Is Kempton, Illinois Good for Airbnb Investment?

To start an Airbnb in Kempton, Illinois, begin by researching Ford County and Kempton village regulations, as this small rural community may have specific zoning restrictions for short-term rentals - contact the Ford County Clerk's office and Kempton Village Hall to understand local ordinances and any required business licenses or permits. Find a suitable property by searching local real estate listings through companies like Century 21 or Coldwell Banker, focusing on homes with multiple bedrooms near attractions like Gibson City or Paxton since Kempton has limited commercial amenities. Once you secure a property, obtain necessary permits including a business license from Ford County (typically $25-50), ensure compliance with Illinois Department of Public Health regulations for lodging facilities, and verify your homeowner's insurance covers short-term rentals or purchase additional coverage. Furnish the property with essential amenities including quality bedding, kitchen supplies, WiFi, and local guidebooks highlighting nearby attractions like the Ford County Historical Society or Paxton's antique shops. Create your Airbnb listing with professional photos, competitive pricing around $75-125 per night based on rural Illinois markets, and emphasize the peaceful rural setting and proximity to larger towns. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges (consider a lockbox system given the rural location), and maintaining relationships with local service providers in Gibson City or Paxton for maintenance needs, while ensuring compliance with Illinois tax requirements including collecting and remitting state and local occupancy taxes.

For identifying profitable STR properties in Kempton, Illinois, focus on properties within 2-3 miles of Interstate 57 for easy highway access, near agricultural facilities like grain elevators or processing plants that attract business travelers, and close to Kankakee River recreational areas which draw weekend visitors. Target 2-4 bedroom single-family homes or farmhouse-style properties built after 1980 with modern amenities, full kitchens, reliable internet, and parking for multiple vehicles, as these appeal to both business travelers and family groups visiting the rural area. Conduct pricing analysis by researching comparable rentals within a 15-mile radius including Watseka and Gilman, aiming for nightly rates between $80-150 depending on property size and amenities, with potential for higher rates during harvest season and summer recreation periods. Research competition using Airbnb and VRBO searches within 20 miles, noting that limited inventory in this rural market creates opportunities for well-positioned properties. Utilize tools like AirDNA for market data, Mashvisor for investment analysis, and local resources including the Iroquois County Economic Development Corporation for area insights, while connecting with Watseka-area real estate agents familiar with rural investment properties and monitoring agricultural commodity prices and seasonal patterns that drive demand in this farming community.

To obtain an Airbnb/STR permit in Kempton, Illinois, you must first contact the Kempton Village Hall or Ford County Planning and Zoning Department since Kempton is a small village that may fall under county jurisdiction for short-term rental regulations. Begin by submitting an application form available at the village office or county planning department, along with required documents including proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, parking plan showing adequate guest parking, and contact information for a local property manager if you live more than 50 miles away. You'll need to pay application fees estimated at $150-300 initially plus annual renewal fees of approximately $100-200, and potentially additional inspection fees of $75-150. The property must undergo a safety inspection to verify working smoke detectors, carbon monoxide detectors, fire extinguishers, and compliance with building codes, while also meeting zoning requirements that may limit STRs to certain residential districts with possible restrictions on the number of guests (typically 2 per bedroom plus 2 additional) and quiet hours from 10 PM to 8 AM. The approval timeline typically takes 30-60 days from complete application submission, and you must also register with the Illinois Department of Revenue for state tax collection purposes and potentially obtain a Ford County business license, with annual permit renewals required and the understanding that neighbors within 200 feet may be notified of your application.

Short-term rentals (STRs) in Kempton, Illinois are generally legal but subject to state and local regulations. As a small unincorporated community in Ford County, Kempton falls under county jurisdiction rather than having its own municipal STR ordinances. Illinois state law allows STRs but requires hosts to register with the Illinois Department of Revenue, collect and remit state and local taxes, and comply with safety requirements including smoke detectors and carbon monoxide detectors. Ford County does not appear to have specific STR restrictions as of 2023, though property owners must still comply with zoning regulations and any homeowners association rules. The state implemented more comprehensive STR regulations around 2021-2022, requiring registration and tax compliance, but did not prohibit the practice. Since Kempton is primarily residential and rural, most properties would likely be permitted for STR use unless specifically restricted by deed covenants or HOA agreements, though hosts should verify current county zoning requirements and ensure proper registration with state authorities.

Kempton, Illinois is a very small unincorporated community in Ford County with limited Airbnb investment opportunities due to its rural nature and minimal tourist infrastructure. However, the most viable areas would be properties near the intersection of County Road 3000N and County Road 1800E where the community center is located, as this represents the heart of the settlement and could attract visitors interested in rural agricultural tourism or those attending local farming events and auctions. Properties along the nearby Kankakee River corridor, approximately 10 miles south, could appeal to fishing enthusiasts and outdoor recreation visitors seeking a quiet rural retreat. The area around Gibson City, about 15 miles northeast, offers better potential due to its larger population base and proximity to agricultural businesses that might generate occasional business travel, plus it hosts the annual Ford County Fair which could drive short-term rental demand. Investment properties near Paxton, roughly 20 miles east, would benefit from being closer to Interstate 57 and the University of Illinois extension programs, potentially attracting agricultural researchers and university visitors.

Airbnb properties in Kempton, Illinois are subject to the Illinois Hotel Operators' Occupation Tax at a rate of 6% on gross rental receipts, which is collected by the Illinois Department of Revenue and must be remitted monthly by hosts who exceed $2,500 in annual rental income. Additionally, Will County (where Kempton is located) imposes a 3% county hotel tax that applies to short-term rentals under 30 days, collected through the same state system with monthly remittance required. The Village of Kempton does not currently impose a separate municipal lodging tax as of 2023, though hosts must register with the village for business licensing purposes. Tax collection is typically handled through Airbnb's automated system for participating jurisdictions, though hosts remain ultimately responsible for compliance and may need to file directly with the Illinois Department of Revenue depending on their rental volume. Exemptions include rentals to permanent residents (30+ days), rentals to government employees on official business, and properties rented for less than 15 days per year by owner-occupants, though documentation requirements apply for claiming these exemptions.

The total cost to start an Airbnb in Kempton, Illinois would be approximately $185,000-$220,000. Property purchase costs around $120,000-$140,000 based on median home prices in rural Illinois communities. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, bedding, kitchenware, and appliances from retailers like IKEA, Wayfair, and local furniture stores. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees including business license, short-term rental permits, and inspection fees range from $500-$1,500 depending on local regulations. Insurance premiums for short-term rental coverage cost $2,000-$3,000 annually. Utility deposits and setup fees 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), property management software ($50/month), and marketing expenses ($100/month) amount to approximately $6,300. Additional working capital of $5,000-$10,000 should be reserved for unexpected repairs, vacancy periods, and initial marketing efforts to establish the property in the competitive short-term rental market.

Airbnb properties in Kempton, Illinois face challenging profitability conditions due to the town's small population of approximately 200 residents and limited tourist attractions, with average daily rates typically ranging from $75-$120 for entire homes. Revenue potential is constrained by low occupancy rates of 25-35% annually, generating estimated gross revenues of $6,800-$15,000 per property yearly. Operating expenses including property taxes ($2,000-$4,000), utilities ($1,800-$2,400), cleaning fees ($50-$75 per turnover), insurance ($800-$1,200), and maintenance ($1,500-$3,000) typically consume 60-75% of gross revenue. Properties within 30 miles of larger markets like Champaign-Urbana or targeting hunting/fishing enthusiasts during peak seasons show better performance, with some hosts achieving 15-25% profit margins by focusing on weekend bookings and outdoor recreation packages. Success factors include competitive pricing below $100/night, partnerships with local hunting outfitters, and marketing to visitors of nearby universities or business travelers, though most properties struggle to exceed $3,000-$5,000 in annual net profit due to the rural location's limited demand drivers.

Airbnb investments in Kempton, Illinois typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, though these figures are conservative due to the small rural market size and limited tourist demand in this agricultural community of approximately 200 residents. Properties in Kempton, located in Ford County, generally require 18-24 months to reach profitability given the seasonal nature of bookings and lower nightly rates of $75-120 compared to larger Illinois markets. The investment outlook is modest as Kempton lacks major attractions or business centers that drive consistent short-term rental demand, with most bookings coming from travelers seeking rural experiences or visiting nearby Champaign-Urbana area, making it more suitable for investors seeking steady but limited 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 Kempton, Illinois. Local real estate agents specializing in investment properties include Coldwell Banker Honig-Bell in nearby Watseka and Century 21 Coleman-Hornsby in Kankakee, both serving the Kempton area since the early 2000s. National services like Mashvisor (founded 2014) and AirDNA (established 2015) offer market analytics and property identification tools for the Illinois market. BiggerPockets, launched in 2004, provides investor networking and deal-finding resources with active Illinois investor communities. Local property management companies such as Vacasa and RedAwning have expanded into rural Illinois markets since 2018, offering turnkey Airbnb management services. Real estate investment firms like Roofstock and Fundrise have identified emerging markets in central Illinois, including areas around Kempton, for short-term rental opportunities. Regional brokerages such as RE/MAX and Keller Williams have developed specialized investor services teams focusing on vacation rental properties throughout Illinois since 2016.