Where to Stay in Chicago on a Budget

Cheap Hotels in Chicago

Planning a trip to Chicago on budget is not as hard as you think. Yes, if you are thinking of going on a vacation to Chicago on budget then it is not that difficult to achieve without breaking you wallet on a hotel room booking.

Being a Chicagoan, I agree 100% that hotels in certain areas are very expensive but that doesn’t mean there are not any options available for budget friendly Chicago travelers.

Today, I have tried to cover different neighborhoods and ways to find the best budget friendly hotels without paying too much money on hotel booking.

Whether you are visiting Chicago for a weekend getaway, for vacation, for a business trip or just trying to find a hotel for staycation, this guide will help you find amazing affordable cheap deals on hotels.

1. Picking the Right Neighborhood

Choosing the right area is half the battle when it comes to saving money. Overall, Chicagoland area covers extensively larger area covering many major popular neighborhoods.

Yes, in Chicago our each neighborhood has its own charm and of course price range when it comes to accommodations.

Downtown / The Loop

If you want to be right in the middle of the attractions, food scene and activities then the Loop is your choice in Chicago.

When you book hotel in The Loop then you are close to the top Chicago attractions and activities including popular ones from the Riverwalk, Millennium Park home of The Bean (Cloud Gate), and Chicago’s iconic architecture.

I will be honest, if you decide to book a hotel room in the Loop then you’ll pay a little more here compared to the outer neighborhoods.

Most importantly, by reserving a hotel room in the Loop you will be saving time and transportation cost from your hotel to the popular top things to do in Chicago.

If you find a smaller boutique hotel or a no-frills chain, you can often score decent rates, especially outside of peak summer.

Budget-Friendly Hotels in The Loop:

• Travelodge by Wyndham Downtown Chicago – classic budget pick near Grant Park. Travelodge in downtown Chicago hotel is reliable and walkable from attractions, restaurants and activities.
• Central Loop Hotel – clean, modern, and just steps from Millennium Park.
• Club Quarters Hotel, Central Loop – compact rooms with free Wi-Fi and an unbeatable location.
• HI Chicago Hostel – dorms and private rooms with a friendly, traveler-community vibe.
• Hampton Inn Chicago Downtown/N Loop/Michigan Ave – great value for a trusted chain in a central area.

Tip: Stay here if you plan to walk everywhere without using transportations, including to Chicago’s top attractions and activities.

You’ll save big on taxis, rideshares or parking.

River North & Near North Side

These areas are located just north of downtown and they are known for vibrant Chicago energy and vibes. These neighborhoods are packed with restaurants, bars, and shopping.

If you look online then you’ll find trendy hotels and mid-range spots that occasionally drop into “budget” territory during off-season months.

Trust me, staying here means you can walk almost everywhere including popular landmarks in Chicago such as the Magnificent Mile, Navy Pier, or the Chicago Riverwalk.

Budget-Friendly Hotels in River North:

• Hotel Felix – modern and eco-friendly, just a short walk to the Mag Mile.
• Freehand Chicago – half boutique hotel, half social hub with shared and private rooms.
• Ohio House Motel – old-school motel charm with free parking, rare for downtown.
• Best Western River North Hotel – trusted comfort and great value for families.
• Moxy Chicago Downtown – bold design, social lobby, and often lower rates for its style.

Tip: You’ll save more if you visit during off-peak season instead of summer weekends. Plus, many hotels here offer breakfast deals so check those details before booking a room.

West Loop & South Loop

If you don’t mind staying a few train stops away from the main tourist crowds then I highly recommend these neighborhoods for booking a hotel on budget in Chicago.

Yes, these neighborhoods are great picks.

Also, these neighborhoods has popular dining options and nightlife. You can save money on booking a hotel room at lower price compared to downtown and experience Chicago like a local.

I recommend this because most importantly you will be close to the public transportation so it’s easy to hop on a train and be in the Loop in 10 minutes.

Budget-Friendly Hotels in the South Loop:

• Best Western Grant Park Hotel – solid choice near the museums and public transit.
• Jaslin Hotel – affordable, comfortable, and close to Chinatown and McCormick Place.
• Hilton Garden Inn Chicago Downtown/South Loop – reliable, mid-range option with easy access to the lakefront.
• Homewood Suites by Hilton Chicago Downtown South Loop – perfect if you want free breakfast and kitchenette space.
• Marriott Marquis Chicago – often has off-season deals that make luxury surprisingly affordable.

Tip: If you’re coming for concerts, conventions, or sports then this area keeps you close without paying high price on hotel room compared to the downtown.

Logan Square, Wicker Park

These neighborhoods are my favorite personally. Still my unbiased opinion about them is that they are the hip and artsy neighborhoods where locals actually enjoy and hangout.

There are plenty of Airbnb options, boutique hotels and cozy guesthouse that can cost you less compared to staying in downtown.

If you decide to stay in one of these neighborhoods then I insist you to explore them to enjoy great food from local taquerias to budget friendly vintage shops.

Budget-Friendly Hotels in Wicker Park & Logan Square:

• The Robey – boutique-style hotel in a restored art deco building.
• Ray’s Bucktown Bed & Breakfast – cozy, homey, and known for great breakfasts.
• Wicker Park Inn – charming guesthouse right in the heart of the neighborhood.

Tip: These neighborhoods shine for foodies. If you like to try local food then I recommend skipping expensive downtown dining and eat in these neighborhoods at local places.

Pilsen

Pilsen is a vibrant Latino neighborhood just southwest of the Loop. This neighborhood is known for its art, murals, and authentic Mexican food.

Staying here gives you real Chicago Mexican Latin flavor and of course serious savings. You’ll find small inns, Airbnb stays, and locally owned guesthouses that offer both warmth and affordability.

Pilsen is known for vibrant Latino neighborhood. It is located southwest of the Loop in Chicago. This neighborhood has unique vibes from its art, murals and of course Mexican food.

If you want to experience the Latin American vibes in Chicago then consider to stay here. Believe me if you are traveling on a budget then this neighborhood will save you good amount of money.

Pilsen is the home to small inns, Airbnb stays, and locally owned guesthouses that are comfy and affordable.

Budget-Friendly Hotels in Pilsen:

• Pilsen Budget Friendly hotels – spacious, affordable, and close to trains.

Tip: Stay here to experience the Mexican Latino culture. This is the neighborhood where you can experience Mexican murals, food, and neighborhood charm.

Lincoln Park

If you are looking for a low key kind of quieter neighborhood with parks, the zoo and of course lakefront walking area then Lincoln Park is your best choice.

I strongly feel that Lincoln Park is perfect for families, couples or even anyone who is looking for a cozy place to relax without staying too far from the downtown Chicago.

Budget-Friendly Hotels in Lincoln Park:

• Hotel Lincoln – fun boutique vibe across from Lincoln Park Zoo.
• City Suites Hotel – colorful rooms near public transit.
• Villa D’Citta – charming B&B with an Italian twist.
• Chicago Getaway Hostel – modern, affordable, and social atmosphere.
• Hotel Versey Days Inn by Wyndham – budget hotel in a lively location near Wrigleyville.

Tip: If you book a hotel in Lincoln Park then you can easily walk to the lake, visit the zoo for free, and of course grab local popular bites.

Believe me it is all about staying within your budget.

2. What Counts as “Budget” in Chicago

Let me clarify here that every individual’s “budget” is different for their trip to Chicago. But, from my personal experience and considering current increasing costing, I would strongly say that you should be ready to pay between $90 and $150 per night for a hotel room on budget.

A few simple rules that will help you keep the hotel room cost low:

• If your travel dates are flexible then consider to travel midweek instead of weekends.
• Look for and try to avoid big event dates like Lollapalooza or major sports championships.
• Important: Book early, but not too early. I recommend booking around two months out tends to be the sweet spot.
• Don’t overlook smaller or older hotels. Truth is that many of old looking hotels have been renovated and are much cheaper than brand-new spots.

If you’re traveling with friends then sharing a bigger room or suite can make even a mid-range hotel surprisingly affordable.

3. Types of Budget-Friendly Accommodations

In my personal opinion, every Chicago stay doesn’t needs to be a luxurious expensive hotel with room service. I have come up with a few ways to keep costs down without sacrificing comfort.

Budget Hotels

Chicago has plenty of reliable two- and three-star hotels that include all the essentials. If you think of our necessities then all we need is clean rooms, Wi-Fi, and sometimes even free breakfast.

That narrow downs to focusing on location and reviews over luxury features. You really don’t need a rooftop pool when Lake Michigan is right there on the corner of Chicago waiting for you.

Hostels

Solo travelers or backpackers traveling on budget can take advantage of Chicago hostels. Chicago has several hostels with clean dorms and private room options.

They’re great for meeting people and usually come with shared kitchens that will even save even more money when you skip restaurant meals.

Boutique Inns or Guesthouses

If you are one of those who love personality, this option is for you. You will be surprised to know that you can find family-run guesthouses in neighborhoods like Lincoln Park, Logan Square, or Pilsen.

Without a doubt, they’re cozy, often include breakfast, and give you a “local” feel.

But, make sure to study their reviews and comments from past visitors before making a reservation.

Apartment Rentals

Airbnb and similar rentals can be a game-changer, especially for longer stays or groups. Many hosts offer discounts for multiple nights, and you’ll have access to a kitchen — a major plus in a foodie city like Chicago.

Travelers who are looking for a place for longer period of the time then Airbnb and similar vacation home rentals can be the best option.

During off peak season you will notice that you can rent a condo or house for a very low price. Most importantly considering the kitchen, you can also save money on dining.

4. When to Visit for the Best Deals

You believe it or not but timing when you visit Chicago matters and it can change everything. In real world Chicago’s hotel prices swing with the seasons, so if you’re flexible then plan your trip during following sweet spots:

• Winter (January–March): Cold, yes, but hotels slash prices dramatically. If you don’t mind bundling up by dressing properly for winter then this is the cheapest time to visit.
• Early Spring or Late Fall: Chicago is known for extreme weather and cold winds. Chicago weather can change in minutes so I would say mild weather during early spring or late fall is perfect for budget travelers. Overall there will be fewer tourists and solid cheap hotel deals in Chicago. Perfect balance between comfort and savings.
• Midweek stays: Tuesday through Thursday rates tend to be lower compared to weekends.

If you really have to visit during summer then you can consider to book early or even staying just outside of downtown and main touristy area to get the cheaper deals on hotels.

5. Transportation Tips That Save You Money

Chicago has one of the best public transportation system in place. Trust me on this, you really don’t have to rent a car to drive. Yes, seriously, I insist that you skip renting a car in Chicago if it is not mandatory for your vacation.

Parking in downtown Chicago can easily cost $40–$60 a day. Instead of spending on parking I recommend following few options:

• Use the CTA trains and buses. CTA offers 3-day unlimited pass, which is cheaper than a single night of parking. You may also like my post on getting around in Chicago to plan your next trip in Chicago.
• Stay near a train line. Try to look for an accommodation close to Red, Blue, or Green Line stations. El Train in Chicago are the fastest way to get to downtown fast.
• Walk or bike. Chicago’s neighborhoods are pedestrian-friendly. Also lately Divvy bike stations are getting setup everywhere throughout the city for convenience.
• Use Water Taxi. Chicago downtown has waterways of transportation. If you are visiting during warmer days then try to utilize water taxi, especially from downtown to Navy Pier, you will have Chicago river tour so that you can skip the boat tours.
  
  I feel that water taxi is not exactly same as architecture boat tour or any of the Chicago boat tours but at least you will experience the sailing vibe through downtown Chicago without spending more money on Chicago boat tours.

Let’s say even if you stay a bit away from the Loop then nothing to worry. Visitors or locals can easily take advantage of train connection to make Chicago trip just as convenient.

6. How to Get the Most for Your Money

Here’s where experience comes in handy. Over time, I’ve learned these small moves make a big difference:

• Compare amenities. Free breakfast, Wi-Fi, and gym access can add up in hotel rate value.
• Skip extras you won’t use. If you are traveling on a budget then you really don’t need valet parking or a spa for a three-day trip.
• Book direct. Sometimes hotels offer lower prices or perks like late checkout when you book on their official site. Lately, I have noticed that you can get the budget friendly hotel room rates on Expedia.com or Booking.com, as hotels work differently with these giant hotel booking companies.
• Use flexible dates. If you do not have strict travel dates then shifting your trip by a single day can drop rates significantly.
• Check the cancellation policy. Plans can change anytime so in real world, especially if you are watching your budget then you don’t want to lose money on a non-refundable booking.

7. Best Neighborhoods for Value

To make it simple, here’s a quick breakdown of what each area offers:

Neighborhood	What You’ll Love	Why It’s Budget-Friendly
The Loop	Walk to major attractions	Smaller hotels and mid-week deals
River North	Central with nightlife	Prices dip outside summer peak
South Loop	Close to museums	Less touristy, more affordable
Wicker Park	Trendy and local	Great Airbnb and boutique options
Pilsen	Artsy & cultural	Authentic experience, lower hotel rates
Lincoln Park	Family Friendly	Best neighborhood for the parks, zoo and local food.

9. My Personal Budget Picks

If I were heading to Chicago tomorrow on a budget then here’s how I’d plan it:

• Stay: Small 3-star hotel near the South Loop. Of course read reviews to make sure rooms are clean, walkable, and safe.
• Move around: I will definitely utilize public transportation such as the CTA or be ready to walk as everything’s close enough.
• Eat: Try local taquerias and diners instead of expensive steakhouses.
• Do: I would rather spend on experiences than lodging. I would save money to experience architecture tours, top attractions and of course, the ocean like Lake Michigan lakefront.

It’s about balance: you don’t have to sacrifice comfort to stay within budget — you just have to know where to look.

Being Chicago local I know the tricks. Yes, it is all about the balance. You really do not have to sacrifice the comfort of your say if you are on budget. All you need know where to look for cheap hotels in Chicago.

As I have shared the Chicago city’s rhythm, you really do not need to work hard to find a budget stay in Chicago. If you believe my recommendations then it is easy.

All you need to do is stay flexible, stay curious, and focus on what matters most in terms of location, safety, and value.

From boutique guesthouses in Logan Square to affordable downtown hotels with skyline views, our Windy City has everything for everyone and welcomes travelers of every budget.

Insider Locals tip: Pack light, grab your CTA card, and get ready to explore Chicago like a local without spending too much money.