Kenosha, WI Cap Rate: 4.42% — Rental Property Analysis
Kenosha is a mid-range market in the Midwest with a smaller market with 100,000 residents. At a 4.42% estimated cap rate, this is a moderate market where rents of $2,130/mo lag behind home prices. With a median home price of $340,000 and population is roughly stable, Kenosha 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
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Moderate — source deals carefully
Based on $340,000 median price and $2,130/mo median rent
Est. Cap Rate
4.42%
1% Rule
0.63%
Fails
GRM
13.3x
Price / Income
6.0x
Market Data
Median Home Price$340,000
Median Monthly Rent$2,130
Property Tax Rate1.88%
Population100,000
Population Growth0.4% / yr
Median Household Income$56,200
Vacancy Rate5.5%
Annual Appreciation2.4%
2026 Market Update: Kenosha
Kenosha's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $340,000, the $2,130/mo rent produces only $1,254/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 ($68K at 7%) would result in approximately $-555/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 25% of gross rent here — one of the highest ratios in our dataset. This significantly compresses margins and makes Kenosha a market where tax-conscious underwriting is essential. Every deal should be stress-tested with potential assessment increases.
Cap Rate Calculator — Kenosha
Pre-filled with Kenosha medians. Adjust to match a specific property.
Property Details
$
$
3–8% typical
%
Monthly Expenses
1.88% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.47%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$11,806
net operating income
Gross Rent Multiplier
13.3x
Good (<15)
1% Rule
0.63%
✗ Fails
Monthly Cash Flow
$984
before debt service
Annual Breakdown
Gross Rental Income$25,560
Less Vacancy−$1,406
Effective Income$24,154
Less Operating Expenses−$12,348
Net Operating Income$11,806
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Factor in financing to see your actual return on invested capital in Kenosha.
$
$85,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-5.39%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$95,200
$85,000 down + $10,200 closing
Monthly Mortgage
$1,662
on $255K loan
Monthly Cash Flow
$-427
after all expenses
Annual Cash Flow
$-5,129
before taxes
Cash Flow Breakdown
Monthly Rent$2,130
Less Expenses−$895
Less Mortgage−$1,662
Monthly Cash Flow$-427
Is Kenosha a Good Place to Invest in Rental Property?
Kenosha, WI has a population of 100,000 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 $340,000 paired with median rents of $2,130/mo produces an estimated cap rate of 4.42%.
Property taxes at 1.88% 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 5.5% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 6.0x, homes cost about 6.0 times the local median income of $56,200. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 2.4% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Kenosha presents moderate opportunities. Cap rates near 4.42% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
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