Median Listing Price
$525k
Sample of ~50 active STR-suitable listings analyzed.
Median Land Ratio
23%
Lower is better — leaves 77% of purchase price as depreciable basis.
Bonus-Eligible %
24.0%
Median % of purchase price classifiable as 5-yr or 15-yr property under §168(k).
Federal Savings @ 37%
$47k
Median federal tax savings on a $525k purchase. Range $40k–$54k.
Why Traverse City ranks #31
Northern Michigan's flagship Great Lakes STR market. MI full conformity plus cherry-country and lakefront inventory dominated by cottage-style STRs with docks, fire pits, and outdoor kitchens. Land ratios are competitive for a resort market, and the seasonal STR demand supports amenity-heavy inventory that classifies well under §168(k).
1. Land ratio drives the math
Lake-adjacent inland properties get the best of both worlds: water-front amenity premium without coastal land pricing. Traverse City's land ratio of ~23% leaves roughly $404k of depreciable basis on a $525k purchase.
2. Full state conformity stacks federal and state benefits
MI conforms fully to federal §168(k), so Traverse City investors get both the federal AND state deduction. The Total Tax Benefit column in the DepreciMax Top 50 reflects this stacking — federal savings at the 37% top marginal rate plus state savings at MI's top marginal rate. Same property in a decoupled state would produce the same federal deduction but no state add-on.
See live Traverse City listings
Every active Traverse City short-term rental listing, ranked by estimated bonus depreciation potential. Sort by price, beds, or DepreciMax medal tier. Free — no signup.
How the score is calculated
Traverse City's DepreciMax Score is the aggregate score across ~50 active listings run through our proprietary algorithm. We use multiple inputs — including land values and AI photo recognition — closely calibrated over time against a completed cost segregation study on a benchmark short-term rental.
More detail in the Top 50 Markets methodology section.
Snapshot date: May 2026. Sample listings are real active listings from Realtor.com — actual addresses shown. Bonus depreciation outcomes vary by individual property; this report estimates ranges for typical purchases. Not tax advice — consult your CPA before making investment decisions.
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