certificate of Zoning Compliance (Section 1504 and definitions): Issued by the Zoning Officer for any change in land use. This certifies that the Bed and Breakfast Inn conforms to zoning requirements.
  • Building permits: If interior or exterior alterations, additions, or safety upgrades are needed.
  • Mechanical, electrical, plumbing (MEP) permits: As required for compliance with applicable codes and safety standards for transient lodging.
  • Fire/life safety compliance: Ensure smoke detectors, egress, and fire safety standards are satisfied consistent with the Zoning Ordinance and the Building Code.
  • Michigan taxes: If applicable, register for sales/use tax with the Michigan Department of Treasury for transient lodging services.
  • Business registration: Register with LARA if operating as a business entity.
  • Insurance: Property and general liability coverage for guests and premises.
  • Plot plan/site plan: Provide as required for zoning review (Section 1503, Section 801–816).
  • Documentation of use: Maintain evidence that:
    • Only one set of kitchen facilities is present.
    • A morning meal is provided for overnight guests.
    • The facade remains consistent with surrounding homes.
    • The dwelling remains a single-family residence.

Specific STR regulations (city/township, county, and state)

  • Township-level regulations (Leroy Township Zoning Ordinance, May 8, 2022)

    • Bed and Breakfast Inn use:
      • Allowed only in single-family dwellings located in residential districts.
      • Must maintain a facade style consistent with surrounding homes.
      • Only one set of kitchen facilities; up to one additional employee beyond those living in the house.
      • Overnight accommodations plus a morning meal provided for transient guests for compensation.
      • Bed and Breakfast Inns are principal uses, not home occupations.
      • Zoning districts where allowed: Typically residential districts (R-1, RM-1, RA, AG). Mobile home parks (MP) are not suitable; Planned Unit Development (PUD) may allow lodging if approved as part of a PUD special land use.
    • Zoning compliance: A Certificate of Zoning Compliance (Section 1504) is required for any change in use (Section 1501–1510).
    • Site plan: Use of the property must follow site plan standards and review procedures (Sections 801–816).
    • Performance and nuisance standards: Transient lodging must comply with general performance standards for noise, vibration, odor, glare, and other nuisances (Section 429).
    • Off-street parking: Bed and Breakfast Inns must comply with off-street parking standards (Section 601–608). Confirm the precise parking requirement with the Zoning Officer.
    • Setbacks and height: All structures must meet the minimum front, side, and rear setbacks and height limits of the zoning district (Section 305 and district sections).
    • Enforcement and penalties: Violations may result in citations under municipal civil infraction procedures (Sections 1501–1510).

  • County-level (Ingham County)

    • Health/safety compliance: County health, fire, and building standards may apply depending on the property and scope of improvements. Confirm specific requirements with county authorities.

  • State-level (Michigan)

    • Bed and Breakfast classification: Michigan typically classifies lodging providers like bed and breakfast inns as commercial lodging, which can be subject to sales/use tax when providing rooms for fewer than 30 days. Verify current tax obligations with the Michigan Department of Treasury.
    • Building/fire codes: Ensure compliance with Michigan’s construction codes, life safety standards, and any applicable accessibility requirements.
    • Business registration: Register with the state if operating as an LLC or other business entity.

Contact information (local authority for STRs)

  • Leroy Township Offices
    • Address: 11560 S. Ionia Road, Leroy, MI 48855
    • Township Supervisor: Earl Griffes — Phone: 517-531-3410
    • Township Clerk: Wilma Whitehead — Phone: 517-531-3410
    • Township Treasurer: Heidi Ream — Phone: 517-531-3410
    • Zoning/Building Department/Planning: Inquire through Township Offices — Phone: 517-531-3410
    • Website: leroytwp.com

Links to source pages

Important notes for investors

  • No citywide STR registry or local lodging permit is identified in the provided ordinance; ensure the Bed and Breakfast Inn model is used for compliance.
  • Mobile home parks (MP) are not suitable for Bed and Breakfast Inns; they are regulated under separate state standards and are not approved as transient lodging uses.
  • Detailed occupancy limits, fire code specifics, and state tax registration details were not provided in the source; verify with the Zoning Officer, Building Department, and Michigan Treasury for current requirements.
  • If the subject property is within a PUD, confirm that transient lodging was approved as part of the PUD’s special land uses.

This guide reflects only the provided Leroy Township Zoning Ordinance and related content. It is not legal advice; consult the Township Zoning Officer, Building Department, and state agencies for project-specific compliance.

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Leroy

Market Saturation Score

036912
Moderate Saturation
6/ 12
months with declining YoY revenue
5–7 declining months: moderate saturation risk - market may be nearing capacity.
View Full Leroy Market Analysis

Photos of Leroy

Overview of Leroy

Leroy is a small village in Osceola County in the northwestern Lower Peninsula of Michigan, with a population of roughly 300 residents. The community has a quiet, rural character, set among rolling farmland, wooded lots, and the small lakes that dot central Michigan. It functions primarily as a low-key base for visitors drawn to the region's trout streams, state game lands, and quiet backcountry roads, rather than a destination in its own right. Leroy sits approximately 20 miles south of Cadillac, the nearest larger city, and roughly an hour's drive southeast of Traverse City and the Grand Traverse Bay region.

The Au Sable River is the headline draw of the broader area, and several of its headwaters and feeder streams flow through Osceola County within a short drive of Leroy. The river is one of the most celebrated trout-fishing waters in the Midwest, and during warmer months the surrounding stretch supports paddling, fly-fishing outfitters, and scenic canoe trips. Sections accessible from nearby communities offer everything from gentle family floats to more remote wading opportunities for experienced anglers.

A few miles north of Leroy, the landscape opens up into the Huron-Manistee National Forests, one of the largest contiguous national forest units in the eastern United States. The forestlands around Osceola County offer marked hiking trails, designated off-road vehicle routes, campgrounds, and an extensive network of lakes and cold-water streams. Visitors typically come for the quiet, the fall color, and the chance to disconnect in a setting that feels far removed from Michigan's busier resort corridors.

The nearest full-service town is Cadillac, roughly 20 minutes north. Cadillac sits on Lake Cadillac and Lake Mitchell and serves as the regional hub for groceries, restaurants, and medical services, making it a practical stop for short-term rental guests who want amenities without staying in a busier tourist town. The surrounding Wexford and Osceola county area also supports seasonal activities such as snowmobiling and skiing in winter, including resorts in the hills west of Cadillac.

For a small village, Leroy occupies a genuinely useful position. It places visitors within easy reach of the Au Sable trout water, hundreds of square miles of national forest, and the year-round services of Cadillac, all while offering the calm, dark-sky feel of an inland Michigan community. That combination of access and quiet is exactly the kind of setting short-term rental guests look for when they want a base for hiking, fishing, and exploring the less-crowded parts of the Lower Peninsula.

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