Lee County

Lee County sits at a 7.05% rent-to-price ratio and a 4.58% cap rate, which places it firmly in the middle of the cash-flow vs. appreciation spectrum, leaning slightly toward appreciation. The median home price of $188,606 against a median rent of $1,108 produces numbers that look attractive on the surface, but the actual cash-flow underwrite tells a different story: at a 6.85% interest rate, the modeled scenario shows a monthly cash flow of negative $268 and a cash-on-cash return of -7.41%. That negative carry is not unusual for a market with a 91st-percentile appreciation score, and the 6.58% year-over-year price growth partially explains why the county ranks 74th nationally out of 1,000 counties. This is a market where the rent alone will not cover costs at current financing rates, but where asset appreciation is doing real work.

The appreciation score of 91 and the 6.58% price growth make Lee County most compelling for an investor with a longer hold horizon who is comfortable subsidizing modest monthly deficits in exchange for equity accumulation. The cash-flow score of 71 is not low enough to disqualify the market, but it reflects exactly what the numbers show: positive operating income before debt service, but not enough to clear a 6.85% mortgage on a 20% down payment. A cash buyer or a lower-leverage operator improves the picture materially, since the 4.58% cap rate at least clears a reasonable hurdle if you do not need financing. The affordability index of 90 and a median price under $190,000 also make this a realistic entry point for value-add operators who can buy below median, force appreciation through renovation, and refinance into better debt coverage as rents season upward. At $188,606, there is room to work.

No economic anchor data was provided for Lee County, so specific employer or sector analysis would go beyond what the data supports.

Property tax is the single biggest underwriting risk this market presents. The state-average effective rate is 2.27%, which the Tax Foundation classifies as very high, and that translates to $4,281 in annual property taxes on a median-priced asset. Combined with $509 in annual insurance, the combined tax and insurance burden runs $399 per month, nearly as large as the $388 estimated in other expenses. To put it plainly: tax and insurance alone consume $399 of your gross rent of $1,108, or roughly 36 cents of every dollar collected. That is not a rounding error; it deserves its own line on every underwrite you build here. The caveat the data itself flags is important: 2.27% is a state-average estimate, and county or township rates in Lee County may differ. Before closing, verify the actual assessed value and millage rate for any specific parcel, because a variance of even 0.3% on a $188,606 asset is an additional $566 per year in carry cost.

The stability score of 50 is the clearest risk flag in the data set. A population of 34,221 means the local rental demand pool is narrow, and any single large employer contraction, demographic shift, or prolonged vacancy on a multi-unit property has an outsized effect on your portfolio. The affordability index of 90 suggests residents can afford current rents, which is a partial offset, but thin demand depth means underwriting vacancy at a conservative rate is non-negotiable here. No vacancy or crime statistics are provided, so quantifying those risks further is not possible from this data alone.

Among the neighboring counties, Lee County's clearest head-to-head comparison is with Winnebago County, which carries a higher rent-to-price ratio of 7.44% against Lee's 7.05%, a higher median rent of $1,212, and a slightly higher overall score of 75 versus Lee's 74. An investor who prioritizes current yield and wants a larger demand pool would look at Winnebago first, particularly given its higher median price of $195,413 still stays in a workable range. Pike County at $112,450 and Shelby County at $156,256 offer significantly lower entry prices that could shift the cash-flow math favorably, though both score 75 overall and lack the appreciation trajectory Lee is demonstrating at 6.58% annual price growth. Woodford County at $220,926 and a lower overall score of 72 is harder to justify. Choose Lee County over its neighbors when you want a balance of appreciation momentum, an entry price under $190,000, and the ability to build equity at a meaningful pace, accepting that Illinois property taxes will be a persistent drag on monthly yield regardless of where in the state you operate.