Executive Overview: STR Status in Freeport, IL

Short-term rentals are currently allowed in Freeport, Illinois. The city has an established licensing and registration framework in place for vacation rentals. Most recently, in October 2025, the Freeport City Council rejected a proposed ordinance (2025-58) that would have eliminated short-term rental operations from single-family residential zones (R-1 through R-4), preserving the ability to operate STRs in these traditionally residential areas.

The city operates under a licensing-based system that requires registration, with regulations focused on owner accountability and basic operational standards. While recent incidents have prompted discussions about enhanced safety measures, Freeport currently maintains a permissive regulatory environment compared to many other municipalities.

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How to Start a Short-Term Rental Business in Freeport

Step-by-Step Licensing Process

1. Complete the City Application

   • Download and complete the official Vacation Rental Application from the City of Freeport website
   • Return completed forms to: City Clerk Forms, 314 W. Stephenson Street, Suite 200, Freeport IL 61032

2. Submit Required Documentation

   • Owner of record must be listed on the application (this is mandatory under current regulations)
   • Provide proof of insurance that matches the title ownership
   • Submit documentation verifying legal property ownership
   • For rent-to-own arrangements: provide owner affidavits as appropriate

3. Obtain Approval

   • Applications are reviewed for completeness and compliance
   • Matching insurance and title ownership verification is required
   • Approved applications receive city licensing

4. Ongoing Compliance

   • Maintain current contact information with city for emergency services
   • Comply with all city ordinances regarding noise, property maintenance, and nuisance activities
   • Display required posting as outlined in city regulations

Business Planning Considerations

• Market Analysis: Freeport has limited STR inventory (only a handful available on major platforms according to city officials), suggesting potential opportunity
• Property Standards: Ensure properties meet all local housing and safety standards
• Insurance Requirements: Maintain comprehensive liability insurance matching property ownership documentation
• Local Relations: Given recent regulatory discussions, maintaining positive community relationships is crucial

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Required Documents, Permits, Licenses, and Guidelines

Primary Requirements

Licensing Documents:

• Vacation Rental Application (official city form)
• Proof of property ownership or owner affidavits for rent-to-own situations
• Insurance documentation matching title ownership
• Owner contact information for emergency services access

Permits and Approvals:

• City business license (through standard licensing process)
• Any applicable zoning compliance verification
• Special-use permits where required (see specific regulations section)

Compliance Documentation:

• Current contact information filed with city for police/fire access
• Property maintenance compliance documentation
• Noise and nuisance ordinance adherence proof

Platform Compliance

Airbnb Requirements:

• Background checks for hosts in certain regions (not specifically required by city)
• Standard platform host verification processes

Vrbo Requirements:

• No specific background check mandates
• Standard platform registration processes

Platform Contact Information:

• Airbnb host support through platform systems
• Vrbo host support through platform systems

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Specific Regulations: City, County, and State

City of Freeport Regulations

Current Licensing Framework:

• Mandatory registration with the city (enforced under current ordinances)
• Owner of record must be listed on applications
• Insurance and title ownership verification required
• Contact information must be provided for emergency services

Recent Regulatory Activity (2025):

1. Failed Restriction Ordinance:

   • Ordinance 2025-58 would have eliminated STRs from R-1 through R-4 single-family zones
   • Defeated 6-2 by City Council in October 2025
   • Planning commission had recommended approval by 5-0 vote
   • Current regulations remain in effect

2. Amendments to STR Ordinance (Previous):

   • City council approved amendments following resident complaints
   • Key provisions included:
     • Limitation of one rental per 200 feet in certain areas
     • Special-use permit requirements for STR use
     • Prohibition of street parking
     • Required posting of license and host rules at front door
     • Grandfathering provisions for properties in compliance at time of amendment

Operational Standards:

• Adherence to existing city ordinances for noise, property maintenance, and nuisance activities
• No specific background check requirements for guests
• Hosts may establish additional safety rules and consult with police department

Stephenson County Regulations

Current Status:

• No specific county-level STR regulations identified
• County Board member Lynette Williams has expressed interest in reviewing vacation rental industry regulations following safety incidents
• Potential future county-level oversight discussions possible

Safety and Public Safety Context:

• Recent incidents have prompted calls for enhanced regulation
• County officials monitoring situation for potential future action

Illinois State Regulations

General Business Framework:

• Standard Illinois business licensing requirements
• State health and safety regulations apply
• Sales tax collection requirements for short-term rentals
• Local control framework allows municipalities significant regulatory authority

State-Level Considerations:

• No statewide ban on short-term rentals
• Municipalities have significant home rule authority over zoning and licensing
• Short-term rental operations fall under general business regulations

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Contact Information for Local Authorities

City of Freeport - Primary Contact

City Clerk's Office (STR Licensing)

• Phone: 815-235-8203
• Address: City Clerk Forms, 314 W. Stephenson Street, Suite 200, Freeport IL 61032
• Email: Contact through City Hall main number
• Website: cityoffreeport.org/documents/vacation-rentals/

City Hall General Contact

• Phone: (815) 235-8203 (main)
• Address: 314 W. Stephenson Street, Freeport IL 61032
• Website: cityoffreeport.org/
• Hours: Monday-Friday, 8:00 am - 5:00 pm

Community Development Department

• Phone: (815) 235-8203 (through City Hall)
• Role: Zoning and development compliance for STR operations

Freeport Police Department

Emergency Contact:

• 911: For emergencies

Non-Emergency Contact:

• Phone: Contact through City Hall for non-emergency police services
• Role: Safety consultation, incident response, enforcement of existing ordinances

Chief Chris Shenberger:

• Contact: Through police department administrative channels
• Role: Oversees law enforcement response to STR-related incidents

Stephenson County Government

County Board Member (District E) - Lynette Williams

• Role: County oversight, potential future county-level regulation consideration
• Contact: Through Stephenson County Board offices

County Board:

• Phone: Contact through county government offices
• Role: Monitoring STR situation for potential county-level action

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Important Source Links and References

Official City Resources

Primary Application and Documentation:

• Vacation Rental Application: cityoffreeport.org/documents/vacation-rentals/
• City Website: cityoffreeport.org/
• Codified Ordinances: codelibrary.amlegal.com/codes/freeport/latest/overview
• Rental Registration: cityoffreeport.org/documents/registration/

Recent Meeting Records and News Sources

City Council Meeting Documentation:

• Full Meeting Video (Failed Ban Ordinance): Meeting record showing October 2025 council debate

News Coverage:

• Amendment History: thefacts.com/news/freeport-city-council-approves-amendments-to-short-term-rental-ordinance/article_001e5cb4-0533-5f23-88aa-9021f2430f5f.html
• Safety Incidents Coverage: www.wifr.com/2025/06/10/guns-found-freeport-vrbo-inspire-call-more-short-term-rental-regulation/

Regulatory and Background Information

State Framework:

• Illinois Municipal League for statewide municipal regulation context
• Illinois Department of Revenue for tax compliance requirements

Platform Background Check Policies:

• Airbnb Host Screening: www.airbnb.com/help/article/1308
• Vrbo Host Information: Platform-specific host requirements (no publicly available screening policies identified)

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Key Takeaways for STR Investors

Permissive Environment: Freeport currently maintains a business-friendly approach to short-term rentals, with recent council action rejecting attempts to restrict STR operations in residential zones.

Established Process: The city has a functioning licensing framework with clear application requirements, making the regulatory environment predictable for new entrants.

Growth Opportunity: Limited existing STR inventory suggests potential market opportunity, though recent safety incidents may prompt future regulatory changes.

Community Relations: Given active council discussions and recent safety concerns, maintaining positive community relationships and exceeding minimum standards is advisable for long-term success.

Regulatory Monitoring: Stay informed about council meetings and proposed amendments, as the regulatory environment may evolve in response to community concerns or safety incidents.

Compliance Priority: Ensure full compliance with existing licensing requirements, insurance matching ownership, and all city ordinances to avoid enforcement issues and maintain operation status.

This guide represents current regulations as of late 2025. Given the active legislative environment around STRs in Freeport, investors should regularly monitor city council meetings and regulatory updates to remain compliant with evolving requirements.