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Chicago, IL, Investor Yield Index

Chicago scores 100/100 (grade A) and ranks #4 of 18 tracked metros for rental cash flow. At the Chicagoland median of $226,376 renting near $2,266/mo, the estimated DSCR is 1.23 at a 6.80% loan rate, which clears the 1.2 lender minimum.

Figures use live Zillow medians, not a lender quote. Run your real numbers below.

30-yr mortgage: 6.80% DSCR loan: 7.75% Hard money: 11.50% Updated Jun 19, 2026, 11:13 PM Live
A

Index 100/100 · rank #4

Cap rate

7.21%

Gross yield

12.01%

Median price

$226,376

DSCR

1.23

Cash-on-cash

4.78%

Monthly rent

$2,266

GRM

8.33
Clears the DSCR line. At 6.80% financing the estimated 1.23 DSCR beats the 1.2 lender minimum, so rents cover the debt with margin. The 100/100 score reflects relative cash-flow strength versus the other 18 tracked metros.

Run the numbers on a Chicago deal

Pre-filled with Chicago medians. Adjust price, rent, and rate to your actual deal.

7.21%
Cap rate · DSCR 1.23 · cash-on-cash 4.78%
Gross yield
12.01%
Cap rate
7.21%
NOI / yr
$16,315
Loan amount
$169,782
Monthly P&I
$1,107
DSCR
1.23
Annual cash flow
$3,033
Cash-on-cash
4.78%
GRM
8.33
Rent / price
1.00%

Assumptions: 25% down + 3% closing costs, 40% opex/vacancy load 30-year amortization. Lenders typically require DSCR ≥ 1.2. Estimates, not a quote.

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Common questions about Chicago

Is Chicago, IL a good market for rental investors in 2026?

On the Investor Yield Index it scores 100/100 (grade A), ranking #4 of 18 tracked metros. The median price is $226,376 with rent around $2,266/mo, producing an estimated 7.21% cap rate and 1.23 DSCR at a 6.80% financing rate. At today's rates few U.S. metros clear positive cash flow on default terms, so the score is best read as where Chicago stands relative to other markets.

What is the cap rate in Chicago?

The model estimates a 7.21% cap rate at the median price-to-rent ratio, assuming a 40% operating-expense load. Your actual cap rate depends on the specific property and expenses.

Will a rental in Chicago qualify for a DSCR loan?

Yes, the estimated DSCR of 1.23 clears the typical 1.2 lender minimum at prevailing rates.

Markets ranked near Chicago

The closest metros above and below Chicago on the index, plus the top markets for comparison.

Cleveland, OH

100 · #1 · grade A

Memphis, TN

100 · #2 · grade A

Birmingham, AL

100 · #3 · grade A

Tampa, FL

89 · #5 · grade A

Indianapolis, IN

85 · #6 · grade A

Kansas City, MO

68 · #7 · grade A

Houston, TX

68 · #8 · grade A

See all 18 markets →

Index assumptions, 25% down, a 40% operating-expense load, 30-year amortization, and a 6.80% loan rate. DSCR is net operating income divided by annual debt service, lenders typically want at least 1.2. Cap rate, gross yield, DSCR, and cash-on-cash are weighted 30, 20, 30, and 20 percent. Prices and rents are live Zillow figures for relative comparison, not lender quotes or investment advice.