Is Mound City, Illinois Good for Airbnb Investment?

To start an Airbnb in Mound City, Illinois, begin by researching local zoning laws and regulations through the Mound City municipal office, as this small town in Pulaski County may have specific ordinances regarding short-term rentals that differ from larger cities. Contact the Mound City clerk's office to determine if you need a business license or special permits for operating a short-term rental, and check with Pulaski County for any county-level requirements. Find a suitable property by searching local real estate listings or working with agents familiar with Mound City's housing market, focusing on properties near the Ohio River or historic downtown area that might appeal to tourists visiting southern Illinois. Once you secure a property, furnish it with essential amenities including comfortable bedding, kitchen supplies, Wi-Fi, and local guidebooks highlighting nearby attractions like Fort Defiance State Park. Obtain necessary insurance coverage for short-term rentals and ensure compliance with Illinois state tax requirements for lodging. Create your Airbnb listing with high-quality photos showcasing the property and Mound City's charm, set competitive pricing based on similar properties in the region (likely $50-80 per night given the rural location), and establish house rules appropriate for the quiet, small-town setting. Manage your property by maintaining regular cleaning schedules, responding promptly to guest inquiries, and building relationships with local service providers for maintenance needs, while staying updated on any changes to Mound City's regulations as the short-term rental market evolves.

To identify profitable short-term rental properties in Mound City, Illinois, focus on properties within walking distance of the Mississippi River waterfront and historic downtown area, as these locations attract tourists visiting Cahokia Mounds State Historic Site and river recreation activities. Target 2-3 bedroom single-family homes or historic properties built between 1900-1950 with original character features, updated kitchens and bathrooms, reliable WiFi capability, and parking availability, as these appeal to families and history enthusiasts visiting the region. Conduct pricing analysis by researching comparable Airbnb and VRBO listings within a 10-mile radius including nearby Cahokia and East St. Louis, aiming for nightly rates between $80-120 based on seasonal demand from spring through fall when outdoor activities peak. Research competition by analyzing occupancy rates and guest reviews of existing STRs in the area, noting that limited inventory in this small market of approximately 600 residents creates opportunity for well-positioned properties. Utilize tools like AirDNA for market data, STR Helper for revenue projections, and Mashvisor for investment analysis, while monitoring local regulations through Pulaski County offices and connecting with the Mound City Chamber of Commerce to understand tourism patterns and upcoming developments that could impact demand.

To obtain an Airbnb/STR permit in Mound City, Illinois, contact the Mound City City Hall at 618-745-6458 or visit their office at 515 7th Street to inquire about short-term rental regulations, as this small municipality may not have formal STR ordinances but typically requires a business license application which costs approximately $25-50 annually. You'll likely need to provide a completed business license application, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, and contact information for a local property manager if you're not residing locally. The application process typically takes 2-4 weeks for approval, and you must ensure compliance with Pulaski County health department requirements for septic and water systems, Illinois Department of Revenue registration for collecting state and local taxes, and maintain occupancy limits based on bedroom count and square footage. Additionally, you'll need to register with the Illinois Department of Revenue for tax collection purposes and may need to obtain a fire safety inspection from the local fire department, with total setup costs ranging from $200-500 including permits, inspections, and insurance requirements.

Short-term rentals (STRs) in Mound City, Illinois are generally legal but operate under limited local regulation as of 2024. The small city of approximately 500 residents in Pulaski County does not appear to have comprehensive STR-specific ordinances, meaning properties can typically operate as vacation rentals subject to basic zoning compliance and state tax requirements. Property owners must register with the Illinois Department of Revenue for state lodging taxes and ensure compliance with local building codes and safety regulations. There are no known prohibited areas specifically for STRs within the city limits, though residential zoning restrictions may apply to commercial-style operations. Recent legal changes have been minimal at the local level, with most regulatory updates coming from state-level tax and safety requirements implemented between 2020-2023. Given Mound City's proximity to recreational areas and the Ohio River, STRs primarily serve tourists and outdoor enthusiasts, with the city maintaining a relatively permissive approach compared to larger Illinois municipalities that have implemented stricter licensing and operational requirements.

The best areas for Airbnb investment in Mound City, Illinois would be the historic downtown district near the riverfront, which attracts visitors interested in Civil War history and Mississippi River heritage tourism, particularly around the Mound City National Cemetery area where Civil War reenactments and memorial events draw seasonal visitors. The residential neighborhoods within walking distance of the cemetery and any remaining historic sites would be ideal for history buffs and genealogy tourists. Areas near the riverfront or with river views would appeal to recreational boaters, fishermen, and tourists exploring the Mississippi River corridor. The vicinity around any local parks or recreational facilities would attract families and outdoor enthusiasts visiting for camping, hiking, or river activities. Properties near the main commercial strip or highway access points would capture business travelers and visitors passing through the region, while neighborhoods close to any local event venues or community centers would benefit from periodic influxes of visitors attending local festivals, family reunions, or community gatherings that are common in small Illinois river towns.

Airbnb properties in Mound City, Illinois are subject to multiple layers of lodging taxes including Illinois state hotel occupancy tax at 6% on rentals under 30 days, Pulaski County occupancy tax at approximately 3-5%, and potentially local municipal lodging taxes that can range from 2-4%. The Illinois Department of Revenue requires hosts to register for a tax account and collect state occupancy tax from guests, with monthly remittance due by the 20th of the following month for properties generating over $1,000 in monthly rental income. Pulaski County requires separate registration and quarterly remittance of county occupancy taxes, while any municipal taxes would be collected and remitted according to local ordinances. Airbnb may collect and remit some of these taxes automatically through their platform depending on agreements with local jurisdictions, but hosts remain ultimately responsible for compliance. Exemptions typically apply to rentals of 30 days or longer, stays by permanent residents, and certain government or charitable organization bookings, though hosts must maintain proper documentation to claim exemptions and should verify current rates and procedures with the Illinois Department of Revenue, Pulaski County, and Mound City municipal offices as tax rates and collection methods can change.

To start an Airbnb in Mound City, Illinois, expect total costs around $85,000-$95,000. Property purchase represents the largest expense at approximately $65,000-$75,000 based on median home prices in rural southern Illinois markets. Furnishing costs typically range $8,000-$12,000 for a complete 2-3 bedroom setup including beds, linens, kitchen essentials, and living room furniture from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$3,000. Permits and fees vary but budget $500-$1,000 for business licenses, short-term rental permits, and any required inspections through Pulaski County. Insurance costs approximately $1,200-$1,800 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utility deposits and connections for electricity, water, gas, internet, and cable total around $800-$1,200. First six months operating costs including utilities ($150/month), cleaning supplies ($100/month), maintenance reserves ($200/month), platform fees to Airbnb (3% of bookings), and marketing budget total approximately $3,500-$4,500, assuming moderate occupancy rates of 40-50% typical for rural Illinois markets.

Airbnb properties in Mound City, Illinois face challenging profitability conditions due to the small market size and limited tourism demand in this rural community of approximately 600 residents. Properties typically generate $15,000-25,000 annually in gross revenue, with average daily rates around $65-85 and occupancy rates of 35-45%, significantly lower than Illinois state averages. Operating expenses including mortgage payments, utilities, cleaning fees, insurance, and maintenance typically consume 70-80% of gross revenue, leaving net profit margins of 20-30% or roughly $3,000-7,500 annually per property. Success factors include proximity to outdoor recreation areas like Horseshoe Lake State Park, competitive pricing strategies, and targeting fishing or hunting enthusiasts visiting the Mississippi River region. Properties that differentiate themselves through unique amenities like boat access, hunting lodge themes, or pet-friendly accommodations tend to achieve higher occupancy rates around 50-60%. The limited local infrastructure and distance from major metropolitan areas like St. Louis (approximately 2 hours) constrains demand growth, making Mound City more suitable for investors seeking modest supplemental income rather than primary revenue streams from short-term rentals.

Based on Mound City, Illinois market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property acquisition costs and occupancy rates. Properties in this small southern Illinois community near the Mississippi River generally achieve profitability within 18-24 months, with average nightly rates of $75-$120 and occupancy rates of 45-60% annually. Initial investment costs are relatively low at $80,000-$150,000 for suitable properties, while monthly operating expenses including utilities, cleaning, and maintenance typically run $800-$1,200. The proximity to Cahokia Mounds State Historic Site and outdoor recreation opportunities along the Mississippi River drive seasonal demand, with peak performance during spring and fall months generating 15-20% higher returns than winter periods.

STRSearch is a national platform that specializes in identifying profitable short-term rental investment opportunities including Airbnb properties in Mound City, Illinois. Local real estate agents serving the Mound City area include Coldwell Banker, RE/MAX, and Century 21 offices in nearby Cairo and Metropolis who have experience with investment properties. National services like Mashvisor, AirDNA, and BiggerPockets provide market analysis and property identification tools for Airbnb investors in smaller Illinois markets. Roofstock and Arrived Homes offer turnkey rental property investments that may include short-term rental opportunities in southern Illinois. Local property management companies such as Southern Illinois Property Management and regional firms like Renters Warehouse can assist with Airbnb property operations. Real estate investment companies like HomeVestors and We Buy Ugly Houses occasionally have properties suitable for Airbnb conversion in rural Illinois markets. Additionally, LoopNet and commercial real estate brokers in the region can help identify multi-family or commercial properties for short-term rental conversion in Mound City and surrounding Pulaski County areas.