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Cap Rate Analysis: Joliet, IL

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

Challenging for pure cash flow
Based on $250,000 median price and $1,380/mo median rent
Est. Cap Rate
3.38%
1% Rule
0.55%
Fails
GRM
15.1x
Price / Income
3.7x

Market Data

Median Home Price$250,000
Median Monthly Rent$1,380
Property Tax Rate2.06%
Population151,000
Population Growth0.4% / yr
Median Household Income$68,200
Vacancy Rate5.8%
Annual Appreciation2.2%

Cap Rate Calculator — Joliet

Pre-filled with Joliet 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
2.59%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$6,480
net operating income
Gross Rent Multiplier
15.1x
High (>15)
1% Rule
0.55%
✗ Fails
Monthly Cash Flow
$540
before debt service
Annual Breakdown
Gross Rental Income$16,560
Less Vacancy−$960
Effective Income$15,600
Less Operating Expenses−$9,120
Net Operating Income$6,480

Cash-on-Cash Return — Joliet

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

$
$62,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-7.24%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$70,000
$62,500 down + $7,500 closing
Monthly Mortgage
$1,222
on $188K loan
Monthly Cash Flow
$-422
after all expenses
Annual Cash Flow
$-5,068
before taxes
Cash Flow Breakdown
Monthly Rent$1,380
Less Expenses−$580
Less Mortgage−$1,222
Monthly Cash Flow$-422

Is Joliet a Good Place to Invest in Rental Property?

Joliet, IL has a population of 151,000 and has been growing at 0.4% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $250,000 paired with median rents of $1,380/mo produces an estimated cap rate of 3.38%.

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 5.8% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 3.7x, homes cost about 3.7 times the local median income of $68,200. 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 2.2% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: At current median prices, Joliet is challenging for pure cash flow investing. Consider BRRRR strategies with below-market purchases, or look at neighboring metros with stronger price-to-rent ratios.

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