Short-Term Rentals in Peoria, IL (2026)

4 verified short-term rentals rules for Peoria, Illinois, sourced directly from the municipal code and official government pages.

Verified from official government sources

Short-Term Rental Permits

Peoria's Unified Development Code lets short-term rentals operate by right only where the owner personally occupies an Estate Residential or Single-Family Residential property; everywhere else in those districts an STR needs a special-use permit. Every operator must also carry a Hotel/Motel license and pay the room rental tax.

Peoria IL Short-Term Rental Permit Rules

Significant Restrictions

Peoria Unified Development Code Sec. 5.3.3.B

B.Short Term Rental Short Term Rental establishment shall not be permitted unless the following standards are met: 1.In Estate Residential and Single-Family Residential districts, the use is permitted by right where the property is owner occupied by a natural person or persons. Short term rental is a special use in any other property type in the Estate Residential or Single-Family Residential d...

Full ordinance details →Official source ↗

Taxes & Fees

Peoria treats short-term rentals like Airbnb stays the same as hotel rooms for tax purposes: the same 7 percent room tax plus 1 percent tourism fund tax, 8 percent total, has applied to STR units since January 1, 2021. Operators also need an annual $75.00 city license, and a registered neighborhood association can block a new STR license by producing a recorded covenant that prohibits the use.

Peoria Short-Term Rental Tax and License Fee

Significant Restrictions

Peoria City Code §§ 27-146, 27-147(a.2), 27-149

Short-term rental (STR) means all or part of a dwelling or dwelling unit as defined in the Unified Development Code that is rented for compensation to transient guest(s) for a period less than 30 consecutive days... (a.2)Short-term rental units shall be subject to all applicable taxes in this section beginning on January 1, 2021... (c)The annual fee for such license for a hotel or motel or shor...

Full ordinance details →Official source ↗

Occupancy Limits

Peoria caps short-term rental stays at six adult guests at any one time, on top of whatever maximum occupancy the Building and Fire Code otherwise sets for the unit. Section 5.3.3.B.3 of the Unified Development Code ties the guest cap directly to that occupancy standard, and the limit applies regardless of how many bedrooms or how large the dwelling is.

Peoria IL Short-Term Rental Occupancy Limit

Some Restrictions

Peoria UDC § 5.3.3.B.3

3.Occupancy of the short term rental shall not exceed the standards set forth in the Building and Fire Code. Of the maximum occupancy allowed, no more than six adult guests may stay in the dwelling unit at any given time.

Full ordinance details →Official source ↗

Primary-Residence-Only Rule

Peoria only allows a short-term rental by right in its Estate Residential and Single-Family Residential districts, and the Form Districts R-4 Frontage and West Main Local Frontage, when the property is owner-occupied by a natural person. Section 5.3.3.B.1-2 of the Unified Development Code pushes every non-owner-occupied rental in those districts into the discretionary special use process, capped citywide by density and spacing limits.

Peoria IL Short-Term Rental Owner-Occupancy Rule

Significant Restrictions

Peoria UDC § 5.3.3.B.1-2

1.In Estate Residential and Single-Family Residential districts, the use is permitted by right where the property is owner occupied by a natural person or persons. Short term rental is a special use in any other property type in the Estate Residential or Single-Family Residential districts.2.In the Form Districts R-4 Frontage and the West Main Local Frontage, the use is permitted by right where...

Full ordinance details →Official source ↗

Looking for Peoria County county-wide rules?

County ordinances apply to unincorporated areas and may supplement Peoria city rules.

Short-Term Rentals in Peoria County →