Rental Property Underwriting in Chicago, IL
Cash-flow-viable but tax and regulation are dominant risks.
Typical SFR price
$280,000 – $400,000
3-bed rent (monthly)
$1,900 – $2,600
Effective property-tax rate
2.00% – 2.80%
Insurance (annual, ~$300k SFR)
$1,200 – $1,900
Gross rent-to-price (monthly)
0.55% – 0.75%
Landlord-tenant climate
tenant-friendly
Ranges compiled from Zillow, Redfin, and county assessor public data. Last reviewed 2025-10. Use as directional inputs, not appraisals.
What makes underwriting in Chicago different
- Cook County reassessments and appeal cycles materially affect ROI year-to-year.
- RLTO (Chicago Residential Landlord and Tenant Ordinance) governs leases — read it.
- Transfer taxes and closing costs are among the highest in the country.
Quick worked example
Mid-range Chicago deal: $340,000 purchase, $2,250/mo rent → gross yield 7.94%. Whether that cash-flows depends on your rate, down payment, taxes at post-sale assessment, and insurance quote — not the metro average.
Other US markets we cover
Rental underwriting in Atlanta, GA →Rental underwriting in Charlotte, NC →Rental underwriting in Raleigh, NC →Rental underwriting in Tampa, FL →Rental underwriting in Orlando, FL →Rental underwriting in Jacksonville, FL →Rental underwriting in Phoenix, AZ →Rental underwriting in Las Vegas, NV →Rental underwriting in Dallas, TX →Rental underwriting in Houston, TX →Rental underwriting in Austin, TX →Rental underwriting in San Antonio, TX →
Educational content only, not investment or legal advice. Verify all numbers with local professionals before making an offer.