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Evanston, IL
Challenging To Investors

Short-term rentals (STRs) are currently permitted in Evanston but under significant restrictions and a temporary moratorium. As of September 8th, 2025, the City Council approved a 90-day moratorium on new vacation rental license applications, effective immediately. This means no new STR licenses are being accepted at this time. However, existing licensed operators may continue to operate and renew their licenses during this period.
The city is actively revising its STR regulations, with new ordinances under development that may impose citywide caps, ward-by-ward limits, and stricter requirements for non-owner-occupied properties. Investors should monitor these policy developments closely, as the regulatory landscape is shifting rapidly.
Evanston hosts earn a median $38,111/year with $199 ADR and 70% occupancy.
Top performers pull in $52,807+ per year.
See the full Evanston market breakdownNew applications are temporarily suspended due to the 90-day moratorium. Current licensees can renew, but new applicants must wait for the moratorium to lift and new regulations to be implemented.
Based on current draft proposals, the process will likely involve:
For Owner-Occupied Properties:
For Non-Owner-Occupied Properties (if permitted):
Pre-Application Preparation
Application Submission
Inspection and Review
Final Approval and Licensing
Current Framework:
Proposed Changes (Under Review):
Tax Requirements:
No specific county-level STR regulations were identified in the provided content.
No specific state-level STR regulations were identified in the provided content. Standard Illinois business licensing and tax requirements apply.
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Related Resources: 5. Evanston, IL, Vacation Rental License - APA KnowledgeBase
Important Note for Investors: The STR regulatory environment in Evanston is currently in flux. The 90-day moratorium is scheduled to end around December 2025, but new regulations may significantly restrict non-owner-occupied STRs. Investors should closely monitor City Council meetings and consider the temporary nature of current licensing opportunities before making investment decisions. The Housing and Community Development Committee is scheduled to discuss STR policy on October 21, 2025, with final regulations expected by early 2026.
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Evanston, Illinois is a vibrant, lakefront city of roughly 79,000 residents in Cook County, situated along the western shore of Lake Michigan just north of Chicago. Best known as the home of Northwestern University, Evanston blends the energy of a college town with the cultural amenities and shoreline of a large suburb, offering tree-lined streets, a lively downtown, and a famously engaged community. It functions as both a destination in its own right and a convenient gateway to downtown Chicago, which lies about 15 miles to the south and is reachable in roughly 20 to 30 minutes by car or train via the CTA Purple Line and Metra.
A defining feature of the city is its stretch of Lake Michigan shoreline, where beaches, parks, and a historic lighthouse draw both residents and visitors year-round. Grosse Point Lighthouse, a 19th-century landmark, anchors the lakefront and offers a tangible connection to the area's maritime past. The beaches and adjacent greenways are popular for running, cycling, and swimming, and they sit within minutes of downtown Evanston by foot or bike, making the lakefront a central part of the city's appeal.
The Northwestern University campus is another major draw, with its blend of Collegiate Gothic architecture, public art, and cultural institutions. The Block Museum of Art, located on the Evanston campus, presents rotating exhibitions, film series, and lectures that are open to the public and add a museum-quality attraction to the city's profile. Visitors can stroll the university's lakefill area and surrounding paths, which connect seamlessly to the city's broader trail system.
Just south of Evanston in neighboring Wilmette sits the Bahá'í House of Worship, one of only a handful of Bahá'í temples in the world and a striking piece of architecture set on landscaped lakeshore grounds. A short drive or train ride into Chicago opens up world-class museums, dining, and lakefront attractions, while Evanston itself maintains a distinct identity with independent shops and restaurants concentrated along Sherman Avenue, Davis Street, and Central Street.
For short-term rental operators, Evanston offers a compelling combination: a walkable, amenity-rich urban environment with its own beaches, university, and cultural venues, paired with quick access to Chicago's full roster of attractions. The result is a market that draws academic visitors, families exploring the North Shore, and Chicago-bound travelers looking for a slightly quieter, more residential base, supporting steady year-round demand.
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