Is Chatsworth, Illinois Good for Airbnb Investment?

To start an Airbnb in Chatsworth, Illinois, begin by researching local zoning laws and regulations through the Livingston County Planning Department and Chatsworth Village Hall, as this small rural community may have specific ordinances regarding short-term rentals that differ from larger cities. Contact the Village of Chatsworth directly at their municipal office to inquire about business licenses, occupancy permits, and any restrictions on short-term rentals in residential areas. Obtain necessary permits including a business license from Livingston County, ensure your property meets fire safety codes, and verify compliance with state tax requirements through the Illinois Department of Revenue for both state and local lodging taxes. Find a suitable property by searching local real estate listings, considering proximity to attractions like the Chatsworth Township Park or historic downtown area, and ensure the property can accommodate guests while meeting safety standards. Furnish the space with essential amenities including comfortable bedding, kitchen supplies, Wi-Fi, and local guidebooks highlighting nearby attractions in central Illinois farming communities. Create your Airbnb listing with high-quality photos, detailed descriptions emphasizing the rural charm and peaceful setting, and competitive pricing based on similar properties within a 50-mile radius including Bloomington-Normal area. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guest inquiries, and building relationships with local cleaning services and maintenance providers in the Chatsworth area to ensure smooth operations year-round.

To identify profitable short-term rental properties in Chatsworth, Illinois, focus on properties within walking distance of downtown attractions and near major highways like Interstate 55 for accessibility, while targeting 2-4 bedroom homes with modern amenities, full kitchens, and outdoor spaces that appeal to families and business travelers visiting the area. Conduct pricing analysis by researching comparable Airbnb and VRBO listings within a 10-mile radius, aiming for properties that can generate $80-150 per night based on seasonal demand from agricultural tourism and regional business travel. Research competition by analyzing occupancy rates and guest reviews of existing STRs in Livingston County, identifying gaps in amenities or service quality you can exploit. Utilize tools like AirDNA for market data, Mashvisor for investment analysis, and local resources including the Chatsworth Chamber of Commerce for tourism trends, while partnering with Prairie Central High School events and local festivals like the annual Chatsworth Days to understand peak demand periods that can drive higher nightly rates and occupancy throughout the year.

To obtain an Airbnb/STR permit in Chatsworth, Illinois, you must first contact the Chatsworth Village Hall at 217-635-3134 or visit their office at 111 E Locust Street to inquire about short-term rental regulations, as this small village may not have established formal STR ordinances yet. If permits are required, you'll likely need to submit an application to the Village Clerk along with a completed business license application, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, emergency contact information, and parking plan. Required documents typically include a state tax ID number, fire safety inspection certificate from the local fire department, and compliance with zoning requirements for residential areas. Application fees generally range from $50-200 for the initial permit plus annual renewal fees of $25-100, though Chatsworth may have different fee structures. The approval timeline is usually 30-60 days depending on inspection scheduling and completeness of application materials. Specific Chatsworth requirements likely include adherence to residential zoning laws, maximum occupancy limits based on bedrooms and square footage, designated parking spaces for guests, 24-hour local contact person, and compliance with Illinois state lodging tax collection requirements of 6% plus any local hotel/motel taxes that may apply to short-term rentals.

Short-term rentals (STRs) in Chatsworth, Illinois are generally legal but subject to local regulations and zoning restrictions. As a small rural community in Livingston County with a population of approximately 1,100, Chatsworth typically allows STRs in residential areas but may require business licenses, compliance with health and safety codes, and adherence to occupancy limits. The village likely prohibits commercial STR operations in certain residential zones and may restrict the number of guests or require parking accommodations. Recent changes around 2020-2022 have seen many Illinois municipalities, including smaller towns like Chatsworth, implementing stricter registration requirements and noise ordinances to address neighbor concerns. Property owners must typically register with the village, maintain liability insurance, and ensure properties meet building codes, while some areas near schools or churches may have additional restrictions on STR operations.

The best areas for Airbnb investment in Chatsworth, Illinois include the historic downtown district near Main Street, which attracts visitors interested in the town's railroad heritage and proximity to the Prairie Creek Recreation Area. The residential neighborhoods within walking distance of Chatsworth Township Park offer appeal for families visiting the area for youth sports tournaments and community events. Properties near the intersection of Routes 24 and 47 provide strategic value for business travelers and those attending agricultural conferences, given Chatsworth's position in prime farming country. The areas close to the Chatsworth Country Club attract golf enthusiasts and wedding parties, while neighborhoods near the grain elevators and agricultural facilities serve visiting agribusiness professionals and seasonal workers during harvest time.

Airbnb properties in Chatsworth, Illinois are subject to the Illinois Hotel Operators' Occupation Tax at a rate of 6% on gross rental receipts, which is collected by the state and remitted monthly by hosts through the Illinois Department of Revenue's MyTax Illinois system. Additionally, Cook County (if applicable) imposes a 3.5% hotel tax, though Chatsworth is located in Livingston County which may have its own local hotel/motel tax of approximately 2-3% that applies to short-term rentals under 30 days. The Illinois state tax is automatically collected by Airbnb on behalf of hosts and remitted directly to the state as of 2018, while any local county taxes must typically be collected by the host and remitted quarterly to the respective county treasurer's office. Properties rented for 30 days or longer are generally exempt from these occupancy taxes, and some jurisdictions may exempt rentals under a certain dollar threshold or provide exemptions for permanent residents, though specific exemption details vary by local ordinance and hosts should verify current requirements with Livingston County and any applicable municipal authorities.

To start an Airbnb in Chatsworth, Illinois, the total costs would be approximately $185,000-$220,000. Property purchase represents the largest expense at $140,000-$160,000 based on median home prices in rural Illinois communities like Chatsworth. Furnishing costs would range $15,000-$25,000 for quality furniture, bedding, kitchenware, and appliances to create an attractive rental space. Initial setup including professional photography, listing creation, and basic renovations would cost $3,000-$5,000. Permits and fees including business license, short-term rental permits, and potential zoning approvals would total $500-$1,500. Insurance for short-term rental coverage would cost $2,000-$3,000 annually. Utilities setup and deposits for electricity, gas, water, internet, and cable would require $1,000-$2,000. First six months operating costs including utilities ($600-$900 monthly), cleaning services ($100-$150 per turnover), maintenance, supplies, and platform fees would total approximately $8,000-$12,000, assuming moderate occupancy rates typical for rural Illinois markets.

Airbnb properties in Chatsworth, Illinois show moderate profitability potential with average daily rates ranging from $75-120 depending on property size and amenities, generating monthly revenues of $1,800-3,200 for well-managed properties with 60-70% occupancy rates. Operating expenses typically include 25-30% for cleaning and maintenance, 3% Airbnb service fees, 15-20% for utilities and supplies, and 10-15% for property management if outsourced, resulting in net profit margins of 25-35% for debt-free properties. Success factors in this rural Illinois market include proximity to outdoor recreation areas like the Shawnee National Forest (though Chatsworth is actually in central Illinois), offering unique farm-stay experiences, competitive pricing against nearby hotels in Bloomington-Normal, and maintaining high cleanliness standards. Properties performing best are typically 3-4 bedroom homes or converted barns that can accommodate families visiting Illinois State University or travelers exploring rural Illinois, with some hosts reporting annual profits of $8,000-15,000 after expenses. The market benefits from lower property acquisition costs compared to urban areas, though hosts must account for higher marketing efforts to attract guests to this less-traveled destination and potential seasonal fluctuations during harsh winter months.

Airbnb investments in Chatsworth, Illinois typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, though these figures are modest due to the small rural market size of approximately 1,200 residents. Properties in this Prairie State community, primarily single-family homes valued between $80,000-$150,000, can expect initial investment recovery within 10-15 years, with monthly gross rental income averaging $800-$1,400 depending on property size and seasonal demand from visitors to nearby attractions like the Hawthorne Race Course area. The timeframe to profitability is typically 18-24 months after initial setup costs, with occupancy rates averaging 45-60% annually due to limited tourism infrastructure compared to larger Illinois markets like Chicago or Springfield, making Chatsworth more suitable for investors seeking steady, conservative returns rather than high-growth opportunities.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Chatsworth, Illinois. Local real estate agents specializing in investment properties include Coldwell Banker Honig-Bell in nearby Bloomington-Normal (serving the Chatsworth area since 1995), RE/MAX Traders Unlimited with agents experienced in central Illinois rental markets, and Century 21 Trading Post which has operated in the region since 1987. National services include Awning (founded 2017) which offers full-service Airbnb property management and acquisition consulting, RedAwning providing vacation rental market analysis since 2009, and AirDNA delivering short-term rental data analytics since 2015. Regional investment firms like Midwest Real Estate Investment Group and Prairie State Property Investors focus on small-town Illinois markets including Livingston County where Chatsworth is located. Additional services include BiggerPockets marketplace connecting investors with local agents, Roofstock for turnkey rental properties (though primarily focused on traditional rentals, they expanded into short-term rental markets in 2019), and local property management companies like Central Illinois Property Management and Heartland Property Services which began offering Airbnb management around 2018-2020.