Rental Property for Illinois (2026)
Illinois (IL) Key Facts
Average Cap Rate
6.5%
Average 1 B R Rent
$1,200
Rent to Price Ratio
5.33%
Landlord Friendly
No (Tenant-friendly)
Average Property Tax Rate
2.27%
How This Calculator Works in Illinois
This rental property calculator helps you analyze potential investment properties in Illinois by estimating cash flow, cap rate, and return on investment. It is pre-loaded with Illinois's average rent and property values so you can quickly evaluate whether a property meets your investment criteria. Adjust the rental income, expenses, and financing terms to match a specific property.
Illinois Overview
Illinois offers a cap rate of 6.5% with median home prices of $270,000 and average 1BR rents of $1,200/month. Illinois leans tenant-friendly, with stronger renter protections and longer eviction timelines. Factor this into your risk and vacancy assumptions. There is no statewide rent control, allowing market-rate adjustments at lease renewal.
How Illinois Compares
Illinois's cap rate of 6.5% is comparable to nearby states. Indiana has a cap rate of 7.5% and Wisconsin has a cap rate of 6.5%. Investors often compare multiple states to find the best risk-adjusted returns for their strategy.
| State | Top Rate | Notes |
|---|---|---|
| Indiana | 7.5% | Average cap rate of 7.5% with median home price of $240,000 and average 1BR rent of $900. Landlord-friendly state. |
| Wisconsin | 6.5% | Average cap rate of 6.5% with median home price of $270,000 and average 1BR rent of $950. Moderate landlord-tenant regulations. |
| Iowa | 7% | Average cap rate of 7% with median home price of $210,000 and average 1BR rent of $800. Moderate landlord-tenant regulations. |
Illinois has an average cap rate of 6.5%, which is near the national average for investment returns. The rent-to-price ratio of 5.33% helps investors gauge monthly cash flow potential relative to the property's value.
Tips for Illinois Residents
- 1The average cap rate in Illinois is 6.5%. This is above average nationally, indicating relatively strong cash-flow potential.
- 2Illinois leans tenant-friendly, with stronger renter protections and longer eviction timelines. Factor this into your risk and vacancy assumptions.
- 3Illinois does not have statewide rent control, allowing landlords to set and raise market-rate rents freely at lease renewal.
- 4Budget for operating expenses of 40-50% of gross rent in Illinois, covering property taxes (2.27%), insurance, maintenance (1-2% of property value/year), vacancy (5-8%), and property management (8-10% of rent if hiring a manager).
- 5Average 1BR rent in Illinois is $1,200/month against a median home price of $270,000. The rent-to-price ratio helps you quickly screen properties: higher ratios suggest better cash-flow potential.
Frequently Asked Questions
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