Waukegan, IL Short-Term Rentals: Occupancy Limits (2026)

Waukegan regulates short-term rentals through three layers rather than a single STR ordinance. First, every STR operator must hold a Business License issued by the Waukegan Business Licensing Department at City Hall, 100 N. Martin Luther King Jr. Avenue (847-599-2500). Second, the property must comply with the Waukegan Unified Development Ordinance, adopted by City Council on July 1, 2024, which combined and replaced the prior Zoning, Subdivision, Sign, and Tree Preservation/Landscape Ordinances; depending on the zoning district, an STR may be a permitted use or may require a Conditional Use Permit reviewed by the Planning and Zoning Commission. Third, occupancy is governed by the dwelling's Certificate of Occupancy and the property maintenance and life-safety codes administered by the Building and Code Department and the Fire Department, which apply the typical residential standard of two persons per bedroom plus additional persons based on minimum sleeping-room floor area. Because Waukegan has not adopted a stand-alone STR cap (such as Chicago's Shared Housing Ordinance two-per-bedroom-plus-two formula), the maximum overnight guest count for a particular Waukegan STR is the figure shown on the certificate of occupancy or rental license for that unit. Hosts should confirm the unit's permitted occupancy in writing with the Business Licensing Department and the Building and Code Department before listing on Airbnb or Vrbo.