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MarketsIllinoisDixonRent Analysis

Rent Analysis: Dixon, IL

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

Cap Rate
3.72%
Median Price
$175K
Rent/Mo
$1,020
1% Rule
0.58%
Fails

Rent Overview

The median monthly rent in Dixon, IL is $1,020, translating to $12,240 in annual gross rental income per unit. The rent-to-price ratio is 0.58% — well below the 1% rule, making pure cash flow investing challenging at median prices.

Rent Affordability

Renters in Dixon spend approximately 20% of the local median household income ($62,333) on rent. This is well below the 30% threshold, suggesting significant headroom for rent increases. Tenants can afford to pay more, which is bullish for landlords.

Vacancy & Tenant Demand

The vacancy rate in Dixon is 5.9%. This is a healthy vacancy rate that indicates balanced supply and demand. You should be able to find quality tenants without extended vacancies, though expect normal turnover periods of 2-4 weeks between tenants. Population growth of 0.2% annually provides stable demand.

Gross Rent Multiplier

Dixon's GRM (price divided by annual rent) is 14.3x. A GRM between 12-16x is moderate and typical of balanced markets. Deals can work but you need to keep expenses controlled. For comparison, the national average GRM for investment-grade rentals is approximately 13-15x.

Rental Income Projection

At the median rent of $1,020/mo, a single-family rental in Dixon generates approximately $12,240 in gross annual income. After accounting for 5.9% vacancy ($722 lost), property taxes of $3,605, insurance (~$700), and maintenance (~$700), the estimated NOI is $6,513 per year, or $543/mo.

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How Dixon Compares

Dixon vs Illinois state average and national average across key investment metrics. Dixon's cap rate is below both benchmarks — deal sourcing is critical here.

Metric
Dixon
Illinois Avg
National Avg
Cap Rate
3.72%
4.43%
3.81%
Median Price
$175K
$212K
$333K
Median Rent
$1,020
$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
Dixon, IL
3.7%
$175K
$1,020
2.06%
Atchison, KS
5.7%
$175K
$1,220
1.38%
Bay City, MI
6.0%
$175K
$1,280
1.46%
Salina, KS
4.8%
$175K
$1,070
1.38%
Ashtabula, OH
4.2%
$170K
$1,000
1.58%

Frequently Asked Questions

What is the average rent in Dixon, IL?
The median monthly rent in Dixon is $1,020, or $12,240 per year. This is 33% below the national average of $1,524/mo. Rent levels vary by neighborhood, property condition, and unit size — always verify comparable rents for your target property.
Is Dixon a good rental market for landlords?
With a rent-to-price ratio of 0.58%, Dixon falls below the 1% rule, meaning cash flow depends on buying below median or achieving above-median rents. The 5.9% vacancy rate signals tight rental demand, favorable for landlords.
How does Dixon rent compare to Illinois averages?
Dixon's median rent of $1,020/mo is 24% below the Illinois average of $1,334/mo. Home prices at $175K are below the state average of $212K, giving Dixon a rent-to-price ratio of 0.58% vs 0.63% statewide.
What is a good rent-to-price ratio?
The 1% rule says monthly rent should be at least 1% of purchase price ($1,000/mo rent on a $100,000 home). Dixon's ratio is 0.58%. Generally, above 0.8% is workable with good financing, above 1% is strong, and above 1.2% is exceptional. The national average across the 300+ cities we track is 0.46%.
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Explore Dixon & Related Markets

More Dixon Guides

Rental Property Investment GuideProperty Tax GuideCost of Living & AffordabilityAppreciation & Growth ForecastNeighborhood Investment Guide

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