Buying Near Centertown? How Grand Haven’s New STR Rules Could Shift Nightly Noise, Parking, and Resale Demand

Grand Haven just greenlit short-term rentals (STRs) as a special land use in the Centertown (a.k.a. “Center Town”) Overlay, a compact commercial district just east of downtown. The change takes effect September 9, 2025, and it applies to ~23 parcels inside a roughly 2.5-block area. Translation for buyers: a small zone near Washington Ave. where upper-floor homes over shops can be legally rented nightly—with guardrails.

Below is a practical guide to how this could affect nighttime activity, parking, and future resale value if you’re home-shopping near Centertown.

First, what the new rules actually say (in brief)

• Allowed, but by permit: STRs in Centertown require a special land use permit, not “by right.” Each request includes a public hearing and $350 processing fee, and then an annual rental registration (~$160 per unit).
• Form matters: Along key frontages (e.g., Washington & 7th), ground floors must remain commercial/retail; residential is mainly upper-level. Parking for STR units must go behind the building (not on the street).
• Small geography: Reporting places the overlay just west of US-31/Beacon; Crain’s notes Columbus–Franklin (north–south), tracks–8th (west–east). Always confirm against the official zoning map/overlay layer before you buy.

Nightly activity & noise: what a buyer should realistically expect

Why activity may tick up: Legal STRs increase visitor turnover near restaurants and shops—especially summer and event weekends—so you’ll see more check-in/check-out cycles, rolling luggage, rideshares, and later evening foot traffic. That’s by design: the city explicitly framed this as a way to bring foot traffic to local businesses in a commercial node.

How often is “often”? Third-party STR trackers show Grand Haven running ~59–63% occupancy and ~$370 ADR on average (seasonality is strong). That demand pattern suggests peaks in summer—when noise potential is naturally higher and windows are open. (Treat market dashboards as directional only.)

What to look for during showings (noise-wise):

• Unit placement: Upper-level homes over active storefronts will hear street life; rear-facing bedrooms and solid-core doors help.
• Envelope: Ask about STC ratings, added underlayment, and window glazing—particularly in mixed-use, wood-frame structures.
• House rules & management: If a building allows STRs, ask for quiet hours and enforcement protocols (some permits require a local agent if the owner lives >60 miles away).

Parking: why supply feels tight—and how to protect yourself

Centertown’s rules push STR parking behind buildings, preserving curb space for shoppers—good for retail vitality, but it means on-site, off-street spaces are precious for residents. At the same time, downtown overnight street parking is generally not allowed, which further elevates the value of a dedicated stall in or behind your building.

Add in the 128-room Residence Inn proposed downtown—approved despite a parking shortfall versus the city’s “one space per room” guideline—and you have a hint at broader parking pressure in the core over the next few years. If hotel guests, shoppers, and visitors compete for nearby lots, residential spaces become even more valuable. Buyers should strongly prefer units with deeded or assigned off-street parking.

Buyer checklist (parking):

• Is the stall deeded/assigned? Can it be rented or sold separately?
• Any guest parking or time-of-day restrictions?
• For mixed-use buildings: is access secure (gates/lighting/cameras) and snow removal covered by the HOA?

Resale demand: why “legal STR-ability” can widen your buyer pool

When an address moves from “uncertain” to clearly permitted (subject to conditions), you typically attract three buyer segments instead of one: (1) primary residents, (2) second-home users who want occasional income, and (3) investor-owners underwriting nightly rates. In a district with only ~23 eligible parcels, that scarcity can support resale values, particularly for well-insulated, walkable, upper-floor units with dedicated parking.

Keep in mind that Grand Haven is concurrently updating the Centertown Vision Plan (RFP issued July 25, 2025; proposals due Aug. 22), which signals coming improvements to streetscape, placemaking, and land-use mix—all demand drivers walkability-minded buyers prize. (Visioning can also reshape traffic and parking patterns, so it cuts both ways.)

Micro-location matters: verify the exact overlay before you write an offer

Local coverage describes the overlay’s footprint slightly differently. Crain’s provides specific bounds (Columbus/Franklin; tracks; 8th), while WGHN uses North 6th to Jackson; Franklin to US-31. Always verify the parcel on the city’s official zoning map and confirm the Centertown Overlay layer with Planning before assuming STR eligibility.

Practical due diligence for buyers (step-by-step)

1. Confirm eligibility
   • Pull the parcel on the zoning map and cite the Centertown Overlay. Then ask Planning to confirm the special land use pathway and any ground-floor/parking conditions relevant to that frontage.
2. Underwrite conservatively
   • Use seasonal ADR/occupancy benchmarks as inputs—not promises—and stress-test with lower shoulder-season bookings and higher management costs.
3. Budget for permits & annual registration
   • Plan for a $350 special land use application (with a hearing) and ~$160 annual STR registration per unit (fee schedule shows $160, moving to $165 in the upcoming cycle).
4. Evaluate building systems for mixed-use reality
   • Look for sound attenuation upgrades, trash staging (avoid nightly alley issues), secure mail/package rooms, and clear house rules.
5. Secure off-street parking
   • Given rear-lot parking requirements and downtown overnight restrictions, an assigned stall is a major differentiator for both livability and resale.

Bottom line for buyers

Centertown’s STR allowance won’t turn every block into party row—permits are case-by-case and the area is commercial by intent—but you should expect livelier nights in season, tighter parking, and broader resale appeal for units that check the right boxes (sound attenuation, rear parking, walkability). Done right, buying here can blend lifestyle and optional income in a small, highly walkable pocket just off downtown.

Thinking of buying (or selling) near Centertown?

Contact the BP Realty team for hyper-local guidance—parcel-by-parcel STR eligibility, zoning/permit steps, comps for STR-allowed vs. non-allowed buildings, and pricing strategies that account for parking, noise attenuation, and walkability premiums. We’ll help you compare options and negotiate with confidence—whether you’re buying for lifestyle + income or selling for top dollar.