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Grand Traverse County, Michigan

Mortgage Broker in Traverse City, MI

Buying in Traverse City, from Slabtown and the Central historic district to Morgan Farms on the Leelanau County side? Samantha compares wholesale lenders for your loan and checks the parcel before you offer: city or township, which county, the FEMA flood map and what the zoning allows if you plan to rent.

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Buying a home in Traverse City

Traverse City sits at the head of the east and west arms of Grand Traverse Bay, home to about 15,800 residents in the Census Bureau's 2024 estimate, mostly in Grand Traverse County with a small part in Leelanau County. Known for cherries, the National Cherry Festival and nearby wineries, Traverse City is also home to Hagerty, and the median household income here is near $74,100.

By the numbers

Traverse City housing and mortgage snapshot

Values move. Treat these as orientation and let us pull current figures for the address you are considering.

$415,000

Typical home value, from the market research on this page

+57%

Typical rise in taxable value the year after a home sells, 2026 Uncapping Study

1.12%

Property tax current owners pay, as a share of value. A buyer's bill can reset higher the year after a sale

2

Residential ZIP codes: 49684, 49686

What financing looks like in Traverse City

Redfin's figures for the Traverse City mailing area, which takes in township addresses as well as the city, put the median sale near $491,000 for July through September 2026, about 26% above the same months a year earlier, with a typical sale taking about 55 days. By ZIP code, 49684 ran near $540,000 and 49686 near $467,000. Inside the city the Census median owner value is near $415,000. At those prices most purchases fit under $832,750, the 2026 conforming limit, and many fit under $541,287, the FHA limit for both Grand Traverse and Leelanau counties. On a bayfront house or a large older home in Slabtown or Central the loan amount itself can pass the conforming limit, and a loan above it is a jumbo with its own reserve and documentation rules.

Second homes are a real share of this market. The Census counts about 600 of the city's homes, roughly 7%, as held for seasonal or occasional use, more than a third of them in the downtown and Boardman block group. Fannie Mae's second-home rules say you must live in the home for part of the year, it must be a one-unit house fit for year-round use, you must control it yourself, it cannot be a rental or a timeshare, no management firm can control who stays there, and any rent it earns cannot be counted to qualify. Condos add a second review, of the building itself. Fannie Mae will not buy a loan on a unit in a project run like a hotel, with rental pooling, registration desks, daily cleaning or owner blackout dates, or in a building where commercial space passes 35% of the floor area, which matters in the mixed-use blocks downtown.

Two more numbers belong in the budget. A home that is not your principal residence paid the city's non-homestead rate in 2025, 55.07 mills against 37.07 for a primary residence on the Grand Traverse side, about $1,800 more a year on each $100,000 of taxable value. And a buyer with a low or moderate income who will live in the house can pair a MSHDA MI Home Loan with MI 10K, a loan of up to $10,000 toward the down payment and closing costs, repaid when the house is sold or refinanced, the first mortgage is paid off, or you stop living there. The program's $566,355 price cap sits above the city's Census median value.

Two of every three homes with a Traverse City ZIP code are outside the city, and in the four townships that hold most of them the 2025 homestead tax rate runs about 10 to 17 mills below the city's 37.07.

The market

The Traverse City housing market

The typical home value in Traverse City is near $415,400, the median for owner-occupied homes in the Census Bureau's American Community Survey, which counts about 4,600 owner-occupied homes here. The median year built is 1964, so Traverse City has many established homes in its older neighborhoods, along with condos downtown and on the bay. Homeowners pay a median of about $4,640 a year in property taxes, an effective property tax rate of about 1.12% of the median value.

Two counties, two ZIP codes

Where Traverse City's lines fall

Almost all of the city is in Grand Traverse County, and each of its ZIP codes reaches far past the city line. Figures come from our sample of Census maps, the 2020 Census count of homes, Census estimates for 2020 to 2024, Michigan Treasury's 2025 rates and our 2026 Uncapping Study.

Grand Traverse County side: about 96% of the land

Everything but the northwest corner, from Slabtown and downtown to Traverse Heights, BOOM and the airport, with about 8,200 of the city's 8,400 homes in 2020. The typical home here dates from 1963 and the owner median is near $409,000. The 2025 homestead rate is 37.07 mills, and taxable value typically rises about 57% the year after a sale.

Leelanau County side: Morgan Farms

About 4% of the land, north of M-72, with 199 homes at the 2020 Census. Census estimates put every occupied home there in owner hands, half of them built since 2010, with an owner median near $625,000 and a wide margin. The 2025 homestead rate is 32.94 mills, and the Study's jump at sale there ran about 25%.

ZIP 49684, the west side

Slabtown, Central, Old Towne, Kids Creek, Midtown, the western half of downtown and Morgan Farms. It holds about 55% of the city's homes on about 35% of its land, and about six in ten homes with a 49684 address are outside the city, mostly in Garfield and Elmwood townships. Redfin's median sale for the ZIP was near $540,000 for July through September 2026.

ZIP 49686, the east side

Downtown east of about Boardman Avenue, Boardman, Oak Park, Traverse Heights, BOOM, Indian Woods and the airport, about 65% of the city's land. About seven in ten homes with a 49686 address are outside the city, in Peninsula, Garfield, East Bay and Acme townships. Redfin's median sale for the ZIP was near $467,000 for July through September 2026, about 22% above a year earlier.

Where to look

Traverse City neighborhoods

Slabtown

North of West Front Street between Division Street and the West Bay shore, with West End Beach on the water and Randolph Street and North Elmwood Avenue running through it. In the Census block group that holds most of the neighborhood the typical home dates from 1938, about seven in ten are detached houses and owner values run near $481,000, with a wide margin. About a tenth of its dry land is in FEMA's high-risk zone, most of it the coastal strip along the bay. The western end shares a block group with Garfield Township, which holds about half of that group's homes.

Central

The Central Neighborhood Historic District runs from the alley north of Fifth Street to the alley south of Eighth, between Division and Locust streets, and the neighborhood association's map carries Central south to Fourteenth Street. In the block group that covers Central from Front Street to Eighth the typical home dates from 1938, a little over half are detached and owner values come in near $557,000, a figure with a wide margin. Strips along the Boardman River by Hannah Park and along Kids Creek near Front Street are in the high-risk flood zone.

Old Towne and south Central

Old Towne runs south from Eighth Street around Union and Cass streets, with the southern Central blocks to its west down to Fourteenth Street. Two block groups cover the area. From Ninth Street to about Twelfth the typical home dates from 1938, almost nine in ten are detached and owner values run near $419,000. Toward Fourteenth every home the survey counted is a detached house, typically from 1943, with owner values near $350,000. Neither block group touched FEMA's high-risk zone in our sample of the map.

Kids Creek, Munson and the Commons

West of Division Street around Munson Medical Center on Sixth Street and the Village at Grand Traverse Commons on Cottageview and Silver drives. Close to half the homes in this block group are in buildings of five or more units, the typical home dates from 1971 and owner values run near $423,000 with a wide margin. Kids Creek runs through it, and nearly a quarter of its dry land is in FEMA's high-risk zone, much of it Zone A, mapped without a base flood elevation. About seven in ten of the block group's homes are in the city, the rest in Garfield Township.

Downtown and Boardman

The Front Street blocks of the Downtown Historic District, the Clinch Park marina, Hagerty's headquarters on Drivers Edge and the Boardman Neighborhood Historic District between Boardman and Railroad avenues. Newer buildings define this block group: its typical home dates from 2004, close to three in ten homes are in buildings of five or more units, and the Census counts about a third of all its homes as held for seasonal or occasional use, a larger share than any other block group in the city. Owner values run near $614,000 with a wide margin. Mailing addresses change from 49684 to 49686 around Boardman Avenue.

Midtown and Boardman Lake's west shore

Midtown Centre by Lake Avenue and the blocks along Cass Street down the west side of Boardman Lake, south past Fourteenth Street. Renters outnumber owners about three to two, homes typically date from 1978 and owner values run near $396,000. The block group crosses into Garfield Township, which holds a little under half its homes, and the lake shore carries a thin band of high-risk flood zone.

Oak Park

Between East Front and East Eighth streets from Railroad Avenue to Garfield Avenue, with F&M Park inside the neighborhood and Sunset Park across Front Street on the bay. In the eastern block group, toward Garfield, the typical home dates from 1938, about nine in ten are detached and owner values run near $422,000. The western blocks around Washington Street have a typical home from 1952, but the survey margin on their values is too wide to quote. None of Oak Park fell in FEMA's high-risk zone in our sample.

Traverse Heights

South of Eighth Street between Boardman Lake and Garfield Avenue, around Rose Street, Hannah Avenue, Barlow Street and Hull Park. Renter and owner households are close to even here, 477 and 437 in the survey, homes typically date from 1981 and owner values run near $308,000. The block group runs south past Boon Street into Garfield Township, which holds about four in ten of its homes.

Base of Old Mission Peninsula and the college

The neighborhood association the city calls BOOM, along Peninsula Drive, Center Road and Eastern Avenue, with Northwestern Michigan College's main campus on East Front Street to its south. In the northern block group about 96% of occupied homes are owner-occupied, about one in five is attached, homes typically date from 1981 and owner values run near $456,000 with a narrow margin. That group continues north into Peninsula Township, which holds a little under half its homes. By the college, renters slightly outnumber owners and about a third of homes are in larger apartment buildings.

Triangle and Indian Woods

East of Fair Street between Front Street and the East Bay shore, along Munson Avenue and East Bay Boulevard, with East Bay Park at the water. The typical home dates from 1970, about seven in ten are detached and owner values run near $380,000, a figure with a wide margin. The bay edge is mapped as a coastal high-risk zone, about a fifteenth of the block group's dry land.

Hastings Street to Cherry Capital Airport

South of Eighth Street and east of Garfield Avenue, from Steele and Hastings streets out to Woodland and Belmont drives, then south along Garfield to Cherry Capital Airport and the Aero Park business area. In the blocks just south of Eighth the typical home dates from 1957, about nine in ten are owner-occupied and owner values run near $326,000. More than half the homes in both block groups here sit across the line in East Bay Township, so read the parcel record, not the street sign.

Morgan Farms, Leelanau County

The city's piece of Leelanau County, north of M-72 on the west side, about 4% of the city's land. The Census estimates about 150 homes there, every occupied one owner-occupied, half of them built since 2010, with an owner median near $625,000 and a wide margin. The 2025 homestead rate here is 32.94 mills, about 4.1 below the Grand Traverse side, and deeds go to the Leelanau County Register of Deeds. The surrounding block group is mostly Elmwood Charter Township.

Schools and commute

Schools

Traverse City Area Public Schools serves every part of the city, the Grand Traverse side and the Leelanau County corner alike, so no address inside the city sits in another district. The district reaches far past the city, about 300 square miles with nearly 9,000 students, and its bond levy has held at 3.1 mills: in August 2024 voters approved a $180 million bond that continues that levy, with the reconstruction of Central Grade School among its projects. The district is the same on both sides of the county line, and the 4.1-mill gap between the city's two 2025 homestead totals in Michigan Treasury's rate table, 37.07 and 32.94, comes from the levies set county by county. What does change the school share of a bill is homestead status: a second home or rental pays up to 18 more mills of school operating tax because the principal residence exemption does not reach it. Confirm the attendance area for a specific address on the district's boundary map.

Commute

US-31 and M-37 come up Division Street on the west side and join M-72 on Grandview Parkway along West Grand Traverse Bay, bypassing downtown, then US-31 and M-72 follow Front Street and the East Bay shore toward Acme. M-72 and M-22 enter from the Leelanau County side by Morgan Farms. From the Governmental Center at 400 Boardman Avenue, Hagerty's headquarters on Drivers Edge is about half a mile away, Munson Medical Center about 1.6 miles (4 minutes), Northwestern Michigan College 2.3 miles (6) and Cherry Capital Airport 2.8 miles (8), by OSRM routing without traffic. Interlochen Center for the Arts is about 15 miles (23 minutes), Suttons Bay and Elk Rapids about 17 to 18 miles (28), Kalkaska 24 (39), Cadillac 48 (68) and downtown Grand Rapids about 142 miles, near 2 hours 40 minutes. Grand Traverse County's 2024 financial report lists Munson Medical Center (about 7,500 jobs), Traverse City Area Public Schools (1,524), Northwest Education Services (607), the county (571), Interlochen (552), Grand Traverse Resort and Casinos (525), Northwestern Michigan College (517) and Hagerty (500) among its principal employers. BATA, the regional bus system, carries a voter-approved levy on city tax bills. Census figures put the average trip to work near 17 minutes, with about one worker in five working from home and about one in eight walking or biking (Census Reporter).

Michigan property taxes

Traverse City property taxes after you buy

The year after a Michigan home sells, its taxable value resets to half of the assessor's market value, so the seller's tax bill is not your tax bill.

In the City of Traverse City, our 2026 Uncapping Study found taxable value typically rises about 57% the year after a sale. On a $425,000 home, near the typical Traverse City value, that is roughly $2,850 more in first-year tax at the local median homestead millage. We build your payment on that post-sale number.

Looking at a Traverse City address? Our Michigan property tax calculator finds that property's published 2025 millage and works out the tax to plan for after you buy.

In Samantha's words

Don't build your budget around somebody else's tax bill. The seller's tax history tells us something about the property. It does not automatically tell us what your taxes are going to look like as the new owner.

2025 tax rates

The rate on each side of the city line

Michigan Treasury's 2025 homestead totals, counting township-wide special assessments where they apply, with each unit's typical jump in taxable value after a sale from our 2026 Uncapping Study. One mill is $1 of tax for each $1,000 of taxable value. First-year figures use the Study's arithmetic on a $425,000 home.

City, Grand Traverse side: 37.07 mills

The city's own levies total about 14.94 mills: 11.63 for operations, 2.32 for the police and fire pension and 0.99 for fire and emergency medical service. A parcel in the Downtown Development Authority district adds 1.59 mills.

City, Leelanau County side: 32.94 mills

Morgan Farms. About 4.1 mills below the rest of the city, roughly $413 a year less on $100,000 of taxable value, with a jump at sale near 25%, about $1,410 more in the first year.

Garfield Charter Township: 26.69 mills

South and west of the city, with many 49684 and 49686 addresses. About 10.4 mills below the city, with a jump at sale near 52%, about $1,940 more in the first year.

East Bay Township: 26.79 mills

East and south of the airport, with many 49686 addresses. About 10.3 mills below the city, with a jump at sale near 69%, about $2,330 more in the first year.

Elmwood Charter Township, TCAPS part: 19.83 mills

The Leelanau County land around Morgan Farms, in 49684. About 17.2 mills below the city's Grand Traverse side, with a jump at sale near 74%.

A second home or rental in the city: 55.07 mills

The non-homestead total on the Grand Traverse side, and 50.94 in Leelanau County, 18 mills above a primary residence on each. A buyer who moves in claims the principal residence exemption with the city assessor on Form 2368, which closing agents usually provide.

Local resources

Check Traverse City records yourself

The official offices behind the tax and school details on this page.

Due diligence

Eight things to settle on a Traverse City house

Each one is quicker to answer during the inspection period than after closing.

  • City, township and county. Look the parcel up in the city's tax parcel viewer. The city assessor values parcels on both sides of the county line, but a deed is recorded with the Grand Traverse County Register of Deeds or, for Morgan Farms, the Leelanau County Register of Deeds.
  • Zoning before rental income. Find the parcel's district on the city's zoning map before counting on vacation rental income, then read the city's vacation home rental license page. The license rule dates from 2019 and the C-1 district cap from 2020, so read the current code, not a listing's description.
  • Historic district work. In the Central, Boardman and Downtown districts the Historic Districts Commission acts on building permit applications before the city issues them, and a permit for a building over 200 square feet needs a historical preservation permit application and plans.
  • Flood map and Kids Creek. Pull the address up in FEMA's Flood Map Service Center. Along Kids Creek much of the high-risk zone is Zone A, mapped without a base flood elevation, so ask the insurer whether an elevation certificate would change the quote.
  • The water service line. The city's water quality report says the city replaced 591 private galvanized services from 2023 through 2025 and plans up to 168 more in 2026. Ask whether the house you want is one of them.
  • The electric account.Traverse City Light and Power, the city-owned utility, also serves parts of four neighboring townships, so the provider alone does not prove a house is in the city.
  • Condo documents. Ask early for the master deed and bylaws. A rental pool, a front desk, a required rental program or owner blackout dates make a project ineligible for Fannie Mae, and FHA financing starts with HUD's approved condominium search.
  • Tax dates. City summer taxes are payable in July and winter taxes by February 14, per the city treasurer. Real property taxes still unpaid on March 1 go to the county treasurer for the side of the line the parcel is on.

What our clients say

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Traverse City mortgage questions

If yours is not here, ask it on the call. There are no dumb questions.

Is a Traverse City mailing address always inside the city?

No. At the 2020 Census about 41% of the homes with a 49684 address and about 28% of those with 49686 were in the city. The rest of 49684 is mostly Garfield and Elmwood townships, with Long Lake, Bingham, Solon and Almira townships at the edges, and the rest of 49686 is mostly Peninsula, Garfield and East Bay townships plus a corner of Acme. Each one taxes, zones and serves a house its own way, so the parcel record, not the envelope, tells you whose rules apply.

Nearly all of the city is in Grand Traverse County. About 4% of its land, the Morgan Farms area north of M-72, is in Leelanau County, where the 2020 Census counted 199 homes. The city assessor values both sides and the city treasurer bills both, but the 2025 homestead rate was 32.94 mills on the Leelanau side against 37.07 elsewhere, real property taxes still unpaid on March 1 go to that county’s treasurer, and the deed is recorded with that county’s Register of Deeds.

Traverse City Area Public Schools, for every parcel in the city on both sides of the county line. What changes the school portion of the bill is homestead status. Michigan’s principal residence exemption removes up to 18 mills of school operating tax from the home you live in, so in 2025 a second home or rental in the city paid 55.07 mills on the Grand Traverse side and 50.94 in Leelanau County, about $1,800 a year more on each $100,000 of taxable value than a primary residence.

Usually not in a residential neighborhood. The zoning code lists whole-home vacation rentals as an allowed use only in certain commercial, development, hotel resort and transportation districts, and the R-1a, R-1b, R-2 and R-3 residential districts do not list them. In the C-1 office service district a vacation rental needs a parcel with two or more dwellings and is capped at the greater of one unit or a quarter of them, and in the C-4 downtown districts it cannot be on the first floor. Every vacation rental also needs a city license, $200 to apply and renewed each year, with an inspection before the first license and every three years after, and operating without one carries fines of at least $500, with each day a separate violation.

In the single-family districts the owner can run a licensed tourist home, renting up to three rooms in the house to guests who stay no more than 14 days in a row, with one off-street parking space per guest room, and a high intensity tourist home must sit at least 1,000 feet from another. An accessory dwelling unit is allowed too, one per parcel and no larger than 800 square feet, but an owner must live on the property and qualify for the principal residence exemption, the unit must be registered with the City Clerk every year and it cannot be leased for less than three months. A parcel cannot have both.

Most mortgages require it when the house sits in FEMA’s high-risk zone, which covers about 4% of the city’s dry land in our sample of the map: the Kids Creek corridor west of Division Street, the banks of the Boardman River and Boardman Lake, and coastal zones along both arms of the bay with base flood elevations of 584 to 590 feet. About 80 of the city’s roughly 8,400 homes in 2020 sat on blocks centered in it. When FEMA issued its final determination for the current map in October 2022 it counted only 31 flood policies in the whole city, and the city is not on FEMA’s October 2026 list of communities whose policyholders get a premium discount, so price a policy before you commit.

Traverse City Light and Power, which the city owns, serves the city and parts of East Bay, Elmwood, Garfield and Peninsula townships. City water comes from Lake Michigan through a plant permitted for 20 million gallons a day, and the regional wastewater plant treats up to 8.5 million gallons a day for the city and nearby townships. On an older house, ask about the water service line: the city’s 2025 water quality report lists no full lead service lines, one remaining lead gooseneck and about 168 galvanized lines once connected to lead, which the utility is replacing at its own expense.

It can. The city treasurer collects taxes on about 1,000 parcels that sit in special improvement districts, and a parcel inside the Downtown Development Authority district also pays the DDA’s 1.5879-mill operating levy. City summer taxes are payable in July without penalty and winter taxes by February 14, so ask for any unpaid assessment balance before closing and decide whether an escrow account will pay both bills.

Talk with a local mortgage expert

Tell Samantha what you are trying to do in Traverse City and she will tell you what actually matters for your situation, including whether the timing is right.

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Align Lending LLC, NMLS #2041154. Samantha Shelton, NMLS 1647301. Equal Housing Opportunity. Licensed in Michigan, Ohio, North Carolina, Florida, Louisiana and Texas. Figures on this page are market research for orientation, not a quote. This page is for educational purposes only. It is not a credit decision, a preapproval, a commitment to lend, or an offer of credit.

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