Is Madison County, IL good for real estate investing?

Madison County has an investment score of 73/100, rated as "Buy". The county ranks #84 nationally among 1000 counties analyzed.

What is the rent-to-price ratio in Madison?

The rent-to-price ratio in Madison County is 6.98% annually, which ranks in the 73th percentile nationally. Higher ratios indicate better cash flow potential.

What is the median home price in Madison?

The median home price in Madison County is $202,209. This ranks #385 in affordability among all US counties.

Can you cash flow on rental properties in Madison?

Based on median values with 20% down at current rates, a typical rental in Madison County would generate negative cash flow of $295/month. Individual property performance varies based on purchase price, rent, and operating expenses.

Madison County

IllinoisPopulation: 265,512

/100

Hold

#84 of 1,000 counties

#47 in Illinois (102 counties)

Analysis by RentalCalcs ResearchIndependent data + algorithm-driven scoring

Updated July 20, 2026Sources: Zillow ZHVI, Zillow ZORI, US Census ACS, Tax Foundation

Market Snapshot

$202,209

Median Home Price

12% below national median

$1,177/mo

Median Rent

19% below national median

6.98%

Rent-to-Price Ratio

Top 27% nationally

-$295

Est. Monthly Cash Flow

With 20% down at 6.9% rate

Scenario comparison

Same $1,177/mo rent assumption, 20% down, 6.85% rate. What changes is the acquisition price.

Scenario	Purchase price	Monthly cash flow	Cap rate	Cash-on-cash
75% of median value-add or distressed	$151,657	-$30/mo	6.0%	-1.0%
Median typical MLS deal	$202,209	-$295/mo	4.5%	-7.6%
125% of median newer / premium	$252,762	-$560/mo	3.6%	-11.6%

Price History

Median Home Price

Median Rent

Historical data from Zillow ZHVI/ZORI

Quick Investment Calculator

Down Payment20%

5%50%100%

Purchase

Purchase Price$202,209

Down Payment (20%)$40,442

Loan Amount$161,767

Interest Rate6.85%

Monthly Cash Flow

Gross Rent+$1,177

Monthly P&I-$1,060

Est. Expenses (35%)-$412

Net Cash Flow-$295/mo

4.5%

Cap Rate (all cash)

-7.6%

Cash-on-Cash Return

6.98%

Rent-to-Price Ratio

Negative leverage: At 6.85% rates, borrowing costs exceed the 4.5% cap rate. All-cash buyers may see better returns.

* Based on county median values. 35% expenses include taxes, insurance, maintenance, vacancy, and property management. Actual results vary by property.

Run Full Analysis Try House Hack Strategy

Score Breakdown

Overall Investment Score

73/100

Cash Flow(30%)

70/100

Based on 6.98% rent-to-price ratio. Higher ratios indicate stronger cash flow potential.

Appreciation(25%)

89/100

Based on 5.9% YoY price growth. Moderate growth (3-8%) scores highest.

Stability(25%)

50/100

Population data not available.

Affordability(20%)

87/100

Based on price relative to estimated local incomes.

Scores are calculated using real Zillow home value and rent data, Census population data, and economic indicators. The weighted average produces the overall investment score. Markets with missing rent data use estimated values based on regional averages.

Investment Outlook

Strengths

+Above-average rent-to-price ratio (6.98%)
+Strong price appreciation (+5.9% YoY)
+Affordable relative to local incomes
+Complete rent data available

Challenges

-Negative cash flow at typical financing (-$295/mo)
-Negative leverage (cap rate 4.5% < mortgage rate 6.9%)

Economic Indicators

Population

265,512

Median Income

—

Data pending

Unemployment Rate

—

Data pending

Price-to-Income

—

Data pending

Who this market fits

Best for

+Appreciation buyers: YoY growth is meaningfully above the long-run average
+Patient holders willing to accept negative carry for equity gains
+All-cash buyers: removing debt service flips the cap rate to actual yield
+Institutional or out-of-state investors who target appreciation markets

Skip if

−You need positive cash flow on day one at typical leverage
−You can't tolerate negative leverage (cap rate below mortgage rate today)

Compare to Nearby Counties

County					Verdict
PikeIL	75	$112,450	Est. pending	—	Strong Buy	View
LivingstonIL	74	$160,375	Est. pending	—	Buy	View
CurrentMadisonIL	73	$202,209	$1,177	6.98%	Buy
WoodfordIL	72	$220,926	Est. pending	—	Buy	View
KankakeeIL	72	$211,066	$1,309	7.44%	Buy	View
WilliamsonIL	72	$152,606	$1,067	8.39%	Buy	View

The Bottom Line

HoldMadison scores well overall, but a typical leveraged buy-and-hold loses $295/mo at current rates. Consider house hacking, value-add, or all-cash; otherwise a worse score with positive cash flow may be the better deal.

Madison County in Illinois scores 73/100, ranking #84 of 1,000 US counties (top 11%). At 20% down and current rates, a median-priced rental loses about $295/month; the 6.98% gross rent-to-price ratio doesn't survive debt service. The thesis here is appreciation, value-add, house hacking, or all-cash.

Monthly Cash Flow

$-295/mo

Cap Rate

4.5%

Cash-on-Cash

-7.6%

Related markets

Markets like Madison with stronger cash flow

Cheaper alternatives to Madison

Head-to-head comparisons

All counties in Illinois →

Rent vs buy in Illinois cities

Rent vs buy in Chicago, ILMedian $314,517 · rent $2,113/mo Rent vs buy in Joliet, ILMedian $361,064 · rent $2,121/mo Rent vs buy in Rockford, ILMedian $195,413 · rent $1,212/mo Rent vs buy in Naperville, ILMedian $416,478 · rent $2,040/mo Rent vs buy in Springfield, ILMedian $186,233 · rent $1,129/mo All Illinois citiesFull rent-vs-buy directory for the state

Ready to Analyze a Deal in Madison?

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Scenario comparison

Same $1,177/mo rent assumption, 20% down, 6.85% rate. What changes is the acquisition price.

Scenario	Purchase price	Monthly cash flow	Cap rate	Cash-on-cash
75% of median value-add or distressed	$151,657	-$30/mo	6.0%	-1.0%
Median typical MLS deal	$202,209	-$295/mo	4.5%	-7.6%
125% of median newer / premium	$252,762	-$560/mo	3.6%	-11.6%

Quick Investment Calculator

Down Payment20%

5%50%100%

Purchase

Purchase Price$202,209

Down Payment (20%)$40,442

Loan Amount$161,767

Interest Rate6.85%

Monthly Cash Flow

Gross Rent+$1,177

Monthly P&I-$1,060

Est. Expenses (35%)-$412

Net Cash Flow-$295/mo

4.5%

Cap Rate (all cash)

-7.6%

Cash-on-Cash Return

6.98%

Rent-to-Price Ratio

Negative leverage: At 6.85% rates, borrowing costs exceed the 4.5% cap rate. All-cash buyers may see better returns.

* Based on county median values. 35% expenses include taxes, insurance, maintenance, vacancy, and property management. Actual results vary by property.

Run Full Analysis Try House Hack Strategy

Score Breakdown

Overall Investment Score

73/100

Cash Flow(30%)

70/100

Based on 6.98% rent-to-price ratio. Higher ratios indicate stronger cash flow potential.

Appreciation(25%)

89/100

Based on 5.9% YoY price growth. Moderate growth (3-8%) scores highest.

Stability(25%)

50/100

Population data not available.

Affordability(20%)

87/100

Based on price relative to estimated local incomes.

Who this market fits

Best for

+Appreciation buyers: YoY growth is meaningfully above the long-run average
+Patient holders willing to accept negative carry for equity gains
+All-cash buyers: removing debt service flips the cap rate to actual yield
+Institutional or out-of-state investors who target appreciation markets

Skip if

−You need positive cash flow on day one at typical leverage
−You can't tolerate negative leverage (cap rate below mortgage rate today)

County

Verdict

PikeIL

$112,450

Est. pending

—

Strong Buy

View

LivingstonIL

$160,375

Est. pending

—

Buy

View

CurrentMadisonIL

$202,209

$1,177

6.98%

Buy

WoodfordIL

$220,926

Est. pending

—

Buy

View

KankakeeIL

$211,066

$1,309

7.44%

Buy

View

WilliamsonIL

$152,606

$1,067

8.39%

Buy

View

The Bottom Line

Monthly Cash Flow

$-295/mo

Cap Rate

4.5%

Cash-on-Cash

-7.6%