Tazewell County

Tazewell County sits at a gross rent-to-price ratio of 6.24%, which translates to a 4.06% cap rate on a $189,622 median-priced asset. That cap rate is below the threshold most cash-flow buyers consider acceptable at current financing costs, and the math confirms it: at 6.85% on a 20% down mortgage, the modeled monthly cash flow is negative $353, producing a cash-on-cash return of -9.71%. This is not a market where you underwrite to day-one cash flow. What the data does support is an appreciation thesis: home prices grew 6.5% year-over-year, the county scores 91 out of 100 on the appreciation dimension, and the affordability index of 89 means there is still room for prices to move without pricing out the local buyer pool. Tazewell ranks in the 86th national percentile and sits in the top half of Illinois counties by overall score, which says more about Illinois generally than about Tazewell's cash-flow merits.

The investor this market suits is not the operator hunting for day-one yield. At a 4.06% cap rate and negative leveraged returns, a pure cash-flow buyer has better options within the same state. The profile that fits Tazewell is an appreciation-oriented buyer with the balance sheet to carry a modest monthly deficit while waiting for price appreciation and rent growth to close the gap, or a value-add operator who can acquire below the $189,622 median and push rents meaningfully above the $985.94 median through renovation. At that median rent, even a $100/month rent bump after a light rehab shifts the cap rate by roughly 60 basis points, which starts to matter. The affordability score of 89 is relevant here: with prices still accessible in absolute terms, the acquisition basis is low enough that a value-add operator has room to work without overpaying for the upside.

No economic anchor data was provided for Tazewell County, so no conclusions about specific employers or job concentration can be drawn from this dataset.

The tax and insurance picture is a serious underwriting consideration and deserves its own line on any pro forma. Illinois carries a state-average effective property tax rate of 2.27%, which the Tax Foundation flags as very high, and Tazewell is subject to that same structural headwind. On the median purchase price, that rate produces $4,304 in annual property taxes, and combined with $512 in annual insurance, the monthly tax-plus-insurance burden is $401. That $401 alone nearly equals the $345 in estimated expenses in the model and is a large share of the $985.94 median rent. The caveat here is explicit: the 2.27% figure is a state-average estimate, and actual county or township rates in Tazewell may differ, so confirming the specific parcel-level rate before closing is not optional. Illinois property taxes have historically been a primary reason otherwise attractive markets in the state fail to generate positive leverage at current interest rates, and Tazewell is a clear illustration of that dynamic.

The main structural risk here is the combination of high carry costs and interest-rate sensitivity. The negative cash-on-cash figure is almost entirely a function of the 6.85% interest rate colliding with a 2.27% property tax rate against a rent level of $985.94. If rates stay elevated, the holding cost becomes a real drag. The stability score of 50 suggests the market is not particularly defensive, so an investor should be clear-eyed that this is a levered bet on continued price appreciation rather than a durable income stream.

Comparing Tazewell to its neighbors clarifies where it fits in the regional landscape. Williamson County, at a median of $152,606 and a rent-to-price ratio of 8.39%, is the obvious alternative for a cash-flow buyer: meaningfully higher yield on a lower basis. Madison County, at $187,237 and a 7.02% rent-to-price ratio, also offers better raw cash-flow math than Tazewell's 6.24% on a comparable price point. Kankakee County at 7.44% sits in between. Woodford County carries a higher median of $220,926 with no rent data provided, making direct comparison difficult. McHenry County at $349,331 and a 7.26% ratio serves an entirely different buyer profile. An investor should choose Tazewell over these neighbors specifically when the appreciation score of 91 and the 6.5% year-over-year price growth are the primary investment thesis, and when the buyer has confidence in local price momentum that the neighboring markets may not replicate at the same magnitude. If the goal is yield today, Williamson or Madison deserve the closer look.