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Cap Rate Analysis: Rockford, IL

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

Moderate — source deals carefully
Based on $135,000 median price and $920/mo median rent
Est. Cap Rate
4.69%
1% Rule
0.68%
Fails
GRM
12.2x
Price / Income
3.2x

Market Data

Median Home Price$135,000
Median Monthly Rent$920
Property Tax Rate2.12%
Population148,655
Population Growth-0.2% / yr
Median Household Income$42,800
Vacancy Rate7%
Annual Appreciation1.8%

Cap Rate Calculator — Rockford

Pre-filled with Rockford medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
2.12% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.61%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$4,867
net operating income
Gross Rent Multiplier
12.2x
Good (<15)
1% Rule
0.68%
✗ Fails
Monthly Cash Flow
$406
before debt service
Annual Breakdown
Gross Rental Income$11,040
Less Vacancy−$773
Effective Income$10,267
Less Operating Expenses−$5,400
Net Operating Income$4,867

Cash-on-Cash Return — Rockford

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

$
$33,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-4.00%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$37,800
$33,750 down + $4,050 closing
Monthly Mortgage
$660
on $101K loan
Monthly Cash Flow
$-126
after all expenses
Annual Cash Flow
$-1,513
before taxes
Cash Flow Breakdown
Monthly Rent$920
Less Expenses−$386
Less Mortgage−$660
Monthly Cash Flow$-126

Is Rockford a Good Place to Invest in Rental Property?

Rockford, IL has a population of 148,655 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 $135,000 paired with median rents of $920/mo produces an estimated cap rate of 4.69%.

Property taxes at 2.12% 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 7% runs above average, which increases cash flow volatility and warrants conservative underwriting.

At a price-to-income ratio of 3.2x, homes cost about 3.2 times the local median income of $42,800. 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 1.8% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Rockford presents moderate opportunities. Cap rates near 4.69% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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