Pinckneyville is home to the best residential real estate investment market in Illinois.
The 62274 zip code in Pinckneyville presents the greatest opportunity for the best real estate investments among the 1,864 individual real estate markets in Illinois we evaluated. We looked at property values, population trends, and six other metrics for each market. We used that data to calculate each market's InvestScore.
5 best places to invest in Illinois
| Rank | City | InvestScore | Affordability | Property value appreciation |
|---|---|---|---|---|
| 1 | Pinckneyville | 100 | 2.0 | 104.54% |
| 2 | Shelbyville | 94.7 | 2.2 | 43.07% |
| 3 | Johnston City | 93.1 | 1.6 | 38.33% |
| 4 | Du Quoin | 92.9 | 1.6 | 101.51% |
| 5 | Rockford | 92.6 | 1.9 | 91.69% |
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1. Pinckneyville
We've identified the 62274 zip code in Pinckneyville as Illinois's best real estate investment market. Here's why.
🔎 Key data about Pinckneyville
| Data point | Value | Rank in state (of 1,864 markets) |
|---|---|---|
| Zip code | 62274 | N/A |
| InvestScore | 100 | Highest |
| Typical property value | $108,624[1] | 52nd lowest |
| Five-year appreciation | 104.54%[2] | the highest |
| Household income | $54,741[3] | 392nd highest |
| Affordability ratio | 2.0 | 57th most affordable |
| Five-year population growth | 0.4%[4] | 216th highest |
| Unemployment rate | 1.7%[5] | 16th lowest |
| Property taxes | $1,773[6] | 29th lowest |
| Educational attainment | 10.8%[7] | 455th highest |
Pinckneyville (zip code 62274) is the best residential real estate investment market in Illinois. It has the the highest property value appreciation among markets we evaluated, with a 104.54% appreciation of the typical property over the last five years.
Pinckneyville is the 57th most affordable market among the 1,864 Illinois markets we evaluated, with an affordability ratio of 2.0.
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2. Shelbyville
The 62565 zip code in Shelbyville is the runner-up spot for the best real estate investments in Illinois.
🔎 Key data about Shelbyville
| Data point | Value | Rank in state (of 1,864 markets) |
|---|---|---|
| Zip code | 62565 | N/A |
| InvestScore | 94.7 | 2nd highest |
| Typical property value | $135,701[8] | 88th lowest |
| Five-year appreciation | 43.07%[9] | 94th highest |
| Household income | $61,389[10] | 342nd highest |
| Affordability ratio | 2.2 | 90th most affordable |
| Five-year population growth | 7.2%[11] | 45th highest |
| Unemployment rate | 4.1%[12] | 151st lowest |
| Property taxes | $1,962[13] | 50th lowest |
| Educational attainment | 19.9%[14] | 353rd highest |
The 62565 zip code in Shelbyville features a typical property value of $135,701, the 88th lowest in the state.
Property values have appreciated 43.07% over the past five years, the 94th highest increase among evaluated markets in the state. Shelbyville homes have an affordability ratio of 2.2, the 90th most affordable in the state.
3. Johnston City
The 62951 zip code in Johnston City comes in at No. 3 in our ranking of the best residential real estate investment markets in Illinois.
🔎 Key data about Johnston City
| Data point | Value | Rank in state (of 1,864 markets) |
|---|---|---|
| Zip code | 62951 | N/A |
| InvestScore | 93.1 | 3rd highest |
| Typical property value | $85,965[15] | 25th lowest |
| Five-year appreciation | 38.33%[16] | 173rd highest |
| Household income | $54,120[17] | 398th highest |
| Affordability ratio | 1.6 | 18th most affordable |
| Five-year population growth | 15.0%[18] | 8th highest |
| Unemployment rate | 5.6%[19] | 285th lowest |
| Property taxes | $1,726[20] | 26th lowest |
| Educational attainment | 19.6%[21] | 357th highest |
With a typical property value of $85,965, Johnston City's 62951 zip code features the 25th lowest property values in the state.
Johnston City homes have an affordability ratio of 1.6, the 18th most affordable among the markets we evaluated.
4. Du Quoin
The 62832 zip code in Du Quoin ranks No. 4 among Illinois's residential real estate investment markets.
🔎 Key data about Du Quoin
| Data point | Value | Rank in state (of 1,864 markets) |
|---|---|---|
| Zip code | 62832 | N/A |
| InvestScore | 92.9 | 4th highest |
| Typical property value | $86,510[22] | 26th lowest |
| Five-year appreciation | 101.51%[23] | 2nd highest |
| Household income | $55,152[24] | 2nd highest |
| Affordability ratio | 1.6 | 16th most affordable |
| Five-year population growth | 0.4%[25] | 214th highest |
| Unemployment rate | 8.6%[26] | 401st lowest |
| Property taxes | $1,653[27] | 21st lowest |
| Educational attainment | 12.2%[28] | 450th highest |
Property values in Du Quoin's 62832 zip code have seen the 2nd highest increase among evaluated markets in the state, with an appreciation of 101.51% over the past five years.
Du Quoin's affordability ratio of 1.6 makes it the 16th most affordable among the 1,864 markets we evaluated.
5. Rockford
The 61101 zip code in Rockford rounds out our top five residential real estate investment markets in Illinois.
🔎 Key data about Rockford
| Data point | Value | Rank in state (of 1,864 markets) |
|---|---|---|
| Zip code | 61101 | N/A |
| InvestScore | 92.6 | 5th highest |
| Typical property value | $84,145[29] | 20th lowest |
| Five-year appreciation | 91.69%[30] | 4th highest |
| Household income | $45,363[31] | 4th highest |
| Affordability ratio | 1.9 | 40th most affordable |
| Five-year population growth | 4.5%[32] | 78th highest |
| Unemployment rate | 14.1%[33] | 446th lowest |
| Property taxes | $1,974[34] | 52nd lowest |
| Educational attainment | 14.8%[35] | 428th highest |
Property values in Rockford's 61101 zip code rose 91.69% over the last five years, ranking the city 4th highest among evaluated markets in Illinois.
Rockford homes have an affordability ratio of 1.9, the 40th most affordable among the markets we evaluated.
Investing in residential real estate can be one of the best passive real estate investments in Illinois.
Residential real estate offers accessible passive income and the potential to compound your original investment.
Renting out residential units is the top way to invest in real estate. House hacking also offers a great opportunity for passive real estate investment income.
How we rank residential real estate markets in Illinois
To determine the best real estate investments in Illinois we evaluated 1,864 markets on eight metrics, and then assigned an InvestScore based on their weighted and combined rankings. Each market corresponds to a specific zip code in Illinois.
What is InvestScore?
InvestScore is a score on a scale of 0 (worst in state) to 100 (best in state) that estimates the residential real estate investment potential of a given market. It takes into account a suite of key data points for each city.
- Typical property value: This measures the typical home value in this zip code, according to the Zillow Home Value Index. It reflects the typical value for homes in the 35th to 65th percentile range, including all homes, with the numbers smoothed and seasonally adjusted. We prefer lower property values, which indicate both more room for growth and a greater ease of purchase. We assign a weight of 20% to typical property values.
- Property value appreciation: This measures how much property values have increased in the area over the past five years, according to the Zillow Home Value Index. We prefer a higher appreciation, as it indicates better returns on housing. However, past performance isn't indicative of future results. We assign a weight of 20% to property value appreciation.
- Median household income: This is the inflation-adjusted median household income in the zip code, according to U.S. Census American Community Survey data. We prefer a higher household income, as it indicates local residents have more income to spend on housing. We assign a weight of 10% to median household income.
- Affordability ratio: This is the ratio of the typical home value to the median household income in the area. A lower ratio is better because it means more households can afford a home, which indicates higher demand. We assign a weight of 15% to the affordability ratio.
- Population growth: This is how much the area's population has grown over the past five years, according to U.S. Census estimates. Higher is better, as it indicates residents are moving into the area at a rapid clip. We assign a weight of 10% to population growth.
- Unemployment rate: This is the unemployment rate in the area, according to U.S. Census data. We prefer a lower rate, as it indicates the availability of steady employment in the area, meaning residents will find it much easier to afford homes. We assign a weight of 15% to unemployment rate.
- Property tax: This is the median real estate property tax paid in the area, according to U.S. Census estimates. We assign a weight of 10% to property tax.
- Educational attainment: This is the percentage of residents in the area that have obtained a bachelor's degree or better, according to U.S. Census estimates. We prefer a higher rate because it indicates local residents who have higher earning potential and thus should be able to afford homes. We assign a weight of 15% to educational attainment.
🚨 Disclaimer: The information contained in this article isn't intended as, and shall not be understood or constituted as, financial advice. The information in this article isn't a substitute for financial advice from an investment professional or real estate agent who is aware of the facts and circumstances of your financial situation or the specifics of any individual property.
