Houghton Lake is an unincorporated community in Roscommon Township, Roscommon County in the U.S. state of Michigan. The Census Bureau has defined a census-designated place for statistical purposes with the same name. The population was 3,749 at the 2000 census.The community is situated on the southwest shore of Houghton Lake, Michigan's largest inland lake. The CDP includes the nearby community of Houghton Lake Heights, which is about one mile southwest along the shore of the lake. M-55 runs through both communities. The community of Prudenville is adjacent to the CDP on the east, at the southeast end of the lake. US 127 passes just west of the communities. A small portion of the CDP area extends into Lake Township to the north.The Houghton Lake Area is a popular vacation spot in Northern Michigan, and is host to many resorts, events, and other tourist attractions. Tourism makes up a large part of the local economy.