Olney, Illinois Short Term Rental Regulations Guide for Airbnb hosts

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

Yes, short-term rentals are allowed in Olney, IL, specifically in the form of bed and breakfast establishments. However, the city does not appear to have comprehensive short-term rental regulations beyond this established category. According to the Olney Zoning Ordinance (Title 17), bed and breakfast establishments are specifically defined and permitted under certain conditions, representing the primary legal framework for short-term rental operations in the city.

What do Airbnb hosts actually earn in Olney?

Olney hosts earn a median $21,226/year with $122 ADR and 64% occupancy.

Top performers pull in $25,854+ per year.

See the full Olney market breakdown

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

1. Determine Your Business Structure

Based on the zoning regulations, short-term rentals in Olney are typically operated as bed and breakfast establishments. According to Section 17.08.010, this is defined as "an operator-occupied residence providing accommodations for a charge to the public with no more than five guest rooms for rent, in operation for more than ten nights in a twelve (12) month period."

2. Zoning Compliance Requirements

Before establishing your short-term rental, you must:

Verify your property is in an appropriate zoning district
Ensure your operation meets all zoning requirements for your specific district
Confirm you can comply with off-street parking requirements (Chapter 17.76)
Meet all height and area requirements per Chapter 17.72

3. Operational Requirements

Owner occupancy: The establishment must be operator-occupied
Room limit: Maximum of five guest rooms for rent
Minimum operation: Must operate for more than ten nights in a twelve-month period
Services: May provide breakfast to guests only
Exclusions: Cannot operate as motels, hotels, boarding houses, or food service establishments

Required Documents, Permits, Licenses, and Guidelines

Building Permits and Zoning Compliance

Required per Section 17.12.020:

Plot plans submitted in duplicate, drawn to scale
Actual shape and dimensions of the lot
Exact sizes and locations of buildings and accessory buildings
Existing and intended use of each building
Number of families or housekeeping units the building is designed to accommodate
Other information regarding the lot and neighboring lots as necessary

Certificates and Inspections

Per Section 17.12.010:

Compliance with district regulations
Adherence to height limits
Conformity with area regulations
Compliance with off-street parking and loading regulations

Special Use Permits (if applicable)

For certain zoning districts or uses, you may need:

Special use permits as outlined in Section 17.80.010
Building permits for any structural alterations
Certificate of occupancy upon completion (Section 17.96)

Specific Regulations for Short-Term Rentals

City-Level Regulations (Olney)

Zoning Districts Where Bed and Breakfast May Operate: While the ordinance doesn't explicitly list bed and breakfast establishments as permitted uses in specific districts, they would typically need to comply with the underlying residential zoning requirements. Based on the zoning structure:

Residential Districts (R-S, R-1, R-2, R-3, R-4): May be permissible as residential uses, subject to specific district requirements
Commercial Districts (C-1, C-2, C-3, C-4): May be permissible as commercial uses, subject to district-specific requirements

Key Requirements:

Must be operator-occupied (Section 17.08.010)
Maximum five guest rooms
Must operate more than ten nights per year
Breakfast service limited to guests only
Cannot be operated as hotels, motels, boarding houses, or food service establishments

County-Level Regulations (Richland County)

The provided content focuses primarily on city-level regulations. County-level short-term rental regulations, if any exist, are not detailed in the provided materials and would require separate consultation with Richland County officials.

State-Level Regulations (Illinois)

Relevant State Statute: The bed and breakfast definition "shall conform to the definition contained in Ill. Rev. Stat. 1987, Ch. 71, par. 102(a), as amended from time to time" (Section 17.08.010). This indicates that state regulations apply and should be consulted for:

Updated definitions
Health and safety requirements
Licensing requirements
Tax obligations

State Highway Considerations: Several sections reference the State Highway Control Act (225 ILCS 440/1 through 440/16) for signs within 660 feet of U.S. Route 50, which may affect properties along this corridor.

Contact Information for Local Authority

City of Olney Building Department

Building Official (Primary enforcement authority per Section 17.12.050)

Appointed by the Mayor with Council approval
Responsible for enforcing zoning regulations
Issues building permits and certificates of occupancy
Conducts inspections for compliance

Other Relevant City Contacts

City Clerk (For zoning changes and amendments)

Handles petition filings for zoning changes
Manages public hearing notices
Collects filing fees ($200 for zoning amendments per Section 17.12.040)

City Plan Commission

Conducts public hearings on zoning amendments
Reports recommendations to City Council
Reviews preliminary and final plans for planned developments

Building Permit Process

Fees and Requirements:

Plot plans required in duplicate (Section 17.12.020)
Actual survey-based dimensions
Staking out required before construction (for new structures)
Building permits required for structural alterations

Key Zoning Compliance Areas

Parking Requirements (Chapter 17.76)

Off-street parking must be provided according to specific use requirements. While bed and breakfast establishments aren't specifically mentioned in the parking table, they would likely need to comply with residential parking standards or guest accommodation requirements.

Height and Area Requirements (Chapter 17.72)

Must comply with district-specific:

Maximum building height
Minimum yard depths (front, side, rear)
Minimum lot area per family
Minimum lot width requirements

Nonconforming Uses (Chapter 17.88)

Properties with existing uses that don't conform to current zoning may have different rights and requirements under the nonconforming use provisions.

Links to Source Pages

Primary Source Document:

Olney Zoning Ordinance - Title 17

This comprehensive zoning ordinance contains all the regulations governing land use, including the framework for bed and breakfast establishments as the primary short-term rental option in Olney, Illinois.

Important Note for Investors: This analysis is based on the provided zoning ordinance content. Given the limited specific regulations for short-term rentals beyond bed and breakfast establishments, investors should consult directly with the Olney Building Department to discuss their specific plans and ensure full compliance with all applicable local, county, and state regulations before proceeding with any short-term rental investment.

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Ask the AI Advisor about Olney

Olney is a small city in southeastern Illinois and the county seat of Richland County, home to a population of roughly 8,000 to 9,000 residents. The town carries a quiet, traditional Midwestern character, with a compact historic downtown and tree-lined residential streets that reflect its 19th-century origins. Olney is best known across the region for its famous colony of white squirrels — albino eastern gray squirrels that have inhabited the area for generations and have become an unofficial town symbol. The city lies about 135 miles east of St. Louis, Missouri, and roughly 90 miles northwest of Evansville, Indiana, placing it in a rural corridor between those larger Midwestern hubs.

The white squirrels are the town's signature attraction and the reason many visitors plan a stop in Olney. A local ordinance protects the animals, and the colony has become something of a curiosity for travelers passing through southern Illinois. The annual White Squirrel Festival and other community events celebrate the population, and the easiest places to spot them are in the city parks and tree-shaded residential blocks of central Olney, where the pale-coated squirrels are a regular sight.

About 35 miles to the southeast, Red Hills State Park offers a quiet outdoor escape with roughly a thousand acres of forested terrain, horseback riding trails, fishing ponds, and a campground. The park is a popular destination in autumn for its foliage and is also known for hosting a small herd of fallow deer, an uncommon sight in southern Illinois.

Olney also serves as a convenient base for day trips to larger regional destinations. St. Louis, with its zoo, museums, and the Gateway Arch, is about a two-and-a-half-hour drive to the west, while the college town of Carbondale and the outdoor areas of the Shawnee National Forest lie to the south, within roughly 90 miles. Eastern Illinois University, the largest school in the area, is also within easy reach, along with small historic towns such as Robinson and Lawrenceville.

Olney makes a practical and charming base for a short-term rental thanks to its central position within southeastern Illinois, its quirky and well-known white squirrel identity, and its proximity to both outdoor spaces and bigger city attractions. The town offers travelers a relaxed small-town atmosphere with a clear point of interest, while still being a manageable drive from St. Louis, Evansville, and the Shawnee Hills — a combination that gives guests both a distinctive local experience and easy day-trip options.

Olney, Illinois

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STR Regulations for Olney, Illinois