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Chicago Short-Term Rental Rules: What Hosts Need to Know in 2026
Chicago regulates short-term rentals through a shared housing registration. A registration number is required before a unit can be advertised or rented for 31 days or fewer, and the annual fee is $250.
The rules depend on the building. In a single-family home or a two-to-four-unit building, the unit must be the host’s primary residence and only one active rental is allowed. Larger buildings can rent more units, up to one-quarter of the building or six units, whichever is less.
A building-by-building registration system
Chicago’s shared housing ordinance uses registration rather than a conventional business license. The city checks the unit’s eligibility before issuing a registration number, including whether the building is on the Prohibited Buildings List or in a Restricted Residential Zone.
Hosts with more than one registration also need a Shared Housing Unit Operator License. The registration is annual, and the city opens renewals two months before expiration.
- Registration required before advertising or renting.
- Building-level caps depend on the number of units.
- ADU and ARO units cannot be used as short-term rentals.
Registration and operator license
The unit registration and the operator license are separate. Each unit needs its own registration number, while one operator license covers a host with multiple registrations.
Shared Housing Registration
Required for each unit rented for 31 days or fewer. The $250 annual fee is paid after the city approves the application, and the registration number must appear on every listing.
Shared Housing Unit Operator License
Required when a host is approved for more than one shared housing registration. Only one operator license is needed per host, but each unit still needs its own registration.
Short-Term Residential Rental Intermediary
Platforms that connect guests with hosts must be licensed as an intermediary and collect and remit the city hotel accommodation tax and shared housing surcharge.
License fees
| Label | Fee |
|---|---|
| New license | $250 |
| Renewal | $250 |
Registration conditions and operating requirements
- A registration number is required before advertising or renting a unit for 31 days or fewer; operating while an application is pending is not allowed.
- In a single-family home or a building with two to four units, the unit must be the host’s primary residence and only one active rental is allowed.
- In a building with five or more units, the unit need not be the primary residence; the maximum is one-quarter of the building’s dwelling units or six rental units, whichever is less.
- A unit in a Restricted Residential Zone, on the Prohibited Buildings List, or barred by a lease or HOA cannot be registered.
- Additional dwelling units are off limits for short-term rentals: no short-term leases or vacation rentals are allowed in conversion units or in coach houses constructed after 2021.
- Units created under the Affordable Requirements Ordinance (ARO) are income-restricted and cannot be sublet or listed as short-term rentals.
Enforcement: eligibility checks, prohibited buildings, and caps
Chicago enforces the ordinance through the registration process and through complaints. A unit in a Restricted Residential Zone or on the Prohibited Buildings List cannot be registered, and a lease or HOA that bars short-term rentals is binding on the host.
Advertising or renting before the registration is approved is not allowed. The city also sues hosts and platforms that operate illegal short-term rentals, which is why the registration number must appear on every listing.
- No operation while an application is pending.
- Restricted Residential Zones and prohibited buildings are ineligible.
- Building caps apply to the number of active rentals.
| Item | Penalty |
|---|---|
| Unregistered operation | Advertising or renting a unit before the registration is approved is not allowed and is subject to enforcement. |
| Ineligible unit | Registering or listing a unit that is in a Restricted Residential Zone, on the Prohibited Buildings List, or barred by a lease or HOA is not permitted. |
Chicago hotel accommodation tax and shared housing surcharge
Combined hotel occupancy tax ~10.5%
The city taxes are a 4.5% Chicago Hotel Accommodation Tax and a 6% Shared Housing Surcharge, for about 10.5% in city taxes. Illinois and Cook County lodging taxes may apply in addition.
Licensed intermediary platforms remit the city taxes and surcharge on platform bookings. A host who uses their own platform must create a tax account and remit the taxes directly.
The tax treatment follows the booking channel, so a host who takes both platform and direct bookings needs to confirm which transactions were taxed by the platform.
- Collection
- Licensed intermediary platforms remit the city taxes and surcharge on platform bookings; hosts using their own platform must create a tax account and remit.
- Filing
- Hosts using their own platform must file and pay the Chicago hotel accommodation tax and shared housing surcharge; confirm the filing schedule with the city.
Ranges vary — verify. Illinois and Cook County lodging taxes may apply in addition to the city taxes.
Permit notes
- Density caps
- Buildings with five or more units may register at most one-quarter of the building’s units or six units, whichever is less; single-family and two-to-four-unit buildings may have only one active rental and the unit must be the host’s primary residence.
Compare Chicago with other STR markets
Some cities cap short-term rentals by census tract or ward, while others set building-level limits and let HOAs opt out. Chicago uses building-level caps, a prohibited-buildings list, and a registration system, with additional bans on ADU and ARO units.
Phoenix
Arizona
Allowed citywide with permit (state law bars city bans — host-friendly)
Low–moderate enforcement
New license $250
Last verified
View Phoenix rules →Scottsdale
Arizona
Licensed; Arizona law preempts local bans and occupancy caps
Moderate enforcement
New license $250
Last verified
View Scottsdale rules →Sedona
Arizona
Permit required; Arizona law sets the regulatory floor
Moderate enforcement
New license $210
Last verified
View Sedona rules →Los Angeles
California
Allowed in the host’s primary residence with registration; 120-night annual cap unless extended
High enforcement
New license $441
Last verified
View Los Angeles rules →Palm Springs
California
Allowed in single-family homes with an annual certificate; new certificates capped at 20% per organized neighborhood
High enforcement
New license — Vacation Rental $1,046
Last verified
View Palm Springs rules →San Diego
California
Licensed by tier; whole-home licenses are capped by ordinance
High enforcement
New license — Tier 1 — Part-Time $193
Last verified
View San Diego rules →San Francisco
California
Allowed only in the host’s permanent residence with registration; un-hosted stays capped at 90 nights per year
High enforcement
New license $925
Last verified
View San Francisco rules →Santa Monica
California
Home-sharing only in the host’s primary residence; un-hosted vacation rentals are unlawful
High enforcement
New license $582.25
Last verified
View Santa Monica rules →Denver
Colorado
Licensed, primary residence only
High enforcement
New license $150
Last verified
View Denver rules →Washington
District of Columbia
Licensed, primary residence only
High enforcement
New license $99
Last verified
View Washington rules →Fort Lauderdale
Florida
Licensed and inspected; annual Certificate of Compliance required
High enforcement
New license — Certificate of Compliance $880
Last verified
View Fort Lauderdale rules →Miami
Florida
Licensed and enforced; city and county requirements run in parallel
High enforcement
Last verified
View Miami rules →Orlando
Florida
Owner-occupied home sharing; whole-home rentals are limited by zoning
Moderate enforcement
New license — Home Sharing Registration $275
Last verified
View Orlando rules →Tampa
Florida
State-licensed; city rental registration repealed in 2023
Low–moderate enforcement
New license $230
Last verified
View Tampa rules →Atlanta
Georgia
Licensed, primary residence plus one additional dwelling unit
High enforcement
New license $150
Last verified
View Atlanta rules →Savannah
Georgia
Certified STVR, overlay district only, per-ward cap
High enforcement
New license $400
Last verified
View Savannah rules →New Orleans
Louisiana
Licensed, capped, and lottery-based
High enforcement
New license — NSTR owner permit $500
Last verified
View New Orleans rules →Boston
Massachusetts
Registered, owner-occupied primary residence only
High enforcement
New license — Limited Share $25
Last verified
View Boston rules →Las Vegas
Nevada
Licensed; owner-occupied homes only (city limits)
High enforcement
New license $500
Last verified
View Las Vegas rules →New York
New York
Legal only in a registered primary residence (hosted stays)
High enforcement
New license $145
Last verified
View New York rules →Portland
Oregon
Permitted as an accessory use (primary residence required)
Moderate enforcement
Last verified
View Portland rules →Charleston
South Carolina
Licensed, primary residence only (commercial STRs only in the overlay district)
High enforcement
New license $345
Last verified
View Charleston rules →Nashville
Tennessee
Allowed with permit; heavy zoning restrictions on investor units
High enforcement
New license $313
Last verified
View Nashville rules →Austin
Texas
Licensed & enforced
High enforcement
New license $736.60
Last verified
View Austin rules →Seattle
Washington
Licensed; up to two units per operator
High enforcement
New license $75
Last verified
View Seattle rules →Frequently asked questions
Do I need a license to run an Airbnb in Chicago?
Yes. Chicago requires a shared housing registration number before a unit can be advertised or rented for 31 days or fewer. The annual registration fee is $250.
Can I rent out my second home in Chicago on a short-term basis?
It depends on the building. In a single-family home or a building with two to four units the unit must be your primary residence and only one active rental is allowed. In buildings with five or more units the unit does not need to be your primary residence, subject to the building cap.
Can I short-term rent an ADU or an ARO unit in Chicago?
No. Short-term rentals are banned in ADU conversion units and in coach houses constructed after 2021, and ARO affordable units cannot be sublet or listed as short-term rentals.
Official sources and cross-checks
Sources with links
- City of Chicago — Shared Housing Registrations chicago.gov
- City of Chicago — Shared Housing Registration: Common Eligibility Criteria chicago.gov
- City of Chicago — Additional Dwelling Unit Requirements chicago.gov
- City of Chicago — Affordable Requirements Ordinance FAQ for Applicants (PDF) chicago.gov