Is Belleville, Illinois Good for Airbnb Investment?

To start an Airbnb in Belleville, Illinois, begin by researching local zoning laws and regulations through the City of Belleville Planning Department, as the city requires short-term rental operators to obtain a business license and comply with residential zoning restrictions that may limit rentals to primary residences or specific zones. Contact the St. Clair County Health Department for any required health permits and ensure compliance with Illinois state tax requirements including the 6.25% state sales tax and local hotel/motel taxes. Find a suitable property by searching MLS listings, Zillow, or working with local real estate agents like Coldwell Banker Brown Realtors or RE/MAX, focusing on neighborhoods near Scott Air Force Base, downtown Belleville, or areas with easy access to St. Louis attractions, with average property prices ranging from $80,000-$200,000 as of 2023. Furnish the property with essential amenities including quality bedding, kitchen supplies, WiFi, and local touches highlighting Belleville's German heritage and proximity to St. Louis, budgeting approximately $5,000-$15,000 for initial furnishing. Create your Airbnb listing with professional photos showcasing the space and emphasizing location benefits like being 20 minutes from downtown St. Louis, near MidAmerica St. Louis Airport, and close to local attractions like the National Shrine of Our Lady of the Snows. Manage your property by establishing cleaning protocols, coordinating with local cleaning services, implementing keyless entry systems, maintaining competitive pricing around $60-$120 per night based on seasonal demand and events at nearby venues, and providing excellent guest communication to maintain high ratings in this growing short-term rental market.

To identify profitable short-term rental properties in Belleville, Illinois, focus on locations within 10-15 minutes of Scott Air Force Base, downtown St. Louis attractions, and major highways like I-64 and I-255, as these areas attract military personnel, business travelers, and tourists visiting the Gateway Arch region. Target 2-4 bedroom single-family homes or condos built after 1980 with modern amenities, full kitchens, dedicated parking, and outdoor spaces, as these features command higher nightly rates of $80-150 in the Belleville market. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against comparable properties, aiming for properties under $200,000 that can generate 12-18% annual returns based on 60-70% occupancy rates typical for the Metro East region. Research competition by analyzing existing Airbnb and VRBO listings within a 5-mile radius, identifying gaps in amenities or underserved locations, particularly near Southwestern Illinois College, Memorial Hospital, or the Belleville Township High School events. Utilize tools like BiggerPockets for investment analysis, STR Helper for revenue projections, and local resources including the Belleville Chamber of Commerce market reports, St. Clair County property records, and partnerships with Metro East real estate agents familiar with STR-friendly neighborhoods and local zoning regulations that permit short-term rentals.

To obtain an Airbnb/STR permit in Belleville, Illinois, contact the City of Belleville Planning and Zoning Department at City Hall located at 101 South Illinois Street, or call (618) 233-6810 to begin the application process. You will need to submit a completed short-term rental permit application, provide proof of property ownership or lease agreement with landlord consent, submit a site plan showing the property layout, obtain a business license from the City Clerk's office, provide proof of liability insurance (typically $1 million minimum), pass a fire safety inspection conducted by the Belleville Fire Department, and ensure compliance with zoning requirements as STRs may be restricted in certain residential zones. Required documents include a valid driver's license or state ID, property deed or lease agreement, floor plan of the rental unit, emergency contact information for guests, and parking plan showing adequate off-street parking spaces. The application fee is approximately $100-200 with additional inspection fees of $50-75, and you may need to pay annual renewal fees of around $75-150. The timeline typically takes 4-6 weeks from application submission to permit approval, including time for inspections and zoning review. Belleville requires STR operators to maintain a local contact person available 24/7, limit occupancy based on bedroom count (usually 2 guests per bedroom plus 2 additional), provide trash collection arrangements, and register with the Illinois Department of Revenue for tax collection purposes, while also ensuring compliance with any homeowner association rules and maintaining the property in accordance with city housing codes.

Short-term rentals (STRs) in Belleville, Illinois operate in a regulatory gray area as the city has not enacted comprehensive STR-specific ordinances as of 2024. While not explicitly prohibited, STRs must comply with existing zoning regulations, business licensing requirements, and residential property standards. The city's zoning code generally restricts commercial activities in residential zones, which could limit STR operations in single-family neighborhoods, though enforcement appears inconsistent. Property owners operating STRs are expected to obtain business licenses and ensure compliance with building codes, fire safety requirements, and occupancy limits. Unlike larger Illinois cities such as Chicago or Springfield that have implemented detailed STR regulations with registration systems and specific restrictions, Belleville has taken a more hands-off approach, likely due to lower demand and fewer complaints. Recent discussions at city council meetings in 2023 suggested potential future regulation as STR activity increases, but no formal legislation has been passed. The legal status remains dependent on compliance with general business and zoning laws rather than STR-specific rules, making it technically permissible but potentially subject to zoning violations if operated improperly in residential areas.

The best areas for Airbnb investment in Belleville, Illinois include the Historic Downtown District near Main Street, which attracts visitors to local festivals, antique shops, and the National Shrine of Our Lady of the Snows that draws religious pilgrims year-round. The West End neighborhood near Scott Air Force Base is highly attractive due to consistent military personnel rotations, visiting families, and defense contractors requiring temporary housing. The area around Belleville West High School and the University of Illinois extension campus generates demand from visiting families during sporting events, graduations, and academic conferences. The neighborhoods near Memorial Hospital and St. Elizabeth's Hospital create opportunities for medical tourism, with patients' families needing extended stays during treatments. Properties close to the MetroLink light rail stations offer appeal to visitors wanting easy access to downtown St. Louis attractions like the Gateway Arch, Busch Stadium, and the entertainment district, while still enjoying lower accommodation costs than downtown hotels. The residential areas near Belleville Township High School District 201 facilities benefit from sports tournaments, band competitions, and educational events that bring families from across southern Illinois and eastern Missouri.

In Belleville, Illinois, Airbnb hosts are subject to multiple lodging taxes including the Illinois Hotel Operators' Occupation Tax at 6% of gross rental receipts, St. Clair County's lodging tax at approximately 3%, and the City of Belleville's transient occupancy tax estimated at 2-4% of rental revenue. These taxes are typically collected by Airbnb directly from guests at the time of booking for the state tax, while county and municipal taxes may require manual collection and remittance by hosts on a monthly or quarterly basis to the respective tax authorities. Hosts must register with the Illinois Department of Revenue and obtain necessary permits from St. Clair County and the City of Belleville, with remittance deadlines typically falling on the 20th of the month following the tax period. Exemptions generally apply to stays exceeding 30 consecutive days, rentals to permanent residents, and accommodations provided to certain government employees or during emergencies, though hosts should verify current rates and procedures as tax obligations can change and may require additional business licenses or registration fees.

The total cost to start an Airbnb in Belleville, Illinois is approximately $185,000-$225,000. Property purchase costs around $120,000-$150,000 based on median home prices in the area. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, bedding, kitchenware, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees including business license, short-term rental permit, and inspection fees cost approximately $500-$1,500 depending on local regulations. Insurance for short-term rentals runs $2,000-$3,000 annually, with the first year paid upfront. Utility deposits and setup fees for electricity, gas, water, internet, and cable total $1,000-$2,000. First six months of operating costs including utilities ($900/month), cleaning services ($150 per turnover), maintenance reserves ($200/month), property management software ($50/month), and marketing expenses ($100/month) total approximately $8,400. Additional working capital of $5,000-$10,000 is recommended for unexpected expenses and initial vacancy periods while building reviews and bookings.

Airbnb properties in Belleville, Illinois typically generate annual revenues of $15,000-$25,000 for entire homes and $8,000-$15,000 for private rooms, with occupancy rates averaging 45-60% due to the city's proximity to St. Louis and Scott Air Force Base demand. Operating expenses generally run 40-50% of gross revenue, including cleaning fees ($30-50 per turnover), utilities ($150-200 monthly), property management (15-25% if outsourced), insurance ($800-1,200 annually), and maintenance costs. Net profit margins typically range from 15-25% for well-managed properties, with higher-end homes near downtown or historic districts achieving better performance. Success factors include competitive pricing ($65-95 nightly for homes, $35-55 for rooms), professional photography, quick guest communication, and targeting military personnel, business travelers, and St. Louis visitors seeking affordable alternatives. Properties within 10 miles of Scott AFB or offering unique amenities like hot tubs or game rooms tend to outperform the market average, while those requiring significant upfront renovations may take 18-24 months to achieve positive ROI in this secondary market.

Airbnb investments in Belleville, Illinois typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in downtown Belleville near Scott Air Force Base and the MetroLink stations tend to perform better, with average daily rates of $75-95 and occupancy rates around 65-75%. Initial investment recovery usually occurs within 7-10 years, with monthly gross rental income averaging $1,200-1,800 for a typical 2-3 bedroom property purchased at $120,000-180,000. The proximity to St. Louis (20 minutes via MetroLink) and Scott Air Force Base creates steady demand from military personnel, business travelers, and tourists, though seasonal fluctuations occur with lower occupancy in winter months reducing annual returns by 15-20% compared to peak summer performance.

STRSearch is a national platform that specializes in identifying profitable short-term rental investment properties and provides market analysis for Airbnb investments in Belleville, Illinois. Local real estate agents in the Belleville area who work with investors include Coldwell Banker Brown Realtors, RE/MAX Alliance, and Berkshire Hathaway HomeServices Select Properties, with agents like those at Keller Williams Marquee who understand the Metro East market dynamics. National services that assist Airbnb investors include Mashvisor for property analysis, AirDNA for market data and revenue projections, Awning for turnkey Airbnb investments, Roofstock for rental property investments, and RedfinNow for quick property acquisitions. Additional local services include property management companies like Gateway Property Management and Midwest Property Management Group who can handle Airbnb operations, while national platforms like Vacasa and AvantStay provide full-service short-term rental management. Real estate investment groups such as the St. Louis Real Estate Investors Association (which covers the Metro East including Belleville) offer networking and deal-finding opportunities, and companies like BiggerPockets provide educational resources and deal analysis tools for Airbnb investors targeting the Belleville market.