Farmer City, IL — Rental Investment Analysis
🟢GOOD— solid returnsData: HUD FMR FY2024 + Zillow ZHVI April 2026 + Freddie Mac rates. Last updated June 2026.
Investment Summary
As of 2026, Farmer City, IL offers a 6.6% cap rate with median home prices of $175,452 and 3-bedroom rents of $1,480/month.
Farmer City offers solid returns for rental investors. At $175,452 median home price, Farmer City is affordable by national standards and within reach for most conventional loans. With 3-bedroom rents around $1,480/month, the 6.6% cap rate tells the story. Cash flow is modest at +$31/month — positive but tight. Rate increases or vacancies could flip it negative.
The 1% rule comes in at 0.84% — doesn't quite pass, but close enough to find individual deals that work. DSCR of 1.03 is tight — you'll pass most lender minimums but with little margin for error.
Bottom line: Farmer City offers a balance of moderate cash flow and growth potential. Good for investors who want some income while building equity over time.
Data sources: HUD Fair Market Rents (FY2024), Zillow Home Value Index (April 2026), Freddie Mac Primary Mortgage Market Survey.
Cap Rate
6.6%
Above average
Monthly Cash Flow
+$31
After all expenses
Price-to-Rent
9.9
Investor-friendly
DSCR
1.03
Tight
Key Metrics
- Median Home Price
- $175,452
- Average Rent (3BR)
- $1,480/mo
- Price-to-Rent Ratio
- 9.9(good)
- 1% Rule
- 0.84%(fails — need 1%+)
- Cash-on-Cash Return
- 0.9%
- Vacancy Rate
- 8.0%
Market Strength
- Unemployment Rate
- 5.1%(+0.8% vs national)
- Rent Growth (YoY)
- +2.9%(national avg)
- Population Growth
- -1.65% YoY
Property Tax Rate
2.08%
of assessed value (IL avg)
Median Income
$72,205
household (IL avg)
Rent-to-Income
24.6%
Affordable
Section 8 Max Rent
$1,480/mo
3BR voucher payment
IL Investor Climate
Landlord Friendly
5/10
State Income Tax
Has state tax
Property Tax
2.08% effective
Population Trend
-1.65% (3yr)