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Peoria vs Chicago for Rental Property Investing

Side-by-side comparison of Peoria, IL and Chicago, IL — cap rates, rent, prices, and investment metrics.

Chicago wins 4–3 across key metrics
Peoria leads on cash flow (4.94% vs 3.03% cap rate) · Chicago leads on population growth
Metric
Peoria, IL
Chicago, IL
Est. Cap Rate
4.94%
3.03%
Median Home Price
$125,000
$310,000
Median Monthly Rent
$880
$1,620
1% Rule
0.70%
0.52%
GRM
11.8x
15.9x
Price / Income
2.6x
5.0x
Property Tax Rate
2.1%
2.08%
Vacancy Rate
7.2%
5.8%
Population Growth
-0.3% / yr
0.1% / yr
Annual Appreciation
1.6%
2.4%
Population
113,150
2,665,039
Median Income
$48,200
$62,400

Peoria vs Chicago: Which Is Better for Investors?

Cash flow: Peoria has the edge with an estimated cap rate of 4.94% compared to Chicago's 3.03%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $125,000 in Peoria vs $310,000 in Chicago, while rents come in at $880/mo and $1,620/mo respectively.

Growth & appreciation: Chicago is growing faster at 0.1% annually, while Peoria is losing population. Chicago leads on home value appreciation at 2.4% per year.

Costs & risk: Property taxes are 2.1% in Peoria vs 2.08% in Chicago. Vacancy rates of 7.2% and 5.8% are mixed — Chicago has the tighter rental market.

Bottom line: Chicago edges out Peoria on most key metrics. While cap rates are moderate at 3.03%, Chicago's overall profile is stronger. Use our free calculators to model specific deals in Peoria or Chicago.

Peoria, IL
4.94% cap rate · $125,000 median · $880/mo
Full analysis →
Chicago, IL
3.03% cap rate · $310,000 median · $1,620/mo
Full analysis →
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