Oregon, Illinois Short Term Rental Regulations Guide for Airbnb hosts

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

Short-term rentals are explicitly allowed in Oregon, IL under specific conditions. The City permits short-term rentals (rentals of fewer than 30 days, including Airbnb, Vrbo, vacation rentals, tourist homes, etc.) in R-1 zoning districts as a special use, subject to obtaining a Short-Term Rental permit and meeting all regulatory requirements.

What do Airbnb hosts actually earn in Oregon?

Oregon hosts earn a median $23,999/year with $148 ADR and 58% occupancy.

Top performers pull in $35,059+ per year.

See the full Oregon market breakdown

How to Start a Short-Term Rental Business in Oregon, IL

Step-by-Step Process

Verify Zoning Compliance
- Confirm your property is located in R-1 zoning district
- Properties zoned other than R-1 are not permitted for short-term rentals
Prepare Required Documentation
- Complete the Short-Term Rental Application Form
- Gather all required supporting documents (see below)
Submit Application to City Clerk
- Submit completed application with required fees
- New application: $100 for owner-occupied, $250 for non-owner-occupied
Planning Commission Review
- Application undergoes review by the Planning Commission
- Special use permit approval required
City Council Approval
- Final approval required from the City Council after Planning Commission recommendation
License Issuance
- Upon approval, receive your Short-Term Rental license
- Display license within the rental property
Tax Registration
- Obtain IDOR Hotel Operators Tax License Number
- Register with Ogle County for 3% tourism fund tax collection
Annual Renewal
- License renewals due June 1st each year
- Renewal fees: $25 for owner-occupied, $50 for non-owner-occupied

Required Documents, Permits, and Licenses

Essential Documents

Short-Term Rental Application Form (one per property)
Proof of Liability Insurance (minimum $500,000 per occurrence)
IDOR Hotel Operators Tax License Number
Certificate of Insurance evidencing required liability coverage
Property ownership documentation (if different from applicant)

Safety and Compliance Requirements

Carbon Monoxide Detectors installed per city code requirements
Smoke Detectors installed in:
- Each guest room used for sleeping purposes
- Each hallway or corridor on each floor
- Each living room or lounge area
- Each dining room
Bathroom Facilities: At least one bathroom for every four adult guests
Primary Residence Verification (if claiming owner-occupied status)

Business Requirements

Business Registration with appropriate tax authorities
Compliance with all State of Illinois tax laws
Display of license within the short-term rental property
Responsible Party Contact Information for emergency situations

Specific Regulations for Short-Term Rentals

City-Level Regulations (Oregon, IL)

Zoning Requirements:

Short-term rentals only permitted in R-1 zoning districts
Must obtain special use permit from Planning Commission
Properties in historic districts require additional review

Occupancy Limits:

Maximum of four adult guests per bathroom (ratio requirement)
No specific guest limit per property stated, but bathroom ratio governs occupancy

Safety Standards:

Mandatory installation of carbon monoxide and smoke detectors
Compliance with city building and fire codes
Emergency contact requirements

Insurance Requirements:

Minimum liability insurance coverage of $500,000 per occurrence
Certificate must be provided during application process

License Display:

License must be displayed within the short-term rental property at all times

Renewal Requirements:

Annual license renewal due June 1st each year
Failure to renew may result in license suspension

County-Level Regulations (Ogle County)

Tax Collection:

3% tax paid to Ogle County supporting regional tourism fund
Tax collection administered by Ogle County
Additional county-level compliance may apply

State-Level Regulations (Illinois)

Hotel Operators' Occupation Tax:

6% state tax on short-term rentals under 30 days
Total combined tax rate: 9% (6% state + 3% county)
IDOR Hotel Operators Tax License required
Quarterly tax filing may be required

Property Standards:

Compliance with Illinois Property Code standards
Building and safety code compliance
Local health department requirements may apply

Contact Information

City of Oregon - Primary Authority

Oregon City Hall

Address: 115 North 3rd Street, Oregon, IL 61061
Phone: 815-732-6321
Website: cityoforegon.org/short-term-rentals/
Contact Page: cityoforegon.org/contact
Office Hours: Not specified (call for current hours)

Key Contacts:

City Clerk: Primary contact for permit applications
Planning Commission: Reviews special use permit applications
City Council: Final approval authority for permits

Ogle County - Tax Administration

Ogle County Government

Address: Contact via county website for tax registration
Website: www.oglecountyil.gov/
Function: Collects 3% tourism fund tax for short-term rentals

Illinois Department of Revenue

State Tax Authority

Website: www2.illinois.gov/
Function: Issues Hotel Operators Tax License
Requirements: State tax compliance for all short-term rentals

Important Links and Resources

State Resources

Illinois Department of Revenue: www2.illinois.gov/
Ogle County Government: www.oglecountyil.gov/

Compliance Timeline and Important Dates

Annual Requirements

License Renewal Due: June 1st each year
Tax Filing: Quarterly (Illinois Hotel Operators Tax)
Insurance Renewal: As per policy terms

Application Timeline

Processing Time: Not specified, requires Planning Commission and City Council review cycles
Planning Commission Meetings: Contact city for schedule
City Council Meetings: Contact city for schedule

Investment Considerations for STR Operators

Market Characteristics

Allowed Property Types: Single-family and multi-family in R-1 zones
Owner vs. Non-Owner Occupied: Both permitted with different fee structures
Tourism Impact: City actively supports tourism through tax collection fund

Financial Requirements

Initial Investment: $100-$250 application fee plus insurance costs
Annual Operating Costs: $25-$50 renewal fees plus taxes and insurance
Tax Burden: 9% total (6% state + 3% county)

Compliance Risk Factors

Zoning Restrictions: Limited to R-1 districts only
Regulatory Approval: Requires both Planning Commission and City Council approval
Safety Compliance: Stringent detector and facility requirements

This guide provides comprehensive information for investors considering short-term rental operations in Oregon, Illinois. Always verify current requirements with the city before making investment decisions, as regulations may change.

Next step

Found a property in Oregon?

Paste any address and get estimated revenue, cash-on-cash return, and comparable STR performance in under 5 minutes. 3 free analyses per day.

Ask the AI Advisor about Oregon

Oregon, Illinois is a small city and the county seat of Ogle County, located in north-central Illinois along the Rock River. With a population of roughly 3,500 residents, it carries the unhurried character of a Midwestern river town, with tree-lined streets, a historic downtown square, and an enduring connection to the natural beauty of the river bluffs. The town is best known as the home of the "Eternal Indian," a towering concrete sculpture by artist Lorado Taft that overlooks the Rock River valley, and it serves as a quiet gateway to outdoor recreation in the surrounding region. Oregon sits approximately 100 miles west of Chicago, a drive of about two hours, making it accessible for weekend visitors looking to escape the city.

The most iconic landmark in Oregon is the [Black Hawk](en.wikipedia.org/wiki/Black_Hawk_(statue) statue, also known as the "Eternal Indian," a massive concrete figure sculpted by Lorado Taft in 1911. The statue stands atop a bluff overlooking the Rock River within a few minutes of downtown Oregon and remains one of the most recognizable pieces of public art in Illinois, drawing visitors who come to view both the sculpture and the sweeping views of the river valley below.

Just south of the city lies Lowden State Park, a wooded retreat along the Rock River named for former Illinois Governor Frank O. Lowden. The park offers hiking trails, picnic areas, and river access for fishing and canoeing, all within about a ten-minute drive of the town center. The adjacent Lowden-Miller State Forest extends the protected natural area, providing additional miles of trails through the bluffs and bottomlands typical of this stretch of the Rock River.

A short drive to the east brings visitors to Starved Rock State Park, one of Illinois's most visited state parks and a major regional draw. Set along the Illinois River, the park is famed for its sandstone canyons, seasonal waterfalls, and miles of wooded hiking trails, and it lies roughly an hour from Oregon. Beyond the headline destinations, the surrounding Ogle County countryside offers additional opportunities for biking, antiquing, and exploring small farming communities connected by quiet rural roads.

Oregon's appeal as a short-term rental base lies in this combination of small-town character and proximity to some of north-central Illinois's most rewarding outdoor destinations. Visitors who stay here can spend a morning at a bluff-top sculpture, an afternoon hiking canyon trails at Starved Rock, and an evening strolling the historic courthouse square, all while enjoying a pace and setting that feels a world away from the Chicago metropolitan area.

Oregon, Illinois

Challenging To Investors

STR Regulations for Oregon, Illinois