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MarketsIllinoisDecatur

Cap Rate Analysis: Decatur, IL

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

Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026

Strong investment fundamentals
Based on $120,000 median price and $1,120/mo median rent
Est. Cap Rate
7.68%
1% Rule
0.93%
Fails
GRM
8.9x
Price / Income
1.9x

Market Data

Median Home Price$120,000
Median Monthly Rent$1,120
Property Tax Rate2.06%
Population50,000
Population Growth0.2% / yr
Median Household Income$62,333
Vacancy Rate5.9%
Annual Appreciation2.1%

Cap Rate Calculator — Decatur

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
2.06% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
6.06%Moderate
Net Operating Income ÷ Purchase Price
NOI / Year
$7,271
net operating income
Gross Rent Multiplier
8.9x
Good (<15)
1% Rule
0.93%
✗ Fails
Monthly Cash Flow
$606
before debt service
Annual Breakdown
Gross Rental Income$13,440
Less Vacancy−$793
Effective Income$12,647
Less Operating Expenses−$5,376
Net Operating Income$7,271
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Cash-on-Cash Return — Decatur

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

$
$30,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
2.26%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$33,600
$30,000 down + $3,600 closing
Monthly Mortgage
$587
on $90K loan
Monthly Cash Flow
$63
after all expenses
Annual Cash Flow
$759
before taxes
Cash Flow Breakdown
Monthly Rent$1,120
Less Expenses−$470
Less Mortgage−$587
Monthly Cash Flow$63

Is Decatur a Good Place to Invest in Rental Property?

Decatur, IL has a population of 50,000 and has been growing at 0.2% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $120,000 paired with median rents of $1,120/mo produces an estimated cap rate of 7.68%.

Property taxes at 2.06% 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 5.9% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 1.9x, homes cost about 1.9 times the local median income of $62,333. 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 2.1% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Decatur offers attractive fundamentals for rental investors. and cap rates above 6% put it in the upper tier of investable markets.

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