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Cap Rate Analysis: Springfield, IL

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

Moderate — source deals carefully
Based on $135,000 median price and $920/mo median rent
Est. Cap Rate
4.77%
1% Rule
0.68%
Fails
GRM
12.2x
Price / Income
2.6x

Market Data

Median Home Price$135,000
Median Monthly Rent$920
Property Tax Rate2.08%
Population113,000
Population Growth0.1% / yr
Median Household Income$52,400
Vacancy Rate6.5%
Annual Appreciation1.8%

Cap Rate Calculator — Springfield

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
2.08% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.69%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$4,982
net operating income
Gross Rent Multiplier
12.2x
Good (<15)
1% Rule
0.68%
✗ Fails
Monthly Cash Flow
$415
before debt service
Annual Breakdown
Gross Rental Income$11,040
Less Vacancy−$718
Effective Income$10,322
Less Operating Expenses−$5,340
Net Operating Income$4,982

Cash-on-Cash Return — Springfield

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

$
$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 Springfield a Good Place to Invest in Rental Property?

Springfield, IL has a population of 113,000 and has been growing at 0.1% 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 4.77%.

Property taxes at 2.08% 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 6.5% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 2.6x, homes cost about 2.6 times the local median income of $52,400. 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: Springfield presents moderate opportunities. Cap rates near 4.77% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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