Chicago vs Nashville

Illinois Legal but Limited | Tennessee Legal but Limited

Disclaimer: General information only — not legal advice. Verify with your local government.

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
Nashville, Tennessee
Status Legal but Limited
Permit Fee $313 permit fee
Tax Rate 6% Short-Term Rental Property Tax + state/local sales tax
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $50/day for operating without permit; civil penalties up to $500,000 for repeated violations

Both cities have comparable STR regulatory environments.

Permits & Licensing

Chicago charges $250 annual registration fee for STR licensing, while Nashville charges $313 permit fee. Chicago renewal is annual, and Nashville renewal is annual. Both cities share a similar regulatory stance, classified as "Legal but Limited."

Tax Obligations

In Chicago, hosts pay 10.5% combined city tax (4.5% Hotel Accommodations + 6% Shared Housing Surcharge) + 1% Cook County. In Nashville, hosts pay 6% Short-Term Rental Property Tax + state/local sales tax. Both cities benefit from automatic platform tax collection through Airbnb and similar services, simplifying compliance for hosts.

Day Limits & Restrictions

Neither city imposes an annual day limit on short-term rentals, giving hosts year-round flexibility.

Fines & Enforcement

Hosts operating without a permit in Chicago face penalties including $1,500–$5,000 per offense; each day is a separate offense. In Nashville, violations can result in $50/day for operating without permit; civil penalties up to $500,000 for repeated violations. Both cities actively enforce their STR regulations, so securing proper licensing before listing is essential in either market.

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.

Contact: Dept. of Business Affairs and Consumer Protection — (312) 744-6060

Full Chicago guide →

Nashville Overview

Owner-occupied permits allowed in all zones. Non-owner-occupied permits frozen — no new applications accepted in most residential zones since 2015. Existing non-owner permits are non-transferable.

Contact: Nashville Codes Department — (615) 862-6590

Full Nashville guide →

Frequently Asked Questions

Is it easier to Airbnb in Chicago or Nashville?
Chicago is classified as "Legal but Limited" while Nashville is "Legal but Limited." Chicago's permit fee is $250 annual registration fee compared to $313 permit fee in Nashville. Both cities have comparable regulatory frameworks.
Which city has higher STR taxes — Chicago or Nashville?
Chicago charges 10.5% combined city tax (4.5% Hotel Accommodations + 6% Shared Housing Surcharge) + 1% Cook County, while Nashville charges 6% Short-Term Rental Property Tax + state/local sales tax.
Which city has stricter fines for illegal short-term rentals?
Chicago: $1,500–$5,000 per offense; each day is a separate offense. Nashville: $50/day for operating without permit; civil penalties up to $500,000 for repeated violations. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Chicago and Nashville have day limits for Airbnb?
Chicago has no annual day limit. Nashville has no annual day limit.
Which city is better for first-time Airbnb hosts — Chicago or Nashville?
For new hosts, consider the total cost of entry: Chicago charges $250 annual registration fee for permits with 10.5% combined city tax (4.5% Hotel Accommodations + 6% Shared Housing Surcharge) + 1% Cook County in taxes. Nashville charges $313 permit fee with 6% Short-Term Rental Property Tax + state/local sales tax. Automatic tax collection in Chicago and Nashville makes compliance easier for beginners.