Short-Term Rental Regulatory Guide: Carthage, Illinois (Hancock County)

Overview and Regulatory Status

• Allowed? No city- or county-specific short‑term rental (STR) ordinance was identified for Carthage, Illinois, in the provided content. In Illinois, short‑term rentals are generally a matter of local ordinance (zoning, business licensing, taxation, and safety standards are commonly set by cities or counties). Investors must therefore confirm whether STRs are permitted as a primary use in the relevant zone and whether a business license and safety inspections are required before operations.
• What this means in practice: Absence of a published city STR ordinance does not equate to a right to operate. Zoning classification and any general business licensing rules will control whether and how you can run an STR. Contact the City of Carthage and Hancock County for definitive confirmation (see Contact Information).

Important note on sources and gaps

• City-specific rules: No explicit Carthage, IL STR ordinance, permit requirements, or fee schedules were identified in the provided content. You must verify with local authorities.
• State-level rules: General state-level obligations (e.g., hotel tax and lodging regulations) may apply; see the State section below.
• Market context: The Steadily article confirms Carthage is an affordable Midwestern market with low living costs and modest rents, which may support STR feasibility if zoning allows.

How to Start a Short-Term Rental Business in Carthage, Illinois

1. Confirm land use and zoning

• Determine whether the property is inside city limits (if applicable) or in the county, and identify the zoning district (e.g., residential, commercial).
• Confirm whether STRs are permitted, conditional, or prohibited as a primary use in that district. Many Midwestern jurisdictions allow STRs as either a permitted or conditional use subject to standards (parking, occupancy, safety).
• Action: Request a zoning verification letter and written confirmation from the City of Carthage Zoning/Building Department and Hancock County (if county jurisdiction applies).

2. Secure business licensing and tax registration

• Even absent a dedicated “STR license,” most cities require a general business registration or tax ID to collect/remit lodging taxes and to operate legally.
• Register for any applicable state tax accounts (e.g., sales/use, hotel operator’s occupation tax) through the Illinois Department of Revenue.
• Obtain a federal EIN for banking, tax filings, and platform compliance (e.g., 1099-K reporting).

3. Safety and habitability compliance

• Expect to meet state/local housing and life-safety standards for dwellings used transiently (e.g., smoke/CO detectors, egress, fire safety, occupancy limits). Many cities require fire/building inspections as a prerequisite to a certificate of compliance before listing.
• The Property Guard roundup illustrates that municipalities often couple STR approvals with permitting and inspection requirements; assume similar steps in Carthage unless told otherwise by local officials.

4. Platform and compliance operations

• Comply with listing platform terms and any state/county/city tax registration. If taxes are due on transient stays, establish a process to collect, file, and remit on time.
• Establish internal policies: maximum occupancy, quiet hours, parking, trash/recycling, and emergency procedures.

Required Documents, Permits, Licenses, and Guidelines

• Zoning determination and written confirmation that STRs are an allowed use in the subject district.
• City of Carthage business registration/license (if applicable) or, in unincorporated Hancock County, any county business registration.
• State tax registrations: Illinois sales/use tax and hotel operator’s occupation tax (as applicable) via MyTax Illinois.
• Certificate/s of compliance from fire/building inspections as required.
• Emergency safety plan and posted evacuation maps (common requirement; confirm if Carthage requires this).
• Insurance: verify whether the property’s existing policy allows short‑term rental use; upgrade to appropriate coverage if necessary.
• Internal house rules and standard STR lease/addendum for transient guests. Note: Fees and timelines vary and were not published in the provided materials for Carthage.

Specific Regulations: Carthage (City), Hancock County, and State of Illinois

City of Carthage

• No city-specific STR ordinance, fee schedule, or permit process was identified in the provided content. Investors should assume standard local controls apply:
  • Zoning clearance that STRs are a permitted/conditional use.
  • Business registration and tax accounts where applicable.
  • Safety inspections and certificate of compliance prior to operation.
• Action: Obtain written confirmation from the City of Carthage regarding STR status, inspections, licensing, and any taxes or reporting obligations.

Hancock County (unincorporated areas)

• No county-specific STR ordinance was identified in the provided content. County zoning may still govern principal use and structure standards.
• Action: Confirm with Hancock County whether unincorporated STRs are allowed and whether inspections and/or business registration are required.

Illinois (State-Level)

• Municipal home rule and local ordinance authority: Illinois cities often regulate STRs through zoning and licensing. Absence of a city STR ordinance does not mean STRs are prohibited; it means local rules may not be codified online or may be evolving.
• Taxes: Hotel Operators’ Occupation Tax may apply to lodging businesses in Illinois, in addition to sales/use tax depending on the business structure and charges. Registration and remittance typically occur through the Illinois Department of Revenue.
• Safety and habitability: State law generally requires dwellings (including transient rentals) to comply with housing and fire safety standards. Municipal fire/building inspection regimes commonly apply to STRs as a condition of operating. Note on sources: State-level items above reflect Illinois norms commonly encountered in STR operations; the provided materials do not cite an Illinois state‑wide STR “ban” or a single statewide STR law. Verify state tax and safety obligations with the Illinois Department of Revenue and local authorities.

What to Monitor Going Forward

• The Property Guard weekly roundup indicates jurisdictions nationwide (including in Illinois) continue to enact or refine STR rules. Carthage may adopt ordinances in the future, potentially introducing caps, owner‑occupancy requirements, or buffers.
• If you receive notice of new rules or legislative activity, re‑confirm zoning, permitting, tax registrations, and inspection requirements.

Contact Information

• City of Carthage (City Hall/Clerk)
  • Phone: Obtain the current number from the official city website or Hancock County resources.
  • Email: Use the city’s official contact page or request the clerk’s email in writing.
  • Website: Official Carthage, Illinois website (not included in the provided materials).
  • Purpose: Confirm zoning/STR status, inspections, licensing, and tax registration.
• Hancock County (if property is outside city limits)
  • Phone: Use the county’s official website or main line for the County Clerk, Planning, or Zoning Department.
  • Purpose: Confirm county zoning, inspection requirements, and any county business registration for STRs.
• Illinois Department of Revenue (state tax registrations)
  • Website: idor.illinois.gov (for MyTax Illinois registration and filing guidance)
  • Purpose: Register and manage sales/use and hotel taxes as applicable.

Source Pages Referenced (Provided Content)

• www.propertyguard.io/post/some-jurisdictions-allow-short-term-rentals-but-not-everywhere — Weekly STR regulation roundup highlighting diverse municipal strategies; shows that Carthage, IL was not covered as having enacted new STR rules.
• www.steadily.com/blog/carthage-il-real-estate-market-overview — Market overview indicating Carthage’s affordability and landlord considerations; does not include city‑specific STR ordinance details.

Investor Action Checklist

• Verify zoning and STR status in writing with the City of Carthage (and Hancock County if unincorporated).
• Obtain business registration and state tax accounts if required.
• Schedule inspections and secure a certificate of compliance.
• Implement platform and tax remittance workflows and confirm insurance coverage.
• Maintain documentation of all approvals and correspondence for ongoing compliance and platform audits.

If you want, share your property’s address or zoning district, and I can help you draft a concise due‑diligence inquiry letter to the City and County.