ChicagoShort-term rental rules

Largest 50 cities / Illinois

Chicago requires a per-unit registration or operator license through BACP and bars non-owner-occupied rentals in single-family homes and small 2-4 unit buildings, though larger buildings face only a density cap. Registrations and licenses do not transfer, so a buyer always reapplies.

Research reviewed Oct 18, 2026. Original city review.

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Does the operating permit transfer?: New application
Both the registration and the license are non-transferable by code, and any pre-2016 grandfathered investor status is tied to the existing license, not confirmed to carry over to a new owner.
Can the land-use approval continue?: Verify the property approval
The operating-permit rule does not establish whether this parcel’s zoning approval, variance or older-use protection continues. Obtain the actual approval and its conditions.
Can this buyer obtain approval?: Investor rentals are barred in single-family and 2-4 unit buildings unless grandfathered from 2016; buildings of five-plus units allow up to 12.5% of units or six, whichever is less.
License or registration: BACP issues a Shared Housing Unit Registration at $250 a year, or an Operator License for hosts with two or more units at $500.
Application availability: Confirm current availability
Application availability was not separately reverified for this explorer. Check the city’s current program, cap, lottery or waitlist before relying on the seller’s rental history.
Timing to verify: No sale-specific deadline was established in this summary. Ask the issuing office about filing, renewal and any interruption in operation.
Changes and uncertainty: City of Chicago v. Airbnb and Slumber Stay, filed June 2026 over unregistered units, remains unresolved.

What this means for the appraisal

Obtain the buyer application requirements and confirm the earliest approved operating date before assuming continuity of rental income.
Verify the property’s land-use approval and continuation conditions. Research finding: Verify the property approval.
Check the proposed buyer against the recorded requirements: Investor rentals are barred in single-family and 2-4 unit buildings unless grandfathered from 2016; buildings of five-plus units allow up to 12.5% of units or six, whichever is less.
In the assignment analysis, identify the evidence supporting the proposed rental use, any operating interruption and any unresolved assumptions.

Use these prompts to plan the property review. The appraiser must evaluate the evidence and reach the assignment-specific conclusions.

Record the property evidence in a worksheet

Request documents from the owner or agent

Copy this market-specific request, add the property address and edit it for the assignment.

Read or select the document request

Document request for Chicago

Subject: STR property document request | Chicago, IL

Please provide the following documents for the property under review. Identify any item that is unavailable or does not apply.

1. Property address, parcel ID and confirmation of the governing jurisdiction.
2. Current operating permit or registration, named holder, expiration date and renewal history, if applicable.
3. Written ownership-change instructions from the issuing office. Guide finding: Both the registration and the license are non-transferable by code, and any pre-2016 grandfathered investor status is tied to the existing license, not confirmed to carry over to a new owner.
4. Zoning approval, conditional-use permit, variance or grandfathering record, including conditions and evidence of continued use. Guide finding: The operating-permit rule does not establish whether this parcel’s zoning approval, variance or older-use protection continues. Obtain the actual approval and its conditions.
5. Documents addressing the proposed buyer and property requirements: Investor rentals are barred in single-family and 2-4 unit buildings unless grandfathered from 2016; buildings of five-plus units allow up to 12.5% of units or six, whichever is less.
6. Current confirmation of application availability, including any cap, waitlist, lottery or separation rule. Guide finding: Application availability was not separately reverified for this explorer. Check the city’s current program, cap, lottery or waitlist before relying on the seller’s rental history.
7. Recorded covenants, HOA or condominium rental restrictions and applicable lease restrictions.
8. Rental operating statements and booking records, with the periods covered and any anticipated interruption at closing.

Market research reviewed: 2026-10-18. These requests need property-specific verification.
Official research sources:
M.C.C. 4-14-020 Shared housing unit registration: https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2611567
M.C.C. 4-4-190 Nontransferability: https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2608988

Subject: STR property document request | Chicago, IL

Please provide the following documents for the property under review. Identify any item that is unavailable or does not apply.

1. Property address, parcel ID and confirmation of the governing jurisdiction.
2. Current operating permit or registration, named holder, expiration date and renewal history, if applicable.
3. Written ownership-change instructions from the issuing office. Guide finding: Both the registration and the license are non-transferable by code, and any pre-2016 grandfathered investor status is tied to the existing license, not confirmed to carry over to a new owner.
4. Zoning approval, conditional-use permit, variance or grandfathering record, including conditions and evidence of continued use. Guide finding: The operating-permit rule does not establish whether this parcel’s zoning approval, variance or older-use protection continues. Obtain the actual approval and its conditions.
5. Documents addressing the proposed buyer and property requirements: Investor rentals are barred in single-family and 2-4 unit buildings unless grandfathered from 2016; buildings of five-plus units allow up to 12.5% of units or six, whichever is less.
6. Current confirmation of application availability, including any cap, waitlist, lottery or separation rule. Guide finding: Application availability was not separately reverified for this explorer. Check the city’s current program, cap, lottery or waitlist before relying on the seller’s rental history.
7. Recorded covenants, HOA or condominium rental restrictions and applicable lease restrictions.
8. Rental operating statements and booking records, with the periods covered and any anticipated interruption at closing.

Market research reviewed: 2026-10-18. These requests need property-specific verification.
Official research sources:
M.C.C. 4-14-020 Shared housing unit registration: https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2611567
M.C.C. 4-4-190 Nontransferability: https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2608988

Research and guide updates

Oct 18, 2026 Research record: Research recorded for this market. Original city review. See the findings, open questions and official sources below.
Nov 1, 2026 Guide tools: Added assignment prompts, a document request and consistent research questions. This tool update does not change the market research date.

Changes and uncertainty to verify

City of Chicago v. Airbnb and Slumber Stay, filed June 2026 over unregistered units, remains unresolved.

Sources and research limits

Carried forward from the October 18, 2026 city research. The explorer separates the operating permit from land-use rights; this is not a new verification of all current city rules.

Use this summary to identify the documents and questions for a property review. A seller's rental history alone does not establish a buyer's permission to operate.

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