Is Collinsville, Illinois Good for Airbnb Investment?

Potentially—Collinsville, Illinois combines visitor demand with long-term real estate upside.

• Presents a nuanced opportunity.
• Current market conditions in Collinsville are characterized by relatively affordable property values compared to major metropolitan areas.
• However, tourism trends are more localized, primarily driven by attractions like the Cahokia Mounds State Historic Site and proximity to St.
• Louis events, rather than large-scale, consistent tourist influxes.
• This means that while there's investment potential, it might be more seasonal or event-dependent, requiring careful management and marketing to ensure consistent occupancy.
• Investors should consider the specific demand drivers for short-term rentals in the area and research local regulations that may impact profitability.

$800–$1,500 per month based on location, season, and property quality.

• Based on available market data and regional analysis, Airbnb hosts in Collinsville, Illinois typically earn between $800-$1,500 per month.
• Seasonal variations show peak earnings during summer months and fall festival seasons, with revenue increases of 25-40% above winter baseline rates.
• Properties near Scott Air Force Base and those offering 2-3 bedrooms consistently outperform studio and single-bedroom units.
• Key factors affecting earnings include proximity to major highways like Interstate 55 and 70, property condition and modern amenities.
• The market benefits from overflow demand from the greater St.
• Revenue optimization strategies include targeting extended stays for military families and business travelers.

Potentially strong—typical annual ROI is 8–12%.

• Typically generate ROI between 8-12% annually, with payback periods ranging from 7-10 years depending on property acquisition costs and renovation expenses.
• The average nightly rate in Collinsville ranges from $75-$120, with occupancy rates averaging 60-70% due to its proximity to St.
• Louis and local attractions like the Cahokia Mounds.
• Properties near the Gateway Motorsports Park and downtown area perform better, achieving the higher end of ROI ranges during racing events and summer months.
• Compared to traditional long-term rentals in Collinsville, which typically yield 6-8% annually with gross rent multipliers of 12-15, short-term rentals can outperform by 2-4 percentage points but require significantly more active management and carry higher vacancy risks.
• The break-even point for most Airbnb properties occurs around 45-50% occupancy at average market rates.

Collinsville, Illinois averages 55–65% annual occupancy, with seasonal variation.

• Airbnb occupancy rates in Collinsville, Illinois average approximately 55-65% annually, with peak seasons occurring during summer months (June-August) reaching 70-75% due to increased tourism and events.
• Spring and fall maintain moderate occupancy levels of 60-65%.
• Collinsville benefits from its proximity to St.
• Louis and hosts events like the International Horseradish Festival and various activities at the Gateway Center, which boost seasonal demand.
• These rates are slightly below the Illinois state average of 60-70% and the national Airbnb average of 65-75%.

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

• The downtown Collinsville area offers excellent Airbnb potential due to its proximity to the historic Main Street district, antique shops, and local restaurants.
• The neighborhoods near Collinsville High School and Kahok Park provide family-friendly accommodations for sports tournaments, graduation events, and school visits.
• Areas close to the Collinsville Recreation Center and Willoughby Farm appeal to families seeking recreational activities and event venues, supporting mid-range pricing for extended stays.
• The residential neighborhoods along Belt Line Road offer quiet, suburban settings that attract longer-term guests and remote workers, providing steady occupancy with competitive rates.
• Properties near the Gateway Convention Center benefit from business travelers and conference attendees, commanding premium rates during peak event seasons.
• The historic neighborhoods around Woodland Park attract visitors interested in the area's heritage and outdoor activities, supporting seasonal rental demand with moderate pricing power.

Yes, but only where zoning permits short-term rentals and every required license is current.

• Collinsville, Illinois requires short-term rental operators to obtain a business license and register their property with the city.
• Properties are generally limited to a maximum occupancy based on bedroom count plus two additional guests, with most rentals capped at 8-10 people total.
• The city does not mandate owner-occupancy for short-term rentals, allowing both primary residences and investment properties to operate as vacation rentals.
• Zoning restrictions typically permit short-term rentals in residential districts with proper licensing, though some areas may have specific limitations or require conditional use permits.
• The registration process involves submitting property details, emergency contact information, proof of insurance, and compliance with fire safety codes and building inspections.
• Recent regulatory changes have focused on strengthening noise ordinances, implementing stricter parking requirements (typically 1-2 spaces per rental), and establishing clearer enforcement mechanisms for violations.

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

• Short-term rentals in Collinsville, Illinois are subject to several fees and taxes including the state lodging tax of 6% on gross rental receipts, Madison County's hotel/motel tax of approximately 3%.
• Property owners must obtain a business license costing approximately $50-100 annually and may need a special use permit or short-term rental permit ranging from $100-300 per year.
• Additional requirements include registering with the Illinois Department of Revenue for tax collection purposes (typically no fee but required).
• Fire safety inspections may require an additional $75-125 fee, and some properties may need to pay into a tourism promotion fund at rates of 1-2% of gross receipts.
• Total annual regulatory costs typically range from $300-800 plus the ongoing tax obligations of approximately 11-13% of gross rental income when combining all applicable lodging and occupancy taxes.