Chicago vs Houston
Illinois Legal but Limited | Texas Legal with Permit
Disclaimer: General information only — not legal advice. Verify with your local government.
| Requirement | Chicago, Illinois | Houston, Texas |
|---|---|---|
| Legality Status | Legal but Limited | Legal with Permit |
| Permit Fee | $250 annual registration fee | $90 registration fee |
| Tax Rate | 10.5% combined city tax (4.5% Hotel Accommodations + 6% Shared Housing Surcharge) + 1% Cook County | 13% Hotel Occupancy Tax (7% city + 6% state) |
| Annual Day Limit | No limit | No limit |
| Renewal Interval | Annual | Annual |
| Platform Remits Taxes | Yes | Yes |
| Max Fine Example | $1,500–$5,000 per offense; each day is a separate offense | $500/day for non-compliance |
| Verdict | Houston has more favorable STR regulations overall. | |
Chicago, Illinois
Status Legal but Limited
Permit Fee $250 annual registration fee
Tax Rate 10.5% combined city tax (4.5% Hotel Accommodations + 6% Shared Housing Surcharge) + 1% Cook County
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $1,500–$5,000 per offense; each day is a separate offense
Houston, Texas
Status Legal with Permit
Permit Fee $90 registration fee
Tax Rate 13% Hotel Occupancy Tax (7% city + 6% state)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $500/day for non-compliance
Houston has more favorable STR regulations overall.
Chicago Overview
Must be host's primary residence; buildings with 5+ units limited to no more than 6 STR units; Restricted Residential Zones and Prohibited Buildings List apply. $1M commercial general liability insurance required.
Full Chicago guide →Houston Overview
Houston has no zoning code, so STRs are broadly permitted. Hosts must register, collect HOT, and meet fire-safety and parking standards. Deed-restricted communities may impose additional restrictions.
Full Houston guide →Frequently Asked Questions
Is it easier to Airbnb in Chicago or Houston?
Chicago is classified as "Legal but Limited" while Houston is "Legal with Permit." Chicago's permit fee is $250 annual registration fee compared to $90 registration fee in Houston.
Which city has higher STR taxes — Chicago or Houston?
Chicago charges 10.5% combined city tax (4.5% Hotel Accommodations + 6% Shared Housing Surcharge) + 1% Cook County, while Houston charges 13% Hotel Occupancy Tax (7% city + 6% state). Compare the full breakdown in the table above.
Which city has stricter fines for illegal short-term rentals?
Chicago: $1,500–$5,000 per offense; each day is a separate offense. Houston: $500/day for non-compliance.