Overview: Are Short‑Term Rentals Allowed in Lincoln Park (Chicago, IL)?

Yes—short‑term rentals (STRs) are allowed in Chicago, including the Lincoln Park neighborhood, but only under strict city rules and with all required registrations or licenses in place. Chicago treats STRs as “Shared Housing” and requires a registration number for any listing offered for 31 days or fewer; for longer stays of 32 days or more, no registration is required. Additionally, Chicago imposes a minimum two‑night stay requirement for all short‑term rental listings (except hotels and bed‑and‑breakfast properties). Compliance hinges on unit eligibility, ward allowances, building/association approval, and consistent adherence to safety, tax, and operational rules.

Chicago is home‑rule city with robust, evolving regulations. Lincoln Park operates under Chicago’s citywide framework; there are no separate municipal STR rules specific to the Lincoln Park community area. As such, Chicago’s Shared Housing ordinance, Department of Business Affairs and Consumer Protection (BACP) guidance, and state tax requirements govern all STR activity in Lincoln Park.

How to Start a Short‑Term Rental Business in Lincoln Park

1. Confirm zoning and ward feasibility

• Use the City of Chicago interactive zoning map and confirm your building’s status. Ward aldermen retain discretion over allowances and enforcement priorities; certain wards or precincts may impose stricter requirements. Before listing, verify your specific ward’s stance and whether any restricted residential zones apply to your building or block.

2. Secure building/association authorization

• Condo associations and landlords can prohibit or restrict STRs. Ensure your building is on the city’s Shared Housing Registration List. If it is not, seek formal approval from your association or landlord. Listings without proper authorization can be flagged, removed, or cited.

3. Choose the correct city approval path

• 31 days or fewer (Shared Housing): Most hosts who rent part of their home while living there, or who rent an entire home that is their primary residence, must obtain a Shared Housing registration number through the City’s Shared Housing Registration Portal.
• 32 days or longer: No registration number is required; the stay is not treated as a short‑term rental under Chicago rules.
• Operating an entire home that is not your primary residence typically requires a vacation rental license (a legacy license type now replaced by Shared Housing rules). Confirm the current licensing requirements and eligibility with BACP before proceeding.

4. Complete registration and pay fees

• Create an account on the Shared Housing Registration Portal, submit required documents, and pay the $125 annual registration fee once approved. If you plan to host more than one shared housing unit, you must obtain the Shared Housing Unit Operator License (SHUOL) before applying for additional registrations.

5. Ensure safety and insurance

• Maintain at least $1 million in liability insurance, install working smoke and carbon monoxide detectors, provide a fire extinguisher, and keep egress paths clear. If using an intermediary platform, you may receive some coverage via the platform, but secure supplemental insurance to protect your investment and comply with city expectations.

6. Register for and remit taxes

• If listing independently (not through a licensed intermediary platform), register with the Illinois Department of Revenue (IDOR) and the City of Chicago to collect and remit hotel accommodation and related taxes. If listing on a licensed platform, the platform generally collects and remits taxes on your behalf.

7. Set operations and guest policies

• Comply with occupancy limits and guest conduct standards, keep detailed guest logs, post your registration or license number on all listings, and enforce quiet hours. Anticipate quarterly reporting requirements now being implemented by the City.

Required Documents, Permits, Licenses, and Guidelines

City of Chicago Shared Housing Registration

• Required to list any unit for 31 days or fewer.
• Eligibility criteria must be met (primary residence status, building/association authorization, not located on prohibited building lists).
• Annual registration fee: $125.
• Approval yields a registration number to be displayed on all listings.

Shared Housing Unit Operator License (SHUOL)

• Required for hosts approved for more than one shared housing registration.
• One SHUOL per individual host; each unit requires its own registration.
• Apply in person at City Hall or online through Chicago Business Direct; fee is listed in the SHUOL Licensing Guide.

Core documents and attestations

• Identity document (for account creation).
• Proof of primary residence (if claiming primary residence status): two residency documents.
• Association/landlord approval (if applicable) to use the unit as a short‑term rental.
• Insurance certificate confirming liability coverage (minimum $1 million).
• Local contact person details for service of process and remedial action.
• Attestations regarding the dwelling’s lawful status (maximum six sleeping rooms), HOA/rental building rules compliance, primary residence status (where applicable), and unit limits (e.g., maximum share of building units used as STRs).

Safety and record‑keeping

• Smoke and carbon monoxide detectors, fire extinguisher, clear egress paths.
• Guest logs: names, addresses, and rental dates, available upon city request.
• Display of registration/license number on listings.

Useful municipal guides and forms

• Shared Housing Registration Guide
• Shared Housing Registration Portal HELP pages
• SHUOL Licensing Guide
• Prohibited Buildings List and removal affidavit
• City Clerk Restricted Residential Zones (ward‑level controls)
• Appeal and Commissioner’s Adjustment forms
• Complaint and disciplinary reporting forms

Specific Regulations: Chicago, Cook County, and Illinois

Chicago Municipal Requirements

• Definition: Short‑term rental is any rental of a dwelling unit or portion for fewer than 32 consecutive days.
• Registration: All shared housing units (31 days or fewer) must have an approved registration number to list.
• Minimum stay: Chicago imposes a minimum two‑night stay requirement for all listings except hotels and bed‑and‑breakfasts.
• Occupancy and guest limits:
  • Maximum of one rental contract at a time per unit.
  • Maximum of six unrelated guests per unit.
  • Compliance with quiet hours (typically 10 p.m. to 8 a.m.) and neighborhood behavior standards.
  • Accurate guest logs maintained and available to the City upon request.
• Listing display: Registration or license number must appear on all listings.
• Safety: Liability insurance ($1 million minimum), smoke and CO detectors, fire extinguisher, and clear egress paths.
• Taxes and surcharges:
  • 4.5% Chicago Hotel Accommodation Tax
  • 4% Chicago Shared Housing Surcharge
  • 2% Domestic Violence Surcharge
  • Transactions processed on licensed intermediary platforms: taxes are collected and remitted by the platform.
  • Transactions processed directly by the host: host must open a city tax account and remit taxes.
• Building/association controls: Condo/landlord rules can prohibit or restrict STRs. Check building eligibility lists and ward restrictions.
• Enforcement: Violations can result in fines starting at $1,500 per day, removal from approved lists, suspension or revocation of licenses/registrations, and legal action. The City performs random inspections and investigates complaints (noise, overcrowding, unauthorized rentals).
• Reporting: New quarterly reporting obligations apply to hosts/managers, including unit information, nights rented, rent amounts, taxes paid, and contact details. BACP must share violation/disciplinary reports with the local alderman.

Cook County Taxes

• 1% Hotel Accommodations Tax on the listing price (including cleaning fees) for reservations 29 nights and shorter. Licensed intermediary platforms typically collect and remit this tax; direct hosts must register and remit if applicable.

State of Illinois Taxes

• Short‑Term Rental Occupation Tax Act (Hotel Operators’ Occupation Tax framework):
  • 5% of 94% of gross rental receipts
  • 1% of 94% of gross rental receipts
• Additional state taxes applicable in Chicago:
  • Illinois Sports Facilities Authority Hotel Operator’s Tax (2% of 98% of gross receipts)
  • Metropolitan Pier and Exposition Authority (MPEA) Hotel Tax (2.5% of gross receipts)
  • Municipal Hotel Tax (1% of 99% of gross receipts)
• Licensed platforms generally collect and remit state and local taxes. Hosts transacting independently must register with IDOR, file returns (Form RHM‑1), and remit electronically if annual liability is $20,000 or more.

Contact Information (Local Authority)

Department of Business Affairs and Consumer Protection (BACP) — Shared Housing

• Phone: 312.744.6249
• Email: sharedhousing@cityofchicago.org
• Technical portal issues: hstechissues@cityofchicago.org
• Address: City Hall, Small Business Center, 121 N LaSalle Street, Room 800, Chicago, IL 60602
• Shared Housing Registration Portal: webapps4.chicago.gov/chicagohouseshare/
• Chicago Business Direct (license services): webapps1.chicago.gov/AccountServices/login.jsp

Links to Source Pages (Key Resources)

• City of Chicago Shared Housing Program and Registration
  • chicago.gov/sharedhousing
• Shared Housing Registration Portal (apply, pay, manage)
  • webapps4.chicago.gov/chicagohouseshare/
• Shared Housing Registration Guide (PDF)
  • chicago.gov/…/sharedhousingregistrationguide.pdf
• SHUOL Licensing Guide (PDF)
  • chicago.gov/…/shuollicensingguide.pdf
• Shared Housing Registration HELP pages
  • webapps4.chicago.gov/chicagohouseshare/static-pages/help
• Approved Identity and Primary Residency Documents (PDF)
  • webapps4.chicago.gov/…/Shared%20Housing%20Acceptable%20ID%20Documents.pdf
• Prohibited Buildings List (Data Portal)
  • data.cityofchicago.org/…/House-Share-Prohibited-Buildings-List/7bzs-jsyj/data_preview
• Prohibited Buildings List — Removal Affidavit (PDF)
  • chicago.gov/…/sharedhousingpblaffidavitremovalfinal617.pdf
• City Clerk Restricted Residential Zones
  • chicityclerk.com/houseshare/restricted-precincts
• Shared Housing Host Ordinance (Municipal Code)
  • codellibrary.amlegal.com/…/chicago_il/0-0-0-2611518
• Shared Housing Intermediary Ordinance (Municipal Code)
  • codellibrary.amlegal.com/…/chicago_il/0-0-0-2611336
• File a Complaint (PDF)
  • chicago.gov/…/Vaca_Rental_BB_Shared_Housing_Complaint_Form-62117.pdf
• Appeal Form (PDF)
  • chicago.gov/…/20190225sharedhousingregistrationappealform.pdf
• Commissioner’s Adjustment Application and Instructions (PDF)
  • chicago.gov/…/updatedcaapplicationfinal05152024.pdf
• Commissioner’s Adjustment Application (Spanish) (PDF)
  • chicago.gov/…/updatedcaapplicationfinalspanishES.pdf
• Shared Housing Registration Application and Commissioner’s Adjustment Rules (PDF)
  • chicago.gov/…/BACP-shared-housing-rules.pdf
• Airbnb Help: Chicago Short‑Term Rental Rules and Taxes
  • airbnb.ca/help/article/861
• Park Place: Understanding Chicago Short‑Term Rental Regulations
  • parkpl.co/articles/chicago-airbnb-regulations
• LoopNorth: Chicago STR Quarterly Reporting Ordinance (news summary)
  • loopnorth.com/news/ordinance0604.htm

Practical Notes for Lincoln Park Investors

• Prioritize association/landlord approval and ward compliance. Lincoln Park buildings frequently have condo rules that restrict STRs.
• Expect stronger data reporting and enforcement scrutiny. Maintain meticulous records (guest logs, revenue, taxes, correspondence).
• If your listing is not on a licensed intermediary platform, budget time and processes for tax registration, collections, and remittance.
• Treat safety and guest conduct policies as core risk‑management disciplines. Proactive measures reduce citation risk and preserve operating continuity.