Is Aurora, Illinois Good for Airbnb Investment?

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Aurora, Illinois Airbnb Investment Overview

Is Airbnb a Good Investment in Aurora, Illinois?

Investing in Airbnb properties in Aurora, Illinois, presents a nuanced opportunity with potential for growth. Current market conditions in Aurora are generally stable, characterized by affordable property values compared to larger metropolitan areas, which can lower initial investment costs. Tourism trends are modest but consistent, driven by local attractions like the Paramount Theatre, Hollywood Casino, and various outdoor recreational areas along the Fox River, attracting visitors seeking a quieter alternative to Chicago while still being accessible to the city. The investment potential largely depends on optimizing pricing strategies, focusing on properties that appeal to families or those seeking extended stays, and carefully navigating local regulations which may evolve. While not a primary tourist hotspot, Aurora's appeal as a suburban getaway and its proximity to major employment centers offer a steady demand for short-term rentals, making it a potentially viable, albeit not high-yield, investment for those willing to manage properties effectively.

How Much Does an Average Airbnb Earn in Aurora?

Based on available market data and rental analytics platforms, Airbnb hosts in Aurora, Illinois typically earn between $1,200 to $2,800 per month, with the average falling around $1,800 monthly for a standard two to three-bedroom property. Seasonal variations show peak earnings during summer months (June through August) when revenue can increase by 25-35% above average, while winter months typically see a 15-20% decrease in bookings and rates. Spring and fall maintain relatively steady occupancy rates around 65-75% of available nights. Key factors affecting earnings include proximity to downtown Chicago (approximately 40 miles away), property size and amenities, with entire homes outperforming private rooms by roughly 40-60% in revenue generation. Properties near Aurora's entertainment districts, Fermilab, or major transportation hubs command premium rates of $85-120 per night compared to suburban locations averaging $65-95 nightly. Market saturation, local events, and the property's review rating significantly impact occupancy rates, with highly-rated properties (4.8+ stars) achieving occupancy rates 20-30% higher than average-rated listings. Revenue optimization strategies including dynamic pricing and professional photography can increase earnings by an estimated 15-25% above baseline performance.

Airbnb Return on Investment in Aurora

Airbnb investments in Aurora, Illinois typically generate ROI between 8-12% annually, with higher-performing properties in desirable neighborhoods near downtown or Fermilab achieving up to 15% returns. The average payback period ranges from 7-10 years, depending on initial investment and occupancy rates, which average 65-75% in Aurora's market. Properties generate approximately $80-120 per night with average monthly revenues of $1,800-2,800, compared to traditional long-term rentals yielding $1,200-1,800 monthly. While long-term rentals in Aurora provide more stable 6-8% ROI with lower management costs, Airbnb properties can outperform by 2-4 percentage points but require active management and face seasonal fluctuations, with winter months seeing 20-30% lower occupancy rates. The break-even point typically occurs within 18-24 months of operation, factoring in furnishing costs, higher insurance premiums, and platform fees that reduce gross revenues by approximately 15-20%.

Average Airbnb Occupancy Rate in Aurora

Aurora, Illinois Airbnb properties typically maintain an average occupancy rate of approximately 65-70% annually, with significant seasonal variations that peak during summer months (June-August) at around 75-80% occupancy due to increased tourism and business travel, while winter months (December-February) see rates drop to 50-55% as demand decreases. Spring and fall shoulder seasons generally hover around 60-65% occupancy, with slight upticks during local events and festivals. Aurora's occupancy rates tend to run slightly below Illinois state averages of 68-72% and national averages of 70-75%, primarily due to its position as a secondary market compared to major metropolitan areas like Chicago, though the city benefits from its proximity to the Chicago metropolitan area and local attractions like the Hollywood Casino and Paramount Theatre. Weekend occupancy rates typically exceed weekday rates by 15-20 percentage points, and properties near downtown Aurora and transportation hubs generally outperform suburban locations by 5-10% in overall occupancy throughout the year.

Best Neighborhoods for Airbnb in Aurora

The downtown Aurora area near the Fox River offers excellent Airbnb potential due to its proximity to Paramount Theatre, RiverEdge Park, and numerous restaurants, attracting both business travelers and tourists with strong pricing power from the entertainment district. The Near East Side neighborhood provides affordable investment opportunities with good rental demand from families visiting nearby attractions and accessing Chicago via Metra trains, offering solid occupancy rates at moderate pricing. The Westside/Indian Trail area appeals to investors seeking newer properties that attract families and groups visiting local parks and shopping centers, with demographics supporting consistent bookings and competitive nightly rates. The Southside neighborhoods near Lake Aurora and Phillips Park draw outdoor enthusiasts and families, providing steady rental income from visitors enjoying recreational activities with moderate investment costs and reliable occupancy. The Montgomery border area benefits from proximity to premium shopping at Chicago Premium Outlets and newer residential developments, commanding higher nightly rates from shoppers and families seeking modern accommodations. The Far East Side near Illinois Route 31 offers strategic positioning for guests accessing both Aurora attractions and neighboring suburbs, with lower property acquisition costs enabling strong return on investment despite moderate pricing power.

Short-term Rental Regulations in Aurora

Aurora, Illinois requires short-term rental operators to obtain a business license and register their properties with the city, with permits typically costing between $100-300 annually and requiring renewal every year. Properties are generally limited to a maximum occupancy of two guests per bedroom plus two additional guests, with total occupancy not exceeding 10 people, and parking must be provided on-site for each rental unit. Owner-occupancy requirements vary by zoning district, with some residential zones requiring the owner to live on the property as their primary residence, while others allow non-owner-occupied rentals with additional restrictions. Short-term rentals are prohibited in certain residential zoning districts and require special use permits in others, with commercial and mixed-use zones typically allowing them by right. The registration process involves submitting an application with property details, proof of insurance, emergency contact information, and passing safety inspections that check smoke detectors, carbon monoxide detectors, and egress requirements. Recent regulatory changes implemented within the last few years have included stricter noise ordinances with specific quiet hours from 10 PM to 7 AM, mandatory posting of house rules and emergency procedures, requirements for 24/7 local contact availability, and enhanced penalties for violations including potential license revocation after multiple infractions.

Short-term Rental Fees and Taxes in Aurora

Short-term rentals in Aurora, Illinois are subject to several fees and taxes including the state lodging tax of 6% on rental stays under 30 days, plus Cook County's 3% hotel tax if the property falls within county jurisdiction, though Aurora is primarily in Kane County which typically imposes a 5% hotel occupancy tax. The city of Aurora requires short-term rental operators to obtain a business license costing approximately $50-75 annually, along with a specific short-term rental permit fee of around $150-200 per year. Property owners must also pay standard property taxes which average 2.3% of assessed value in Kane County, and may be subject to additional tourism promotion fees of 1-2% depending on the specific location within Aurora. Registration with the Illinois Department of Revenue is required for tax collection purposes, typically involving a $25 registration fee, and operators must collect and remit state sales tax of 6.25% plus local sales tax of 1-3% on rental income, with total effective tax rates on short-term rentals ranging from 15-20% of gross rental revenue when combining all applicable taxes and fees.

Is Airbnb a Good Investment in Aurora, Illinois?

Investing in Airbnb properties in Aurora, Illinois, presents a nuanced opportunity with potential for growth. Current market conditions in Aurora are generally stable, characterized by affordable property values compared to larger metropolitan areas, which can lower initial investment costs. Tourism trends are modest but consistent, driven by local attractions like the Paramount Theatre, Hollywood Casino, and various outdoor recreational areas along the Fox River, attracting visitors seeking a quieter alternative to Chicago while still being accessible to the city. The investment potential largely depends on optimizing pricing strategies, focusing on properties that appeal to families or those seeking extended stays, and carefully navigating local regulations which may evolve. While not a primary tourist hotspot, Aurora's appeal as a suburban getaway and its proximity to major employment centers offer a steady demand for short-term rentals, making it a potentially viable, albeit not high-yield, investment for those willing to manage properties effectively.

How Much Does an Average Airbnb Earn in Aurora?

Based on available market data and rental analytics platforms, Airbnb hosts in Aurora, Illinois typically earn between $1,200 to $2,800 per month, with the average falling around $1,800 monthly for a standard two to three-bedroom property. Seasonal variations show peak earnings during summer months (June through August) when revenue can increase by 25-35% above average, while winter months typically see a 15-20% decrease in bookings and rates. Spring and fall maintain relatively steady occupancy rates around 65-75% of available nights. Key factors affecting earnings include proximity to downtown Chicago (approximately 40 miles away), property size and amenities, with entire homes outperforming private rooms by roughly 40-60% in revenue generation. Properties near Aurora's entertainment districts, Fermilab, or major transportation hubs command premium rates of $85-120 per night compared to suburban locations averaging $65-95 nightly. Market saturation, local events, and the property's review rating significantly impact occupancy rates, with highly-rated properties (4.8+ stars) achieving occupancy rates 20-30% higher than average-rated listings. Revenue optimization strategies including dynamic pricing and professional photography can increase earnings by an estimated 15-25% above baseline performance.

Airbnb Return on Investment in Aurora

Airbnb investments in Aurora, Illinois typically generate ROI between 8-12% annually, with higher-performing properties in desirable neighborhoods near downtown or Fermilab achieving up to 15% returns. The average payback period ranges from 7-10 years, depending on initial investment and occupancy rates, which average 65-75% in Aurora's market. Properties generate approximately $80-120 per night with average monthly revenues of $1,800-2,800, compared to traditional long-term rentals yielding $1,200-1,800 monthly. While long-term rentals in Aurora provide more stable 6-8% ROI with lower management costs, Airbnb properties can outperform by 2-4 percentage points but require active management and face seasonal fluctuations, with winter months seeing 20-30% lower occupancy rates. The break-even point typically occurs within 18-24 months of operation, factoring in furnishing costs, higher insurance premiums, and platform fees that reduce gross revenues by approximately 15-20%.

Average Airbnb Occupancy Rate in Aurora

Aurora, Illinois Airbnb properties typically maintain an average occupancy rate of approximately 65-70% annually, with significant seasonal variations that peak during summer months (June-August) at around 75-80% occupancy due to increased tourism and business travel, while winter months (December-February) see rates drop to 50-55% as demand decreases. Spring and fall shoulder seasons generally hover around 60-65% occupancy, with slight upticks during local events and festivals. Aurora's occupancy rates tend to run slightly below Illinois state averages of 68-72% and national averages of 70-75%, primarily due to its position as a secondary market compared to major metropolitan areas like Chicago, though the city benefits from its proximity to the Chicago metropolitan area and local attractions like the Hollywood Casino and Paramount Theatre. Weekend occupancy rates typically exceed weekday rates by 15-20 percentage points, and properties near downtown Aurora and transportation hubs generally outperform suburban locations by 5-10% in overall occupancy throughout the year.

Best Neighborhoods for Airbnb in Aurora

The downtown Aurora area near the Fox River offers excellent Airbnb potential due to its proximity to Paramount Theatre, RiverEdge Park, and numerous restaurants, attracting both business travelers and tourists with strong pricing power from the entertainment district. The Near East Side neighborhood provides affordable investment opportunities with good rental demand from families visiting nearby attractions and accessing Chicago via Metra trains, offering solid occupancy rates at moderate pricing. The Westside/Indian Trail area appeals to investors seeking newer properties that attract families and groups visiting local parks and shopping centers, with demographics supporting consistent bookings and competitive nightly rates. The Southside neighborhoods near Lake Aurora and Phillips Park draw outdoor enthusiasts and families, providing steady rental income from visitors enjoying recreational activities with moderate investment costs and reliable occupancy. The Montgomery border area benefits from proximity to premium shopping at Chicago Premium Outlets and newer residential developments, commanding higher nightly rates from shoppers and families seeking modern accommodations. The Far East Side near Illinois Route 31 offers strategic positioning for guests accessing both Aurora attractions and neighboring suburbs, with lower property acquisition costs enabling strong return on investment despite moderate pricing power.

Short-term Rental Regulations in Aurora

Aurora, Illinois requires short-term rental operators to obtain a business license and register their properties with the city, with permits typically costing between $100-300 annually and requiring renewal every year. Properties are generally limited to a maximum occupancy of two guests per bedroom plus two additional guests, with total occupancy not exceeding 10 people, and parking must be provided on-site for each rental unit. Owner-occupancy requirements vary by zoning district, with some residential zones requiring the owner to live on the property as their primary residence, while others allow non-owner-occupied rentals with additional restrictions. Short-term rentals are prohibited in certain residential zoning districts and require special use permits in others, with commercial and mixed-use zones typically allowing them by right. The registration process involves submitting an application with property details, proof of insurance, emergency contact information, and passing safety inspections that check smoke detectors, carbon monoxide detectors, and egress requirements. Recent regulatory changes implemented within the last few years have included stricter noise ordinances with specific quiet hours from 10 PM to 7 AM, mandatory posting of house rules and emergency procedures, requirements for 24/7 local contact availability, and enhanced penalties for violations including potential license revocation after multiple infractions.

Short-term Rental Fees and Taxes in Aurora

Short-term rentals in Aurora, Illinois are subject to several fees and taxes including the state lodging tax of 6% on rental stays under 30 days, plus Cook County's 3% hotel tax if the property falls within county jurisdiction, though Aurora is primarily in Kane County which typically imposes a 5% hotel occupancy tax. The city of Aurora requires short-term rental operators to obtain a business license costing approximately $50-75 annually, along with a specific short-term rental permit fee of around $150-200 per year. Property owners must also pay standard property taxes which average 2.3% of assessed value in Kane County, and may be subject to additional tourism promotion fees of 1-2% depending on the specific location within Aurora. Registration with the Illinois Department of Revenue is required for tax collection purposes, typically involving a $25 registration fee, and operators must collect and remit state sales tax of 6.25% plus local sales tax of 1-3% on rental income, with total effective tax rates on short-term rentals ranging from 15-20% of gross rental revenue when combining all applicable taxes and fees.

* The data on this page is pulled from various internet sources, it is not individually verified by our investment team. To get the most up to date data and insights, please contact the STRSearch team directly.

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How to start an Airbnb in Aurora, Illinois?

To start an Airbnb in Aurora, Illinois, begin by researching local zoning laws and regulations through the Aurora Planning Division, as the city requires short-term rental operators to obtain a business license and comply with specific zoning requirements that vary by district. Contact the Aurora Building Department to secure necessary permits including a Certificate of Occupancy for short-term rentals, fire safety inspections, and ensure compliance with the International Property Maintenance Code. Find a suitable property in residential zones that allow short-term rentals, focusing on areas near downtown Aurora, the Fox River, or near transportation hubs like the Aurora Transportation Center. Furnish the property with essential amenities including comfortable bedding, kitchen appliances, Wi-Fi, safety equipment like smoke detectors and carbon monoxide alarms as required by Illinois law, and consider Aurora-specific touches highlighting local attractions like Paramount Theatre or Phillips Park Zoo. Register for Illinois state taxes and Aurora municipal taxes, then create your Airbnb listing with professional photos showcasing the property's proximity to Chicago (45 minutes by Metra), local dining, and outdoor activities along the Fox River Trail. Implement a management system using property management software or local Aurora-based cleaning services, establish check-in procedures, maintain 24/7 guest communication, and regularly monitor Aurora's evolving short-term rental ordinances to ensure ongoing compliance with city requirements.

What's the best way to identify good STR properties in Aurora, Illinois?

To identify profitable short-term rental properties in Aurora, Illinois, focus on locations within 2-3 miles of major attractions like Paramount Theatre, SciTech Hands On Museum, and downtown entertainment districts, as well as properties near corporate centers like Caterpillar's Aurora facility and healthcare systems that attract business travelers. Target 2-4 bedroom single-family homes or condos built after 1990 with modern amenities, parking, and outdoor spaces, as these typically command $80-150 per night compared to $60-100 for older properties. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds long-term rental income by 40-60%, typically requiring purchase prices under $200,000 in Aurora's market. Research competition by analyzing existing Airbnb and VRBO listings within a 1-mile radius, identifying gaps in amenities or underpriced properties, and monitoring occupancy rates which average 65-75% for well-positioned Aurora STRs. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Chicago Regional MLS, while consulting Aurora's municipal code for STR regulations and connecting with local real estate agents familiar with investment properties in neighborhoods like Downtown Aurora, Orchard Valley, and areas near Aurora University.

How to get an Airbnb permit in Aurora, Illinois?

To obtain an Airbnb/STR permit in Aurora, Illinois, you must first contact the Aurora Planning and Development Department at City Hall located at 44 E Downer Place to determine current short-term rental regulations, as the city has been developing STR ordinances since 2019. You'll need to submit an application that typically requires a completed permit application form, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, contact information for a local property manager if you're not local, and payment of application fees which generally range from $200-500 annually. The property must comply with Aurora's zoning requirements, fire safety codes, and building inspections, and you may need to obtain a business license and register for local taxes. The approval process typically takes 30-60 days and includes inspections by fire and building departments. Once approved, you must display the permit number in all online listings, maintain guest registries, ensure parking compliance, and adhere to noise ordinances and occupancy limits, with renewal required annually along with continued compliance monitoring by the city.

Is it legal to operate a short-term rental in Aurora, Illinois?

Short-term rentals (STRs) are legal in Aurora, Illinois, but operate under specific regulations established by the city. Aurora requires STR operators to obtain a business license and comply with zoning restrictions that generally limit short-term rentals to certain residential districts while prohibiting them in some neighborhoods. The city has implemented occupancy limits, parking requirements, and noise ordinances that STR operators must follow. Properties must meet safety standards including smoke detectors and emergency exits, and operators are typically required to provide contact information for a local representative available 24/7. Aurora has also established registration requirements and may impose taxes on short-term rental income. Recent years have seen the city refine these regulations to balance the economic benefits of STRs with neighborhood concerns about noise, parking, and housing availability, with ongoing discussions about potential additional restrictions in certain residential areas to preserve community character.

What are the best places to invest in Airbnb in Aurora, Illinois?

The best Airbnb investment areas in Aurora, Illinois include the Historic Downtown District near the Paramount Theatre and RiverEdge Park, which attracts visitors for entertainment events, festivals, and cultural activities throughout the year. The Fox River corridor neighborhoods offer scenic waterfront appeal and proximity to the Fox River Trail, drawing outdoor enthusiasts and weekend tourists. Areas near Aurora University and the Waubonsee Community College campus provide steady demand from visiting families, prospective students, and academic travelers. The Phillips Park Zoo vicinity appeals to families visiting the zoo and nearby recreational facilities. Neighborhoods close to major corporate centers like Caterpillar's Aurora facility and the I-88 corridor attract business travelers, while areas near the Chicago Premium Outlets draw shopping tourists. The Blackberry Creek area offers newer developments with modern amenities that appeal to both leisure and business guests, and properties near the BNSF Railway stations provide convenient access for Chicago commuters seeking alternative accommodations.

Airbnb and lodging taxes in Aurora, Illinois

In Aurora, Illinois, Airbnb hosts are subject to multiple lodging taxes including the state Hotel Operators' Occupation Tax of 6%, Kane County's hotel tax of 5%, and Aurora's municipal hotel/motel tax of 8%, totaling approximately 19% in combined lodging taxes on gross rental receipts. The Illinois Hotel Operators' Occupation Tax applies to rentals of less than 30 consecutive days and is collected by the Illinois Department of Revenue, with hosts required to register and file monthly returns by the 20th of the following month. Kane County's hotel tax is administered by the county and requires separate registration and monthly remittance, while Aurora's municipal tax is collected by the city's finance department with monthly filing requirements. Airbnb may collect and remit some of these taxes directly on behalf of hosts through their platform, but hosts remain ultimately responsible for compliance and should verify which taxes are being collected automatically versus those requiring direct remittance. Properties rented for 30 or more consecutive days to the same guest are typically exempt from these lodging taxes, and certain properties may qualify for exemptions if they meet specific criteria such as being used for permanent residency, though such exemptions are rare for typical short-term rental operations.

Total cost to purchase, furnish and operate an Airbnb in Aurora, Illinois

To start an Airbnb in Aurora, Illinois, the total initial costs would be approximately $285,000-$320,000. Property purchase represents the largest expense at $220,000-$250,000 based on median home prices in Aurora as of 2023. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom property including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic marketing materials run $1,500-$3,000. Permits and fees vary but generally include business license ($100-$300), short-term rental permit if required by Aurora ($200-$500), and potential HOA approval fees ($100-$500). Insurance costs for short-term rental coverage average $2,000-$3,500 annually, with the first year paid upfront. Utility deposits and first month's service for electricity, gas, water, internet, and cable total approximately $800-$1,200. First six months of operating costs including utilities ($1,800), cleaning services ($2,400), maintenance reserves ($1,500), property management software ($300), and marketing ($600) add roughly $6,600 to startup expenses.

Are Airbnb properties in Aurora, Illinois profitable?

Airbnb properties in Aurora, Illinois typically generate average monthly revenues of $1,800-$2,500 for entire homes and $800-$1,200 for private rooms, with occupancy rates ranging from 55-70% depending on proximity to downtown Chicago (45 minutes away) and local attractions like the Paramount Theatre. Operating expenses generally include mortgage/rent ($1,200-$1,800), utilities ($150-$250), cleaning fees ($75-$100 per turnover), insurance ($100-$150), and platform fees (3% host fee plus 14-16% guest fee), resulting in net profit margins of 15-25% for well-managed properties. Success factors include strategic location near the Fox River, Metra train stations for Chicago commuters, competitive pricing 20-30% below Chicago rates, professional photography, and maintaining superhost status through consistent 4.8+ ratings. Properties near Aurora University and the downtown entertainment district perform particularly well, with some hosts reporting annual profits of $8,000-$15,000 per property after all expenses, though seasonal fluctuations occur with lower winter occupancy rates of 40-50% compared to summer peaks of 75-85%.

What is the expected return on investment for an Airbnb in Aurora, Illinois?

Airbnb investments in Aurora, Illinois typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in Aurora's downtown area and near the Fox River tend to perform better, with average daily rates of $85-120 and occupancy rates around 65-75% annually. Initial investment recovery and profitability usually occurs within 18-24 months, assuming a 20-25% down payment on properties valued between $150,000-250,000. The proximity to Chicago (45 miles west) and local attractions like Paramount Theatre and Phillips Park Zoo support consistent demand, while lower property acquisition costs compared to Chicago suburbs enhance overall returns. Market analysis from 2023-2024 indicates Aurora's growing tourism sector and business travel contribute to sustainable rental income, with successful operators reporting gross rental yields of 10-14% before expenses.

What company can help me find and buy a profitable Airbnb in Aurora, Illinois?

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Aurora, Illinois. Local real estate agents specializing in investment properties in Aurora include Coldwell Banker Realty agents who focus on the Fox Valley area, RE/MAX agents with investment property expertise, and Keller Williams Realty professionals who understand the Aurora rental market. National services include BiggerPockets for networking and deal analysis, Mashvisor for property analytics and market data, AirDNA for short-term rental market insights, and Roofstock which occasionally features Illinois investment properties. Local property management companies like Fox Valley Property Management and Aurora-based investment groups can provide market insights, while national companies such as RedAwning, Vacasa, and AvantStay offer market analysis services. Real estate investment firms like HomeVestors and local investment clubs in the Chicago suburbs frequently work with Aurora properties. Additionally, platforms like Rentometer and RentSpree provide rental market data, while local mortgage brokers specializing in investment properties can facilitate purchases in the Aurora market.

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