Decatur, IL Airbnb Market Data, Statistics, and Occupancy Rates

As of Apr, 27 2026

Rabbu ROI Score

82 / 100

Decatur shows standout short-term rental potential based on its current revenue, occupancy, and pricing trends.

Decatur Short-Term Rental Market Overview

Decatur, IL stands out as a compelling short-term rental market where low property costs and above-average revenue-to-price ratios create unusually attractive yield potential. With an average home value of $191,995 and annual STR revenue averaging $25,007, investors can achieve strong cash-on-cash returns relative to most Illinois markets. The market's 37% occupancy rate outpaces the state average of 33%, and its ADR of $152 — while well below the $319 state average — pairs with affordable acquisition costs to deliver solid margins.

Key Market Statistics

According to Rabbu market data, the Decatur short-term rental market shows:

Key Airbnb and short-term rental market statistics.
Metric Context Value
Active Airbnb Listings As of Apr, 27 2026 44
Average Daily Rate (ADR) vs. $319 state avg. $152
Average Occupancy Rate vs. 33% state avg. 37%
RevPAN ADR * Occupancy Rate $55
Average Monthly Revenue Historical 12-month average $2,083
Average Annual Revenue Historical 12-month average $25,007

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026.

Why Investors Consider Decatur

Investors are drawn to Decatur for its exceptional revenue-to-price ratio, above-average occupancy stability, and low barrier to entry compared to larger Illinois markets.

Key investment factors

  • Average home values under $192K create one of the lowest entry points in the state, boosting potential yield
  • Revenue-to-price ratio rated above average — $25,007 annual revenue against sub-$200K property costs
  • Occupancy of 37% exceeds the Illinois state average of 33%, providing steadier cash flow
  • 5-bedroom properties command $278/night ADR and $47,998 annual revenue, rewarding larger configurations
  • Amenities like lake access (16%) and waterfront (9%) suggest niche demand from leisure travelers seeking unique stays

Expert Market Assessment

"Decatur earns an ROI score of 82 out of 100 — a Standout Opportunity rating — driven primarily by its above-average revenue-to-price ratio and occupancy stability. Revenue follows a pronounced seasonal curve: the winter dip to around $935–$1,498 per month contrasts sharply with a summer peak near $2,978 in August, so investors should plan cash reserves accordingly. The market remains small at just 44 active listings, which limits direct competition but also means individual performance can vary significantly depending on property quality and positioning. For investors willing to manage seasonality, Decatur offers a rare combination of affordable entry and meaningful income potential in a mid-sized Illinois city."

— Rabbu Market Analysis Team

Understanding Decatur's ROI Score: 82/100

Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.

How the ROI Score is Calculated

Factor Decatur Performance Weight
Revenue-to-Price Ratio Above average 40%
Occupancy Stability Above average 30%
Market Growth Trend Average 15%
Supply/Demand Balance Average 15%

What This Means for Investors

Decatur's ROI score of 82 out of 100 places it in the Standout Opportunity band, driven by an above-average revenue-to-price ratio and above-average occupancy stability — the two most heavily weighted factors in the calculation. Market growth trend and supply/demand balance both rate as average, reflecting the recent surge in new listings that bears watching. Investors should pair these metrics with current local regulatory research and property-level underwriting to build a complete investment thesis.

Short-Term Rental Regulations in Decatur

Understanding local STR regulations is essential before investing in Decatur. Here's the current regulatory landscape:

Permit Requirements

Short-term rental operators in Decatur, Illinois may need to obtain a business license or STR permit through the city. Investors should verify current registration requirements directly with the City of Decatur and Macon County before listing a property.

Key Restrictions

Common STR restrictions in Illinois communities can include occupancy limits based on bedroom count, minimum stay requirements, noise ordinances, parking mandates, and caps on the number of permits issued in certain zones. HOA or subdivision covenants may impose additional limitations, so reviewing any applicable deed restrictions is essential before purchasing.

Tax Obligations

Short-term rental hosts in Illinois are generally subject to state sales tax, local hotel/motel taxes, and potentially a tourism or occupancy surcharge. Many booking platforms collect and remit some of these taxes automatically, but operators should confirm their full obligations with the Illinois Department of Revenue and local authorities.

Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Decatur can provide current regulatory guidance.

Short-Term Rental Financing for Decatur

Financing an Airbnb investment in Decatur requires lenders who understand STR income. Rabbu partner lenders offer:

  • DSCR Loans: Qualify based on property income, not personal income
  • Low Down Payment: As low as 10–15% for investment properties
  • Fast Closing: 21–30 day average close times
  • STR Experience: Lenders who understand vacation rental underwriting
Connect with a Decatur Lender →

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Decatur's STR market should continue benefiting from its favorable revenue-to-price dynamics, though the 138% year-over-year growth in active listings signals that competition is arriving quickly. We estimate occupancy may settle in the 34–38% range as new supply absorbs into the market, with ADR holding steady or nudging up 1–3% given the still-modest supply of 44 total listings. Summer months — particularly May through August — will likely remain the primary revenue engine, and investors who optimize pricing during the $2,400–$2,978 peak months can offset the softer winter stretch. The key variable to watch is whether listing growth moderates or continues at its current pace, which would pressure per-listing returns."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Decatur, IL

What is the average Airbnb occupancy rate in Decatur?
The average Airbnb occupancy rate in Decatur is currently 37%, which sits above the Illinois state average of 33%. Occupancy varies by property size — 5-bedroom listings lead at 45%, while 3-bedroom properties trail at 27%. One- and two-bedroom units each average around 40% occupancy.
How much do Airbnb hosts make in Decatur?
On average, Airbnb hosts in Decatur earn approximately $2,083 per month or $25,007 per year based on trailing 12-month performance data. Revenue varies significantly by property size: 1-bedroom listings average $5,333 annually, 2-bedrooms bring in about $18,547, 3-bedrooms generate roughly $23,850, and 5-bedroom properties lead with approximately $47,998 per year.
Is Decatur a good market for Airbnb investment?
Decatur scores 82 out of 100 on Rabbu's ROI Score, placing it in the Standout Opportunity category. The market's key strengths are its above-average revenue-to-price ratio — thanks to average home values around $191,995 — and above-average occupancy stability. With only 44 active listings, competition remains limited, though investors should account for seasonal revenue swings and the recent 138% year-over-year growth in listings.
What is the average daily rate (ADR) for Airbnb in Decatur?
The average daily rate across all Decatur Airbnb listings is $152, which is considerably below the $319 Illinois state average. ADR scales with property size: 1-bedroom units average $83/night, 2-bedrooms are at $129, 3-bedrooms at $138, and 5-bedroom homes command $278 per night.
Are short-term rentals legal in Decatur?
Short-term rentals generally operate in Decatur, IL, but local regulations may require permits, business licenses, or compliance with zoning rules. Investors should check directly with the City of Decatur and Macon County for the most current requirements before purchasing or listing a property.
When is peak season for Airbnb in Decatur?
Peak season in Decatur runs from May through August, with average monthly revenues ranging from $2,494 to $2,978. August is the single strongest month at $2,978. The off-peak period falls in the winter months, with February bottoming out at $935 and December averaging $1,498.
How many Airbnbs are there in Decatur?
As of April 2026, there are 44 active Airbnb listings in Decatur. The supply breaks down as 10 one-bedroom, 14 two-bedroom, 9 three-bedroom, and 8 five-bedroom properties. The market has seen significant growth, with a 138% year-over-year increase in active listings.
How is Airbnb revenue calculated in Decatur?
The annual and monthly revenue figures for Decatur are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — they are not forward-looking projections. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, remove regional outliers, and aggregate the results into a market-level historical average. Because each month uses its own historical performance data, the figures naturally reflect seasonal peaks and slower periods. Individual results can vary based on property quality, pricing strategy, and how well the property is managed.

About Rabbu Market Data

Rabbu provides Airbnb and short-term rental market data and statistics across the United States. Our mission is to empower investors with accurate insights and easy-to-use tools, so they can confidently identify and act on the best opportunities in the Airbnb market.

What this data includes

  • Regularly updated active Airbnb and STR listing counts by market and property size
  • Occupancy rates, average daily rates, and RevPAN trends across property configurations
  • Monthly and annual revenue estimates based on trailing 12-month booking data
  • Average home values sourced from the Zillow Home Value Index (ZHVI)
  • Data aggregated from Rabbu proprietary analytics and third-party providers for consistency

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month averages as of April 2026 and may not capture very recent market shifts. Local regulations, tax obligations, and permit requirements can change; investors should verify current rules with the appropriate municipal and state authorities.

Next Steps

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