While the Windy City dominates the headlines, there's a whole state full of underrated destinations that short-term rental investors are quietly capitalizing on. But not every market in Illinois is worth your time (or your money). Using performance data from SummerOS, we've narrowed it down to five of the best Airbnb markets in Illinois where short-term rentals are generating reliable revenue and showing signs of long-term growth.
These are the five best Airbnb markets in Illinois to watch:
- Antioch, IL: Best nature getaway
- Rockford, IL: Best city with an affordable entry point
- Galena, IL: Best for historic charm
- DeKalb, IL: Best for college town investments
- Peoria, IL: Best for medical tourism
How we picked the best Airbnb markets in Illinois
We focused on markets that offer more than just charm and natural beauty. These markets had to show solid performance, too. To make this list, each city had to meet a few key criteria:
- Strong demand: Healthy average occupancy rates and consistent year-round travel trends.
- Attractive revenue numbers: Competitive daily rates and annual earnings potential, based on data from SummerOS.
- Clear regulations: Navigable short-term rental regulations and few legal gray zones.
- Growth potential: Signs of rising tourism and investment interest.
- Economic strength: Markets supported by universities or event-driven tourism.
With this criteria, we came up with a well-rounded mix of Airbnb markets in Illinois that have real momentum behind them and space to grow. These markets are worth watching, and, in many cases, worth investing in.
With SummerOS, you can analyze revenue, market trends, and occupancy rates, helping smart investors choose the right market for their goals. From revenue projections to competitive set analytics, SummerOS empowers you to build your Airbnb portfolio with confidence.
Want to uncover top STR markets for your next investment? Find your next opportunity with SummerOS to turn your data into smarter decisions.
1. Antioch, IL: Best nature getaway
Dreaming of owning an Illinois getaway surrounded by lakes and forest? Antioch should be on your radar.
This village on the Wisconsin border is nicknamed the "Gateway to the Chain O'Lakes", and it lives up to that name. In summer, the region buzzes with activities like boating and fishing, while winter brings out the snow sports on the frozen lakes.
Antioch's natural beauty does come with a trade-off for hosts: it's a highly seasonal market. The town has just about two dozen active rentals, so competition is minimal, but demand peaks mainly in the warmer months.
With an average daily rate around $338, it can be lucrative even though occupancy hovers at only 38% annually. The typical property grosses about $43,278 per year, reflecting fewer stays at higher prices.
Plus, homes here aren't the cheapest (around $492,522 on average for lakefront cabins and cottages), but if you love the idea of hosting fishing trips and lake-house vacations, Antioch stands out as Illinois's best nature getaway for short-term rentals.
2. Rockford, IL: Best city with an affordable entry point
Rockford is proof that you don't need to be in Chicago to find a thriving city market for Airbnb in the state. As the fifth-most populous city in Illinois (and the largest outside the Chicago metro area), Rockford offers plenty of urban amenities and attractions without Chicago-level prices.
For investors, Rockford's biggest selling point is its affordability. The average property here costs around $257,065, making it an approachable entry point for new Airbnb hosts. Yet demand is solid: Rockford's rentals enjoy roughly a 70% occupancy rate as travelers visit for both work and play.
Visitors to Rockford enjoy cultural gems like the Anderson Japanese Gardens, as well as museums, historic theaters, and family-friendly parks. In short, guests get a full city experience at a fraction of the cost of a larger metropolis, which keeps them coming back.
With a moderate average daily rate of $119, hosts gross about $24,147 in annual revenue per listing. There are around 100 active rentals in the city, so while you'll have some competition, the market isn't oversaturated. Rockford offers that rare balance of low buy-in cost and steady bookings, earning its spot as the best market in Illinois for an affordable Airbnb investment.
3. Galena, IL: Best for historic charm
Walking down Galena's Main Street feels like stepping into a 19th-century postcard. This small town's beautifully preserved brick buildings and rolling hills have made it one of Illinois's most beloved tourist destinations. In fact, Galena hosts well over a million visitors each year!
Galena's historic appeal translates into a strong short-term rental market, though it's a competitive one. With around 300 active rentals in town, you'll have plenty of competition as a host. But, nearly the entire town is protected within a nationally recognized historic district (about 85% of structures), so almost any property you buy comes with built-in character.
Investors do pay a premium for that charm. Homes average about $443,125 in price, but the earnings can justify it. The typical Galena Airbnb charges around $323 per night and grosses about $46,227 per year in revenue. Occupancy averages 45%, with demand peaking on weekends and during festival seasons.
This means that when guests do book, they're often willing to pay top dollar for Galena's unique stays. If you're drawn to more historic, one-of-a-kind homes (and don't mind some competition), Galena is a great choice.
4. DeKalb, IL: Best for college town investments
Home to Northern Illinois University (the state's third-largest campus, with about 20,000 students), this small city has a ton of academic energy and year-round events.
DeKalb is only about 65 miles west of Chicago, but it has its own identity with a lively downtown influenced by the university crowd. Throughout the year, you'll see a steady stream of visitors for college football games, graduation ceremonies, conferences, and festivals, all of which keep local short-term rentals busy even when other markets might slow down.
This is DeKalb's advantage: its consistent, college-driven demand paired with minimal competition. There are only a handful of active Airbnb rentals in the entire city, quietly serving the needs of NIU visitors and visiting professors.
That low supply also means new hosts have an opening to capture the market. Occupancy rates here average a high 69%. With an average daily rate around $153, hosts can earn roughly $41,064 in gross revenue annually per property.
And, because DeKalb isn't a traditional tourist town, home prices remain fairly reasonable (about $348,129 on average). You can invest at a moderate cost and tap into a reliable guest base. Not too shabby for a college-town investment.
5. Peoria, IL: Best for medical tourism
Tucked in the heart of Illinois, Peoria is a quiet vacation hotspot that succeeds in the short-term rental game. While it offers plenty for visitors (e.g., a scenic riverfront, museums, and big annual events like the world's largest four-mile running race) its real advantage is year-round travel for healthcare.
Peoria is a regional medical hub, home to three major hospitals, anchored by OSF Saint Francis Medical Center, all clustered in a downtown medical district. This means a steady influx of patients, families, medical students, and traveling medical professionals who need a place to stay.
For hosts, all this means some of the most stable occupancy rates in Illinois. Peoria's short-term rentals average about a 71% occupancy rate, so your calendar stays booked even when other cities see seasonal dips. The trade-off for that consistency is a lower price point for guests: the average daily rate is around $106, catering to budget-conscious travelers and those visiting for medical needs. Annual gross revenue per listing is about $25,456 on average.
But, before you write Peoria off, consider the entry-friendly average home price of just $216,867. So while the day-to-day numbers aren't the highest, the return on investment can be attractive.
And, only about 50 active rentals operate in Peoria, which means there's still room to grow before the market saturates. If you're looking for a market that moves steadily all year long, Peoria's blend of affordability and medical-driven demand should make it a top contender for your Airbnb portfolio.
Is Illinois good for Airbnb homes?
Yes, it can be, but only if you choose the right market. Illinois isn't a one-size-fits-all state for short-term rentals, but it offers real opportunities for those who know where to look.
From high-revenue lake towns to stable, affordable cities, the five best Airbnb markets in Illinois show that the state has range. So, no matter what you're looking for, there's bound to be an area of Illinois that fits the bill.
But before diving in, take a hard look at the data, the local laws, and how your target market actually travels. And if you're already crunching the numbers, platforms like SummerOS can help you forecast returns and monitor performance for smarter decisions.
Try SummerOS, and find the right Illinois property for your STR portfolio today!
