M-26 is the main highway through Dollar Bay, leading west 3 miles (5 km) to Hancock and northeast 5 miles (8 km) to Hubbell.
According to the United States Census Bureau, the Dollar Bay CDP has a total area of 4.6 square miles (12.0 km2), of which 4.1 square miles (10.5 km2) are land and 0.5 square miles (1.4 km2), or 12.05%, are water.[3]