Is Lombard, Illinois Good for Airbnb Investment?

To start an Airbnb in Lombard, Illinois, begin by researching local regulations as Lombard requires short-term rental operators to obtain a business license and comply with zoning ordinances that typically restrict rentals to no more than 30 days and require owner occupancy in residential zones. Contact the Lombard Village Hall at 255 E St Charles Road to obtain the necessary permits including a business license ($50-100 annually), occupancy permit, and ensure compliance with fire safety codes and building inspections. Find a suitable property in areas zoned for short-term rentals, focusing on single-family homes or condos near downtown Lombard or close to Metra stations for Chicago commuters. Furnish the space with quality furniture, linens, kitchen essentials, WiFi, and safety equipment including smoke detectors and carbon monoxide alarms as required by Illinois law. Create your Airbnb listing with professional photos, competitive pricing ($80-150 per night based on local market rates), and highlight proximity to Lilacia Park, downtown shopping, and Chicago transit access. For ongoing management, maintain 24/7 guest communication, coordinate cleaning between stays, handle maintenance issues promptly, collect and remit Illinois state sales tax (6.25%) plus DuPage County tax (0.75%), and ensure compliance with Lombard's noise ordinances and parking restrictions to maintain good neighbor relations and avoid violations.

To identify profitable short-term rental properties in Lombard, Illinois, focus on locations within walking distance of Yorktown Center shopping mall, near the Metra Union Pacific West line stations for Chicago commuters, and close to corporate headquarters like McDonald's in nearby Oak Brook. Target 2-3 bedroom single-family homes or condos built after 1980 with modern amenities, parking, and outdoor spaces, as these appeal to business travelers and families visiting the area. Analyze pricing by researching comparable Airbnb listings in Lombard, Villa Park, and Glen Ellyn, aiming for properties under $300,000 that can command $100-150 nightly rates during peak business travel periods. Study competition using AirDNA and Mashvisor to assess occupancy rates and revenue potential, noting that Lombard has moderate STR competition compared to downtown Chicago. Leverage tools like Zillow, Realtor.com, and local MLS data through Chicago-area real estate agents, while monitoring DuPage County regulations and Lombard's municipal codes regarding short-term rentals, and consider proximity to attractions like Morton Arboretum and easy highway access via I-355 and I-88 for guests traveling to Chicago's western suburbs.

To obtain an Airbnb/STR permit in Lombard, Illinois, you must first contact the Village of Lombard's Community Development Department at 255 E. Wilson Avenue or call (630) 620-5750 to begin the application process. Required documents typically include a completed short-term rental license application, proof of property ownership or lease agreement with landlord consent, certificate of insurance with minimum $1 million liability coverage naming the Village as additional insured, floor plan of the rental unit, contact information for a local responsible party available 24/7, and payment of applicable fees. The application fee is approximately $200-300 annually, with additional inspection fees of around $100-150. Submit your complete application to the Community Development Department, after which the Village will schedule a property inspection to ensure compliance with building, fire, and zoning codes. The approval timeline is typically 4-6 weeks from submission of a complete application. Lombard requires STR operators to maintain occupancy limits based on bedroom count (maximum 2 guests per bedroom plus 2 additional), provide adequate parking (minimum 1 space per rental unit), maintain quiet hours from 10 PM to 8 AM, post emergency contact information prominently in the rental, and renew the license annually. The property must be owner-occupied or have a designated local contact person within 30 minutes of the rental location, and operators must maintain detailed guest registries and remit applicable hotel taxes to DuPage County.

Short-term rentals (STRs) in Lombard, Illinois are currently prohibited under the city's municipal code, which does not allow residential properties to be used for transient lodging or hotel-like accommodations for periods less than 30 days. The city maintains strict zoning regulations that restrict commercial lodging activities in residential areas, and there are no specific licensing or permitting processes available for STR operations. Lombard has not experienced recent legal changes to allow STRs, unlike some neighboring municipalities in DuPage County that have adopted regulatory frameworks, and the city continues to enforce these restrictions through code enforcement actions against property owners who attempt to operate unauthorized short-term rental businesses. Property owners seeking to rent their homes for periods shorter than 30 days would be in violation of local ordinances and subject to fines and legal action.

The best areas for Airbnb investment in Lombard, Illinois include the Historic Downtown District near Main Street, which attracts visitors to the Lilacia Park (famous for its annual Lilac Festival in May), antique shops, and walkable dining options. The area around Yorktown Center offers strong potential due to proximity to major shopping, restaurants, and easy highway access for business travelers visiting nearby corporate offices in Oak Brook and Downers Grove. Properties near the Lombard Commons and Prairie Path trail system appeal to outdoor enthusiasts and families visiting the area's extensive park system. The neighborhoods around Grace Street and Highland Avenue provide good investment opportunities due to their proximity to the Metra station, making them attractive to business travelers commuting to Chicago while offering a quieter suburban experience. Areas near Enchanted Castle and Odyssey Fun World draw families with children visiting these entertainment venues, while properties close to the DuPage County Fairgrounds benefit from seasonal events and activities throughout the year.

In Lombard, Illinois, Airbnb hosts are subject to multiple lodging taxes including the Illinois Hotel Operators' Occupation Tax at 6% of gross rental receipts, DuPage County's hotel/motel tax at 3%, and Lombard's municipal hotel/motel tax at 3%, totaling approximately 12% in combined lodging taxes. The state tax is collected by the Illinois Department of Revenue with monthly remittance required for hosts with over $20,000 in annual receipts, while smaller operators may file quarterly. County and municipal taxes are typically collected by their respective tax departments, with DuPage County requiring registration and monthly filing by the 20th of the following month, and Lombard requiring similar monthly remittance procedures. Airbnb may collect and remit some of these taxes directly on behalf of hosts through their platform, particularly the state hotel tax as of 2018, but hosts remain responsible for verifying compliance and may need to register separately with local jurisdictions. Exemptions generally apply to stays exceeding 30 consecutive days, rentals to permanent residents, and certain government or charitable organization bookings, though specific exemption criteria vary by jurisdiction and hosts should verify current requirements with each taxing authority.

To start an Airbnb in Lombard, Illinois, expect total costs around $385,000-$425,000. Property purchase represents the largest expense at $350,000-$380,000 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 setup including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and marketing materials run approximately $1,500-$2,500. Permits and fees in DuPage County include business license ($100-$200), short-term rental permit if required ($200-$500), and potential HOA approval fees ($100-$300). Insurance costs for short-term rental coverage average $2,000-$3,000 annually, so budget $1,000-$1,500 for six months. Utility setup and deposits for electricity, gas, water, internet, and cable total around $500-$800 initially, with monthly costs of $200-$300, so $1,200-$1,800 for six months. First six months operating costs including cleaning services ($150 per turnover), maintenance reserves, property management software subscriptions, and miscellaneous supplies add another $3,000-$5,000 depending on occupancy rates and property condition.

Airbnb properties in Lombard, Illinois typically generate annual revenues of $15,000-$35,000 for entire homes and $8,000-$18,000 for private rooms, with average daily rates ranging from $85-$150 depending on property size and amenities. 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 maintenance costs averaging $2,000-$4,000 yearly. Net profit margins typically range from 15-35% for well-managed properties, with successful hosts in Lombard's downtown area near Lilacia Park achieving higher occupancy rates of 65-75% compared to suburban locations at 45-60%. Key success factors include proximity to corporate centers like Oak Brook and Schaumburg (driving business travel demand), competitive pricing 10-15% below Chicago rates while offering suburban comfort, professional photography, and maintaining 4.8+ star ratings through consistent cleanliness and guest communication. Properties within walking distance of Metra stations and featuring amenities like parking, WiFi, and kitchen facilities typically outperform by 20-30% in both occupancy and pricing power, with some hosts reporting monthly net profits of $1,200-$2,800 on properties purchased specifically for short-term rental investment.

Airbnb investments in Lombard, Illinois typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in Lombard's established neighborhoods near downtown and transit corridors show stronger performance, with average daily rates of $85-120 and occupancy rates of 65-75% annually. Initial investment recovery and profitability generally occurs within 18-24 months for well-positioned properties, considering Lombard's proximity to Chicago's O'Hare Airport and corporate centers in nearby Oakbrook and Schaumburg which drive consistent business traveler demand. The market benefits from DuPage County's strong economic fundamentals and limited short-term rental supply, though investors should factor in startup costs of $8,000-15,000 for furnishing and initial marketing, with ongoing expenses typically running 25-35% of gross revenue including cleaning, maintenance, and platform fees.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors, including in Lombard, Illinois. Local real estate agents in the Lombard area who focus on investment properties include Coldwell Banker Realty agents, RE/MAX professionals, and Keller Williams Realty specialists who understand the DuPage County market dynamics. National services like Awning, Mashvisor, and AirDNA provide market analysis and property identification tools for Airbnb investors targeting the Chicago suburbs. BiggerPockets connects investors with local professionals, while companies like Roofstock and Arrived Homes offer turnkey investment opportunities. Local property management companies such as RedAwning, AvantStay, and regional Vacasa representatives can assist with both acquisition and ongoing management of short-term rental properties in Lombard. Real estate investment firms like HomeVestors and local investment groups through the Real Estate Investors Association of DuPage County provide additional resources for finding profitable Airbnb properties in this Chicago suburb market.