Marion, Illinois Short Term Rental Regulations Guide for Airbnb hosts

Overview

Short-term rentals are explicitly allowed in Marion, Illinois, but are tightly regulated. The city has adopted a comprehensive ordinance requiring all short-term rental operators to obtain a license and comply with specific requirements. This guide provides investors with all necessary information to legally operate a short-term rental business in Marion.

What do Airbnb hosts actually earn in Marion?

Marion hosts earn a median $24,683/year with $125 ADR and 61% occupancy.

Top performers pull in $31,575+ per year.

See the full Marion market breakdown

Is Short-Term Rental Operation Allowed?

Yes, short-term rentals are permitted in Marion, IL under specific regulatory framework. According to the adopted ordinance, a short-term rental includes any property rented to someone outside the operator's family for more than 24 hours but less than 30 days. This definition encompasses entire homes, portions of land for tent camping, and parking for RVs or campers. The city has established a licensing system and inspection requirements to ensure compliance with local regulations.

How to Start a Short-Term Rental Business in Marion

Step 1: Property Assessment and Zoning

Verify that your property is located within Marion city limits
Confirm zoning compliance through the city's interactive zoning map
Assess property suitability for short-term rental use

Step 2: License Application

Apply for the annual Short-Term/Vacation/Bed & Breakfast rental license
Complete the registration form specifically designed for vacation rentals and bed & breakfast establishments
Submit application to Building and Code Services department

Step 3: Inspection Scheduling

Schedule initial inspection (required twice annually)
Ensure property meets all safety and code requirements
Address any violation corrections identified during inspection

Step 4: Tax Registration

Register for Hotel Operators' Occupation Tax
File certificate of registration with City Clerk by December 15 annually
Establish monthly reporting system for tax collection

Step 5: Ongoing Compliance

Schedule second annual inspection
Maintain current license and registration
Submit monthly occupancy tax reports
Keep property in compliance with all city codes

Required Documents, Permits, Licenses, and Guidelines

Required Licenses and Permits:

Annual Short-Term/Vacation/Bed & Breakfast License
- Cost: $250 per property annually
- Must be renewed each year
Certificate of Registration for Hotel Operators' Occupation Tax
- Filed with City Clerk
- Annual renewal required by December 15
Inspection Permit
- $50 inspection fee per property
- Required twice annually

Required Documentation:

Completed registration forms for vacation rentals/bed & breakfast
Hotel Operators' Occupation Tax registration certificate
Monthly occupancy tax reports
Proof of property ownership or legal right to operate
Insurance documentation (recommended)
Emergency contact information and property management details

Guidelines for Operation:

Property must comply with all building and safety codes
Maximum rental period: 30 days or less
Minimum rental period: 24 hours
Property must meet inspection standards for habitability
Operators must collect and remit applicable taxes

Specific Regulations for Short-Term Rentals

City-Level Regulations (Marion):

Licensing Requirements:

All short-term rentals must obtain annual license
License application required before operation begins
Annual renewal mandatory by January 31st

Inspection Requirements:

Properties inspected twice per year
One initial inspection upon license application
One follow-up inspection during license year
$50 fee per inspection
Properties must pass inspection to maintain license

Tax Obligations:

3% Hotel Operators' Occupation Tax on gross rental receipts
Tax applies to all rentals under 30 days
Exemptions for permanent residents (7+ consecutive days)
Monthly tax reporting required by 10th of following month
1% late penalty for failure to file monthly report

Definition and Scope:

Covers entire homes, portions of homes, and land for camping/RV parking
Applies to rentals between 24 hours and 30 days
Excludes rentals to family members
Includes properties booked through online platforms

County-Level Regulations:

No county-specific short-term rental regulations identified in provided sources
State-level regulations may apply

State-Level Regulations (Illinois):

Hotel Operators' Occupation Tax Act compliance required
Local municipality taxation authority granted under Illinois constitution
Revenue limitations apply per state law

Tax and Financial Requirements

Hotel Operators' Occupation Tax:

Rate: 3% of gross rental receipts
Reporting: Monthly occupancy tax reports required
Due Date: 10th day of each month following collection
Late Penalty: 1% per month for late filings
Exemptions: Permanent residents (7+ consecutive days)

Additional Costs:

Annual license fee: $250
Inspection fees: $50 per inspection (2 per year)
Registration and compliance costs

Revenue Disposition:

Tax revenue dedicated to city tourism fund
Funds used to promote tourism and conventions
Cannot be used to promote new hotel business competition

Contact Information

Primary Authority: Building and Code Services

Phone: 618.993.2422
Email: tstotlar@cityofmarionil.gov
Email: kspicer@cityofmarionil.gov
Address: 350 Tower Square Plaza, Marion, Illinois 62959
Website: cityofmarionil.gov/building-and-code-services/

City Hall (General Inquiries)

Phone: 618-997-6281
Address: 1102 Tower Square Plaza, Marion, Illinois 62959

City Clerk's Office (Tax Registration)

Location: Marion City Hall, 1102 Tower Square Plaza, Marion, Illinois
Registration Deadline: December 15 annually

Permits and Violations Portal:

Website: marionil.portal.iworq.net/portalhome/marionil
Permit Viewing: marionil.portal.iworq.net/MARIONIL/permits/600
Code Violations: marionil.portal.iworq.net/MARIONIL/cases/400

Links to Source Pages

City of Marion Building and Code Services: cityofmarionil.gov/building-and-code-services/
City Department Directory: cityofmarionil.gov/organization-chart-directory/
License and Permit Forms: cityofmarionil.gov/forms-permits/
Permit Payment Portal: marionil.portal.iworq.net/MARIONIL/permits/600
Code Violations Portal: marionil.portal.iworq.net/MARIONIL/cases/400
Zoning Map: skyview.hornershifrin.com/HSViewer/Index.html
News Article on STR Ordinance: thesouthern.com/news/local/communities/marion/marion-adopts-short-term-rental-ordinance-requiring-airbnb-operators-to-get-a-license/article_3ade8e3d-c022-5d69-bd73-f6c1edde9552.html
Hotel Operators' Occupation Tax Ordinance: cityofmarionil.gov/wp-content/uploads/2023/05/Ordinance-3882-Amending-the-City-Code-Regarding-Hotel-Operators-Occupation-Tax.pdf
Code of Ordinances: codelibrary.amlegal.com/codes/marionil/latest/overview

This guide represents the current regulatory environment for short-term rentals in Marion, Illinois. Investors should regularly verify compliance with all applicable regulations and maintain open communication with the Building and Code Services department to ensure continued legal operation.

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Ask the AI Advisor about Marion

Marion is a small city in Williamson County in the southern tip of Illinois, with a population of approximately 17,000 residents. It serves as the county seat and acts as a regional commercial hub for much of the surrounding rural area, drawing visitors from across southern Illinois and nearby communities for shopping, healthcare, and entertainment. Often described as the "Hub of the Universe" by locals, Marion has a relaxed small-town atmosphere with a cluster of restaurants and stores around its historic downtown square. The city sits about 100 miles southeast of St. Louis, Missouri, and roughly 15 miles east of Carbondale, home to Southern Illinois University.

Just minutes east of town, Crab Orchard National Wildlife Refuge spans more than 44,000 acres of forest, fields, and waterways that have attracted visitors since the refuge was established in 1947. The refuge offers wildlife viewing, fishing, hiking, and seasonal hunting, with Crab Orchard Lake and the surrounding trails providing some of the most accessible outdoor recreation in the region. Its proximity to Marion makes it a natural draw for guests who want to combine a city stay with time on the water.

A short drive to the south brings travelers into the Shawnee National Forest, a vast expanse of nearly 290,000 acres of hardwood forest, bluffs, and rivers that defines the landscape of southern Illinois. Within about 30 to 45 minutes of Marion, visitors can reach popular spots like Garden of the Gods, Little Grand Canyon, and the Cache River wetlands, all of which offer hiking, rock climbing, and scenic photography opportunities. The forest gives short-term-rental guests a chance to experience the wilder side of the state without traveling far from a comfortable home base.

Downtown Marion, anchored by the Williamson County Courthouse square, is a walkable district of locally owned shops, cafés, and small museums that reflect the area's coal-mining and rail heritage. The Marion Cultural and Civic Center, housed in a restored historic building near the square, hosts concerts, art exhibits, and community events throughout the year and gives the downtown a lively, small-city feel. Within a few blocks, the area around the square offers a mix of antique stores and casual dining that tends to appeal to weekend travelers exploring southern Illinois.

For short-term-rental investors, Marion is a compelling base because it sits at the intersection of major southern Illinois draws: a short hop from Carbondale, gateway to the Shawnee National Forest, and minutes from Crab Orchard National Wildlife Refuge. The combination of steady regional retail traffic, university-related visitors, and outdoor tourists passing through on their way to the forest gives the city a balanced mix of guest types throughout the year, supporting a rental market that benefits from both weekday and weekend demand.

Marion, Illinois

Challenging To Investors

STR Regulations for Marion, Illinois