Airbnb Investment Gold: Unearthing Illinois' Best Markets

In the dynamic world of Airbnb investment, the choice of location is crucial. This article offers an in-depth exploration of the top markets in Illinois for Airbnb investors. From hidden gems like Ottawa to bustling cities like Chicago, we delve into key metrics such as return on investment (ROI),aAverage daily rate (ADR), and occupancy rates. Whether you're a seasoned investor or just starting out, this guide provides valuable insights to help you make informed investment decisions in the Illinois Airbnb market.

Discover the hidden gems of Airbnb markets across the United States effortlessly with Awning's Top Airbnb Market tool. This powerful tool is updated monthly, providing comprehensive rankings and direct links to each market's Airbnb data, allowing you to make informed decisions with ease.

Exploring the Illinois landscape, several markets stand out for Airbnb investments:

1. Ottawa, IL - Best for Growth Potential and Affordability
2. Springfield, IL - Best for Historical Significance
3. Chicago, IL - Best for High Demand and Revenue Potential
4. Champaign, IL - Best for Consistent Return on Investment
5. Rockford, IL - Best for Affordable Investment Options
6. Antioch, IL - Best for Location Near Tourist Destinations
7. Libertyville, IL - Best for High-end Properties
8. Urbana, IL - Best for Growing Tech Industry
9. Oak Park, IL - Best for Proximity to Major Cities

1. Ottawa, IL

Nestled in the heartland of Illinois, Ottawa beckons as an enticing investment opportunity in the short-term rental market. With its prime location near the majestic Starved Rock State Park and the scenic Illinois River, this charming city attracts a steady stream of visitors throughout the year, setting the stage for a promising venture.

A remarkable ROI of 12% awaits investors who seize the opportunity in Ottawa. With an estimated annual revenue of $22,000, this market showcases its potential for robust returns. Additionally, the average price of an Airbnb in the area is $160k, making it an affordable option for those looking to enter the market. The small market size, with 58 Airbnb listings, indicates a manageable level of competition for investors.

Embrace Ottawa's natural wonders and outdoor recreational activities as the selling points for your Airbnb property. Highlight the proximity to the awe-inspiring Starved Rock State Park, inviting guests to explore its scenic trails, towering canyons, and cascading waterfalls. Promote the opportunity for hiking, bird-watching, fishing, and boating along the picturesque Illinois River, capturing the attention of outdoor enthusiasts and nature lovers.

When designing your Airbnb space, strive to create an inviting and cozy atmosphere that reflects the warmth of Midwestern hospitality. Consider incorporating elements of nature-inspired decor, comfortable furnishings, and thoughtful amenities that enhance the guest experience. Whether it's a private outdoor seating area to enjoy the fresh air or a well-equipped kitchen for preparing local delicacies, provide the comforts of home combined with the allure of Ottawa's natural beauty.

Beyond the allure of its natural landscapes, Ottawa boasts a rich historical and cultural heritage. Encourage guests to explore the charming downtown area, which is dotted with unique shops, art galleries, and delightful dining establishments. Showcase local events and festivals that showcase the community's vibrant spirit, enticing visitors to immerse themselves in the local culture and create lasting memories.

With an average daily rate of $145 and an occupancy rate of 64%, Ottawa presents a room for optimization to increase occupancy and maximize revenue. Position your property as a peaceful haven for travelers seeking a rejuvenating escape, an outdoor adventure, or a memorable rendezvous with nature.

2. Springfield, IL

Step into the realm of opportunity in Springfield, IL, a captivating destination that holds historical significance and enthralls visitors with its rich heritage. As an investor seeking a profitable Airbnb market, this vibrant city offers a promising landscape with its association with the legendary Abraham Lincoln and its allure as a thriving hub of museums, festivals, and events.

With an estimated ROI of 11%, investing in Airbnb properties in Springfield offers the potential for attractive returns. The average revenue of $12k suggests the potential for profitable earnings in Springfield.  The small market size of 184 Airbnb listings indicates a healthy level of competition, allowing investors to find opportunities to establish a presence in the market.

The average Airbnb price of $108,000 reflects the value placed on properties in this historically significant location, appealing to investors seeking an affordable entry point with promising prospects.

Embrace the charm of Springfield's rich history and its connection to Abraham Lincoln as a key selling point for your Airbnb property. Highlight the proximity to iconic landmarks such as the Abraham Lincoln Presidential Library and Museum, the Lincoln Home National Historic Site, and the Old State Capitol. Encourage guests to explore these significant sites and delve into the fascinating story of one of America's most revered presidents.

When designing your Airbnb space, infuse it with elements that pay homage to Springfield's historical significance and cultural heritage. Consider incorporating tasteful decor inspired by the Victorian era or the Lincoln era, blending modern comforts with nods to the city's illustrious past. Create a welcoming ambiance that invites guests to step back in time while enjoying the conveniences and amenities of the present.

Aside from its historical attractions, Springfield embraces a vibrant cultural scene and hosts numerous festivals and events throughout the year. Encourage guests to explore the city's dynamic downtown, with its charming boutiques, art galleries, and delectable dining options. Highlight local events such as the Illinois State Fair, the International Route 66 Mother Road Festival, or the Old Capitol Art Fair, enticing visitors to immerse themselves in the vibrant spirit of the city.

With an average daily rate of $82 and an impressive occupancy rate of 76%, Springfield offers a good opportunity to generate consistent revenue in the short-term rental market. Position your property as a gateway to history, inviting guests to immerse themselves in the city's heritage while indulging in modern comforts and conveniences.

3. Chicago, IL

Welcome to the enchanting world of Chicago, the bustling metropolis that offers a wealth of opportunities for investors in the short-term rental market. As one of the most iconic cities in the United States, Chicago boasts high tourism rates, a vibrant culture, diverse neighborhoods, and a strong demand for accommodations during major events and conferences.

With an estimated ROI of 4%, investing in short-term rentals in Chicago offers the potential for decent returns. The large market size, with 7,731 Airbnb listings, indicates a robust and competitive market. However, the high demand for accommodations in the city can provide ample opportunities for investors to attract guests and generate revenue. Chicago’s average Airbnb price of $559,000 reflects the value placed on properties in this thriving city.

The average revenue of $17k indicates the potential for profitable earnings in the Chicago market. However, it's important to note that pricing and revenue potential can vary based on factors such as location, property size, amenities, and the overall quality of the listing. Investors should carefully analyze their target market and competitively price their properties to maximize revenue.

With an ADR of $121 and an occupancy rate of 64%, there is potential for optimization to increase occupancy and maximize revenue. Investors can consider implementing pricing strategies, improving property amenities, optimizing listing descriptions and photos, and providing excellent guest experiences to attract a higher occupancy rate.

Chicago is a major tourist destination, attracting visitors from around the world. The city offers a wide range of attractions, including iconic landmarks like Millennium Park, Navy Pier, the Art Institute of Chicago, and the Magnificent Mile. The city's vibrant arts and culture scene, renowned dining options, and various festivals and events throughout the year make it a popular choice for tourists.

The area is a city of neighborhoods, each with its distinct character and charm. Whether it's the bohemian vibes of Wicker Park, the upscale glamour of the Gold Coast, or the cultural richness of Pilsen, every neighborhood offers a unique experience waiting to be discovered. Highlight the proximity of your property to local attractions, parks, shopping districts, and public transportation options, providing guests with convenient access to the best that Chicago has to offer.

In addition to leisure tourism, Chicago also hosts numerous conferences, trade shows, and major events, such as the Chicago Auto Show, the Chicago Marathon, and the Taste of Chicago. These events create a surge in demand for accommodations, presenting an opportunity for short-term rental investors to capitalize on the increased need for housing options.

Capitalize on this demand by targeting business travelers and attendees of trade shows, conventions, and exhibitions. Emphasize the convenience of your property's location, proximity to convention centers, and amenities that cater to the needs of business travelers, such as a dedicated workspace or high-speed internet.

4. Champaign, IL

Champaign, IL is indeed a wise choice for those looking to invest in Airbnb rentals. The city's large student population and proximity to the University of Illinois, combined with its growing tech industry and vibrant cultural scene, make it an attractive market for short-term rental investors.

With an estimated ROI of 13%, investing in Airbnb rentals in Champaign offers the potential for solid returns. The city's small market size, with 266 Airbnb listings, suggests a more manageable and less competitive market compared to larger cities. However, it still indicates a healthy demand for accommodations, especially from the student population, visitors attending university events, and travelers exploring the city's attractions.

The average revenue of $18k indicates the potential for generating solid earnings in the Champaign market. While the average Airbnb price of $163k suggests a relatively affordable market compared to larger cities. Investors have the opportunity to cater to a range of budgets and offer accommodations suitable for students, professionals, and tourists.

With an ADR of $104 and an occupancy rate of 66%, there may be potential to optimize pricing and increase occupancy to maximize revenue. Consider adjusting your pricing strategy to align with the university calendar, major events, and peak periods, maximizing your income potential.

The large student population, driven by the presence of the University of Illinois, provides a consistent source of potential guests for short-term rentals. Students, faculty, and visitors attending university-related events and activities often seek alternative accommodations to traditional dorms or hotels, creating a demand for Airbnb listings in the area.

Position your property as an ideal choice for visiting parents, prospective students, academics, and alumni seeking a comfortable and convenient place to stay. Highlight features such as study areas, comfortable living spaces, and proximity to campus facilities to appeal to this specific demographic.

Champaign's appeal extends beyond its student population. The city's growing tech industry, anchored by the University of Illinois' Research Park, attracts professionals and entrepreneurs from around the world. Target this demographic by emphasizing the amenities and features of your property that cater to the needs of business travelers, such as a dedicated workspace, high-speed internet, and proximity to tech hubs and business centers.

Champaign is also known for its vibrant arts and culture scene, with numerous events, festivals, and attractions throughout the year. Leverage this aspect to attract travelers seeking cultural experiences and entertainment. Highlight nearby theaters, art galleries, live music venues, and annual events like the Roger Ebert Film Festival and the Pygmalion Festival. Showcasing your property as a gateway to Champaign's cultural offerings can differentiate it from other accommodations in the area.

Champaign, with its dynamic student population, thriving tech industry, and vibrant arts and culture scene, creates a canvas of possibilities for investing in Airbnb rentals. Establish your property as a comfortable and welcoming home-away-from-home, providing guests with an exceptional experience that exceeds their expectations. By tapping into the city's unique appeal and catering to the diverse needs of travelers, you can unlock the full potential of Champaign's short-term rental market and build a successful venture in this captivating city.

5. Rockford, IL

Investing in Airbnb properties in Rockford can be a lucrative opportunity for investors. According to data, the average daily rate for Airbnb rentals in Rockford is $72, and the occupancy rate is 71%. This translates to an estimated revenue of $11,000 per year for a single property.

The average Airbnb price of $107k reflects the affordability of real estate in Rockford compared to larger metropolitan areas. This presents an advantage for investors looking to enter the market, as lower acquisition costs can contribute to a faster return on investment. Affordable real estate prices also offer flexibility in pricing short-term rentals to attract a range of budget-conscious travelers.

Rockford's market size consists of 205 active Airbnbs, creating a competitive landscape where well-managed and uniquely positioned properties can thrive. To stand out in this market, consider offering distinctive features or catering to specific niches. Whether it's a cozy downtown loft, a family-friendly home near local attractions, or a retreat for outdoor enthusiasts, finding your property's unique selling point can help attract guests and generate bookings.

One of Rockford's key advantages is its growing tourism industry. The city offers a range of attractions and activities to entice visitors, including the Anderson Japanese Gardens, the Burpee Museum of Natural History, and the Coronado Performing Arts Center. Highlight these local gems in your property listing to appeal to travelers seeking cultural experiences, art enthusiasts, and those looking to explore the city's rich history and natural beauty.

Rockford's affordability and accessibility make it an attractive destination for budget-conscious travelers. Emphasize the value and cost-effectiveness of your property to appeal to this market segment. Whether you offer competitive pricing, additional amenities, or a convenient location near public transportation, showcasing the affordability of your rental can be a compelling selling point.

Consider as well Rockford's annual events and festivals when planning your rental strategy. The city hosts various events throughout the year, such as the Rockford City Market, Stroll on State, and the Illinois Snow Sculpting Competition. Aligning your rental availability and marketing efforts with these events can help attract event attendees and increase your occupancy rates during peak periods.

In summary, Rockford, with its growing tourism industry, affordability, and accessible real estate market, offers a promising opportunity for investors in the Airbnb rental market. By highlighting the unique features of your property, targeting specific traveler segments, and aligning with local events and attractions, you can position your rental for success in this dynamic and evolving market.

6. Antioch, IL

Antioch, Illinois, stands out as a prime investment opportunity in the Airbnb market. Its advantageous location near popular tourist destinations like Lake Geneva and Chicago, combined with its wealth of outdoor recreational activities, make it a sought-after destination for travelers seeking a diverse range of experiences.

Investing in Antioch offers the potential for a solid return on investment of 9%. This means that you can expect a revenue of approximately $30,000 annually from your Airbnb property. The average Airbnb price in the area is $359,000, reflecting the value of properties in this market.

When setting your ADR, consider the value proposition of your property in relation to the market and the amenities you offer. With an ADR of $195, you can position your property competitively while ensuring a satisfactory return. Keep in mind that occupancy rates in Antioch are around 54%, which means that effective marketing, guest satisfaction, and competitive pricing are essential to maintaining a steady stream of bookings.

Antioch's small market size, consisting of 71 active Airbnbs, provides a favorable environment for investors. With a relatively manageable number of competitors, well-managed and strategically positioned properties can capture the attention of potential guests and achieve high occupancy rates.

One of the key advantages of Antioch is its proximity to popular tourist destinations. Lake Geneva, known for its beautiful lakeside setting and recreational activities, is a major draw for visitors. Additionally, being within a reasonable distance from Chicago allows guests to explore the city's renowned attractions, cultural events, and vibrant nightlife. Emphasizing the convenient access to these destinations in your property listing can attract a wide range of travelers, including families, couples, and city explorers.

Antioch's abundance of outdoor recreational activities provides an additional appeal for visitors. With opportunities for boating, fishing, hiking, and other outdoor pursuits, the city offers a compelling destination for nature enthusiasts and adventure seekers. Highlighting these activities and nearby natural attractions in your property description can attract guests looking for an active and refreshing getaway.

To optimize your investment, stay informed about local events, festivals, and seasonal demand patterns in Antioch and the surrounding areas. By aligning your rental availability and marketing efforts with these events, you can capitalize on increased demand and maximize your occupancy rates during peak periods.

Antioch, with its prime location near Lake Geneva and Chicago, and its abundant outdoor recreational activities, presents an attractive opportunity for investors in the Airbnb market. By highlighting the convenience of nearby tourist destinations, emphasizing outdoor pursuits, and strategically pricing your property, you can position it for success in this dynamic market. With a focus on providing exceptional guest experiences and leveraging the unique features of the area, Antioch can become a profitable location for your short-term rental investment.

7. Libertyville, IL

One of the top markets for Airbnb investors in Illinois is Libertyville. This city is located in Lake County and has a population of around 20,000 people. Libertyville is an attractive market for investors due to its strong economy, which is driven by industries such as healthcare, education, and manufacturing. The median household income in Libertyville is also high, which means that there is a strong demand for short-term rentals among business travelers and tourists.

Investors in Libertyville can expect a solid ROI of 5%, which is higher than the national average. The ADR for Airbnb rentals in Libertyville is $181, and the occupancy rate is 59%. This means that investors can expect to generate around $25,000 in revenue per year from their Airbnb rental property.

The small market size, with 41 Airbnb listings, indicates a manageable and less saturated market, which can be advantageous for investors. However, it still suggests a healthy demand for accommodations from travelers visiting the area.

The average Airbnb price of $547k reflects the higher-end market in Libertyville. The city's high median household income and affluent population contribute to the higher property prices. This presents an advantage for investors looking to cater to upscale travelers and capitalize on the demand for luxury accommodations. It's important to carefully evaluate the local market to determine the optimal price point for your specific property and target audience.

One of the key advantages of Libertyville is its proximity to major cities like Chicago. This provides a unique appeal for travelers who want to explore the vibrant attractions, cultural offerings, and business opportunities of the city, while enjoying a quieter and more suburban environment during their stay. By highlighting the convenient access to Chicago in your property listing, you can attract both leisure and business travelers seeking a comfortable and convenient base.

Libertyville's thriving downtown area adds further appeal to the city. With a variety of shops, restaurants, and entertainment options, guests can enjoy a vibrant and lively atmosphere during their visit. Emphasizing the proximity of your property to downtown and showcasing the local amenities and experiences in your listing can attract guests who value convenience and a vibrant urban atmosphere.

Investors who are interested in the Libertyville market should be prepared to invest in high-end properties that can command a premium price. Investors who are willing to invest in luxury properties and provide high-quality amenities and services can expect to attract high-end guests who are willing to pay a premium price for their stay. Overall, Libertyville is an attractive market for investors who are looking for a stable and profitable investment opportunity in the short-term rental market in a higher end market.

8. Urbana, IL

Urbana, IL is a top market for Airbnb investors due to its thriving economy and growing tech industry. The city is home to the University of Illinois, which attracts a large number of students, faculty, and visitors throughout the year. Additionally, Urbana is located near several major cities, making it a convenient destination for business travelers. As a result, the demand for short-term rentals in Urbana is high, making it an attractive market for investors.

With an ROI of 8%, investing in Urbana can yield a solid return on investment. You can expect to generate approximately $8,884 in annual revenue from your Airbnb property. The average Airbnb price of $209k reflects the affordability of properties in Urbana compared to larger metropolitan areas. With an average daily rate of $66 and an occupancy rate of 74%, there may be potential to optimize pricing and increase occupancy to maximize revenue. Effective marketing, providing a welcoming guest experience, and adjusting pricing based on demand can help attract more bookings and increase overall revenue.

Urbana has a relatively small market size, with 138 active Airbnbs. This presents an opportunity for investors to enter a market with less competition, allowing well-positioned properties to stand out. However, it's important to continually monitor the market and adjust your pricing and listing strategy accordingly to attract guests.

One of the key advantages of Urbana is its proximity to the University of Illinois. The university attracts a large number of students, faculty, and visitors throughout the year, creating a consistent demand for accommodations. Additionally, the growing tech industry in Urbana brings in business travelers who seek comfortable and convenient accommodations during their stay.

To maximize your investment in Urbana, it's essential to consider the unique needs and preferences of your target audience. Students and visiting academics may appreciate amenities like study areas or a convenient location near campus, while business travelers may value proximity to tech companies and business centers.

To ensure the success of your investment, it's crucial to understand the local events and activities that may drive demand for accommodations in Urbana. This includes academic conferences, sporting events, and cultural festivals. By aligning your rental availability and marketing efforts with these events, you can attract a steady flow of guests and optimize your occupancy rates.

With a focus on effective marketing, strategic pricing, and staying informed about local events, Urbana can become a profitable location for your short-term rental investment.

9. Oak Park, IL

Welcome to the enchanting city of Oak Park, Illinois, where investing in Airbnb rentals opens the door to a world of possibilities. Oak Park's charm lies in its close proximity to the bustling metropolis of Chicago, its wealth of historic architecture, and its vibrant cultural attractions. This makes it a top choice for investors seeking a thriving market with a rich blend of history and modernity.

The average Airbnb price of $472,000 reflects the higher value of properties in Oak Park compared to some other markets. The historic architecture and desirable location contribute to the higher average price, attracting travelers looking for unique and charming accommodations. It's essential to conduct thorough market research and analyze comparable property prices to determine the optimal pricing strategy for your specific property.

With an estimated ROI of 6%, investing in Airbnb rentals in Oak Park offers the potential for solid returns. This translates into an estimated annual revenue of $17,000, showcasing the potential for significant earnings from your property. Oak Park's market size has a total of 265 active Airbnbs, presenting a competitive landscape with ample opportunities to showcase your property's distinctive features and capture the attention of discerning travelers.

With an ADR of $98 and an impressive occupancy rate of 75%, Oak Park's short-term rental market offers a promising opportunity to generate consistent revenue. Consider tailoring your pricing strategy to cater to the varying demand throughout the year, such as adjusting rates during peak tourist seasons, special events, or university-related activities.

One of Oak Park's key advantages is its proximity to the vibrant city of Chicago. Emphasize the convenience of accessing Chicago's world-class attractions, shopping, dining, and entertainment options from your Oak Park property. Highlight the ease of commuting via public transportation, such as the Metra or CTA train systems, which provide direct access to downtown Chicago. This connectivity appeals to both leisure travelers seeking to explore the city and business travelers attending meetings and conferences.

Oak Park's rich architectural heritage, particularly its association with renowned architect Frank Lloyd Wright, makes it a haven for architecture enthusiasts. Showcase the unique architectural features of your property, its historical significance, and its connection to the local culture. Consider offering guided tours or collaborating with local architecture organizations to provide guests with a deeper understanding of Oak Park's architectural treasures.

Oak Park's proximity to universities and hospitals creates a strong demand for short-term rentals. Highlight the accessibility of your property to nearby educational institutions, such as Dominican University and Concordia University Chicago, making it an attractive option for visiting professors, students, and their families. Similarly, emphasize the convenience of staying in Oak Park for guests seeking accommodation during medical treatments or visits to medical facilities in the area.

Leverage the city's unique appeal to attract guests seeking an immersive experience that combines history, culture, and modern amenities. By positioning your property as a gateway to the best of Oak Park and Chicago, you can unlock the full potential of this captivating market and create a successful venture in this captivating city.

Bottom Line

In conclusion, Illinois presents a diverse range of lucrative markets for Airbnb investors. Cities like Ottawa and Chicago offer attractive returns thanks to their unique tourist attractions and steady demand for short-term rentals. Similarly, smaller markets like Rockford and Libertyville showcase a balance of affordability and growth potential. By understanding each market's unique dynamics and leveraging this information, investors can maximize their ROI and achieve long-term success in the Airbnb industry.