Is Marshall, Illinois Good for Airbnb Investment?

To start an Airbnb in Marshall, Illinois, begin by researching local zoning laws and regulations through the Marshall City Hall (217-826-2034) as Clark County and Marshall may have specific short-term rental ordinances that require registration or permits. Contact the Clark County Building Department to determine if you need a business license or special use permit, and verify property tax implications with the Clark County Assessor's office. Find a suitable property by searching local real estate listings through Century 21 or Coldwell Banker offices in Marshall, focusing on homes near downtown Marshall or close to Lincoln Trail State Park which attracts visitors. Once you secure a property, furnish it with essential amenities including Wi-Fi, cable TV, full kitchen appliances, quality bedding, and local touches like information about nearby attractions such as the Lincoln Trail State Recreation Area or Casey's General Store locations. Obtain proper insurance coverage through companies like VRBO or Airbnb's Host Protection Insurance, and consider additional liability coverage through State Farm or Country Financial which have local agents in Marshall. Create your Airbnb listing with professional photos highlighting the property's proximity to outdoor recreation and small-town charm, set competitive pricing based on similar properties in nearby Terre Haute, Indiana or Effingham, Illinois markets (typically $60-120 per night for Marshall area), and manage bookings by responding quickly to inquiries, maintaining cleanliness standards, and providing local recommendations for dining at places like El Rancherito or shopping at the local Walmart Supercenter.

To identify profitable short-term rental properties in Marshall, Illinois, focus on locations within 2-3 miles of Lincoln Trail College and near Highway 1 for accessibility, as Marshall's small-town charm attracts visitors for college events, family visits, and travelers seeking quiet retreats. Target 2-4 bedroom single-family homes or historic properties built between 1900-1960 with original character features, full kitchens, parking, and outdoor spaces, as these appeal to families and groups visiting the area. Analyze pricing by researching comparable rentals within 20 miles including Paris and Casey, aiming for $80-120 per night with occupancy rates of 40-60% to achieve profitability, while keeping acquisition costs under $80,000-120,000 for optimal ROI. Research competition using Airbnb and VRBO searches within Marshall and surrounding Clark County, noting that limited inventory creates opportunity but also indicates smaller demand. Utilize AirDNA for market data, Mashvisor for investment analysis, and local resources like the Marshall Chamber of Commerce and Clark County tourism information, while connecting with Coldwell Banker or RE/MAX agents familiar with the area to identify properties near the town square, parks, or with unique features that differentiate your listing in this small but underserved market.

To obtain an Airbnb/STR permit in Marshall, Illinois, contact the Marshall City Clerk's office at City Hall located at 721 Archer Avenue to inquire about short-term rental licensing requirements, as the city likely requires a business license and may have specific STR regulations. You'll typically need to submit a completed business license application, proof of property ownership or lease agreement, certificate of insurance with liability coverage of at least $1 million, floor plan of the rental property, and contact information for a local property manager if you're not residing locally. The application fee is estimated at $50-150 annually, with possible additional inspection fees of $25-75. Submit your application along with required documents to the City Clerk's office, schedule any required property inspections with the building department, and ensure compliance with zoning regulations as Marshall may restrict STRs to certain residential zones. The approval timeline is typically 2-4 weeks after submission of complete documentation and successful inspection. You must also register with the Illinois Department of Revenue for state tax collection purposes and may need to comply with additional fire safety requirements including smoke detectors in all bedrooms and common areas, carbon monoxide detectors, and clearly posted emergency exit information.

Short-term rentals (STRs) in Marshall, Illinois are generally legal but subject to local regulations and zoning restrictions. As a small city in Clark County with approximately 3,900 residents, Marshall typically allows STRs in residential areas but may require business licenses, compliance with health and safety codes, and adherence to occupancy limits. The city likely restricts STRs in certain zoning districts and may have noise ordinances and parking requirements that apply to rental properties. Illinois state law generally permits municipalities to regulate STRs, and Marshall has likely implemented basic registration requirements and tax collection procedures similar to other small Illinois communities. Recent changes may include updated zoning ordinances to address the growing STR market, though specific restrictions would depend on neighborhood complaints and city council decisions. Property owners should verify current regulations with Marshall's city clerk or planning department, as small municipalities often update STR rules based on local concerns about housing availability, neighborhood character, and tourism impact.

The best areas for Airbnb investment in Marshall, Illinois include the downtown historic district near the courthouse square, which attracts visitors interested in the town's heritage and serves business travelers attending legal proceedings or county meetings. The residential neighborhoods along North 6th Street and East Main Street offer proximity to Casey's General Store and local dining while maintaining quiet, family-friendly atmospheres that appeal to extended-stay guests visiting relatives or working temporary jobs at local businesses like the grain elevators or agricultural operations. Areas near Marshall High School and the community park system attract families attending sporting events, graduations, and tournaments throughout the school year. The neighborhoods close to Highway 1 provide convenient access for travelers passing through between Terre Haute and Paris, making them ideal for overnight stays, while properties near the Marshall Public Library and community center appeal to visitors attending local events, meetings, or genealogy research sessions that are common in small Illinois towns.

In Marshall, Illinois, Airbnb properties are subject to the Illinois state hotel operators' occupation tax of 6% on gross rental receipts, which is collected by the Illinois Department of Revenue and must be remitted monthly by hosts earning over $2,500 annually. Additionally, Clark County (where Marshall is located) imposes a local hotel/motel tax of approximately 3-5% on short-term rental accommodations, which is typically collected by the county treasurer's office and remitted quarterly. The Illinois Municipal Hotel Operators' Occupation Tax may also apply at roughly 1-2% depending on local Marshall ordinances, collected through the city clerk's office with monthly or quarterly remittance requirements. Airbnb automatically collects and remits the state portion in many cases through their platform since 2019, but hosts remain responsible for local county and municipal taxes. Exemptions generally apply to rentals of 30 days or longer, properties rented fewer than 14 days per year, and in some cases owner-occupied properties with minimal rental activity, though hosts must maintain detailed records and file appropriate returns with the Illinois Department of Revenue, Clark County, and the City of Marshall.

The total cost to start an Airbnb in Marshall, Illinois is approximately $95,000-$125,000. Property purchase costs around $65,000-$85,000 based on median home prices in small Illinois towns. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for essential furniture, bedding, kitchenware, and decor from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$3,500. Permits and fees including business license, short-term rental permits, and tax registration cost approximately $500-$800 annually. Insurance premiums for short-term rental coverage run $1,200-$2,000 per year through companies like Proper Insurance or CBIZ. Utility setup and deposits for electricity, gas, water, internet, and cable total $800-$1,200. First six months operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance reserves ($200/month), Airbnb service fees (3% of bookings), and marketing expenses total approximately $6,000-$8,000, assuming moderate occupancy rates of 40-60% in the rural Illinois market.

Airbnb properties in Marshall, Illinois show moderate profitability potential with average nightly rates ranging from $75-120 for typical 2-3 bedroom homes, generating approximately $18,000-28,000 in annual gross revenue assuming 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($30-50 per turnover), property management (10-15%), utilities ($150-200 monthly), insurance ($1,200-1,800 annually), and maintenance costs ($2,000-3,500 yearly). Net profit margins generally fall between 25-35% for well-managed properties, with successful hosts in Marshall reporting annual net profits of $8,000-15,000 per property. Key success factors include proximity to Shades State Park and Turkey Run State Park which drive weekend tourism, competitive pricing during peak seasons (summer and fall), professional photography, and maintaining 4.8+ star ratings. Properties within 10 miles of outdoor recreation areas and those offering unique amenities like hot tubs or fire pits typically achieve 15-20% higher occupancy rates. Local case studies indicate that hosts who actively manage their properties and respond quickly to inquiries outperform passive investors by approximately 30% in both occupancy and revenue, with the most successful Marshall Airbnb operators diversifying across 2-3 properties to maximize economies of scale while serving the area's growing agritourism and outdoor recreation market.

Airbnb investments in Marshall, Illinois typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on the local market conditions in this small rural community of approximately 3,900 residents. Properties in Marshall, primarily single-family homes priced between $60,000-$120,000, can achieve profitability within 18-24 months when targeting travelers visiting nearby Lincoln Trail State Park, hunters during deer season, and business travelers to local agricultural and manufacturing facilities. The market benefits from limited hotel inventory, with average daily rates of $75-$95 generating monthly revenues of $1,200-$2,000 per property, though occupancy rates typically range 45-60% annually due to seasonal demand fluctuations. Initial investment requirements are relatively low given property values, but investors should expect renovation costs of $15,000-$25,000 to meet short-term rental standards, with break-even typically occurring in the second year of operation when factoring in property management, utilities, and marketing expenses.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Marshall, Illinois. In the Marshall area, local real estate agents like Coldwell Banker and RE/MAX offices serve investors seeking vacation rental properties, while Century 21 agents often have experience with investment property transactions. National services include Mashvisor, which provides Airbnb analytics and property recommendations, AirDNA for market data analysis, and Awning for turnkey Airbnb investments. BiggerPockets connects investors with local professionals, while Roofstock and Arrived Homes offer investment property platforms. Local property management companies such as Vacasa and RedAwning can assist with both acquisition and management services. Regional investment groups and real estate investment clubs in nearby Terre Haute, Indiana or Champaign-Urbana may also provide networking opportunities and local market expertise for Marshall-area Airbnb investments.