Chicago Housing Market at a Glance
Median Home Price
$350,000
Median Monthly Rent
$2,000
Property Tax Rate
2.08%
Avg Home Insurance
$1,600/yr
Price-to-Rent Ratio: 14.6x (Lower ratios favor buying; higher ratios favor renting)
Chicago-Specific Insights
- → Illinois has the second-highest property taxes in the US (2.08%); factor into monthly costs.
- → Relatively flat home price appreciation makes rental investment returns particularly important.
Run Your Chicago Scenario
Pre-filled with Chicago's median data. Adjust to your situation.
Open Calculator with Chicago Data →Key Factors for Chicago Buyers
1. Down Payment Requirements
With Chicago's median home price of $350,000, a 20% down payment is $70,000. Putting down less triggers PMI (typically 0.5–1.5% annually until you reach 20% equity).
2. Property Taxes
IL's property tax rate averages 2.08%, which translates to roughly $606.667/month on a median-priced home. This is above the national average.
3. Tax Deductions
Mortgage interest is deductible if you itemize (must exceed standard deduction: ~$14,600 single, ~$29,200 married in 2025). Combined with IL state taxes, itemizing may be worthwhile.
4. Opportunity Cost
If you rent and invest your down payment instead (e.g., S&P 500 averaging ~10% annually), you build wealth differently. The calculator models this trade-off month-by-month to find your break-even point.