Fox Lake, Illinois

Short-term rentals are legal in Fox Lake but require two separate approvals and carry non-standard resale risk. Operators must obtain a short-term housing rental license from the Village Clerk and a special use permit from the Board of Trustees, which holds a public hearing before granting approval under the Village Zoning Ordinance.

The special use permit is tied to the specific owner at the time of approval. It does not transfer when a property is sold. A buyer of a previously licensed STR property must re-apply for a new special use permit and cannot operate under the prior owner’s approval while the application is pending. The Village caps the total number of permitted STRs community-wide, so new approvals may not be available at a given time.

The annual license renewal fee is $100. Properties are subject to annual health and safety inspections. Operators must collect the Village’s 5% hotel/motel room tax and remit it monthly. The ordinance sets occupancy limits, parking requirements, and a local contact requirement. Enforcement is rated moderate, with revocation procedures and fine mechanisms in place for substantiated complaints. As of May 2026, the Village had continued refining occupancy standards and revocation procedures and approved at least one recent application for a prior compliant operator.