Updated 2026 · Based on median market data for Chicago, IL
The median monthly rent in Chicago, IL is $1,620, translating to $19,440 in annual gross rental income per unit. The rent-to-price ratio is 0.52% — well below the 1% rule, making pure cash flow investing challenging at median prices.
Renters in Chicago spend approximately 31% of the local median household income ($62,400) on rent. This exceeds the standard 30% affordability threshold, suggesting rent growth may face resistance — but it also means a large portion of the population finds buying even more out of reach, supporting rental demand.
The vacancy rate in Chicago is 5.8%. This is a healthy vacancy rate that indicates balanced supply and demand. You should be able to find quality tenants without extended vacancies, though expect normal turnover periods of 2-4 weeks between tenants. Population growth of 0.1% annually provides stable demand.
Chicago's GRM (price divided by annual rent) is 15.9x. A GRM between 12-16x is moderate and typical of balanced markets. Deals can work but you need to keep expenses controlled. For comparison, the national average GRM for investment-grade rentals is approximately 13-15x.
At the median rent of $1,620/mo, a single-family rental in Chicago generates approximately $19,440 in gross annual income. After accounting for 5.8% vacancy ($1,128 lost), property taxes of $6,448, insurance (~$1,240), and maintenance (~$1,240), the estimated NOI is $9,384 per year, or $782/mo.