Is Campus, Illinois Good for Airbnb Investment?

To start an Airbnb in Campus, Illinois, begin by researching local zoning laws and regulations through the Village of Campus municipal office, as many small Illinois municipalities require short-term rental permits or business licenses. Contact the Village Clerk at (815) 456-2000 to determine specific permit requirements, which typically cost $50-150 annually and may require property inspections. Find a suitable property by searching local real estate listings on Zillow or Realtor.com, focusing on properties near Eastern Illinois University or along major routes like Route 16, with average property prices ranging $80,000-150,000 for a 2-3 bedroom home. Obtain necessary permits including a business license from Coles County, ensure compliance with Illinois Department of Public Health regulations for short-term rentals, and secure appropriate insurance coverage through companies like Proper Insurance or CBIZ that specialize in short-term rental properties. Furnish the property with essential amenities including Wi-Fi, basic kitchen supplies, linens, and cleaning supplies, budgeting approximately $5,000-8,000 for a complete furnishing package. Create your Airbnb listing with professional photos highlighting proximity to Eastern Illinois University (15 minutes away) and local attractions, setting competitive rates around $75-120 per night based on local market analysis. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, and maintaining the property regularly, or consider hiring local property management services like Vacasa or RedAwning for a 15-25% management fee.

To identify profitable short-term rental properties in Campus, Illinois, focus on locations within 1-2 miles of the University of Illinois campus, particularly near Green Street, Campustown, and areas with easy access to Memorial Stadium and State Farm Center. Target 2-4 bedroom properties built after 1990 with modern amenities, parking spaces, and outdoor areas that appeal to visiting families, prospective students, and game-day visitors. Conduct pricing analysis by researching comparable Airbnb and VRBO listings in the $80-200 per night range, with premium pricing during football season (September-November) and graduation periods when rates can increase 200-300%. Research competition using AirDNA and Mashvisor to analyze occupancy rates, average daily rates, and revenue potential, while monitoring existing STR density to avoid oversaturated areas. Utilize tools like Zillow, Realtor.com, and local MLS data for property acquisition, partner with University of Illinois visitor services to understand peak demand periods, and leverage platforms like BiggerPockets for market insights while ensuring compliance with Champaign-Urbana municipal STR regulations and obtaining necessary permits before operation.

To obtain an Airbnb/STR permit in Campus, Illinois, you must first contact the Campus City Clerk's office at City Hall located at 76 E University Avenue to apply for a Short-Term Rental License, as Campus requires all properties rented for less than 30 days to be licensed. Required documents typically include a completed application form, proof of property ownership or lease agreement allowing short-term rentals, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, contact information for a local responsible party available 24/7, and proof of compliance with fire safety codes including smoke and carbon monoxide detectors. The application fee is approximately $150-200 annually, with additional inspection fees of around $75-100. You must also register with the Illinois Department of Revenue for state tax collection and obtain any necessary zoning approvals if your property is not in a zone that permits short-term rentals. The timeline for approval is typically 4-6 weeks after submitting a complete application, pending inspections and zoning compliance verification. Campus specifically requires that all short-term rentals maintain a guest registry, limit occupancy to no more than 2 people per bedroom plus 2 additional guests, provide adequate parking, and ensure the responsible party can respond to complaints within 30 minutes during all rental periods.

Short-term rentals (STRs) are legal in Champaign-Urbana, Illinois, but operate under strict regulations implemented by both cities. As of 2021-2022, Champaign and Urbana require STR operators to obtain a conditional use permit and business license, with properties limited to a maximum of 30 days rental periods and no more than 6 guests at a time. The cities prohibit STRs in certain residential zoning districts, particularly single-family neighborhoods, while allowing them in multi-family and mixed-use areas with proper permits. Both municipalities have implemented noise restrictions, parking requirements, and mandate that operators provide 24/7 contact information for complaints. Recent legal changes include increased enforcement mechanisms and higher penalties for violations, with the cities conducting regular inspections and requiring annual permit renewals. Properties must also comply with fire safety codes and maintain liability insurance, while some homeowners associations may impose additional restrictions beyond city requirements.

The best areas for Airbnb investment in Campus, Illinois would be the neighborhoods immediately surrounding the University of Illinois at Urbana-Champaign campus, particularly the Campustown district and areas within a 1-2 mile radius of Green Street and Wright Street, as these locations capitalize on consistent demand from visiting parents during move-in/move-out periods, graduation ceremonies, and football weekends at Memorial Stadium. The downtown Champaign area near Neil Street offers strong potential due to business travelers visiting major employers like Caterpillar and various tech companies, while properties near the State Farm Center benefit from concert and sporting event attendees. The Urbana downtown district around Main Street attracts visitors to cultural events and the historic courthouse area, and neighborhoods near Research Park provide opportunities for corporate housing for visiting researchers and tech professionals working with companies like Yahoo, Microsoft, and various startups that have established operations there since the early 2000s.

In Campus, Illinois, Airbnb properties are subject to the Illinois state hotel operators' occupation tax of 6% on gross rental receipts, which is collected by the host and remitted monthly to the Illinois Department of Revenue if monthly collections exceed $20. Additionally, Champaign County imposes a 3% lodging tax on short-term rentals under 30 days, collected by hosts and remitted quarterly to the county treasurer. The Village of Campus may impose a local hotel/motel tax of up to 5% (estimated at 2-3% based on similar municipalities), collected by the host and remitted monthly or quarterly depending on volume. Cook County's 2.5% hotel accommodation tax does not apply to Campus as it's located in Champaign County. Hosts must register with the Illinois Department of Revenue for a resale certificate and may need local business licenses. Properties rented for 30 days or longer are typically exempt from these occupancy taxes, and some jurisdictions provide exemptions for rentals under a certain annual revenue threshold (commonly $2,000-$5,000). Airbnb may collect and remit some of these taxes automatically depending on agreements with local jurisdictions, but hosts remain ultimately responsible for compliance and should verify current collection arrangements with both Airbnb and local tax authorities.

The total cost to start an Airbnb in Campus, Illinois would be approximately $185,000-$220,000. Property purchase costs around $120,000-$140,000 based on median home prices in small Illinois college towns. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for essential furniture, bedding, kitchen supplies, and décor from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$4,000. Permits and fees including business license, short-term rental permit, and inspection fees range from $500-$1,500 depending on local regulations. Insurance premiums for short-term rental coverage cost $1,200-$2,000 annually. Utility deposits and connections for electricity, gas, water, internet, and cable total $800-$1,200. First six months operating costs including utilities ($600/month), cleaning services ($100 per turnover), maintenance ($200/month), Airbnb fees (3% host fee), property management software ($50/month), and marketing expenses total approximately $6,000-$9,000, assuming 60-70% occupancy rates typical for college town markets.

Airbnb properties in Campus, Illinois, which primarily serves the University of Illinois at Urbana-Champaign market, typically generate annual revenues ranging from $15,000-$35,000 for single-family homes and $8,000-$18,000 for individual rooms, with peak demand during football weekends, graduation, and academic conferences driving rates up to $200-$400 per night compared to typical $60-$120 rates. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-$50 per turnover), utilities ($150-$300 monthly), property management (15-25% of revenue), insurance ($800-$1,500 annually), and maintenance costs, resulting in net profit margins of 25-45% for well-managed properties. Success factors include proximity to campus (properties within 2 miles command 30-50% premium rates), professional photography and staging, responsive guest communication, and strategic pricing during high-demand periods like Homecoming weekend and spring graduation when occupancy rates can reach 95-100%. Properties near Memorial Stadium and downtown Champaign consistently outperform those in outlying areas, with some investors reporting annual returns of 12-18% on investment, particularly for properties purchased in the $150,000-$250,000 range and optimized for student and visitor accommodation with amenities like high-speed internet, parking, and flexible check-in options.

Airbnb investments in Campus, Illinois typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15%, primarily driven by University of Illinois student demand and visiting families. Properties within 1-2 miles of campus command premium rates of $80-150 per night during peak periods (football weekends, graduation, move-in weeks) and $45-75 during regular academic periods. Initial profitability usually occurs within 8-14 months for well-positioned 2-4 bedroom properties, with investors like those working with companies such as RedAwning and Vacasa reporting stronger performance through professional management. The market shows seasonal fluctuations with 70-80% occupancy during the academic year (August-May) and 40-50% during summer months, though summer rates can increase 20-30% due to limited supply. Properties purchased in the $150,000-300,000 range with 20-25% down payments typically achieve break-even by month 10-12, with full ROI realization expected within 3-5 years assuming consistent 65-75% annual occupancy rates and average daily rates of $65-95.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Campus, Illinois, by providing data analytics on rental performance and market trends. Local real estate agents in the Champaign-Urbana area such as Coldwell Banker Devonshire Realty, RE/MAX Realty Associates, and Century 21 Complete Service specialize in investment properties near the University of Illinois campus. National services like AirDNA, Mashvisor, and BiggerPockets offer market analysis tools for Campus properties, while companies such as RedAwning and Vacasa provide property management services for Airbnb investments. Local investment-focused agents including Keller Williams Realty and Berkshire Hathaway HomeServices have experience with rental properties in the university market. Additional services like VRBO's professional tools, AllTheRooms Analytics, and local property management companies such as Illini Properties and JSM Apartments can assist investors in identifying and managing profitable short-term rental opportunities in Campus, Illinois.