Overview: Are Short-Term Rentals Allowed in Marshall, IL?

Short-term rentals are permitted in Marshall, Illinois, but the regulatory framework is limited and primarily treats STR operations as either bed and breakfast establishments or home occupations under the Marshall County Zoning Ordinance. The county does not appear to have specific, modern short-term rental regulations distinct from traditional lodging categories. Investors must operate within the existing zoning framework, which classifies lodging uses based on the number of rooms and operational characteristics.

Key Finding: Marshall County has no explicit short-term rental ordinance as of 2023 (last amendment date). STR operations fall under existing lodging categories: bed and breakfast (up to 4 rooms) or potentially commercial lodging establishments (hotels/motels/inns).

How to Start a Short-Term Rental Business in Marshall, IL

Step 1: Property Assessment and Zoning Verification

1. Determine Zoning Classification: Verify your property's zoning district using the Marshall County GIS mapping system at www.marshallcountyillinois.com
2. Review Permitted Uses: Confirm that bed and breakfast operations or commercial lodging are permitted in your specific zoning district
3. Assess Property Suitability: Ensure the property meets minimum lot size requirements and setback standards for the applicable zoning district

Step 2: Operational Classification Decision

Choose between two primary pathways:

• Bed and Breakfast Classification: Up to 4 short-term lodging rooms in a dwelling unit
• Commercial Lodging Classification: Larger operations falling under hotel/motel regulations

Step 3: Compliance with Zoning Requirements

1. Residential Districts (R-1, R-2, R-3):

   • Bed and breakfast operations may be permitted as special uses
   • Must maintain residential character
   • Off-street parking: 1 space per guest room

2. Commercial District:

   • Hotel/motel operations are typically permitted
   • Full commercial parking requirements apply
   • Business licensing may be required

Step 4: Building and Safety Compliance

1. Building Permits: Obtain required permits for any structural modifications
2. Occupancy Certificates: Secure occupancy certification from the Zoning Administrator
3. Health and Safety Standards: Ensure compliance with Illinois Department of Public Health regulations

Required Documents, Permits, Licenses, and Guidelines

Zoning and Land Use Permits

1. Building Permit

   • Required for: Structural modifications, changes in use
   • Issued by: Zoning Administrator
   • Application through: Marshall County Planning & Development Department

2. Occupancy Certificate

   • Required for: Any change in occupancy type
   • Issued by: Zoning Administrator
   • Validates: Compliance with zoning ordinance provisions

3. Special Use Permit (if required)

   • Required for: Bed and breakfast operations in residential districts
   • Process through: Zoning Board of Appeals
   • Timeline: Public hearing required

Business Licensing

1. Illinois Business Registration

   • Required through: Illinois Secretary of State
   • Applies to: All commercial operations

2. Local Business License (if required)

   • Contact: Marshall County Clerk's office for local requirements

Health and Safety Compliance

1. Illinois Department of Public Health Licensing

   • Required for: Commercial lodging operations
   • Standards: Food service, sanitation, safety

2. Fire Safety Certification

   • Required for: Commercial lodging
   • Contact: Local fire protection district

Specific Regulations for Short-Term Rentals

Marshall County Zoning Ordinance Provisions

Bed and Breakfast Operations

• Definition: "A dwelling unit where no more than four (4) short-term lodging rooms are provided for compensation (with or without meals)"
• Zoning Compliance: May be permitted as special use in residential districts
• Parking Requirements: 1 space per guest room
• Operational Standards: Must maintain residential character

Hotel/Motel/Inn Operations

• Definition: "An establishment containing lodging accommodations designed for use by transients or travelers or temporary guests"
• Zoning Compliance: Permitted in Commercial districts
• Parking Requirements: 1 space per guest room
• Commercial Standards: Full commercial zoning requirements apply

Home Occupation Standards

• Definition: "An accessory use of a dwelling for a business or professional purpose customarily permitted in a dwelling that is clearly incidental to the primary use of the residence as a dwelling"
• STR Consideration: Limited operations may qualify as home occupation
• Restrictions: Must remain clearly incidental to residential use

Zoning District Requirements

Residential Districts (R-1, R-2, R-3)

• Permitted Use: Bed and breakfast (as special use)
• Minimum Lot Size: Varies by district
• Setbacks: Standard residential setbacks apply
• Parking: 1 space per guest room, located on same zoning lot

Commercial District (C)

• Permitted Use: Hotel/motel operations
• Minimum Lot Size: As specified in commercial district requirements
• Setbacks: Commercial setbacks apply
• Parking: 1 space per guest room, hard-surfaced required

Agricultural District (A)

• Potential: Agricultural tourism operations
• Requirements: Must maintain agricultural character
• Considerations: Rural setting and access requirements

State-Level Illinois Regulations

Short-Term Rental Laws: Illinois has no comprehensive state-level short-term rental law. Regulation is primarily local, with some state tax collection requirements.

Tax Obligations:

• Hotel Tax: May apply to commercial lodging operations
• Sales Tax: Required for all commercial operations
• Income Tax: Standard federal and state income tax requirements

Contact Information

Marshall County Zoning Administration

• Zoning Administrator: Primary contact for zoning compliance
• Address: Marshall County Courthouse, 121 N. Center St., Lacon, IL 61540
• Website: www.marshallcountyillinois.com
• GIS Mapping: Available through county website for property zoning verification

Zoning Board of Appeals

• Function: Handles special use permits and zoning appeals
• Process: Public hearings required for special use applications
• Contact: Through Zoning Administrator

Marshall County Planning & Development

• Function: Building permits and development applications
• Contact: Coordinate with Zoning Administrator

Illinois Department of Revenue

• Function: Tax registration and collection requirements
• Website: www.revenue.state.il.us

Illinois Department of Public Health

• Function: Health licensing for commercial lodging
• Website: www.dph.illinois.gov

Links to Source Pages

• Primary Zoning Ordinance: marshallcountyillinois.gov/wp-content/uploads/2024/09/Zoning-Ordinance-Text.pdf
• Marshall County GIS Mapping: www.marshallcountyillinois.com
• Illinois Department of Revenue: www.revenue.state.il.us
• Illinois Department of Public Health: www.dph.illinois.gov

Important Considerations for STR Investors

1. Limited Regulatory Framework: Marshall County lacks modern STR-specific regulations, creating both opportunities and uncertainties
2. Zoning Compliance Critical: Strict adherence to existing zoning categories is essential
3. Special Use Process: Bed and breakfast operations in residential areas likely require special use permits
4. Residential Character Maintenance: Operations must preserve neighborhood residential character
5. Parking and Access: Adequate off-street parking is mandatory and must meet dimensional requirements
6. Future Regulatory Changes: Monitor for potential updates to county ordinances regarding short-term rentals

Disclaimer: This analysis is based on the Marshall County Zoning Ordinance as of May 11, 2023. Zoning regulations can change, and investors should verify current requirements with the Zoning Administrator before proceeding with any STR investment or operation.