Short Term Rental Investment Properties for Sale in Bloomington, IL

Bloomington, Illinois presents a compelling opportunity for short-term rental investors, though the regulatory landscape has shifted significantly. The town council approved an ordinance in June 2025 banning new short-term rentals in single-family neighborhoods, with existing properties transitioning to long-term rentals over a five-year grace period. However, short-term rentals remain permitted in multi-family (R-3) zoned areas, where tenant turnover is higher and STRs remain a suitable use. Illinois expanded its Hotel Operators' Occupation Tax to include STRs effective July 1, 2025, at a rate of 6% of 94% of gross receipts. Investors should focus on multi-family zoning opportunities and ensure full tax compliance with state and local lodging tax requirements.