Chicago, IL Short-Term Rentals: Primary-Residence-Only Rule (2026)
Key Facts
- Rule
- Single-family home must be primary residence
- 2-4 unit buildings
- Only the licensee's own unit qualifies
- 5+ unit buildings
- Separate licensing track applies
- Fine
- $1,500-$3,000 per offense per day
- Enforcement
- BACP; license revocation possible
Summary
Chicago bars licensees from renting out a single-family home or a unit in a 2-4 unit building as a vacation rental unless it is their primary residence, with narrow exceptions.
(8) Listing and rental of single family homes that are not the licensee's primary residence – Restricted. Such licensee shall not list on any platform or rent any vacation rental that is a single family home, unless such single family home is the licensee's primary residence.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: 2026 S-74: Current through Council Journal of June 17, 2026).
Full Breakdown
Under Municipal Code of Chicago § 4-6-300(h)(8)-(9), a vacation rental license holder cannot list or rent a single-family home, or a dwelling unit in a building with two to four units, on a booking platform unless that home is the licensee's primary residence. The building-with-2-4-units exception also requires it be the only unit in the building used as a vacation rental or shared housing unit. Narrow carve-outs exist for licensees on active military duty who appoint a resident agent, for commissioner adjustments under § 4-6-300(l), and for licenses already valid as of June 22, 2016. Buildings with five or more units fall under a separate, stricter licensing track.
Violations & Fines
Violating the section carries a fine of $1,500-$3,000 per offense under § 4-6-300(k)(1), with each day of violation a separate offense; the city may also revoke the vacation rental license and seek an injunction.
Frequently Asked Questions
Can I rent out a Chicago single-family home I don't live in?
What about a unit in a small apartment building?
Sources & Official References
Other rules in Chicago
Compare Chicago to another location·View the Illinois short-term rentals overview
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Primary-Residence-Only Rule in Nearby Cities
How other cities in Cook County handle primary-residence-only rule.