Bloomington, Illinois Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Bloomington, IL?

Yes, short-term rentals are explicitly allowed in Bloomington, Illinois. The City has established a comprehensive regulatory framework that permits STR operations while imposing specific tax obligations, registration requirements, and compliance standards. Unlike its neighboring municipality Normal (which recently banned new STRs in single-family neighborhoods), Bloomington maintains a more permissive approach toward short-term rental businesses.

Bloomington imposes a 6.0% Short Term Rental Tax (STRT) on all short-term rental transactions and requires registration through the city's Rental Property Inspection Program. The regulations apply to any residential property rented for stays of less than 30 days, including single-family homes, duplexes, and multi-family buildings.

What do Airbnb hosts actually earn in Bloomington?

Bloomington hosts earn a median $31,385/year with $137 ADR and 82% occupancy.

Top performers pull in $44,263+ per year.

See the full Bloomington market breakdown

How to Start a Short-Term Rental Business in Bloomington

Step-by-Step Process

Verify Zoning Compliance
- Confirm your property is within Bloomington city limits
- Ensure zoning allows for rental residential use
- Review any HOA restrictions if applicable
Register for the Rental Property Inspection Program
- All residential rental properties must be registered annually
- Submit application and pay registration fees
- Schedule initial inspection
Obtain Short-Term Rental Tax Registration
- Complete STRT registration with the Finance Department
- Understand monthly tax collection and remittance requirements
Prepare for Operations
- Ensure property meets safety standards (fire, health, building codes)
- Establish record-keeping systems for tax purposes
- Consider insurance coverage for short-term rental operations
Launch and Maintain Compliance
- Collect 6.0% STRT from guests
- File monthly tax returns by the 25th of each month
- Maintain annual registration and inspection compliance

Required Documents, Permits, Licenses, and Guidelines

Essential Registration Requirements

Rental Property Registration:

Application for Certificate of Registration
$65 annual registration fee per building
Additional $5 per rental unit in buildings of 3+ units
Property must receive passing inspection rating

Short-Term Rental Tax Registration:

STRT Registration Form (available from Finance Department)
Monthly Tax Certification Form
Monthly Tax Remittance Form
Documentation of tax collections

Inspection and Safety Requirements

Property Standards:

Compliance with International Property Maintenance Code (IPMC)
Fire code compliance
Life safety requirements (exiting, emergency lighting, fire protection)
Electrical, plumbing, and HVAC system compliance
Exterior and interior building maintenance standards

Certificate of Inspection:

Required before occupying, renting, or leasing any rental unit
Must be issued by the Community Development Department
Initial inspection included in registration fee
Follow-up inspections cost $100 per appointment if violations found

Additional Documentation:

Letter of credit or pledged account ($5,000 per building) may be required for properties receiving "fair" ratings
Consent to Inspect Form
Affidavit of Property Owner Rental Registration

Specific Regulations for Short-Term Rentals

Bloomington Municipal Regulations

Tax Obligations:

6.0% Short Term Rental Tax on gross rental charges
No exemptions from the tax
Tax applies to total consideration paid for rental
Must be submitted separately from other local taxes

Registration Requirements:

Annual registration required for all residential rental properties
Registration valid until December 31st of each year
Renewals sent 30 days prior to expiration
Cannot be transferred to new owners

Occupancy Limitations:

Rentals must be for periods of less than 30 days
Applies to overnight accommodations only
Covers all residential property types within city limits

Filing and Payment Requirements

Monthly Filing Deadlines:

Tax returns due by 25th day of month following collection
If 25th falls on weekend/holiday, due first business day after
Postmark date applies for mailed submissions
In-person submissions must be received by 25th

Late Payment Penalties:

5% late payment penalty fee
2% interest charge immediately applied
Additional 2% interest per month for each month payment not received

Submission Methods:

Mail: City of Bloomington, ATTN: Short Term Rental Tax Collections, PO BOX 3157, Bloomington, IL 61702-3157
In-person: The Hub, 115 E. Washington Street, Suite 103, Bloomington, IL 61701
Email/fax acceptable for certification forms with no payment due

Normal Municipal Context (Neighboring City)

Note: While this guide focuses on Bloomington, nearby Normal has implemented stricter regulations:

Ban on new STRs in single-family neighborhoods (R-1, R-2 zoning)
Five-year transition period for existing STRs
R-3 (multi-family) zoning continues to allow STRs
Enhanced registration and compliance enforcement

Contact Information

Primary Contacts

Finance Department (Tax Collection)

Phone: (309) 434-2233
Email: localtax@cityblm.org
Address: 115 E. Washington Street, Suite 103, Bloomington, IL 61701
Responsibilities: STRT registration, tax collection, remittance processing

Community Development Department (Rental Registration)

Phone: (309) 434-2226
Email: comdev@cityblm.org
Address: 115 E. Washington Street, Bloomington, IL 61701
Responsibilities: Rental property registration, inspections, compliance

Community Enhancement Division (Code Compliance)

Phone: (309) 434-2244
Responsibilities: Property maintenance, code violations, complaint resolution

Building Safety Department

Phone: (309) 434-2244
Responsibilities: Property registration determination, inspection scheduling

Bloomington Police Department

Phone: (309) 820-8888
Responsibilities: Noise complaints, emergency response

City Hall Main Contact

Address: 115 E. Washington Street, Bloomington, IL 61701
Phone: (309) 434-2509
Website: www.bloomingtonil.gov

Links to Source Pages

Important Note for Investors: While Bloomington currently allows STR operations, regulations can change. The neighboring city of Normal has implemented restrictive measures, and similar policies could be considered in Bloomington. Stay informed about city council meetings and proposed ordinance changes by monitoring the official city website and attending public meetings. Consider this regulatory landscape when making long-term investment decisions in the Bloomington short-term rental market.

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Ask the AI Advisor about Bloomington

Bloomington is a mid-sized city in central Illinois and the seat of McLean County, with a population of roughly 78,000 residents. Paired with its adjacent twin city, Normal, it forms the Bloomington-Normal metropolitan area, a regional hub anchored by Illinois State University, State Farm Insurance, and a sizable healthcare sector. The two communities share a lively college-town feel layered onto a traditional Midwestern downtown, and they sit at the crossroads of Interstates 55, 74, and 39. Bloomington lies about 130 miles southwest of Chicago and roughly two and a half hours from both St. Louis and Indianapolis, making it a convenient stopover and a useful base for exploring the broader heart of Illinois.

A few minutes from the center of town, the David Davis Mansion State Historic Site offers a glimpse into Victorian-era life in central Illinois. The 1870s home of U.S. Supreme Court Justice David Davis is preserved as a museum with original furnishings and landscaped grounds, and it sits within easy walking distance of downtown. Visitors can tour the rooms and learn about the area's nineteenth-century prominence, all within a short drive from almost anywhere in Bloomington.

Families traveling with children often make their way to Miller Park Zoo, a compact but well-regarded zoo on the city's north side. The zoo features a collection of animals from around the world, a tropical rainforest exhibit, and a petting area, and it pairs naturally with the adjoining Miller Park, a pleasant green space with picnic areas and a lake. Together, the zoo and park provide an easy half-day outing just minutes from the city center.

For those interested in local heritage, the McLean County Museum of History anchors a corner of the downtown square and traces the region's story from its early settlement through its role in Illinois politics and agriculture. The museum's exhibits, including a recreated streetscape and rotating displays on figures like Adlai Stevenson, give visitors a sense of how this part of the prairie grew into a regional capital.

Outdoor recreation is never far away. The Constitution Trail, a paved multi-use path, runs more than twenty miles between Bloomington and Normal, threading through parks, neighborhoods, and a nature center, and it is popular with cyclists, joggers, and walkers. A short drive south of town, Lake Bloomington and nearby evergreen forests offer fishing, boating, and quiet picnic spots for travelers looking to spend a few hours on the water.

Together, these attractions, combined with Bloomington's central Illinois location and its college-town energy, make the city a steady and varied base for short-term rentals. Guests can enjoy walkable historic districts by day, escape to lakes and trails on quiet afternoons, and still reach major Midwest destinations with just a few hours on the road.