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Cap Rate Analysis: Aurora, IL

Investment metrics, interactive calculators, and data-driven analysis for Aurora rental properties.

Challenging for pure cash flow
Based on $275,000 median price and $1,420/mo median rent
Est. Cap Rate
3.01%
1% Rule
0.52%
Fails
GRM
16.1x
Price / Income
4.3x

Market Data

Median Home Price$275,000
Median Monthly Rent$1,420
Property Tax Rate2.05%
Population180,542
Population Growth0.3% / yr
Median Household Income$64,200
Vacancy Rate5.5%
Annual Appreciation2.3%

Cap Rate Calculator — Aurora

Pre-filled with Aurora medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
2.05% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.29%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$6,287
net operating income
Gross Rent Multiplier
16.1x
High (>15)
1% Rule
0.52%
✗ Fails
Monthly Cash Flow
$524
before debt service
Annual Breakdown
Gross Rental Income$17,040
Less Vacancy−$937
Effective Income$16,103
Less Operating Expenses−$9,816
Net Operating Income$6,287

Cash-on-Cash Return — Aurora

Factor in financing to see your actual return on invested capital in Aurora.

$
$68,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-8.11%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$77,000
$68,750 down + $8,250 closing
Monthly Mortgage
$1,345
on $206K loan
Monthly Cash Flow
$-521
after all expenses
Annual Cash Flow
$-6,247
before taxes
Cash Flow Breakdown
Monthly Rent$1,420
Less Expenses−$596
Less Mortgage−$1,345
Monthly Cash Flow$-521

Is Aurora a Good Place to Invest in Rental Property?

Aurora, IL has a population of 180,542 and has been growing at 0.3% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $275,000 paired with median rents of $1,420/mo produces an estimated cap rate of 3.01%.

Property taxes at 2.05% are notably high and represent a significant drag on cash flow — model this expense carefully, as it can make or break a deal. The vacancy rate of 5.5% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 4.3x, homes cost about 4.3 times the local median income of $64,200. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. Home values have appreciated at roughly 2.3% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: At current median prices, Aurora is challenging for pure cash flow investing. Consider BRRRR strategies with below-market purchases, or look at neighboring metros with stronger price-to-rent ratios.

Run a BRRRR analysis for Aurora
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