Chicago, IL

Chicago permits short-term rentals (31 days or fewer) under its Shared Housing Ordinance, but with significant conditions. All shared housing units must be registered with the city and receive an approved Registration Number before listing or operating. For single-family homes, the property must be the host's primary residence. In buildings with 2 to 4 units, one unit can operate as an STR without being the host's primary residence, but additional units require primary residence status. In larger buildings (5+ units), no more than 6 units or 25% of total units (whichever is less) can be used as STRs. Chicago also has a Restricted Residential Zones system where residents in RS1, RS2, or RS3 zoned precincts can petition to ban new STRs in their area. The city maintains a prohibited buildings list and requires zoning compliance review for each registration. Hosts with multiple units or those operating vacation rentals (where they are not present during guest stays) need an additional Shared Housing Unit Operator license.

Licensing and Permits

Chicago requires hosts to obtain an STR license or permit before listing their property on platforms like Airbnb or VRBO.

Enforcement

Chicago has high enforcement of STR regulations. Operating without proper licensing or failing to comply with local regulations can result in citations, fines, and potential loss of your permit.

Compiled from 10 official government sources and continuously monitored for changes. Always verify current requirements with your local municipality before making investment or operational decisions.