Is Airbnb Profitable in Your Area?

Is Airbnb profitable in Lisle/Naperville?

YES – moderately profitable with $30-40k annual revenue and 6-8% ROI.

Which area has the largest ROI?

Gatlinburg, TN and Nashville, TN lead at 10-14% ROI. Rockford, IL offers best value for lower capital.

Bottom line: If you own your Lisle home, list it. If you're deploying new capital, invest in Tennessee or Rockford instead—3-5x better returns.

Market: Naperville/Lisle Profitability Analysis

Current Market Data (2024-2025)

Is This Good?

Context

Long-term rental same property: ~$2,800-3,200/month = $33,600-38,400/year gross, $18-22k net (more stable, less work)

Stock market average: 7-10% annual return (passive, no work)

Your Airbnb in Naperville: 6.8% ROI (ACTIVE, high maintenance)

Verdict: Profitable but requires active management. Only worth it if you already own the property.

Comparison: Top 6 Airbnb Markets by ROI

Airbnb Market Comparison: Annual Revenue vs Net Profit and ROI by Location

Detailed Rankings

Rank #1: Gatlinburg, Tennessee (10-14% ROI)

Annual Revenue: $50,000

Net Profit: $25,000

Property Cost: $300-500k

Occupancy: 50-60% (seasonal - peaks summer/fall)

ADR: $200-280

Why: Mountain tourism (Great Smoky Mountains), outdoor activities, scenic destination

Entry: Moderate ($300-400k typical)

Best For: Growth-focused investors

Rank #2: Nashville, Tennessee (10-12% ROI)

Annual Revenue: $45,000

Net Profit: $22,000

Property Cost: $300-450k

Occupancy: 50-55%

ADR: $180-220

Why: Music City tourism, conventions, bachelorette parties, year-round demand

Entry: Moderate ($300-350k typical)

Best For: Balanced growth + stability

Rank #3: Orlando, Florida (11% ROI)

Annual Revenue: $60,000

Net Profit: $32,000

Property Cost: $450-550k

Occupancy: 48-50%

ADR: $220-280

Why: Disney World, theme parks, year-round family tourism

Entry: High ($450k+)

Best For: High-volume investors

Rank #4: Tampa, Florida (10.5% ROI)

Annual Revenue: $55,000

Net Profit: $28,000

Property Cost: $400-500k

Occupancy: 44-45%

ADR: $200-250

Why: Beaches, conventions, retirees, no state income tax

Entry: High ($400k+)

Best For: Tax-conscious investors

Rank #5: Rockford, Illinois (7.16% ROI) ⭐ BEST VALUE

Annual Revenue: $25,000

Net Profit: $15,000

Property Cost: $170-250k

Occupancy: 56-70%

ADR: $97-119

Why: Business travelers, cultural attractions, lowest acquisition cost

Entry: LOW ($170-200k)

Best For: First-time investors, capital preservation

Rank #6: Naperville, Illinois (6.8% ROI) - Your Market

Annual Revenue: $35,000

Net Profit: $15,000

Property Cost: $400-500k

Occupancy: 68%

ADR: $124

Why: Chicago suburb, corporate travelers, good occupancy

Entry: High ($400k+)

Drawback: Strict Chicago-adjacent regulations

Should You Convert Your Lisle Home to Airbnb?

✅ YES IF:

You own the property outright (no mortgage pressure)

You're comfortable with guest management and regulations

You want extra cash flow ($1-2k/month)

Naperville specifically: You've verified HOA allows Airbnb

You have time/energy for management (or budget $3-4k/year for a manager)

❌ NO IF:

Your mortgage + taxes are already stretched

You value peace and quiet (STRs = constant turnover)

You're in a restrictive HOA that bans Airbnb

You're hoping for passive income (STRs require active management)

You can rent long-term for similar net income with less hassle

Action Plan If You Proceed:

Check Naperville Regulations (City website)

Verify your property zone allows STRs

Check HOA restrictions in writing

Get Insurance Quote ($1,000-1,500/year)

Commercial general liability ($1M minimum)

Ask if homeowner's policy needs update

List Test Listing ($150-170/night)

Check existing 52 listings for pricing

Target weekday business travelers + weekend tourists

Monitor First 3 Months

Track occupancy vs. projections

Measure cleaning + management effort

Decide: Keep or revert to long-term rental

Should You INVEST New Capital in Airbnb?

❌ DO NOT invest in Chicago suburbs if you have capital to deploy

Why: Same $500k capital gets you 6.8% in Naperville vs. 10-12% in Tennessee/Florida = $17k/year lost opportunity cost

✅ DO invest in high-ROI markets if you have $150k-500k:

Option A: Conservative (Lowest Risk)

Rockford, IL - $170-200k property

ROI: 7.16% yearly

Net Profit: $15,000/year

Advantage: Stay in Illinois, low acquisition cost, proven market

Option B: Growth-Focused (Best Risk/Reward)

Nashville, TN - $300-350k property

ROI: 10-12% yearly

Net Profit: $22,000/year

Advantage: Stronger demand, lenient regulations, growth city

Option C: Maximum Revenue (Higher Capital Needed)

Orlando, FL - $450-500k property

ROI: 11% yearly

Net Profit: $32,000/year

Advantage: Highest revenue potential, proven market, year-round tourism

Financial Comparison: $300,000 Investment

Strategy Market Property Down Payment Annual Profit 5-Year Total

Conservative Rockford, IL $200k $200k (full) $15k $75k profit

Balanced Nashville, TN $350k $100k (28%) $22k $110k profit

Aggressive Orlando, FL $450k $100k (22%) $32k $160k profit

With Leverage (Mortgage):

Rockford full-cash: $15k annual profit = 7.5% ROI on $200k

Nashville with 70% LTV mortgage: $22k annual profit on $100k down = 22% ROI on YOUR capital

Orlando with 75% LTV mortgage: $32k annual profit on $100k down = 32% ROI on YOUR capital

Winner: Nashville or Orlando with mortgage leverage = 20-30% annual ROI on your capital

Critical Regulations to Know (Chicago Area)

If listing in Naperville (Lenient):

✓ Primary residence requirement (less strict than Chicago)

✓ Registration needed but simple process

⚠️ Check HOA restrictions

⚠️ Liability insurance mandatory

If expanding to Chicago (Strict - Avoid):

❌ Must be your primary residence (245+ days/year in property)

❌ Can't own multiple STR properties

❌ Strict registration with annual renewal

❌ Building caps (1/4 of units max)

❌ Prohibited Buildings List (many buildings banned)

❌ High taxes (4.5% + 1% + state + local)

❌ Frequent inspections + neighbor complaints trigger reviews

Recommendation: Stay in Naperville (lenient) if Chicago-area. Or avoid Chicagoland entirely for out-of-state investments.

Bottom Line Recommendation

Question 1: Is Airbnb profitable in your area (Lisle/Naperville)?

Answer: YES – 6.8% ROI, $30-40k annual revenue. Viable if you own the property.

Question 2: Which area has largest ROI?

Answer: Gatlinburg/Nashville, TN (10-14% ROI), or Rockford, IL ($170k entry, 7.16% ROI).

Question 3: Should you list your Lisle home?

Answer: YES if:

You own it outright

Naperville HOA allows it

You want extra cash ($1-2k/month)

You can manage guests/regulations

Question 4: Should you invest new capital?

Answer: NO in Chicago suburbs. YES in:

Nashville, TN ($300-350k, 10-12% ROI)

Gatlinburg, TN ($300-400k, 10-14% ROI)

Rockford, IL ($170-200k, 7.16% ROI - best value)

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