Updated 2026 · Based on median market data for Kankakee, IL
Kankakee sits in the Midwest with a population of 50,000 growing at 0.2% annually. The median home costs $215,000 while rents average $1,400/mo, producing an estimated cap rate of 4.49%. This is a moderate market that rewards careful deal sourcing.
Kankakee works best for experienced investors with a clear strategy — Section 8, student housing, or deep value-add rehabs. The 4.49% cap rate at median prices is tight, so success depends on buying below market, forcing appreciation through renovation, or accessing above-market rent streams through niche tenant bases.
Target properties priced 15-25% below the $215,000 median — around $172,000 or less. At this price point with $1,400/mo rents, your cap rate improves to roughly 6.3%. Factor in 2.06% property taxes ($4,429/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 $1,613.
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 Kankakee property using our cap rate calculator (pre-filled with Kankakee data). Compare Kankakee against similar markets in the Midwest region. If you're considering a value-add approach, try our BRRRR calculator to model a rehab scenario.
Kankakee vs Illinois state average and national average across key investment metrics. Kankakee outperforms both benchmarks on cap rate.