Peoria, IL Rental Market Analysis
Updated March 2026 — Investment metrics, cap rates, rent data, and neighborhood analysis for rental property investors in Peoria, Illinois.
Peoria Rental Market Overview
Peoria offers Caterpillar-anchored employment and very low acquisition costs. Ideal for investors seeking pure cash flow in a stable Midwest market.
With a median home price of $125,000 and average monthly rents around $950, Peoria offers investors a rent-to-price ratio of 0.76%. At current market conditions, a typical rental property in Peoria generates an estimated cap rate of 9.1% and a cash-on-cash return of approximately 20.4% with 25% down financing at 6.5%.
Major Employers in Peoria
Rental demand in Peoria is supported by major employers including Caterpillar, OSF HealthCare, UnityPoint Health, Bradley University. These institutions provide the job base that drives consistent tenant demand for rental housing in Peoria County.
Peoria ZIP Codes for Investors
Key ZIP codes in the Peoria metro area: 61601,61602,61603,61604,61605,61606,61607. Each neighborhood carries different risk/return profiles — use becvio's property analysis tools to evaluate specific deals.
Analyze a Peoria Rental Property
Why Invest in Peoria, IL Rental Properties?
Peoria stands out for rental property investors because of its exceptional cap rates averaging 9.1%, combined with steady annual appreciation of 3.2%. The $125,000 median home price makes Peoria accessible for investors at various capital levels, while $950/month rents provide meaningful cash flow.
With a gross rent multiplier of 11.0x and estimated DSCR of 0.89 on conventional financing, Peoria rental properties may require careful underwriting to ensure positive cash flow. Investors using becvio can track these metrics in real-time across their entire portfolio.