Invest In Apartment Buildings In Lombard, IL

Who Rents In Lombard

Lombard's apartment demand starts with its 5,035 renter households, 29.2% of all occupied homes in the city (U.S. Census ACS 2020–2024). The number of renter households fell 6.1% over five years, while population was down 0.9%. That can happen when renters buy homes or rentals are sold to owner-occupants, and it's something we check before assuming rents will keep rising.

Median household income in Lombard, IL is $100,362, up 21.7% over five years. Resident employment rose 4.7% and the unemployment rate was 4.4% in the latest survey. Because rent (35.5%) outpaced income (21.7%), affordability is tighter than it was five years ago. That favors buildings priced below brand-new product.

Most households in Lombard own their homes, so the renter pool is smaller. Good apartment buildings can still lease well here, but there are fewer of them to buy and fewer recent sales to price against.

Lombard Rent Trends And Supply

Median gross rent in Lombard, IL is $1,948 a month, up 35.5% from $1,438 in the 2015–2019 survey (U.S. Census ACS 2020–2024). That's fast growth. Part of it reflects the national rent run-up of 2021 and 2022, and some of it can fade when new buildings open nearby, so we don't project the same pace forward.

The rental vacancy rate of 9% is on the high side, so we'd budget for longer lease-ups and more marketing. Census vacancy estimates for smaller places carry wide margins of error, so we check them against current local listings. 54.4% of renters spend 30% or more of their income on housing. That limits how hard rents can be pushed, so renewals and retention matter more than big increases.

About 36.7% of homes in Lombard are in buildings with 5 or more units, roughly 6,769 homes. It grew 9.5% over five years, a moderate amount of new supply. The median home was built in 1971, so many apartment buildings date from the 1970s and 1980s. That vintage is a common target for value-add renovation. For comparison, HUD's fiscal year 2027 Fair Market Rent for a two-bedroom unit in the Chicago-Joliet-Naperville, IL HUD Metro FMR Area is $2,011 a month.

Lombard By The Numbers

We track 88 Illinois cities. Lombard places 7th for median gross rent, 39th for renter share and 7th for five-year rent growth. That puts its rents near the top of the group, so tenants here are already paying more than in most nearby markets. In raw numbers, Lombard has about 379 fewer residents, 327 fewer renter households and 587 more homes in buildings with 5 or more units than in the 2015–2019 survey. With fewer renter households than before, a building has to win tenants from competitors rather than from new demand.

Lombard Compared With DuPage County

Lombard's median gross rent of $1,948 is above the Illinois median of $1,274, and its renter share is 29.2% compared with 32.9% statewide.

Can Tenants Afford Lombard Rents?

At $1,948 a month, the median Lombard rent adds up to $23,376 a year, or roughly 23.3% of what the median household earns. Under the common 30% guideline, a household needs about $77,900 a year to cover that rent comfortably. That's a heavier load than the Illinois average of 18.3%. Renters usually earn less than the all-household median, so the real burden for tenants is higher than this simple ratio shows.

In dollars, Lombard rent climbed $510 a month over five years and household income climbed $17,895 a year. Rent has outpaced income, so we are careful about how much further a business plan pushes rents on renewal. HUD's FY2027 Fair Market Rent for a two-bedroom unit, $2,011, is 3.2% above the median gross rent for all unit sizes. That gap matters for buildings that accept Housing Choice Vouchers, since local housing authorities base voucher payment standards on it.

Quick Facts: Lombard Rental Market

Here's the Lombard rental market in short form, with the source on every figure.

• Lombard, IL has 43,619 residents, down 0.9% from the 2015–2019 survey (U.S. Census ACS 2020–2024).
• Median household income in Lombard, IL is $100,362, up 21.7% over five years (U.S. Census ACS 2020–2024).
• Median gross rent in Lombard, IL is $1,948 a month, up 35.5% over five years (U.S. Census ACS 2020–2024).
• 29.2% of households in Lombard, IL rent, about 5,035 renter households (U.S. Census ACS 2020–2024).
• 36.7% of homes in Lombard, IL are in buildings with 5 or more units (U.S. Census ACS 2020–2024).
• The rental vacancy rate in Lombard, IL is 9%, and 54.4% of renters spend 30% or more of income on rent (U.S. Census ACS 2020–2024).
• The median home in Lombard, IL was built in 1971 (U.S. Census ACS 2020–2024).

What We Look For In A Lombard Apartment Building

In Lombard we focus on apartment buildings with 5 or more units. Some are stabilized and well run. Others have below-market rents or deferred maintenance that a better operator can fix. Either way, the deal has to make sense on current numbers.

Property taxes are a big line item for any Illinois apartment building. We estimate the tax bill as it will be after the purchase, because a sale can trigger a reassessment in many places. Illinois has no statewide rent control law, though local rules on notices, fees and deposits still apply. Insurance quotes in Illinois reflect winter storm and frozen-pipe claims, so we get a quote before we make an offer.

After a stretch of fast rent growth, we keep rent assumptions modest and leave room for concessions if new supply opens nearby.

Evaluating Apartment Syndications In Lombard

Whoever the sponsor is, these are the questions we would want answered about any apartment syndication in Lombard, based on the local numbers above.

• What vacancy does the plan assume? Rental vacancy in Lombard is 9%. A plan that assumes much lower vacancy than the market should explain why.
• What rent growth is underwritten? Rents here rose 35.5% over five years. Ask whether the plan assumes that pace continues, and what happens to the deal if rents stay flat.
• How was the property tax bill estimated? A sale often triggers a reassessment, so the bill after purchase can be well above what the seller pays today.
• What capital work is budgeted? The median home in Lombard was built in 1971, so roofs, plumbing and electrical systems deserve their own line items.
• How will the building hold occupancy? Renter households in Lombard fell 6.1%, so the plan should show how it keeps units full.
• How and when does capital come back? Ask what the plan is for a refinance or sale, and what happens if that takes longer than expected.

How Passive Investing In A Lombard Apartment Syndication Works

A syndication splits the work from the capital. As general partner, Skyline sources and buys the building, sets the business plan and runs it with a property manager. Limited partners invest money, own part of the property and receive reports, but they don't manage anything day to day.

It's a long-term commitment. The property has to be refinanced or sold before most capital comes back, and the outcome isn't certain. Eligibility rules vary by offering, and most are limited to accredited investors. See investing with Skyline Capital for how we work with limited partners.

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