Peoria, IL Short-Term Rentals: Short-Term Rental Permits (2026)

UDC Sec. B sets nine standards a short-term rental must meet before it can operate. In Estate Residential and Single-Family Residential districts, the use is permitted by right only where the property is owner-occupied by a natural person; any other property type in those districts needs special-use approval. The same owner-occupied-by-right rule applies in the R-4 Frontage and West Main Local Frontage form districts, with no other property type allowed at all. Occupancy is capped at no more than six adult guests staying in the dwelling unit at any given time, within the limits of the Building and Fire Code.

Every STR owner must comply with the city's residential property registration code and separately obtain and maintain a valid Hotel/Motel license, paying the Hotel or Motel Room Rental Use or Privilege Tax to the city. No additional dwelling units may be added beyond the home's original design. 5-mile radius where no Neighborhood boundary applies) may hold a special-use STR approval; and no special-use STR may sit within 1,500 feet of another established special-use STR, measured property line to property line. Separately, Chapter 27 Article VII requires the Hotel/Motel license itself: Sec.

00, valid January 1 through December 31, waived if the non-owner-occupied registration fee was already paid that year, and Sec. 27-160 bars any STR from advertising until that license is obtained and timely renewed.