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MarketsIllinoisDanvilleRental Property Investment Guide

Rental Property Investment Guide: Danville, IL

Updated 2026 · Based on median market data for Danville, IL

Cap Rate
7.24%
Median Price
$95K
Rent/Mo
$850
1% Rule
0.89%
Fails

Market Snapshot

Danville sits in the Midwest with a population of 50,000 growing at 0.2% annually. The median home costs $95,000 while rents average $850/mo, producing an estimated cap rate of 7.24%. This puts Danville in the upper tier of investable US markets.

Who Should Invest Here

Danville is ideal for cash flow investors, BRRRR practitioners, and anyone building a portfolio of affordable, income-producing rentals. The low price point ($95,000) means you can get started with a $19,000 down payment, and the 7.24% cap rate should produce positive cash flow even with conservative financing.

Deal Criteria for Danville

Target properties priced 15-25% below the $95,000 median — around $76,000 or less. At this price point with $850/mo rents, your cap rate improves to roughly 9.8%. Factor in 2.06% property taxes ($1,957/yr), budget 5% of gross rent for maintenance, and underwrite to a 5.9% vacancy rate. On a 20% down conventional loan at 7%, monthly PITI will run approximately $768.

Risks and Considerations

Property taxes at 2.06% are notably high — this is a significant drag on NOI that some investors underestimate. Every deal should be evaluated individually using our calculator tools. Median data provides a starting point; actual returns depend on the specific property, financing, and your management approach.

Next Steps

Run the numbers on a specific Danville property using our cap rate calculator (pre-filled with Danville data). Compare Danville against similar markets in the Midwest region. If you're considering a value-add approach, try our BRRRR calculator to model a rehab scenario.

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How Danville Compares

Danville vs Illinois state average and national average across key investment metrics. Danville outperforms both benchmarks on cap rate.

Metric
Danville
Illinois Avg
National Avg
Cap Rate
7.24%
4.43%
3.81%
Median Price
$95K
$212K
$333K
Median Rent
$850
$1,334
$1,524
Property Tax
2.06%
2.06%
1.08%
Vacancy
5.9%
5.9%
5.6%
Pop. Growth
0.2%/yr
0.2%/yr
0.9%/yr

Nearby Midwest Markets

City
Cap Rate
Price
Rent
Tax
Danville, IL
7.2%
$95K
$850
2.06%
Decatur, IL
7.7%
$120K
$1,120
2.06%
Great Bend, KS
5.5%
$120K
$810
1.38%
Jacksonville, IL
5.2%
$125K
$890
2.06%
Pittsburg, KS
6.0%
$130K
$940
1.38%

Frequently Asked Questions

Is Danville, IL a good place to invest in rental property?
Danville has an estimated cap rate of 7.24%, which is above the national average of 3.81%. With median home prices at $95K and rents of $850/mo, Danville offers strong cash flow fundamentals for rental investors. Population growth of 0.2% and 5.9% vacancy rate indicate healthy tenant demand.
What is the average cap rate in Danville?
The estimated cap rate for Danville is 7.24%, based on median home prices of $95K, median rents of $850/mo, a 2.06% property tax rate, and 5.9% vacancy. This compares to a 4.43% average across Illinois and 3.81% nationally. Cap rates for individual properties will vary based on purchase price, actual rents, and property condition.
How much does a rental property cost in Danville?
The median home price in Danville is $95,000, which is 72% below the national average of $333,419. A 20% down payment would be approximately $19,000. Investment properties in Danville range significantly — targeting properties 15-25% below median can improve your cap rate substantially.
What are Danville property taxes for investors?
Danville's effective property tax rate is 2.06%, which is above the Illinois average of 2.06% and above the national average of 1.08%. On a $95K property, annual taxes are approximately $1,957 ($163/mo). Higher property taxes are one of the largest operating expenses — model this carefully.
Full Danville Analysis →Cap Rate CalculatorBRRRR Calculator

Explore Danville & Related Markets

More Danville Guides

Rent AnalysisProperty Tax GuideCost of Living & AffordabilityAppreciation & Growth ForecastNeighborhood Investment Guide

Similar Markets in the Midwest

Decatur, IL$120K · $1,120/mo
7.7%
Norwalk, OH$185K · $1,450/mo
6.4%
Pittsburg, KS$130K · $940/mo
6.0%
Bay City, MI$175K · $1,280/mo
6.0%
Marion, OH$170K · $1,240/mo
5.8%
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