Is Mounds, Illinois Good for Airbnb Investment?

To start an Airbnb in Mounds, Illinois, begin by researching local zoning laws and regulations through the Pulaski County Planning Department and Mounds City Hall, as this small community may have specific ordinances regarding short-term rentals that differ from larger Illinois cities. Obtain necessary permits including a business license from the city, sales tax permit from the Illinois Department of Revenue, and ensure compliance with any homeowner association rules if applicable. Find a suitable property by searching local real estate listings, considering proximity to attractions like the Cache River State Natural Area or historic sites along the Ohio River, with properties typically ranging from $30,000-80,000 in this rural area. Furnish the space with essential amenities including comfortable bedding, basic kitchen supplies, Wi-Fi, and local guidebooks highlighting nearby attractions like Fort Defiance State Park. Create your Airbnb listing with high-quality photos emphasizing the peaceful rural setting and proximity to outdoor recreation, pricing competitively at approximately $50-75 per night based on the local market. Manage your property by establishing cleaning protocols between guests, maintaining responsive communication, and partnering with local cleaning services in nearby Cairo or Metropolis since Mounds has limited service providers, while ensuring compliance with Illinois lodging tax requirements and any county-specific regulations that may apply to short-term rentals in this small Mississippi River community.

To identify profitable short-term rental properties in Mounds, Illinois, focus on properties within 15-20 minutes of major attractions like Shawnee National Forest, Cache River State Natural Area, and historic sites along the Ohio River, as these draw outdoor enthusiasts and history buffs year-round. Target 2-4 bedroom homes built after 1980 with modern amenities, full kitchens, outdoor spaces, and reliable internet, as these features command premium rates of $80-150 per night in this rural market. Analyze comparable STR properties within a 25-mile radius using AirDNA and Mashvisor to benchmark pricing against similar properties in Carbondale, Cape Girardeau, and Paducah, aiming for properties under $150,000 that can achieve 40-60% occupancy rates. Research competition by monitoring existing Airbnb and VRBO listings within 30 miles, noting gaps in amenities or property types, and leverage tools like Rabbu, PriceLabs, and local Facebook groups to understand seasonal demand patterns driven by Southern Illinois University events, hunting seasons, and summer tourism. Purchase properties near outdoor recreation access points or with unique features like waterfront views, historic character, or proximity to wineries in the Shawnee Hills region, ensuring compliance with local zoning laws and maintaining relationships with property management companies familiar with rural Illinois markets.

To obtain an Airbnb/STR permit in Mounds, Illinois, you must first contact the Mounds City Hall at 618-745-6548 or visit their office at 1340 Joppa Road to inquire about short-term rental regulations, as the city likely requires a business license and may have specific zoning requirements for rental properties. You'll need to submit 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 proof of compliance with local fire and safety codes including smoke detectors and carbon monoxide detectors in all sleeping areas. The application fee is estimated at $50-150 annually, with additional inspection fees of approximately $75-100. You must also register with the Illinois Department of Revenue for state tax collection purposes and obtain a Certificate of Registration for tax purposes. The approval timeline typically takes 2-4 weeks after submitting complete documentation, and you may need to schedule a property inspection with the city's building department. Mounds requires all STR operators to maintain a local contact person available 24/7, display the permit number in all advertising, and comply with occupancy limits based on the property's square footage and bedroom count, with parking requirements of one space per bedroom plus one additional space.

Short-term rentals (STRs) in Mounds, Illinois are generally legal but subject to state and local regulations. As a small unincorporated community in Pulaski County with a population under 1,000, Mounds likely falls under county jurisdiction rather than having its own municipal STR ordinances. Illinois state law allows STRs but permits local governments to regulate them through zoning, licensing, and taxation requirements. Pulaski County may require STR operators to obtain business licenses, collect occupancy taxes, and comply with health and safety standards. There are typically no specific prohibited areas in rural communities like Mounds unless designated by county zoning ordinances. Recent changes in Illinois include increased state oversight of STR platforms and standardized tax collection procedures implemented around 2019-2021. Property owners should verify current requirements with Pulaski County officials and ensure compliance with state tax obligations, as regulations can vary and change frequently at the local level.

The best areas for Airbnb investment in Mounds, Illinois would be the historic downtown district near the Ohio River waterfront, which attracts visitors interested in the area's Civil War history and river recreation activities. The residential neighborhoods closest to Fort Defiance State Park offer appeal for outdoor enthusiasts visiting the confluence of the Mississippi and Ohio Rivers. Areas near the Mounds City National Cemetery draw genealogy researchers and Civil War history buffs year-round. The neighborhoods with easy access to Highway 51 and Interstate 57 connections are attractive for business travelers working in the regional agriculture and transportation industries, as well as visitors to nearby Carbondale and Southern Illinois University. Properties near the Mounds City Marina and boat launch areas appeal to fishing enthusiasts and boaters exploring the river systems, particularly during spring and summer months when water recreation peaks.

Airbnb properties in Mounds, 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 earning over $2,500 annually. Additionally, properties may be subject to local occupancy taxes imposed by Pulaski County at an estimated rate of 2-3%, though specific rates and collection procedures vary by municipality. The Illinois state tax is typically collected automatically by Airbnb for participating hosts through their platform and remitted directly to the state, while local taxes may require separate registration and remittance by individual hosts to the county tax collector's office on a monthly or quarterly basis. Exemptions generally apply to stays exceeding 30 consecutive days, rentals to permanent residents, and properties rented for fewer than 15 days per year by owner-occupants, though hosts should verify current exemption criteria with the Illinois Department of Revenue and Pulaski County tax authorities as regulations were updated in 2021-2022 to better capture short-term rental revenues.

The total cost to start an Airbnb in Mounds, Illinois is approximately $85,000-$95,000. Property purchase costs around $45,000-$55,000 based on the median home price in this small southern Illinois community. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for essential furniture, bedding, kitchen supplies, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$3,500. Permits and fees are minimal in this rural area, estimated at $200-$500 for business licenses and local registration requirements. Insurance including liability and property coverage runs $1,200-$1,800 annually. Utilities including electricity, water, internet, and cable average $200-$300 monthly or $1,200-$1,800 for six months. First six months operating costs including cleaning supplies, maintenance, marketing, platform fees, and miscellaneous expenses total approximately $3,000-$4,500. Property taxes and ongoing maintenance should also be factored at roughly $1,500-$2,500 for the initial six-month period.

Airbnb properties in Mounds, Illinois face significant profitability challenges due to the town's small population of approximately 1,100 residents and limited tourist attractions, resulting in average daily rates of $45-65 compared to $85-120 in nearby metropolitan areas like St. Louis. Property owners typically generate annual revenues of $8,000-15,000 for entire home listings, while expenses including mortgage payments, utilities, cleaning fees, insurance, and Airbnb's 3% host fee often total $12,000-18,000 annually, creating negative profit margins of -15% to -25% for most operators. Success factors in this rural market include targeting extended-stay business travelers, hunters during deer season, and visitors to nearby Cahokia Mounds State Historic Site, with the most profitable properties being those owned outright without mortgage payments and positioned as budget-friendly alternatives to hotels in nearby Carbondale or Cape Girardeau. Properties that achieve profitability typically maintain occupancy rates above 60% by offering competitive pricing 20-30% below regional averages and focusing on longer-term stays of 7+ days, though even successful operators rarely exceed 10-15% profit margins due to the limited demand pool in this rural Southern Illinois location.

Airbnb investments in Mounds, Illinois typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, though these figures are conservative given the small rural market size of approximately 1,100 residents. Properties in this Southern Illinois community, often priced between $40,000-$80,000, can achieve profitability within 18-24 months when targeting visitors to nearby Cahokia Mounds State Historic Site and travelers along Interstate 57. The limited local tourism infrastructure means investors should expect occupancy rates of 35-50% annually, with average daily rates of $65-$85, making break-even typically achievable by month 20-28 depending on initial investment and renovation costs. Market dynamics favor lower-priced properties that can attract budget-conscious travelers and workers in the region, with successful properties often requiring $15,000-$25,000 in initial improvements to meet Airbnb standards.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Mounds, Illinois, offering market analysis and property recommendations. Local real estate agents in the Southern Illinois region like Coldwell Banker Boyd Real Estate and RE/MAX Realty Group have experience with investment properties in Mounds and surrounding areas. National services include Mashvisor, which provides Airbnb profitability analysis for Illinois markets, AirDNA for short-term rental data analytics, and Awning for turnkey Airbnb investment properties. BiggerPockets connects investors with local professionals familiar with the Mounds market, while RedAwning offers property management services for short-term rentals in Illinois. Local property management companies like Southern Illinois Property Management can assist with Airbnb operations, and investment-focused brokerages such as Keller Williams Realty have agents specializing in rental property acquisitions in the region. Additional services include Vacasa for property management, AvantStay for premium short-term rental investments, and local contractors and interior designers who specialize in preparing properties for Airbnb use in the Southern Illinois market.