Rockford, IL — Rental Investment Analysis
🟡MODERATE— average returnsData: HUD FMR FY2024 + Zillow ZHVI April 2026 + Freddie Mac rates. Last updated June 2026.
Investment Summary
As of 2026, rental properties in Rockford, IL yield a 5.7% cap rate. Median home price is $186,560 with 3-bedroom rents at $1,350/month.
Rockford is a moderate market — workable but not exceptional for cash flow. At $186,560 median home price, Rockford is affordable by national standards and within reach for most conventional loans. With 3-bedroom rents around $1,350/month, the 5.7% cap rate tells the story. At current prices and rates, expect to lose about $101/month — negative cash flow unless you put more down or find below-market deals.
The 1% rule comes in at 0.76% — doesn't quite pass, but close enough to find individual deals that work. DSCR of 0.90 is below 1.0, meaning rental income doesn't cover the mortgage. DSCR lenders will likely decline this market at current prices.
Bottom line: Rockford 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
5.7%
Below average
Monthly Cash Flow
-$101
After all expenses
Price-to-Rent
11.0
Investor-friendly
DSCR
0.90
Fails
Key Metrics
- Median Home Price
- $186,560
- Average Rent (3BR)
- $1,350/mo
- Price-to-Rent Ratio
- 11.0(good)
- 1% Rule
- 0.76%(fails — need 1%+)
- Cash-on-Cash Return
- -2.8%
- 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
22.4%
Affordable
Section 8 Max Rent
$1,350/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)
Population Movement (Tax Year 2021→2022)
Net Migration
+149 households
GROWING
Total Inflow
2,221
households moved in
Avg Income (New Residents)
$50,022
per household
Where they're coming from:
Where residents are leaving to:
Strong net inflow suggests growing rental demand and upward pressure on rents.
Best Zip Codes in Rockford for Investors
All Zip Codes in Rockford
| Zip | Cap Rate | Cash Flow | Home Price | Rent (3BR) | DSCR |
|---|---|---|---|---|---|
| 61101 | 9.6% | +$303 | $113,235 | $1,300/mo | 1.50 |
| 61104 | 9.0% | +$245 | $112,107 | $1,220/mo | 1.41 |
| 61102 | 8.8% | +$235 | $118,430 | $1,260/mo | 1.37 |
| 61103 | 6.9% | +$69 | $149,116 | $1,310/mo | 1.09 |
| 61108 | 5.7% | -$101 | $186,560 | $1,410/mo | 0.90 |
| 61109 | 5.3% | -$173 | $189,884 | $1,350/mo | 0.83 |
| 61107 | 4.6% | -$334 | $221,080 | $1,410/mo | 0.72 |
| 61114 | 4.4% | -$435 | $267,685 | $1,670/mo | 0.69 |
| 61047 | 4.3% | -$396 | $224,203 | $1,360/mo | 0.67 |