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Oak Park, Illinois

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Oak Park, IL

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STR Regulations for Oak Park, Illinois

Short‑term rentals are allowed in Oak Park, but they must be licensed, inspected, and operated in compliance with Village Ordinance 21‑54. The ordinance took effect June 1 2022 and treats every STR operation as a regular business within the Village.


1. Eligibility & Property Types

  • Permitted dwelling types – single‑family residences, townhomes, condominiums, and rooming‑house dwelling units.
  • The property may be owner‑occupied or non‑owner‑occupied; the licensing classification reflects the owner‑occupancy status.
  • All STR units must be residential (i.e., not a commercial hotel or motel).

2. License Classifications, Fees & Taxes

| Classification | Who qualifies | Annual License Fee* | Required Taxes | |----------------|----------------|--------------------|----------------| | Owner‑Occupied / Resident | Owner lives in the unit as primary residence. | $100 | 4 % Village Hotel Tax (local) | | Non‑Owner‑Occupied / Resident | Owner does not live in the unit but is a Village resident. | $250 | 4 % Village Hotel Tax | | Non‑Owner‑Occupied / Non‑Resident | Owner lives outside Oak Park. | $350 | 4 % Village Hotel Tax |

* A $50 application fee is added to all new business‑license applications, including STR licenses.

State‑level tax note: Illinois imposes the Hotel Operators’ Occupation Tax (HOOT) at 5 % of gross receipts on lodging businesses that exceed the $12,500 annual gross‑receipts threshold. This tax is collected by the Illinois Department of Revenue and is separate from the Village’s 4 % tax.


3. How to Launch an STR in Oak Park

| Step | Action | Details / Links | |------|--------|-----------------| | 1. Verify Zoning & Property Suitability | Confirm the property is a permitted residential dwelling type. | No separate permit is required unless structural changes are made. | | 2. Register on the Village View Portal | Create an account at <villageview.oak-park.us/CityViewPortal>. | • Click “Register.”<br>• Follow the step‑by‑step instructions (see PDF “Instructions – Short‑Term Rental License”). | | 3. Complete the STR Application | In the portal, navigate to Licensing → Business, Rental & Short‑Term Rental Applications and fill out the form. | Required fields include:<br>• Business owner info (name, mailing address, contact numbers).<br>• 24‑hour emergency contact (mandatory).<br>• Property location (only one location per license).<br>• License classification (Owner‑Occupied/Resident, Non‑Owner‑Occupied/Resident, or Non‑Owner‑Occupied/Non‑Resident). | | 4. Upload Required Documents | • Proof of homeowner’s (or landlord’s) liability insurance.<br>• Any additional documentation requested by the portal. | Use the Upload Files step; the portal will prompt you for the insurance proof. | | 5. Pay Fees | Application fee ($50) + license fee (as per classification). | Payment is made online through the portal. | | 6. Schedule & Pass Inspection | After submission, a Village property‑maintenance inspector contacts you to set up an on‑site inspection. | The inspection covers fire‑safety, health, and code‑compliance items (see STR Inspection Checklist PDF). | | 7. License Issuance & Display | Upon passing inspection, the Village issues a Short‑Term Rental License. | The license must be displayed in the front entrance area of the rental unit. | | 8. Ongoing Compliance | • Renew annually via the portal.<br>• File and remit the 4 % Village Hotel Tax (quarterly or per Village schedule).<br>• Keep the license visibly posted at all times. | Renewal instructions are sent via email from the Business Services office. |


4. Required Documents, Permits & Approvals

| Document / Permit | Purpose | When to Submit | |-------------------|---------|----------------| | Village View Portal Account | Access to the online licensing system. | Before application. | | Business License Application (STR) | Grants the legal right to operate. | After portal registration. | | Proof of Homeowner’s / Landlord’s Insurance | Demonstrates liability coverage for the unit. | Upload during application. | | 24‑Hour Emergency Contact Information | Required for rapid response. | Enter on the “Additional Contacts” page of the application. | | Property‑Maintenance Inspection | Confirms compliance with fire‑safety, health, and building codes. | Scheduled after application submission. | | License Display | Evidence of legal operation for guests and inspectors. | Immediately upon issuance (visible at front entrance). | | Hotel‑Tax Remittance (4 % Village) | Municipal tax on gross receipts. | Quarterly or as per Village’s tax‑remittance schedule. | | State‑Level HOOT Filing (if applicable) | State tax on gross receipts >$12,500. | Annually to IL Dept. of Revenue. |


5. Key Regulatory Requirements (Ordinance 21‑54)

| Requirement | Summary | |-------------|---------| | Maximum Occupancy | The ordinance caps occupancy based on the dwelling’s size and safety‑code standards (exact numbers are set in the inspection checklist). | | Parking | One off‑street parking space per rental unit is required; additional guest parking must follow Village parking rules. | | Minimum Rental Period | Minimum stay is one night ( Ordinance does not impose a longer minimum). | | **Host Insurance

What do Airbnb hosts actually earn in Oak Park?

Oak Park hosts earn a median $33,939/year with $173 ADR and 65% occupancy.

Top performers pull in $45,799+ per year.

See the full Oak Park market breakdown

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Oak Park

Market Saturation Score

036912
Mild Saturation
2/ 12
months with declining YoY revenue
2–4 declining months: early saturation pressure - watch for trend persistence.
View Full Oak Park Market Analysis

Photos of Oak Park

Overview of Oak Park

Oak Park is a vibrant, walkable village located in Cook County, Illinois, just west of the Chicago city limits. With a population of approximately 52,000, it has the feel of a charming, independent small town while sitting squarely in the metropolitan orbit of one of America's largest cities. The community is best known for its extraordinary collection of Frank Lloyd Wright architecture and as the birthplace of Nobel Prize-winning author Ernest Hemingway. It lies roughly 10 miles west of downtown Chicago, connected to the city by a direct line on the Chicago Transit Authority's Green Line and a short drive via Interstate 290, making it a popular home base for visitors who want both a leafy neighborhood experience and easy access to the big-city sights.

Architecture lovers are drawn to Oak Park for the Frank Lloyd Wright Home and Studio, the celebrated architect's personal residence and working studio from 1889 until 1909. The building, located in the heart of the village, anchors the broader Frank Lloyd Wright Historic District, which contains more than two dozen Wright-designed structures, the largest concentration of his work anywhere in the world. The site is just minutes from the village center and is a must-visit for design enthusiasts exploring the Chicago area.

Literature fans tend to make a pilgrimage to the Hemingway birthplace, the Queen Anne-style house at 339 North Oak Park Avenue where the novelist was born in 1899. The home is preserved as a museum and sits within an easy stroll of the downtown shopping and dining district along Lake Street, where visitors can browse independent bookstores, bakeries, and a thriving stretch of locally owned restaurants.

A short drive east brings guests into Chicago itself and the broader collection of world-class institutions along the lakefront. Oak Park sits roughly 25 to 30 minutes by car or train from Grant Park and Millennium Park, where the "Cloud Gate" sculpture, the Art Institute of Chicago, and lakefront promenades draw millions of visitors each year. The village's transit connections and proximity to the Eisenhower Expressway also put O'Hare International Airport within a 20- to 30-minute drive, depending on traffic.

Oak Park is a compelling base for short-term rentals because it offers something few Chicago-area suburbs can match: a distinctive, destination-worthy identity of its own, paired with immediate rail and road access to downtown Chicago. Visitors who book a stay here can spend their mornings exploring Wright's architecture or the Hemingway museum, their afternoons riding the Green Line into the Loop for theater, museums, and dining, and their evenings retreating to a quieter, tree-lined neighborhood with a strong café and restaurant scene. That blend of culture, convenience, and character keeps occupancy rates healthy and appeals to a wide range of travelers, from architecture tourists to families visiting the city without the bustle and price tag of staying downtown.

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