Algonquin, Illinois Short-Term Rental Market
Algonquin-area STRs averaged $184/night at 62.7% occupancy in April 2026, with local zoning officially prohibiting short-term rentals under village ordinance.
Quick Answer: Algonquin, Illinois is an active short-term rental market. average occupancy in the Chicago market area is 70%. average monthly revenue in the Chicago market area is $4,873. average daily rate in the Chicago market area is $246. the top operator in the Chicago market area is Blueground with 681 listings. market score is 71/100 (grade B).
Market data reflects the Chicago regional market, which includes Algonquin. Regulations, taxes, and permit details below are specific to Algonquin.
Market Score Breakdown
Five dimensions StaySTRA evaluates per market.
Market Overview
The Algonquin, Illinois short-term rental market is indexed to a northwest Chicago suburban corridor approximately 40 miles from the Loop along the Fox River. The regional dataset tracks approximately 16,298 listings across bedroom tiers, with the most active segments being 1-bedroom (6,921 listings) and 2-bedroom (4,255 listings) units. Entire-place listings dominate at 13,082 (80.2% of the total), while private rooms account for 3,232 (19.8%) and shared rooms just 37.
In April 2026 (the latest data month), the market recorded an average daily rate of $184.12 and occupancy of 62.7%, yielding a RevPAR of $115.46. Average monthly revenue per active listing came in at $3,153. Year over year, occupancy improved 3.3 percentage points, while ADR held nearly flat at +0.15% and revenue grew 5.8%.
The channel mix skews heavily toward Airbnb, with 9,810 Airbnb-only listings and 801 VRBO-only listings. An additional 5,740 listings appear on both platforms simultaneously, giving Airbnb distribution coverage across roughly 95% of the total listing base.
The overall market score is 70.73 out of 100. Rental demand scores particularly high at 84.86, reflecting strong regional visitor interest anchored by Fox River recreation, the Randall Road retail corridor, and annual events. Investability scores 66.87 and revenue growth 69.63, while the regulation score of 67.57 reflects significant local zoning risk discussed in the regulatory section.
Seasonal Patterns
| Month | Occupancy |
|---|---|
| Jan | 48% |
| Feb | 56% |
| Mar | 62% |
| Apr | 61% |
| May | 69% |
| Jun | 73% |
| Jul | 72% |
| Aug | 68% |
| Sep | 66% |
| Oct | 64% |
| Nov | 56% |
| Dec | 55% |
Month-by-month nightly rates and revenue figures for Algonquin are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Top Short-Term Rental Operators in Chicago market area
Ranked by total active listings. Useful for understanding the competitive landscape. Operator data is published for the Chicago market as a whole, which includes Algonquin, so these counts are not Algonquin-only figures.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Blueground | 681 | 286 | ★ 4.33 |
| 2 | Luxury Lili Stays | 189 | 9,607 | ★ 4.63 |
| 3 | Kasa Properties | 156 | 7,809 | ★ 4.71 |
| 4 | Slumber Stay | 134 | 7,930 | ★ 4.56 |
| 5 | Evolve | 126 | 2,725 | ★ 4.36 |
What Kind of STR Should I Buy in Algonquin?
Revenue and nightly-rate breakdowns by bedroom count, property tier, and dwelling type for Algonquin are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 60% |
| vrbo | 4.9% |
| both | 35.1% |
Home Value Trends (Algonquin)
Typical home values, median sale prices, and the 10-year price trend for Algonquin are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Booking Insights
Booking-window and length-of-stay analysis for Algonquin — how far ahead guests book and how to price around it — is available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Short-Term Rental Regulations
Algonquin’s regulatory environment is the primary risk factor for STR investors. Short-term rentals are prohibited in the Village of Algonquin under Chapter 21 of the village zoning ordinance, which does not list tourist homes as a permitted use in any residential zoning district. No village permit or licensing framework exists because STRs are not a permitted use.
Because no permit process exists, there is no permit cost, owner-occupancy requirement, or cap on permitted nights to report. Investors cannot legally operate an STR in Algonquin without first obtaining a zoning variance or securing a village board ordinance amendment, neither of which had been confirmed as of May 2025.
Enforcement has been minimal in practice, as active listings remain visible on Airbnb and VRBO. The area’s regulation market score of 67.57 out of 100 reflects this ambiguity: legally prohibited but lightly enforced. Investors should not treat limited enforcement as implicit permission. Zoning violations can result in fines, cease-and-desist orders, or injunctions without warning if enforcement posture changes.
At the state level, Illinois expanded the Hotel Operators Occupation Tax to cover short-term rental platforms effective July 1, 2025. The statutory 6% rate applies to 94% of gross receipts for stays under 30 consecutive days, producing an effective rate of approximately 5.64%. Airbnb and VRBO must register with the Illinois Department of Revenue and remit this tax on behalf of hosts. This state-level tax applies regardless of local zoning status.
The overall assessment: Algonquin carries above-average regulatory risk relative to other Chicago suburban STR markets. Any investor considering this market should seek legal counsel and monitor the village board for ordinance developments before acquiring property with STR intent.
Market Comparison
Against U.S. STR benchmarks, Algonquin’s April 2026 occupancy of 62.7% sits above the national STR median of approximately 55%, and its ADR of $184 is below the U.S. median of approximately $220. This positions the market as above-average on demand capture but below average on rate realization, consistent with a suburban Midwest market competing on accessibility and recreation rather than destination premiums.
The revenue growth score of 69.63 and the multi-year annual revenue trajectory (from $1,950 in 2018 to $3,412 in 2025) demonstrate material long-term appreciation in per-listing revenue.
The professional management landscape is led by Blueground with 681 listings and a 4.33 average rating across 286 reviews. Luxury Lili Stays operates 189 listings with 9,607 reviews and a 4.63 rating. Kasa Properties has 156 listings and a 4.71 rating across 7,809 reviews. Together, the top three operators control approximately 1,026 listings, which represents roughly 6.3% of the 16,298 tracked listings in the regional market. This relatively low operator concentration suggests the market remains fragmented, with most listings independently managed.
Frequently Asked Questions About Algonquin, Illinois
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