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Short-Term Rental Regulations
in Chicago, IL

Last verified: March 2026 · Report an update

Zoning & Conditions

Short-term rentals (31 days or fewer) are restricted by building size: single-family and 2–4 unit buildings must be the host's primary residence; buildings with 5+ units are capped at one-quarter of units or 6 total. Units are prohibited in Restricted Residential Zones (RRZ) or if listed on the Prohibited Buildings, Scofflaw, or Problem Landlord lists.

How to Obtain a Permit

1. Submit an application via the Shared Housing Registration Portal including a valid identity document. 2. Upon approval, pay the $250 annual registration fee to receive a registration number. 3. Renew the registration annually; BACP sends reminders 60 days prior to expiration.

Regulatory Updates — Chicago

Proposed and recent legislation

PassedSeptember 2023

Increased Fine Schedule for Unlicensed STRs

Chicago updated its administrative fine schedule in 2023, increasing penalties for operating a short-term rental without a valid Shared Housing license. Fines now range from $1,500 to $3,000 per day for first-time violations, with higher fines for repeat offenders. The city also authorized the Department of Business Affairs and Consumer Protection (BACP) to seek platform delisting for unlicensed operators.

Official source
Under ReviewMarch 2024

Aldermanic Push to Restrict Investor STRs in Residential Wards

Several Chicago aldermen representing primarily residential wards introduced proposals in 2023–2024 to require owner-occupancy for STR licenses in their districts. While no citywide ordinance has passed, individual aldermanic designations for residential use could effectively restrict investor-owned STRs in specific areas without a full council vote.

PassedJanuary 2023

Chicago Platform Data-Sharing Agreement

Chicago entered data-sharing agreements with major booking platforms requiring quarterly submission of booking activity, including registration numbers, rental dates, and revenue figures. The city uses this data to identify unlicensed operators and ensure compliance with its lodging tax collection requirements.

Official Resources

Official Chicago STR regulation source

Local Resources & Advocacy

Chicago Airbnb Host CommunityLocal

Airbnb's local host advocacy group in Chicago, organizing hosts to engage with aldermen and city regulators on the Shared Housing ordinance and proposed restrictions.

Illinois Rental Property Owners AssociationStatewide

Statewide association representing landlords and rental property owners in Illinois, with advocacy on STR licensing requirements and proposed restrictions in Chicago and other municipalities.

Vacation Rental Management Association (VRMA)National

National trade association with Midwest members monitoring Chicago STR policy and the Illinois legislative environment for preemption activity.

Frequently Asked Questions

Are short-term rentals allowed in Chicago, IL?
Short-term rentals (31 days or fewer) are restricted by building size: single-family and 2–4 unit buildings must be the host's primary residence; buildings with 5+ units are capped at one-quarter of units or 6 total. Units are prohibited in Restricted Residential Zones (RRZ) or if listed on the Prohibited Buildings, Scofflaw, or Problem Landlord lists.
Is a permit required to operate a short-term rental in Chicago?
Yes, a permit is required to operate a short-term rental in Chicago. 1. Submit an application via the Shared Housing Registration Portal including a valid identity document. 2. Upon approval, pay the $250 annual registration fee to receive a registration number. 3. Renew the registration annually; BACP sends reminders 60 days prior to expiration.
How do I get a short-term rental permit in Chicago?
1. Submit an application via the Shared Housing Registration Portal including a valid identity document. 2. Upon approval, pay the $250 annual registration fee to receive a registration number. 3. Renew the registration annually; BACP sends reminders 60 days prior to expiration.
Does Chicago require STR hosts to live on-site?
No — the City of Chicago does not currently require a primary-residence or owner-occupancy requirement for its Shared Housing license at the city level. Any property owner can obtain a Shared Housing license for an eligible property. However, this can be overridden by your building's HOA or condo association rules, which often ban STRs entirely regardless of city licensing. Additionally, aldermanic pressure in some wards may create de facto restrictions even without a formal city ordinance.
Do Chicago condo buildings have additional restrictions beyond city rules?
Yes, frequently. Chicago condo associations and HOAs often adopt rules that prohibit short-term rentals, independent of the city's Shared Housing ordinance. Before operating a Chicago STR in a condo or co-op building, you must review your building's declaration, bylaws, and any rules adopted by the board. Violating HOA rules can result in fines, liens, or legal action from the association. A valid city license does not override building-level restrictions.
What is Chicago's STR license process?
Chicago STR operators must obtain a Shared Housing Unit license from the city's Department of Business Affairs and Consumer Protection (BACP). The process involves: (1) completing an online application; (2) paying the annual license fee (~$250); (3) obtaining approval from the building owner if you are a renter (subletting may require additional approval); and (4) ensuring your property passes any required safety inspections. Licenses must be renewed annually and the license number must be displayed in all advertising.
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Disclaimer

This information is for general reference only and may not reflect the most current regulations. STR regulations change frequently. Always verify requirements with official local government sources before operating a short-term rental.

Last verified: March 2026 · Suggest a correction