Dearborn's short-term rental ban is being fought as a taking in federal court
Dearborn's short-term rental ban is being fought as a taking in federal court
2026-09-12 · Michigan · Courts · Pending — not yet law
What happened. Dearborn's short-term rental restrictions took effect on 1 January 2026, and on 8 January 2026 a group of property owners sued the city in the United States District Court for the Eastern District of Michigan.1
The case is pending. No ruling has issued.
The ordinance
Ordinance 24-1845. The Dearborn City Council voted on 15 July 2025 to restrict rentals of under 30 days to the downtown business district and ban them in single-family neighbourhoods. In September 2025 the council expanded the permitted areas to include community-business and general-business districts. Effective 1 January 2026.
The claims
The plaintiffs are five individuals — Sultan Bzeih, Bruno Morabito, Antonia Morabito, Samir Alley and Ali Srour — plus six limited liability companies: 1817 Vernon, Empire Realty Management, Xerola Management, 3313 Detroit, 3833 Brewster and Korte Property.
They allege a Fifth Amendment taking without compensation and a due process violation, and argue that existing operators should have been grandfathered. They seek a jury trial, a declaration that the ordinance is void and unenforceable, repeal, damages and fees.
The city says the ordinance protects housing stock and abates nuisance, and has declined to comment on the litigation.
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