Milford, Michigan Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Milford, MI?

Yes, short-term rentals are allowed in Milford, Michigan, but with significant regulatory requirements. Milford consists of two separate jurisdictions: Milford Township and the Village of Milford, both of which have established rental registration programs. However, it's important to note that Michigan state law has some restrictions - the Michigan Court of Appeals has consistently ruled that short-term rentals often violate residential, business, and commercial restrictions by treating them as commercial activities inconsistent with residential use. Therefore, compliance with local regulations is essential.

What do Airbnb hosts actually earn in Milford?

Milford hosts earn a median $32,414/year with $232 ADR and 56% occupancy.

Top performers pull in $50,048+ per year.

See the full Milford market breakdown

How to Start a Short-Term Rental Business in Milford

Starting a short-term rental business in Milford requires following specific processes depending on your location within either Milford Township or the Village of Milford jurisdiction:

For Milford Township Properties:

Complete the rental registration application (available from Milford Township)
Submit payment made payable to "Milford Township"
Schedule inspection with the designated inspector
Address any violations identified during inspection
Obtain Certificate of Compliance before operating

For Village of Milford Properties:

Register annually by March 31st - this deadline is mandatory regardless of inspection year
Determine your inspection cycle:
- Properties north of Commerce Road: inspections in odd-numbered years
- Properties south of Commerce Road: inspections in even-numbered years
Schedule inspection once required in your cycle
Address violations within reasonable timeframes
Obtain Certificate of Compliance
Maintain ongoing compliance through biennial re-inspections

Required Documents, Permits, Licenses, and Guidelines

Milford Township Requirements:

Documents Needed:

Rental Registration Application
Payment for registration fees
Proof of property ownership or legal authorization

Process:

Application submission to Milford Township offices
Inspection scheduling with Jason Eastman (Eastman Home Inspections)
Correction of any violations identified
Final Certificate of Compliance issuance

Village of Milford Requirements:

Documents Needed:

Rental Registration Application (different forms for 2 or fewer units vs. 3+ units)
Annual registration fee
Compliance with inspection requirements

Key Documents Available:

Residential Property Rentals Ordinance (Ordinance No. 231-181)
Rental Housing Pre-Inspection Checklist
Residential Rental Registration Fees schedule
Separate application forms based on number of units

Inspection Requirements:

Biennial inspections as described above
Temporary Certificate of Compliance assumed until actual inspection occurs
Re-inspection required after violations are corrected

Specific Regulations for Short-Term Rentals

City/Local Level Regulations:

Milford Township:

Governed by Ordinance 233 (Residential Rental Amendment)
Requires registration and inspection before operation
Inspections conducted by certified third-party inspector
Certificate of Compliance required before renting

Village of Milford:

Governed by Residential Rental Ordinance adopted August 18, 2014
Annual registration deadline (March 31st)
Geographic-based inspection cycles (odd/even years based on Commerce Road location)
Temporary Certificate of Compliance policy until inspection completion
Appeal process available through Zoning Board of Appeals for Certificate revocations

State of Michigan Regulations:

Definition and Legal Status:

No statewide definition for short-term rentals
Most local ordinances define STRs as accommodations for 30 days or less
Court precedent suggests STRs may violate residential zoning restrictions
Compliance with local ordinances is essential for legal operation

Statewide Tax Requirements:

6% state use tax on rentals lasting one month or less
Registration with Michigan Department of Treasury required
Local lodging taxes may also apply (typically 5-10% additional)
Quarterly filing requirements for tax remittance

Zoning Considerations:

Zoning restrictions vary by specific location within Milford
STRs must comply with residential zoning requirements
Some residential areas may have restrictions on commercial rental activity

County Level Regulations:

Oakland County:

No specific county-wide STR regulations identified
County zoning and building codes may apply to rental properties
Coordinate with local jurisdiction for all requirements

Contact Information for Local Authority

Milford Township:

Mailing Address: Milford Township 1100 Atlantic Street Milford, MI 48381

Phone: 248.685.8731 Fax: 248.685.9236

Inspector Contact: Jason Eastman Eastman Home Inspections (designated rental inspector for township)

Office Hours: Monday-Thursday: 7:30 AM - 5:30 PM Friday: Closed

Village of Milford:

Mailing Address: Village of Milford 1100 Atlantic Street Milford, MI 48381

Building Official: 248.684.1515

Email: info@villageofmilford.org

Office Hours: Monday-Thursday: 7:30 AM - 5:00 PM Friday: 7:30 AM - 11:30 AM

For Appeals: Zoning Board of Appeals (for Certificate of Compliance revocations)

Source Links

Official Government Sources:

State Level Resources:

Additional Resources:

Important Considerations for STR Operators

Compliance Timeline:

Plan for annual registration (Village) or as-needed registration (Township)
Budget for inspection fees and potential correction costs
Maintain documentation for tax reporting and compliance verification

Ongoing Obligations:

Monitor local ordinance updates and changes
Maintain insurance coverage appropriate for short-term rentals
Keep current with state tax filing requirements
Respond promptly to any violation notices or compliance issues

Best Practices:

Establish relationships with local officials and inspectors
Maintain detailed records of all rental activities and compliance measures
Consider professional property management services familiar with local regulations
Stay informed about changes in state and local short-term rental laws

This guide provides a comprehensive framework for operating short-term rentals in Milford, Michigan, but investors should regularly verify current requirements with local authorities as regulations may change.

Next step

Found a property in Milford?

Paste any address and get estimated revenue, cash-on-cash return, and comparable STR performance in under 5 minutes. 3 free analyses per day.

Ask the AI Advisor about Milford

Milford is a small village in Oakland County, Michigan, with a population of approximately 6,500 residents. It sits in the rolling, wooded landscape of southeastern Michigan, roughly 35 miles northwest of Detroit, and carries the feel of a New England-style mill town transplanted to the Midwest. Known for its walkable historic downtown, scenic stretches of the Huron River, and proximity to several large state and metro parks, the village functions as both a year-round community and a weekend escape for visitors from the Detroit metropolitan area and beyond.

One of the area's most popular outdoor destinations is Kensington Metropark, which lies within Milford Township just a short drive from the village center. The park spans several thousand acres around Kent Lake and offers beaches, a nature center, a historic working farm, paved and natural-surface trails, and a waterpark, making it a year-round draw for families and outdoor enthusiasts. Paddlers in particular use the park as a launching point for floats down the Huron River toward Milford during the warmer months.

Downtown Milford, centered along Main Street near the Huron River, is a small commercial district of independent restaurants, cafés, boutiques, and antique shops set in preserved nineteenth- and early-twentieth-century buildings. The walkable stretch hosts the annual Milford Memories arts and crafts festival, one of the larger such events in southeast Michigan, along with a long-running Memorial Day weekend gathering that draws visitors from across Oakland County and beyond. The village's compact footprint makes it easy to pair a day of browsing with a meal by the river.

A second outdoor anchor for the area is Island Lake State Recreation Area, a Michigan state park located roughly 15 minutes east of Milford near Brighton. The park surrounds a chain of lakes and features miles of mountain biking, hiking, and equestrian trails, a swimming beach, and a long, narrow waterway popular with kayakers and anglers. Visitors can launch at the park and paddle downstream through marshy stretches of the Huron that connect back toward the broader Milford area on longer trips.

For travelers, the appeal of staying in Milford lies in this combination of small-town character and easy access to nature. Detroit, Ann Arbor, and the broader metro region are all within about a 45-minute drive, while the surrounding parks and rivers provide enough outdoor activity to fill a long weekend on their own, giving short-term rental owners a guest base that spans family vacationers, paddlers, cyclists, festival-goers, and weekend visitors looking for an unhurried base in southeastern Michigan.