Racine County

Racine County sits at a 5.56% gross rent-to-price ratio, which translates to a 3.61% cap rate at the $315,015 median price point. That cap rate is below the 6.85% financing rate in this environment, which is exactly why the model-level cash flow comes out at negative $702 per month on a 20% down purchase, with a cash-on-cash return of -11.63%. The numbers are unambiguous: at current prices and rates, standard buy-and-hold underwriting does not pencil on a median-priced asset here. What does stand out is the appreciation score of 88 out of 100, backed by 5.77% year-over-year home price growth. Racine is sitting firmly on the appreciation end of the spectrum, not the cash-flow end.

That profile determines exactly who belongs here. An appreciation-focused buyer with patient capital, a longer hold horizon, and the ability to absorb early negative carry has a case to make. The 5.77% price growth rate is real and meaningful. A cash-flow buyer looking for month-one yield should look elsewhere, because no amount of creative financing closes a $702 monthly gap at this median price without a significantly below-market acquisition. A value-add operator hunting deeply discounted distressed assets could potentially manufacture the spread, but the median market itself does not offer it. The affordability index of 62 and overall score of 63 suggest this is a mid-tier market, not a bargain bin, so off-market sourcing and deal quality matter enormously if you are trying to make the income side work.

The tax and insurance picture at Racine deserves its own line on your underwrite. The state-average effective property tax rate for Wisconsin is 1.85% (Tax Foundation 2024, with the caveat that actual county and township rates will differ). On a $315,015 purchase, that produces $5,828 in annual property taxes. Add $725 in annual insurance and the combined monthly tax-plus-insurance burden is $546. In a deal where total estimated expenses already run $511 per month before debt service, the $546 tax-and-insurance load alone is material. At 1.85%, Wisconsin's rate is high enough to deserve serious attention in your underwriting, particularly because it is a fixed cost that does not flex downward in a soft rental period. Investors accustomed to underwriting in lower-tax states should not use rule-of-thumb expense ratios here without adjusting for this drag.

Comparing Racine to its neighbors sharpens the picture. Milwaukee County carries the highest rent-to-price ratio in the comparison set at 6.12%, versus Racine's 5.56%, making Milwaukee a better raw cash-flow candidate on paper at a lower median price of $273,685. Rock County at 4.99% and Manitowoc County at 4.95% are both worse on yield than Racine and offer no meaningful appreciation thesis to compensate. Green County is priced higher at $334,485 with a 5.74% ratio, fractionally better than Racine on yield but at a higher absolute price. Wood County at a $215,899 median and 5.02% ratio looks cheap but produces less gross rent and scores a 65 overall, the only neighbor that edges out Racine's 63. The case for choosing Racine over its neighbors comes down to the appreciation score: no other county in this comparison has a comparable price growth figure baked in. If you believe that 5.77% annualized appreciation continues and you are underwriting total return rather than cash-on-cash, Racine wins the neighbor comparison. If you need income from day one, Milwaukee County's 6.12% ratio at a $273,685 median is the more defensible choice within this region.

The stability score of 50 is worth flagging without overstating it. It sits at the median and offers no particular cushion. Racine is a single mid-sized county with a population of 197,068, and concentration risk exists in any market of this size if economic conditions shift. The data does not include vacancy or employer-specific information, so no further characterization of that risk is supported here. What the scores collectively say is that this market rewards investors who are buying the appreciation thesis with eyes open, carrying costs accounted for, and no illusions about near-term income.