Updated 2026 · Based on median market data for Decatur, IL
Decatur sits in the Midwest with a population of 50,000 growing at 0.2% annually. The median home costs $120,000 while rents average $1,120/mo, producing an estimated cap rate of 7.68%. This puts Decatur in the upper tier of investable US markets.
Decatur is ideal for cash flow investors, BRRRR practitioners, and anyone building a portfolio of affordable, income-producing rentals. The low price point ($120,000) means you can get started with a $24,000 down payment, and the 7.68% cap rate should produce positive cash flow even with conservative financing.
Target properties priced 15-25% below the $120,000 median — around $96,000 or less. At this price point with $1,120/mo rents, your cap rate improves to roughly 10.3%. Factor in 2.06% property taxes ($2,472/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 $944.
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.
Run the numbers on a specific Decatur property using our cap rate calculator (pre-filled with Decatur data). Compare Decatur against similar markets in the Midwest region. If you're considering a value-add approach, try our BRRRR calculator to model a rehab scenario.
Decatur vs Illinois state average and national average across key investment metrics. Decatur outperforms both benchmarks on cap rate.