Is Des Plaines, Illinois Good for Airbnb Investment?

To start an Airbnb in Des Plaines, Illinois, begin by researching local zoning laws and regulations through the Des Plaines City Hall, as the city requires short-term rental operators to obtain a business license and may have specific zoning restrictions in residential areas. Contact the Des Plaines Building Department at 847-391-5340 to understand permit requirements, which typically include a rental property inspection and compliance with fire safety codes. Find a suitable property by searching MLS listings or working with local real estate agents familiar with Des Plaines neighborhoods like Downtown, Mannheim Park, or areas near O'Hare Airport for higher demand. Once you secure a property, furnish it with essential amenities including Wi-Fi, kitchen supplies, linens, and consider the proximity to attractions like Rivers Casino or Chicago for marketing appeal. Register for an Illinois state tax ID number and Des Plaines business license, then create your Airbnb listing with professional photos highlighting nearby transportation access to Chicago via Metra trains from the Des Plaines station. For ongoing management, establish relationships with local cleaning services, maintenance contractors, and consider using property management software to handle bookings, communicate with guests, and maintain compliance with Des Plaines' short-term rental ordinances which may include occupancy limits and noise restrictions in residential zones.

To identify profitable short-term rental properties in Des Plaines, Illinois, focus on locations within 2-3 miles of O'Hare International Airport, near major corporate centers like Abbott Laboratories and Honeywell, and close to transportation hubs including the Des Plaines Metra station and I-90/I-294 corridors. Target 2-4 bedroom single-family homes or condos built after 1980 with modern amenities, parking spaces, and properties under $400,000 to maintain favorable cap rates. Analyze comparable STR listings on Airbnb and VRBO in the $80-150 nightly range, calculating potential annual revenues of $25,000-45,000 against acquisition and operating costs. Research competition density using AirDNA and STR analytics tools, focusing on areas with fewer than 10 active listings per square mile while maintaining 70%+ occupancy rates. Utilize Des Plaines city zoning maps to ensure STR compliance, leverage Cook County property records through the Assessor's office, monitor corporate housing demand through companies like Oakwood and BridgeStreet, and track seasonal patterns tied to O'Hare business travel, typically peaking during weekdays and conference seasons from September through May.

To obtain an Airbnb/STR permit in Des Plaines, Illinois, you must first contact the Des Plaines Community Development Department at City Hall located at 1420 Miner Street to determine current zoning compliance and obtain a business license application. Required documents typically include a completed business license application, property deed 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 proof of smoke and carbon monoxide detectors. The application fee is estimated at $150-300 annually, with additional inspection fees of approximately $75-150. Submit your complete application to the Community Development Department and schedule a required safety inspection with the Building Division. The approval timeline is typically 4-6 weeks from submission of complete application. Des Plaines specific requirements include compliance with R-1 residential zoning restrictions (STRs may be prohibited in certain residential zones), maximum occupancy limits based on bedrooms plus two additional guests, mandatory 24-hour local contact person, parking requirements of one space per bedroom, and adherence to noise ordinances with quiet hours typically from 10 PM to 7 AM. You must also register with the Illinois Department of Revenue for state taxes and may need to collect local hotel taxes, and the permit requires annual renewal with the city.

Short-term rentals (STRs) are currently prohibited in Des Plaines, Illinois, as the city has maintained a ban on these types of accommodations in residential areas since approximately 2018-2019. The city's zoning ordinances specifically restrict short-term rentals of less than 30 days in residential districts, effectively preventing platforms like Airbnb and VRBO from operating legally within city limits. Des Plaines has taken a restrictive approach similar to several other Chicago suburbs, citing concerns about neighborhood character, parking, noise, and housing availability for long-term residents. The prohibition applies citywide across all residential zoning districts, with no designated areas where STRs are permitted. Property owners who operate short-term rentals in violation of the ordinance face code enforcement actions and potential fines. Unlike some neighboring municipalities that have created licensing frameworks or allowed STRs with restrictions, Des Plaines has maintained its complete prohibition, and there have been no recent legislative changes to soften this stance as of 2023-2024.

The best areas for Airbnb investment in Des Plaines, Illinois include the O'Hare Airport vicinity along Mannheim Road and Touhy Avenue, which attracts significant business travelers and tourists needing convenient airport access with properties typically generating strong occupancy rates year-round. The downtown Des Plaines area near the Des Plaines River and Metra station offers appeal to visitors attending events at nearby venues like the Des Plaines Theatre and those seeking easy Chicago access via public transit. The Oakton Street corridor benefits from proximity to major corporate offices including McDonald's former headquarters area and various business parks, drawing corporate travelers and consultants. The area near Golf Mill Shopping Center and Golf Road attracts visitors to the retail district and families visiting the nearby forest preserves. Properties near the Des Plaines History Center and Lake Park draw tourists interested in local attractions and outdoor activities, while the residential neighborhoods around Central Road offer quieter accommodations for extended-stay business travelers working at nearby corporate facilities or O'Hare-related businesses.

In Des Plaines, Illinois, Airbnb properties are subject to multiple lodging taxes including the Illinois Hotel Operators' Occupation Tax at 6% of gross rental receipts, Cook County's Hotel Accommodation Tax at 3%, and Des Plaines' local hotel tax at approximately 3-5%. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began around 2017-2018 for most Illinois jurisdictions. Airbnb remits the state tax to the Illinois Department of Revenue monthly, while county and municipal taxes are remitted to Cook County and the City of Des Plaines respectively on a monthly or quarterly basis depending on volume. Property owners must register with the Illinois Department of Revenue for a Hotel Operators' License and may need to register separately with local jurisdictions if Airbnb doesn't collect all applicable taxes automatically. Exemptions typically include stays of 30 days or longer which are considered residential rather than transient occupancy, and certain government or charitable organization bookings may qualify for exemptions with proper documentation.

The total cost to start an Airbnb in Des Plaines, Illinois is approximately $385,000-$425,000. Property purchase represents the largest expense at $320,000-$350,000 based on median home prices in the area as of 2023-2024. 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 in Des Plaines include business license ($100-$300), short-term rental permit if required ($200-$500), and potential HOA approval fees ($100-$500). Insurance costs approximately $2,000-$3,500 annually for landlord and short-term rental coverage. Utility setup and deposits for electricity, gas, water, internet, and cable total $500-$1,000 initially. First six months operating costs including utilities ($1,200), cleaning services ($1,800), maintenance and repairs ($1,500), property management software ($300), and marketing ($500) amount to approximately $5,300. Additional considerations include potential property improvements ($5,000-$10,000) and working capital reserves ($10,000-$15,000) for unexpected expenses and vacancy periods.

Airbnb properties in Des Plaines, Illinois typically generate annual revenues between $18,000-$35,000 for entire homes and $8,000-$15,000 for private rooms, with average daily rates ranging from $65-$120 depending on property size and proximity to O'Hare Airport. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), property management (10-20% of revenue), utilities ($150-$300 monthly), insurance ($800-$1,500 annually), and platform fees (3% Airbnb service fee plus 14-16% host fee). Properties within 5 miles of O'Hare Airport command premium rates due to business traveler demand, with some hosts reporting 70-80% occupancy rates and net profit margins of 25-35%. Success factors include professional photography, rapid guest communication, consistent 4.8+ star ratings, and strategic pricing during peak periods like convention seasons at nearby Rosemont venues. A typical 2-bedroom property purchased for $180,000 with $1,200 monthly mortgage payments can achieve 15-20% annual ROI when properly managed, though properties farther from transportation hubs may struggle with 40-50% occupancy rates and single-digit profit margins due to increased competition from Chicago's extensive short-term rental market.

Based on Des Plaines, Illinois market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the city. Properties near O'Hare International Airport and downtown Des Plaines command higher nightly rates of $85-120, while residential areas average $65-95 per night. Initial profitability usually occurs within 12-18 months for well-positioned properties, with break-even on total investment typically achieved in 7-10 years. The proximity to Chicago and major transportation hubs supports consistent occupancy rates of 65-75% annually, though seasonal variations affect winter months. Properties requiring minimal renovation show faster returns, with cash-on-cash returns potentially reaching 12-15% for investors who purchase below market value and optimize for business travelers and airport proximity.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors in Des Plaines, Illinois. Local real estate agents like Coldwell Banker Realty and RE/MAX Properties serve the Des Plaines market with expertise in investment properties, while @properties and Baird & Warner have strong Chicago suburban presence including Des Plaines. National services include Awning (formerly RedAwning) which provides end-to-end Airbnb investment services, Mashvisor for property analysis and market data, and AirDNA for short-term rental analytics. Roofstock focuses on turnkey rental properties and occasionally features properties suitable for Airbnb conversion in the Chicago suburbs. Local property management companies like Vacasa and RedAwning Property Management can help investors identify and manage profitable short-term rental properties in Des Plaines. Additionally, BiggerPockets marketplace and local real estate investment groups in the Chicago area often feature Des Plaines properties with Airbnb potential, while companies like Awning and Techvestor provide comprehensive investment analysis and property sourcing services for the greater Chicago metropolitan area including Des Plaines.