17 Illinois cities ranked by estimated cap rate. The average cap rate across Illinois markets is 4.4%, with median home prices averaging $212K and rents averaging $1,334/mo. Decatur leads with a 7.7% cap rate at a $120K median price. Note that Illinois's average property tax rate of 2.06% is above the national average — factor this into your underwriting.
Illinois offers 17 investable rental markets tracked by CapRateCity. The state average cap rate of 4.4% is above the 3.81% national average, making Illinois an attractive state for cash flow investors. No cities pass the 1% rule at median prices, so value-add strategies are essential.
Prices and rents: Illinois home prices average $212K, which is 36% below the national average of $333K. Rents average $1,334/mo. The most affordable entry point is Danville at $95K, while Decatur offers the highest cap rate at 7.7%.
Taxes and costs: Property taxes average 2.06% across Illinois, above the 1.08% national average — investors should model tax expense carefully. Naperville has the lowest rate at 2%.Vacancy averages 5.9%, in line with national norms.
Growth outlook: Population growth across Illinois averages 0.19% per year, led by Naperville at 0.5%. Home values are appreciating at 2.1% annually on average. Moderate growth provides a stable demand foundation.
Bottom line: Illinois offers moderate opportunities for rental investors. The best deals are in cities at the top of the ranking — use the calculators on each city page to model specific properties.