Jackson County

Jackson County's headline numbers tell a split story. At a median home price of $131,916 and median rent of $691.90, the gross rent-to-price ratio sits at 6.29%, which is respectable on its face but not quite enough to overcome the carry costs at current financing rates. The model underwrite, assuming 20% down ($26,383) at 6.85%, produces a monthly mortgage of $692, and after adding $242 in estimated expenses the position runs at negative $242 per month cash flow, for a cash-on-cash return of -9.57%. The cap rate of 4.09% tells you the asset itself is only marginally productive at this price point; you need significant rent growth or appreciation to make the math work. On the appreciation side, the picture is more compelling: 6.3% year-over-year price growth and an appreciation score of 90 out of 100 put Jackson in the top tier for price momentum. The affordability index of 100 and overall ranking of 74th nationally out of 1,000 counties (91st percentile) confirm this market punches above its weight, but the cash-flow score of 63 and stability score of 50 are honest signals that this is not a set-it-and-forget-it income play.

The investor profile this market fits best is an appreciation-oriented buyer with reserves to carry a modest monthly shortfall while prices compound, or a value-add operator who can push rents above the median $691.90 through rehab and repositioning. At $131,916 median, the absolute dollar exposure is low, which means a $15,000-$20,000 renovation that lifts rent by $200-$250 per month changes the cash-flow picture materially. A pure cash-flow buyer underwriting at market rent and market price is going to have a hard time here, and the numbers confirm it: negative cash-on-cash at 20% down with median inputs. If you need the property to service itself from day one without additional equity or a below-market acquisition, Jackson as modeled does not deliver that.

The economic context matters a great deal in a county of 53,176 people. No major employer anchors are provided in the data, so any assessment of demand drivers beyond the numbers themselves would be speculative. What the stability score of 50 does suggest is meaningful concentration or demand fragility, something a serious buyer should investigate before committing, specifically whether the rental pool is tied to a single institution or sector that could contract.

Property taxes deserve a prominent line in your underwrite. Illinois carries a state-average effective property tax rate of 2.27%, flagged here as very high, which translates to $2,995 annually on a $131,916 purchase, or roughly $250 per month in tax alone. Combined with $356 in estimated annual insurance ($30 per month), the monthly tax-and-insurance burden is $279. That figure is the single largest reason the otherwise reasonable rent-to-price ratio fails to produce positive cash flow at standard financing terms: taxes alone consume 36% of the gross rent. Worth emphasizing that 2.27% is a state-average estimate per Tax Foundation 2024 data, and actual Jackson County or township assessments may differ, so pull the county assessor's current rate before finalizing any offer. If the actual rate is materially lower than the state average, cash flow improves; if higher, the hole deepens.

The primary risk here is the combination of a small population base, a stability score of 50, and Illinois's tax environment. A county of 53,000 people has limited absorption capacity if demand softens, and Illinois's property tax burden structurally caps the price ceiling for rentals because landlord economics deteriorate faster than in lower-tax states. Regulatory risk in Illinois more broadly, including tenant-protection legislation at the state level, is worth monitoring even if the data provided does not specify local ordinances.

Among the neighboring counties in the data, Jackson's median price of $131,916 is the lowest except for Pike County at $112,450. Pike scores 75 overall versus Jackson's 74, so at a $19,000 lower price point Pike may offer marginally better cash-flow entry. Winnebago County is the most interesting comparison: at $195,413 median and a rent-to-price ratio of 7.44% (versus Jackson's 6.29%) with median rent of $1,211.55, Winnebago's gross yields are higher and the deeper rental market likely supports the stability that Jackson's score of 50 does not. If your capital can stretch to a $195,000 acquisition and you want better income coverage, Winnebago is the stronger cash-flow candidate. Jackson makes the most sense over its neighbors when you are explicitly targeting appreciation momentum on a sub-$135,000 basis, are willing to accept negative carry, and have a specific value-add thesis that gets rents above the current median.