Vendor Portal
Author: Mark Ainely | Partner GC Realty & Development & Co-Host Straight Up Chicago Investor Podcast
Short-term rentals have been a moving target in the Village of Fox Lake for years, and the latest proposal on the table suggests they're about to get harder to operate, not easier. If you own a property here and have been weighing whether to run it as a short-term rental (STR), it's worth understanding where the rules started, where they may be headed, and why that uncertainty matters for your investment.
The Original Limit
Fox Lake didn't always cap short-term rentals. That changed with Ordinance 2023-03, adopted in February 2023 and later amended by Ordinance 2024-12 in April 2024. Together, those ordinances built out the framework that governs STRs today, codified in Section 9-1-5-16 of the Village's zoning code.
A few of the key pieces:
A hard cap of 60 licenses. The code states that no more than sixty short-term housing rental licenses, including renewals, may be issued in any given year.
Board approval required for new licenses. A new STR license can't be issued unless the Board of Trustees first authorizes it as a special use, following a public hearing.
Licenses don't travel with the property. A special use permit is granted to the specific owner at the time of the petition. It is not transferable when the property sells, and it can't be moved to another person or location.
That last point is easy to overlook and important: a short-term rental approval isn't a permanent feature of the property. It's tied to you, and it disappears at the closing table.
The Proposed Change
In June 2026, the Village published a public notice for a hearing held on July 8, 2026 regarding a proposed ordinance that would reduce the allowable number of short-term rental licenses. The notice, submitted through the Village's Development Services Department, didn't specify the new lower number. It said only that a reduction is on the table.
It's worth noting where this sits in the process. The July 8 hearing was before the Planning & Zoning Commission, which plays an advisory role. The Village Board makes the final call on whether any reduction is actually adopted. So as of now, the cap is still 60, but the direction of travel is clear: fewer licenses, not more.
Why This Matters If You're Thinking About Selling
Here's the uncomfortable reality for STR owners in Fox Lake. The rules have already been rewritten more than once, licenses are capped, they don't transfer with a sale, and the Village is now openly discussing shrinking the pool further. That's a lot of regulatory risk to build an investment strategy around.
If you've been considering selling your Fox Lake property because the short-term rental path feels shaky, or because you're not sure you'd even qualify for a license under a tighter cap, it's worth pausing before you list. A shifting ordinance is a reason to reconsider how you use the property, not necessarily a reason to give it up.
Long-term rental income doesn't depend on winning one of a limited number of licenses, and it isn't at the mercy of the next zoning amendment. With the right management in place, a long-term rental can deliver steady, predictable returns without the licensing gamble.
That's exactly what we do. Instead of selling into uncertainty, consider keeping the asset and letting us handle it for you through our Tenant Placement and full-service Property Management services, from finding and screening qualified residents to handling the day-to-day so you don't have to.
The short-term rental rules may keep changing. Your income doesn't have to.
