Top 13 Airbnb Markets in Illinois

From bustling Chicago neighborhoods to historic river towns, Illinois serves up a diverse slate of destinations for short-term rental (STR) investors. Whether you’re eyeing steady Midwest demand, affordable property prices, or premium nightly rates, these are the state’s highest-ranking Airbnb markets according to AirDNA’s proprietary data.

What Is AirDNA’s Market Score?

Market Score is a proprietary metric that ranks how attractive a location is for short-term rental investment. Each score is calculated from five pillars:

• Investability
• Rental Demand
• Revenue Growth
• Seasonality
• Regulation

Scores range from 0 to 100. Beyond an overall Market Score, AirDNA also breaks out individual pillar scores in the platform, giving hosts and investors a granular view into a market’s strengths and weaknesses.

Understanding Markets vs. Submarkets

This ranking mixes statewide metro areas with hyper-local neighborhoods—defined as:

• Markets: Large, well-defined geographic regions (e.g., Chicago MSA).
• Submarkets: Smaller towns, specific neighborhoods, or lake communities nested within broader markets.

Combining both views helps investors uncover high-performing pockets that general statewide data can overlook.

Airbnb Market Overview in Illinois

Illinois’ STR landscape is anchored by Chicago’s world-class tourism and business travel, but opportunity extends far beyond the Windy City. University towns like Champaign-Urbana see consistent academic-driven demand, while historic river communities and outdoor gateways such as Ottawa attract weekenders from across the Midwest. Add a network of reliable highways and Amtrak routes, and the Land of Lincoln offers a compelling mix of year-round occupancy and seasonal spikes.

Top 13 Airbnb Markets in Illinois (Ranked by Market Score)

13. Loop

Market Score: 72.43

Average Annual Revenue: $56,309

Chicago’s Loop is the city’s commercial heartbeat, drawing business travelers and tourists to its theaters, museums, and riverfront architecture. High ADRs help offset premium real-estate costs, though regulation awareness is crucial.

12. Woodlawn

Market Score: 72.83

Average Annual Revenue: $21,936

Adjacent to the University of Chicago and future Obama Presidential Center, Woodlawn is emerging as a value-oriented play on Chicago’s South Side. Lower purchase prices and academic demand underpin its growing STR appeal.

11. Champaign / Urbana

Market Score: 74.06

Average Annual Revenue: $26,701

Home to the flagship University of Illinois campus, this twin-city market enjoys steady demand from visiting faculty, parents, and sports fans. Seasonality is moderate, and regulations remain relatively favorable.

10. Lakeview

Market Score: 75.26

Average Annual Revenue: $52,213

North Chicago’s Lakeview neighborhood blends Wrigley Field-driven tourism with year-round local events. Its walkability and vibrant nightlife command premium nightly rates, though saturation and licensing should be monitored.

9. Wicker Park

Market Score: 76.51

Average Annual Revenue: $49,398

Known for its indie boutiques, music venues, and arts scene, Wicker Park attracts younger, higher-spending guests. Limited hotel inventory keeps STR demand high despite Chicago’s competitive landscape.

8. Near North Side, Chicago

Market Score: 79.03

Average Annual Revenue: $60,183

Encompassing Magnificent Mile and River North, this submarket delivers some of Illinois’ highest ADRs. Business conventions, luxury shopping, and proximity to the lakefront fuel robust, year-round occupancy.

7. Ottawa

Market Score: 80.48

Average Annual Revenue: $26,673

Gateway to Starved Rock State Park, Ottawa leverages outdoor recreation and historic charm to draw weekenders from Chicago and St. Louis. Lower home prices and moderate competition bolster its investment case.

6. Evanston

Market Score: 83.94

Average Annual Revenue: $37,912

Northwestern University and lakeside living make Evanston a perennial favorite for academic, leisure, and business travelers. While local permitting is required, consistent demand offsets regulatory diligence.

5. Oak Park

Market Score: 86.82

Average Annual Revenue: $28,617

Famous for Frank Lloyd Wright architecture and easy “L” access to downtown Chicago, Oak Park attracts cultural tourists and business visitors alike. Moderate property prices and steady occupancy drive solid cash flow.

4. Bloomington / Normal

Market Score: 95.47

Average Annual Revenue: $27,060

This twin-city hub hosts Illinois State University, major insurance headquarters, and a regional airport, creating diversified demand streams. Low saturation and reasonable housing costs boost investor margins.

3. Peoria

Market Score: 96.76

Average Annual Revenue: $26,330

Peoria’s healthcare centers, Caterpillar corporate presence, and riverfront entertainment district foster reliable weekday and leisure bookings. Sub-$200k entry prices amplify cash-on-cash returns.

2. Rockford

Market Score: 97.53

Average Annual Revenue: $31,135

Once an industrial powerhouse, Rockford is reinventing itself with a growing aerospace sector, revived downtown, and proximity to outdoor attractions. Investors benefit from affordable housing and improving tourism fundamentals.

1. Springfield

Market Score: 98.18

Average Annual Revenue: $25,858

Illinois’ capital city combines steady government travel with Lincoln-themed tourism. A balanced demand mix, low property prices, and favorable regulations push Springfield to the top of Illinois’ STR rankings.

Should You Invest in Illinois?

Illinois offers a compelling spectrum of STR opportunities—from Chicago neighborhoods delivering sky-high ADRs to mid-sized cities and university towns offering stability and low barriers to entry. Investors prioritizing cash flow at a reasonable price point may gravitate toward Rockford, Peoria, and Springfield, while those chasing premium nightly rates can look to Lakeview, Near North Side, or Wicker Park—provided they stay abreast of Chicago’s evolving regulations.

With diversified demand drivers, strong intrastate travel, and a mix of price tiers, the Land of Lincoln remains a worthwhile addition to any short-term rental portfolio.