What's a good cap rate in Chicago?

In Chicago, cap rates typically run around 6.5% (Chicago metro median). A deal above that line is outperforming the local market; below it, you're paying up for appreciation or stability. TrueCap shows where any specific Chicago deal lands versus this benchmark.

What's the average rent for a rental in Chicago?

A typical rental in Chicago runs about $1,781–$2,294/mo (HUD Fair Market Rent, 2–3BR). TrueCap auto-fills HUD Fair Market Rent for the exact address you enter.

What is the property tax rate in Illinois?

Illinois's effective property tax rate is about 2.08% of value per year — the figure TrueCap applies by default for Chicago deals. You can override it with the exact local rate.

Chicago, IL

Chicago rental property analysis

Chicago offers real cash flow in the right neighborhoods — but Cook County property taxes and regulation make block-by-block selection everything.

Chicago market snapshot

Balanced market

Mid-range cap rates — cash flow and appreciation are both realistically on the table.

Typical cap rate

6.5%

Chicago metro median

Typical rent

$1,781–$2,294/mo

HUD FMR · 2–3BR · 2026

Typical price

$260,000–$380,000

est., all-in

Property tax

2.08%

Illinois effective

Rent is HUD Fair Market Rent where available, otherwise a market estimate; price is a market estimate. Cap-rate and tax are the defaults TrueCap applies — enter a specific address for exact, auto-filled numbers.

Sources & methodology. These are screening defaults and market estimates — not an appraisal, and not financial, tax, or legal advice. Verify rents, taxes, insurance, and local landlord/tenant law against the county assessor and your state's landlord-tenant statute before relying on them.

Data: HUD Fair Market Rent · FRED 30-yr mortgage rate · Tax Foundation (property tax) · Updated June 2026

Metro-level estimates — precision is lower at the neighborhood and parcel level; pull a specific address for exact, auto-filled figures. Reviewed by the TrueCap team. See our full methodology.

Is Chicago a good place to buy rentals?

Yields can be strong, yet the tax bill and tenant rules swing deals hard. This is a market where local knowledge and honest tax modeling decide outcomes.

See the full Illinoisinvesting guide — taxes, landlord law & top metros →

Neighborhoods to look at in Chicago

Avondale

Appreciating, strong rental demand.

Portage Park

Stable Northwest Side, owner-occupant feel.

South suburbs

High cash flow, screen neighborhoods carefully.

Neighborhood notes are starting points, not recommendations — always underwrite the specific property.

Run a Chicago deal in 60 seconds

Paste a Chicago address into TrueCap and get cap rate, cash-on-cash, DSCR, cash flow, and a 10-year projection — auto-filled with Illinois tax and HUD rent so you start from the right assumptions.

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