A Chicago Fire Department spokesperson said firefighters responded to the fire off Columbus and Balbo at 2:30 p.m. Firefighters extinguished the flames.
A mother and daughter driving by captured video of the burning cross. They told ABC7 that they could not believe their eyes.
The burning cross is widely considered to be a symbol of racist hatred.
Chicago police said they are investigating the circumstances surrounding the fire.
Rev. Michael L. Pfleger said the Faith Community of Saint Sabina will offer a $10,000 for information leading to an arrest.
Mayor Brandon Johnson's office said in a statement: "Like many Chicagoans across our city, we were deeply disturbed upon seeing the images which have emerged following this incident."
"Hate has no place in our city. Every Chicagoan deserves to feel safe, protected, and respected while going about their day or enjoying our public spaces. We will continue working across City government to uphold that standard and ensure Chicago remains a welcoming, inclusive, and safe place for all," the statement continued.
Authorities did not immediately provide further information.