North Peoria
More stable, desirable, reliable tenants.
Peoria, IL
Is Peoria a good place to buy rental property in 2026?
Short answer: yes — for cash-flow investors. Peoria's median cap rate runs about 7.5% (Illinois state median), above the ~6.5% national median, with typical rent at $1,039–$1,346/mo and Illinois property tax near 2.08%.
Peoria is a deep-value Illinois cash-flow market — very low prices and healthy rent ratios, with a healthcare-and-manufacturing base.
Peoria market snapshot
Cash-flow marketHigher typical cap rates — built for monthly cash flow more than price growth.
Typical cap rate
7.5%
Illinois state median
Typical rent
$1,039–$1,346/mo
HUD FMR · 2–3BR · 2026
Typical price
$110,000–$180,000
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 July 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.
Why Peoria works for rental investors
Strong cash-on-cash at low entry, but the local economy can be cyclical and Illinois taxes are high — model both. For yield-focused operators.
See the full Illinois investing guide — taxes, landlord law & top metros →
Neighborhoods to look at in Peoria
West Peoria
Affordable, family renters.
Peoria Heights
Walkable, steady demand.
Neighborhood notes are starting points, not recommendations — always underwrite the specific property.
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