Executive Summary: STR Status in Normal, IL

Short-term rentals are currently PROHIBITED for new operations in single-family residential neighborhoods (R-1 and R-2 zoning) in Normal, Illinois, following a June 2025 town council decision. Existing licensed STRs in single-family areas may continue operating during a five-year transition period, but no new licenses will be issued in these zones. Multi-family properties (R-3 zoning) and commercial zones remain eligible for STR operations. This represents a significant regulatory shift that fundamentally alters the STR investment landscape in Normal.

Starting a Short-Term Rental Business in Normal, IL

Current Market Status (Post-June 2025)

Investor Alert: The regulatory environment has dramatically changed. Normal's town council voted on June 17, 2025, to ban new short-term rental operations in single-family neighborhoods, replacing a previous moratorium. This action affects approximately 50 of the 66 registered STRs in the city.

Viable Investment Strategies

1. Multi-Family Properties (R-3 Zoning): Properties zoned R-3 (multi-family) remain eligible for STR operations. These typically include apartment buildings, condominiums, and larger residential structures.

2. Commercial Zoned Properties: STRs are permitted in commercial zoning districts.

3. Existing Licensed STRs: Properties with valid business licenses obtained before the moratorium began (December 1, 2024) may continue operating during the transition period.

Pre-Investment Requirements

Before acquiring any property for STR purposes, investors must:

• Verify zoning classification using the McLean County GIS mapping system
• Confirm no moratorium restrictions apply to the specific property
• Validate that the intended use complies with local zoning ordinances

Required Documents, Permits, Licenses, and Guidelines

Business License (Mandatory)

Status: Currently suspended for single-family areas, available for multi-family and commercial zones.

Requirements:

• 2025 Town of Normal Business License Application
• Additional review by Inspections Department required
• No license fee currently charged
• Property must comply with zoning regulations

Application Process:

• Submit application online through town website
• Receive follow-up email from Inspections Department within days
• Provide complete business, contact, and security information
• Update Clerk Department if any information changes

Contact Information:

• Clerk Department: 309-433-9947
• Email: DeputyClerk@normalil.gov

Short-Term Rental Tax Registration

Tax Rate: 6.0% of gross rental charges Scope: Applies to all residential properties rented for less than 30 consecutive days Components: Includes rental charges, cleaning fees, and miscellaneous fees

Filing Requirements:

• Due Date: 25th day of the month following collection
• Method: Separate submission required (cannot combine with other taxes)
• Payment: Check, money order, or cash (online payment not available)
• Late Penalties: 5% penalty plus 2% monthly interest charge

Contact: Finance Department at 309-454-9513

Specific Regulations by Jurisdiction

City of Normal - Current STR Regulations

Occupancy Limits (Pre-2025 Ban - May Still Apply to Existing STRs)

• R-1 Zoning: Maximum 2 unrelated people OR 1 family + 1 unrelated person
• R-2 and R-3 Zoning: Maximum 4 unrelated people
• Usage Restriction: STRs limited to residential use only (no parties, business meetings, or events)

Parking Requirements

• On-site parking only permitted on hard surfaces (no grass parking)
• Street parking limited to 24 hours maximum unless otherwise posted
• Parking pads adjacent to single-car driveways restricted to 9 feet wide × 20 feet long

Property Maintenance

• Properties must maintain residential character
• Compliance with standard housing codes required
• Regular inspections may be conducted

McLean County - No Additional STR Regulations

The provided content indicates no county-specific short-term rental regulations. Normal's municipal ordinances govern STR operations within city limits.

State of Illinois - General Business Requirements

While specific state regulations weren't detailed in the provided content, investors should consider:

• State income tax obligations
• Sales tax registration if applicable
• General business registration requirements
• Illinois Department of Revenue compliance for hotel/motel taxes

Zoning Verification and Compliance

Critical Step: Use the McLean County GIS mapping system to verify property zoning before purchase.

Zoning Verification Process:

1. Visit McLean County GIS website
2. Click "Layer List" icon
3. Enable "Zoning & Economic Development" layer
4. Identify specific zoning classification
5. Confirm STR eligibility based on current regulations

Contact for Zoning Questions:

• Director of Planning and Zoning: Mercy Davison
• Email: mdavison@normalil.gov
• Phone: 309-454-9590

Enforcement and Compliance Monitoring

Current Compliance Issues

• Only 21 of 63 STRs were properly registered when moratorium began in October 2024
• Many continued operating without registration during moratorium period
• Enhanced enforcement expected following regulatory changes

Violation Consequences

• Unlicensed STRs face fines up to $500 per day
• Zoning violations subject to standard enforcement procedures
• Business license suspension possible for repeated violations

Contact Information for Local Authorities

Primary Contacts

Business Licensing:

• Deputy Clerk: Britni Williams
• Phone: 309-433-9947
• Email: DeputyClerk@normalil.gov

Zoning and Planning:

• Director of Planning and Zoning: Mercy Davison
• Phone: 309-454-9590
• Email: mdavison@normalil.gov

Inspections and Code Enforcement:

• Director of Inspections: Mark Clinch
• Phone: 309-454-9580
• Email: mclinch@normalil.gov

Finance/Taxation:

• Finance Department
• Phone: 309-454-9513

Legal Counsel:

• Corporation Counsel: Jason Querciagrossa
• Phone: 309-454-9506
• Email: jquerciagrossa@normalil.gov

Police (for STR-related complaints):

• Officer Brad Park: 309-433-3440 | bpark@normalil.gov
• Officer Darien Bachman: 309-454-9948 | dbachman@normalil.gov

General Municipal Contact:

• Address: 11 Uptown Circle, P.O. Box 589, Normal, IL 61761
• Phone: 309-454-2444
• Website: www.normalil.gov
• City Hall Hours: Monday-Friday, 8:30 AM to 5:00 PM

Source References

1. Town of Normal STR FAQ: www.normalil.gov/faq.aspx?TID=51
2. Normal Council STR Ban News Article: www.wglt.org/local-news/2025-06-17/normal-council-bans-new-short-term-rentals-in-single-family-neighborhoods
3. STR Business License Information: www.normalil.gov/DocumentCenter/View/26946/STR-Business-License-Information
4. McLean County GIS Zoning Map: mcleangis.maps.arcgis.com/apps/webappviewer/index.html?id=541971ad75f248c38c9bc6ffcd3a7516
5. Normal Municipal Code: normal.municipalcodeonline.com/book?type=ordinances
6. 25News STR Coverage: www.25newsnow.com/2025/06/16/normals-council-consider-banning-short-term-rentals-single-family-neighborhoods/

Investment Recommendation: Given the restrictive regulatory environment for single-family STRs in Normal, serious investors should focus exclusively on multi-family (R-3) zoned properties or commercial zones until the regulatory landscape stabilizes. The five-year transition period for existing single-family STRs creates uncertainty for that property class and reduces long-term investment security.