Kankakee is a budget-friendly market in the Midwest with a small but investable metro of 50,000. At a 4.49% estimated cap rate, this is a moderate market where rents of $1,400/mo lag behind home prices. With a median home price of $215,000 and population is roughly stable, Kankakee offers opportunities for investors who source deals carefully.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
Kankakee's 0.7% rent-to-price ratio is well below the 1% rule. At median prices of $215,000, the $1,400/mo rent produces only $805/mo in NOI. Investors here need to target below-median properties or pursue value-add strategies to make the numbers work.
At current rates, a 20% down conventional loan ($43K at 7%) would result in approximately $-339/mo cash flow — negative at median prices. Larger down payments, seller financing, or buying 15–25% below median are strategies to turn the numbers positive.
Property taxes consume 26% of gross rent here — one of the highest ratios in our dataset. This significantly compresses margins and makes Kankakee a market where tax-conscious underwriting is essential. Every deal should be stress-tested with potential assessment increases.
Pre-filled with Kankakee medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Kankakee.
Kankakee, 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 $215,000 paired with median rents of $1,400/mo produces an estimated cap rate of 4.49%.
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 3.4x, homes cost about 3.4 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: Kankakee presents moderate opportunities. Cap rates near 4.49% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.