Cap rate calculator — Illinois
Illinois deals frequently hinge on property tax clarity and local economic trends. Default rent inputs reflect HUD FMR data—pair the calculator with counsel and local pros on legal and tax questions. Same math as the national Cap rate calculator; numbers are educational—not lender instructions.
Frequently asked questions
- How do you calculate cap rate on a rental property?
- Cap rate is annual NOI divided by purchase price. NOI is effective gross income after vacancy minus operating expenses like taxes, insurance, and recurring costs.
- What is a good cap rate?
- A good cap rate depends on market risk, asset quality, and growth expectations. Many investors compare cap rate against local comps, financing terms, and target return hurdles.
- Can I save cap rate calculator results?
- This calculator does not save your session. Use a free Veld account to save deals in the deal analyzer and track portfolio assumptions over time.
- What cap rate benchmark should I use in Illinois?
- Recent residential cap rates in Illinois are often near 6.0%, but deal quality and neighborhood risk can move that range. Underwrite with your actual 1.79% effective property tax and insurance quotes to avoid overstating NOI.
Real estate investing in Illinois
Real estate investing in Illinois
Cook County and other jurisdictions have distinct assessment and appeal dynamics. Your modeled taxes should reflect what you expect after exemptions and appeals, not a single listing line item.
- Typical 2BR rent
- ~$1,200/mo
- Effective property tax
- ~1.79% of home value
- State income tax
- 4.95% flat
- Typical cap rate
- ~6.0%
Rent: HUD FMR 2025 · Property tax: Tax Foundation 2022 · Adjust all calculator inputs to match your specific deal.
Other calculators for Illinois: BRRRR Calculator · STR vs LTR Calculator. All calculators · Investment property calculator