What it costs to own a home in Illinois
A median-priced Illinois home costs about $2,201 a month to own with 20% down at today's 6.65% thirty-year rate. That covers $1,614 of principal and interest, $492 of property tax and $95 of homeowners insurance. Staying inside the 28% front-end ratio lenders use takes a household income of roughly $94,315 a year.
- Median home price
- $314,200
- Monthly cost
- $2,201
- Income needed
- $94,315
- Property tax rate
- 1.88%
What sets the payment in Illinois?
| Input | Illinois | Context |
|---|---|---|
| Effective property tax rate | 1.88% | 1st highest of 51 |
| Median home price | $314,200 | 35th highest of 51 |
| Average annual premium | $1,300 | on a $250k dwelling |
| Assessment cap | none | assessments track market value |
| Price level vs national | 100.0 | BEA price parity, 100 = US average |
| Appreciation, past year | +6.88% | FHFA index |
| Appreciation, past five years | +51.5% | FHFA index |
What makes Illinois different
Illinois has effectively the same property tax rate as New Jersey applied to houses that cost little more than half as much, and that inversion is the whole story of owning here. The 1.88% rate on a $314,200 median produces about $492 a month in tax against roughly $1,600 in principal and interest. Tax is close to a third of the mortgage payment — a ratio almost no other state reaches.
It also means the usual advice about buying a cheaper house does less than expected. The purchase price falls, the loan falls with it, but the tax burden scales down with the price rather than disappearing, and in Cook County the assessment process itself introduces a further layer of variability. Successful assessment appeals are common enough there to be part of ordinary homeownership, and a home whose owner has never appealed may be carrying a materially higher bill than an identical one next door.
The compensation is that Illinois led the entire country in price appreciation over the past year at 6.88%. Chicago sat out much of the 2021 boom and has been catching up since, which is a very different position from the Sun Belt markets now giving back gains. A 2019 or 2020 Illinois buyer is likely holding more equity than they expect.
How much income do you need to buy a house in Illinois?
All four rows buy the same $314,200 house at today's 6.65% rate. The difference is entirely the down payment and the mortgage insurance it does or does not trigger.
| Down | Cash at closing | P&I | PMI | Total monthly | Income needed |
|---|---|---|---|---|---|
| 3.5% down | $10,997 | $1,946 | $240 | $2,774 | $118,866 |
| 5% down | $15,710 | $1,916 | $174 | $2,677 | $114,744 |
| 10% down | $31,420 | $1,815 | $108 | $2,511 | $107,605 |
| 20% down | $62,840 | $1,614 | — | $2,201 | $94,315 |
What is a Illinois home bought in 2020 worth now?
Working backwards from today's median along the FHFA path for Illinois: what that same house would have cost at the time, the rate available then, and where the loan and the equity stand today at 20% down.
| Bought | Price then | Rate | P&I | Balance now | Equity now |
|---|---|---|---|---|---|
| Mid-2010 | $118,407 | 4.74% | $494 | $60,009 | $254,191 |
| Mid-2015 | $135,800 | 3.98% | $517 | $82,189 | $232,011 |
| Mid-2018 | $164,111 | 4.57% | $671 | $111,057 | $203,143 |
| Mid-2020 | $188,491 | 3.16% | $649 | $130,254 | $183,946 |
| Mid-2022 | $247,471 | 5.52% | $1,127 | $185,872 | $128,328 |
| Mid-2024 | $282,643 | 6.92% | $1,492 | $220,849 | $93,351 |
How do wages vary across Illinois?
Wages track local price levels closely. These are the metropolitan areas in Illinois the calculator recognises from a ZIP code, and the pay adjustment it applies to national occupation wages there.
| Metro area | Price level | Pay adjustment |
|---|---|---|
| Chicago-Naperville-Elgin, IL | 102.9 | +4% |
| St. Louis, MO-IL | 92.4 | -10% |
Run a real address. These are state medians. Put in an actual Illinois address, the date it closed and the price paid, and the calculator will work out that home's payment, its mortgage-insurance dates and the equity behind it.