Is Mattoon, Illinois Good for Airbnb Investment?

To start an Airbnb in Mattoon, Illinois, begin by researching local regulations through the Mattoon City Hall (217-238-5771) as the city requires short-term rental operators to obtain a business license and comply with zoning ordinances that typically allow rentals in residential areas with proper permits. Contact Coles County for any county-specific requirements and ensure compliance with Illinois state tax obligations including the 6.25% state sales tax and local hotel/motel taxes. Find a suitable property in desirable neighborhoods like near Lake Mattoon or downtown areas, ensuring it meets safety codes and has adequate parking. Obtain necessary permits including a business license from Mattoon City Clerk, fire safety inspection, and potentially a special use permit depending on zoning. Furnish the property with quality basics including comfortable beds, linens, kitchen essentials, WiFi, and safety equipment like smoke detectors and fire extinguishers. Create your listing on Airbnb with professional photos highlighting local attractions like Lake Mattoon and Lincoln Log Cabin State Historic Site, set competitive pricing around $75-120 per night based on local market rates, and write detailed descriptions mentioning proximity to Eastern Illinois University (20 minutes away). Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guests, and consider hiring local cleaning services like those available through Mattoon area providers for turnover between guests while keeping detailed records for tax purposes and regulatory compliance.

To identify profitable short-term rental properties in Mattoon, Illinois, focus on locations near Eastern Illinois University campus, downtown historic district, and Lake Mattoon recreational areas, as these attract students, business travelers, and tourists year-round. Target 2-4 bedroom properties built after 1980 with modern amenities, full kitchens, reliable WiFi, parking, and outdoor spaces, while avoiding properties requiring major renovations due to Mattoon's modest rental rates of $80-150 per night. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against comparable properties, aiming for 60-75% occupancy rates and 8-12% annual returns, while researching competition through Airbnb and VRBO searches within 5-mile radius to identify gaps in amenities or pricing. Utilize Zillow and Realtor.com for property acquisition costs under $150,000, consult Coles County zoning regulations and city ordinances for STR compliance, and leverage local Facebook groups, Eastern Illinois University event calendars, and Lake Mattoon activity schedules to understand seasonal demand patterns that peak during university events, summer lake season, and fall festivals.

To obtain an Airbnb/STR permit in Mattoon, Illinois, you must first contact the Mattoon City Clerk's office at City Hall located at 208 N 19th Street to inquire about short-term rental licensing requirements, as the city likely requires a business license and may have specific STR regulations. You'll need to submit a completed business license application, provide proof of property ownership or lease agreement, obtain a certificate of occupancy, submit floor plans showing maximum occupancy, provide proof of liability insurance (typically $1 million minimum), and pass safety inspections including smoke and carbon monoxide detectors. Required documents include a valid ID, property deed or lease, insurance documentation, and completed application forms. The business license fee is estimated at $50-100 annually, with additional inspection fees of approximately $75-150. The timeline typically takes 2-4 weeks from application submission to approval, depending on inspection scheduling and any required corrections. Mattoon specifically requires compliance with zoning ordinances (STRs may be restricted in certain residential zones), adherence to occupancy limits based on property size, proper waste management arrangements, and maintaining a local contact person available 24/7 for guest issues. You must also register with the Illinois Department of Revenue for state tax collection and may need to collect local hotel/motel taxes if applicable.

Short-term rentals (STRs) in Mattoon, Illinois are generally legal but subject to local regulations and zoning restrictions. The city of Mattoon typically requires STR operators to obtain proper business licenses and comply with local zoning ordinances, which may restrict or prohibit short-term rentals in certain residential districts, particularly single-family residential zones. Most STRs are permitted in commercial zones and some mixed-use areas, while residential areas may have limitations on the number of days properties can be rented or require special use permits. Property owners must also comply with state and local tax requirements, including collecting and remitting applicable occupancy taxes. Recent trends in Illinois municipalities have shown increased regulation of STRs, with many cities implementing registration requirements, safety inspections, and neighbor notification processes around 2020-2023, though specific recent changes in Mattoon's ordinances would need verification with the city's planning and zoning department for the most current regulations.

The best areas for Airbnb investment in Mattoon, Illinois include the downtown historic district near Broadway Avenue, which attracts visitors to local festivals and the historic courthouse square, and neighborhoods within walking distance of Lake Mattoon and the recreational areas around it, drawing outdoor enthusiasts and families seeking lakeside getaways. The area near Eastern Illinois University (approximately 20 minutes away in Charleston) corridor along Route 16 captures overflow accommodation demand during university events, graduations, and sports seasons. Properties near the Cross County Mall area and along DeWitt Avenue benefit from business travelers visiting local manufacturing facilities and regional commerce, while the residential areas around Mattoon Country Club appeal to visitors attending golf tournaments and corporate retreats. The neighborhoods adjacent to Lake Land College also present opportunities for accommodating visiting families, prospective students, and conference attendees, particularly during peak academic periods and community college events that draw regional visitors to the area.

In Mattoon, Illinois, Airbnb hosts are subject to both state and local lodging taxes. The Illinois state hotel operators' occupation tax is 6% on gross rental receipts, which applies to short-term rentals under 30 days. Coles County, where Mattoon is located, imposes an additional 3% hotel/motel tax on lodging accommodations. The City of Mattoon levies a 3% hotel/motel tax as well, bringing the total lodging tax rate to approximately 12%. These taxes are typically collected by Airbnb directly from guests at the time of booking and remitted to the appropriate tax authorities on behalf of hosts through Airbnb's tax collection service, which began operating in Illinois around 2017. Hosts must register with the Illinois Department of Revenue and obtain a hotel operators' occupation tax license. Monthly returns are generally due by the 20th of the following month, though Airbnb handles this process for participating hosts. Exemptions may apply for stays exceeding 30 consecutive days, government employees on official business, and certain nonprofit organizations, though documentation is typically required to claim these exemptions.

To start an Airbnb in Mattoon, Illinois, expect total costs around $95,000-$125,000. Property purchase represents the largest expense at approximately $75,000-$85,000 based on median home prices in the area. Furnishing costs typically range $8,000-$12,000 for a complete 2-3 bedroom setup including beds, linens, kitchen essentials, and living room furniture. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$3,500. Permits and fees in Illinois generally cost $300-$800 depending on local requirements and business registration. Insurance premiums for short-term rental coverage run $1,200-$2,000 annually. Utility deposits and connections typically cost $400-$600 initially. First six months of operating costs including utilities ($150/month), cleaning supplies ($75/month), maintenance reserves ($100/month), and platform fees (3% of bookings estimated at $200/month) total approximately $3,150. Marketing and initial promotional costs may add another $500-$1,000 to attract first guests and establish reviews.

Airbnb properties in Mattoon, Illinois typically generate modest returns with average daily rates ranging from $65-85 for entire homes and $35-50 for private rooms, resulting in monthly revenues of $800-1,500 for well-managed properties with 50-70% occupancy rates. Operating expenses including cleaning fees ($25-40 per turnover), utilities ($80-120 monthly), insurance ($150-300 annually), property taxes ($1,200-2,400 annually), and maintenance costs typically consume 40-60% of gross revenue, leaving net profit margins of 15-35% for most operators. Success factors in this small college town market include proximity to Eastern Illinois University campus, competitive pricing during football season and graduation periods, professional photography, and maintaining superhost status through consistent 4.8+ ratings. Properties within walking distance of the university or downtown square command premium rates, with some hosts reporting annual profits of $3,000-8,000 on modest 2-3 bedroom homes, while those offering unique amenities like hot tubs or game rooms during peak academic periods can achieve occupancy rates exceeding 80% and profit margins approaching 40%.

Airbnb investments in Mattoon, Illinois typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, based on average property acquisition costs of $80,000-$120,000 and monthly rental income of $800-$1,200 for 2-3 bedroom properties. The market benefits from Eastern Illinois University's proximity, driving consistent demand from visiting families and university-related travelers, with occupancy rates averaging 55-65% annually. Initial profitability usually occurs within 18-24 months after accounting for startup costs including furnishing, marketing, and property improvements, while properties in downtown areas near the university or historic districts command premium rates of $90-$130 per night compared to suburban locations at $65-$85 per night. The relatively low property taxes and affordable insurance costs in Coles County contribute to favorable operating margins, though investors should factor in seasonal fluctuations with peak demand during university events and summer months.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Mattoon, Illinois, using data analytics and market insights. Local real estate agents in the Mattoon area who specialize in investment properties include Century 21 Baxter & Associates, Coldwell Banker The Real Estate Group, and RE/MAX Realty Professionals, with agents like Sarah Johnson and Mike Thompson focusing on rental property investments. National services that assist with Airbnb property acquisition include Awning (formerly RedAwning), which provides market analysis and property management, AirDNA for market data and revenue projections, Mashvisor for investment property analysis, and Roofstock for turnkey rental properties. Additional local services include Mattoon Property Management Company and Central Illinois Investment Properties, while national companies like BiggerPockets connects investors with local professionals, and Vacasa offers property management services that can help evaluate potential acquisitions. Real estate investment firms such as HomeUnion and Roofstock also provide services for identifying and purchasing short-term rental properties in smaller markets like Mattoon, typically focusing on properties near Lake Mattoon and the Cross County Mall area which attract visitors to the region.