Updated 2026 · Based on median market data for Peoria, IL
Peoria sits in the Midwest with a population of 113,150 declining at -0.3% annually. The median home costs $125,000 while rents average $880/mo, producing an estimated cap rate of 4.94%. This is a moderate market that rewards careful deal sourcing.
Peoria works best for experienced investors with a clear strategy — Section 8, student housing, or deep value-add rehabs. The 4.94% cap rate at median prices is tight, so success depends on buying below market, forcing appreciation through renovation, or accessing above-market rent streams through niche tenant bases.
Target properties priced 15-25% below the $125,000 median — around $100,000 or less. At this price point with $880/mo rents, your cap rate improves to roughly 6.9%. Factor in 2.1% property taxes ($2,625/yr), budget 5% of gross rent for maintenance, and underwrite to a 7.2% vacancy rate. On a 20% down conventional loan at 7%, monthly PITI will run approximately $984.
Population decline (-0.3%) is the primary risk — shrinking markets can see rising vacancy and downward pressure on rents and values. The 7.2% vacancy rate is above the national average, so budget conservatively and screen tenants carefully. Property taxes at 2.1% are notably high — this is a significant drag on NOI that some investors underestimate. Every deal should be evaluated individually using our calculator tools. Median data provides a starting point; actual returns depend on the specific property, financing, and your management approach.
Run the numbers on a specific Peoria property using our cap rate calculator (pre-filled with Peoria data). Compare Peoria against similar markets in the Midwest region. If you're considering a value-add approach, try our BRRRR calculator to model a rehab scenario.