🎯 STRisker: Bulletin - Normal, IL
Normal, IL Reshapes STR Policy to Prioritize Neighborhoods
A Deep Dive into Your Area’s STR Updates — Helping You Navigate the Ever-Changing Rental Landscape.
Normal, IL Reshapes STR Policy to Prioritize Neighborhoods
Big moves out of Normal, Illinois this week where the Town Council just approved sweeping changes to its short-term rental (STR) rules—rules that will gradually phase out many existing rentals in residential neighborhoods.
At Monday night’s meeting, the council voted 5–2 in favor of the updated regulations. While not everyone was on board, the majority pushed through a framework aimed at protecting affordable housing and preserving neighborhood character.
Here’s what’s new: the town will no longer allow new STRs in R1 and R2 residential zones, and existing STRs in these areas will have to shut down within five years. That means the clock is now ticking for current operators in single-family and low-density residential districts.
However, not all hope is lost for homeowners looking to earn a bit of side income. An important amendment was added to allow STRs in owner-occupied properties within those same zones. This keeps the door open for primary residents who want to rent out part of their home while discouraging investment properties from taking over residential blocks.
The discussion wasn’t without some hesitation. Council Member Kevin McCarthy acknowledged that the plan might not be perfect but said it was a strong step toward long-term policy goals.
“I am not convinced we have the best solution tonight,” he said, “but we have the start of a framework.”
Normal’s relationship with short-term rentals dates back to 2018 when the town introduced its first set of STR rules. Those required hosts to register, pay taxes, and follow guest occupancy limits. As of the latest count, there are 66 registered STRs in town, owned by 42 entities—though only 23% of owners actually live in Normal.
The changes reflect growing concerns about how STRs are impacting housing affordability and peace in residential neighborhoods. By limiting non-owner-occupied rentals, the council hopes to maintain a balance between tourism and community needs.
With the five-year phase-out window now in place, property owners have time to adjust—but the direction is clear. Normal’s taking a stand for zoning integrity, and it looks like short-term rentals will have to find a new normal.
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