Is Gurnee, Illinois Good for Airbnb Investment?

To start an Airbnb in Gurnee, Illinois, begin by researching local regulations as Gurnee requires short-term rental operators to obtain a business license and comply with zoning ordinances that typically allow rentals in residential areas with restrictions on occupancy and parking. Contact the Gurnee Building Department at (847) 599-7500 to obtain necessary permits including a business license ($50-100 annually) and ensure your property meets fire safety codes and building requirements. Find a suitable property by searching areas near Six Flags Great America and downtown Gurnee, focusing on single-family homes or condos that allow short-term rentals per HOA agreements, with average purchase prices ranging $200,000-400,000. Furnish the space with essential amenities including Wi-Fi, cable TV, full kitchen appliances, quality bedding, and local guidebooks featuring Gurnee Mills and area attractions, budgeting approximately $5,000-15,000 for complete furnishing. List your property on Airbnb, VRBO, and Booking.com with professional photography highlighting proximity to Six Flags (2 miles) and Chicago (45 minutes), setting competitive rates of $80-150 per night based on seasonal demand. Manage your rental by implementing automated check-in systems, hiring local cleaning services like Merry Maids or creating relationships with Gurnee-based cleaners, responding to guests within one hour, and maintaining compliance with Lake County health department guidelines and Illinois state tax requirements including collecting 6.25% state sales tax plus local hotel taxes.

To identify profitable short-term rental properties in Gurnee, Illinois, focus on locations within 2-3 miles of Six Flags Great America and Gurnee Mills shopping center, as these major attractions drive consistent visitor demand year-round. Target 3-4 bedroom single-family homes or townhomes built after 1990 with modern amenities, full kitchens, multiple bathrooms, parking, and outdoor spaces, as families visiting the theme park prefer these features. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds traditional rental income by 40-60%, typically achieving $150-250 per night during peak summer months and $80-120 during off-season. Research competition by analyzing existing Airbnb and VRBO listings within a 3-mile radius, identifying gaps in amenities or pricing, and noting that successful properties often emphasize proximity to Six Flags and family-friendly features. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Realtor.com, while connecting with Lake County tourism boards and monitoring Six Flags event calendars to understand seasonal demand patterns, ensuring your investment targets the $200,000-400,000 price range where cap rates typically exceed 8-12% for well-positioned STR properties.

To obtain an Airbnb/STR permit in Gurnee, Illinois, you must first contact the Gurnee Community Development Department at Village Hall located at 325 N O'Plaine Road to inquire about short-term rental regulations, as the village may require a special use permit or business license. Required documents typically include a completed application form, property deed or lease agreement, floor plan of the rental unit, proof of insurance with minimum $1 million liability coverage, emergency contact information, and a site plan showing parking availability. You'll need to pay application fees ranging from $200-500 plus potential inspection fees of $100-150, and the process generally takes 4-8 weeks including staff review, potential Planning Commission hearing, and final approval. Gurnee-specific requirements likely include maintaining the property as your primary residence if it's a home-share, providing adequate off-street parking (typically 2 spaces minimum), ensuring compliance with residential zoning districts, registering with the Lake County Health Department for health permits, obtaining a Village of Gurnee business license, and adhering to occupancy limits based on bedroom count and square footage. You must also comply with noise ordinances, maintain 24/7 local contact availability, and potentially attend a public hearing if neighboring properties object to the application.

Short-term rentals (STRs) in Gurnee, Illinois are generally legal but subject to local regulations and zoning restrictions. The city of Gurnee allows STRs in certain residential zones but requires operators to obtain proper permits and business licenses, comply with occupancy limits typically ranging from 2-8 guests depending on property size, maintain adequate parking, and follow noise ordinances to minimize neighborhood disruption. STRs are generally prohibited in areas zoned exclusively for single-family residential use without special permits, and the city has implemented registration requirements including safety inspections and tax collection obligations. Recent changes around 2022-2023 have included stricter enforcement of existing regulations and enhanced monitoring of platforms like Airbnb and VRBO to ensure compliance, with penalties for unregistered operators including fines up to $1,000 per violation. Property owners must also collect and remit local hotel taxes, typically around 3-5%, and maintain liability insurance, while some homeowner associations in Gurnee may have additional restrictions that supersede city regulations.

The best areas for Airbnb investment in Gurnee, Illinois are primarily concentrated around the Six Flags Great America theme park corridor along Grand Avenue and the adjacent neighborhoods within a 2-mile radius, as this area attracts millions of seasonal visitors from May through October seeking convenient accommodations. The Gurnee Mills shopping district and surrounding residential areas near the outlet mall provide strong year-round potential due to shopping tourism and the proximity to major retailers that draw visitors from Wisconsin, Iowa, and throughout the Midwest. The neighborhoods near the Gurnee Marina and along the Des Plaines River offer appeal for guests seeking waterfront recreation and boating activities during summer months. Areas close to the corporate centers along Washington Street and near the Abbott Laboratories facilities in nearby North Chicago provide opportunities for business traveler accommodations, particularly given the limited hotel options in the immediate vicinity. The residential neighborhoods between Route 132 and Grandview Drive are attractive due to their proximity to both Six Flags and Gurnee Mills while offering quieter, family-friendly environments that appeal to multi-generational vacation groups visiting the area's attractions.

In Gurnee, Illinois, Airbnb hosts are subject to multiple lodging taxes including the Illinois Hotel Operators' Occupation Tax at 6% of gross rental receipts, Lake County's hotel/motel tax at approximately 3%, and Gurnee's municipal lodging tax estimated at 2-4%. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began around 2018-2019, and remitted to the appropriate tax authorities on behalf of hosts. Hosts must register with the Illinois Department of Revenue and obtain necessary permits, while also potentially needing to register locally with Gurnee for business licensing. The combined effective tax rate ranges from 11-13% of the rental amount, with exemptions generally limited to stays exceeding 30 consecutive days which may be considered long-term rentals rather than transient lodging. Hosts should verify current rates and registration requirements as tax obligations can change, and some smaller operators may still need to manually collect and remit certain local taxes if not covered by Airbnb's collection agreements.

To start an Airbnb in Gurnee, Illinois, the total costs would be approximately $285,000-$320,000. Property purchase represents the largest expense at $250,000-$275,000 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, bedding, kitchenware, and electronics from retailers like IKEA, Wayfair, and Amazon. Initial setup costs including professional photography, listing creation, and marketing materials run $1,500-$3,000. Permits and fees vary but generally include business license ($100-$300), short-term rental permit ($200-$500), and potential HOA approval fees totaling $500-$1,200. Insurance for short-term rentals costs $2,000-$4,000 annually, with companies like Proper Insurance and CBIZ offering specialized coverage. Utility setup and deposits for electricity, gas, water, internet, and cable run $500-$1,000 initially. First six months operating costs including utilities ($200-$300/month), cleaning services ($75-$150 per turnover), supplies and maintenance ($100-$200/month), platform fees (3% of bookings), and property management software subscriptions total approximately $3,000-$6,000, assuming moderate occupancy rates of 60-70% in the competitive Chicago suburban market.

Airbnb properties in Gurnee, Illinois demonstrate moderate profitability with average annual revenues ranging from $18,000-$35,000 for typical 2-3 bedroom properties, driven primarily by proximity to Six Flags Great America which attracts seasonal visitors from May through October. Operating expenses typically consume 40-55% of gross revenue, including cleaning fees ($75-100 per turnover), property management (15-25% if outsourced), utilities ($150-200 monthly), insurance ($1,200-1,800 annually), and maintenance costs averaging $2,000-3,500 yearly. Properties within 2 miles of Six Flags command premium rates of $120-180 per night during peak season compared to $80-120 for properties further away, with occupancy rates averaging 65-75% during summer months but dropping to 25-35% in winter. A case study of a 3-bedroom ranch home purchased in 2019 for $185,000 near the theme park generated $28,500 in gross revenue in 2022 with net profit margins of approximately 22% after all expenses, while properties targeting business travelers near corporate centers like Abbott Laboratories achieve more consistent year-round occupancy of 45-55% with slightly lower nightly rates of $95-130. Success factors include strategic location within 15 minutes of major attractions, professional photography, responsive guest communication, and flexible pricing strategies that capitalize on Six Flags' operating calendar and local events at the Lake County Fairgrounds.

Airbnb investments in Gurnee, Illinois typically generate annual ROI of 12-18% due to the city's proximity to Six Flags Great America and other Chicago-area attractions that drive consistent tourist demand year-round. Cash-on-cash returns generally range from 8-14% annually, with properties near the theme park and downtown area performing at the higher end of this range. Most investors achieve profitability within 18-24 months, particularly for 2-4 bedroom properties that can accommodate families visiting local attractions. The market benefits from Gurnee's strategic location along I-94 between Chicago and Milwaukee, creating steady demand from both leisure and business travelers, with peak seasons during summer months and holiday periods typically generating 25-40% higher nightly rates than off-peak times.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Gurnee, Illinois. Local real estate agents like Coldwell Banker Realty, RE/MAX, and Keller Williams in the Lake County area have agents experienced with investment properties and Airbnb regulations in Gurnee. National services include BiggerPockets for networking and deal analysis, Mashvisor for rental property analytics, and AirDNA for short-term rental market data specific to the Gurnee market. Local property management companies such as RedAwning, AvantStay, and regional firms like Lake County Property Management can assist with ongoing operations. Real estate investment companies like Roofstock and Fundrise offer turnkey solutions, while local mortgage brokers and lenders familiar with investment properties in Illinois include First Midwest Bank and Wintrust Financial. Additionally, platforms like VRBO and Airbnb themselves provide market insights, and consulting services such as STR Wealth and Learn BNB offer education and property sourcing specifically for short-term rental investments in markets like Gurnee.