Invest In Apartment Buildings In Waukegan, IL

What Drives Rental Demand In Waukegan

Rental demand in Waukegan comes from 15,952 renter households, which is 49.8% of occupied housing (ACS 2020–2024). Renter households rose 1.3% over five years, close to the population trend (up 2%).

The typical Waukegan household earns $71,919 a year, 44.4% more than in the 2015–2019 survey. The number of employed residents rose 8.9% over the same period, and unemployment stood at 6.4%. Incomes grew faster than rent (44.4% versus 25.5%), which leaves tenants a little more room in their budgets than five years ago.

Renters are a large minority in Waukegan. Buildings close to employers and main roads usually see the steadiest demand.

Waukegan Rent Trends And Supply

Median gross rent in Waukegan, IL is $1,205 a month, up 25.5% from $960 in the 2015–2019 survey (U.S. Census ACS 2020–2024). That pace was well above long-run norms. We treat it as history, not as a forecast, when we underwrite a building.

Rental vacancy is 1.9%, which is tight. Vacant units in Waukegan tend to lease quickly. Census vacancy estimates for smaller places carry wide margins of error, so we check them against current local listings. 49% of renters spend 30% or more of their income on housing. That is close to the national picture, where roughly half of renters do, so rent increases need to track local wage growth.

About 28.4% of homes in Waukegan are in buildings with 5 or more units, roughly 9,434 homes. That count was down 1.2% over five years, so new apartment supply has been limited. The median home was built in 1967. Much of the stock is old enough that roofs, plumbing and electrical systems need a close look, and older buildings are where value-add renovation plans start. 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.

How Waukegan Ranks For Apartment Investors

Out of 88 Illinois cities in our data, Waukegan comes in 67th for median gross rent, 6th for renter share and 34th for five-year rent growth. Its rents fall in the middle of the pack. Compared with the 2015–2019 survey, Waukegan now has about 1,779 more residents, 205 more renter households and 115 fewer homes in buildings with 5 or more units.

Waukegan And Nearby Markets Side By Side

Waukegan's median gross rent of $1,205 is below the Illinois median of $1,274, and its renter share is 49.8% compared with 32.9% statewide.

Waukegan Rent Affordability In Dollars

The median rent in Waukegan works out to $14,460 a year, about 20.1% of the median household income of $71,919. Under the common 30% guideline, a household needs about $48,200 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.

Since the 2015–2019 survey, the median rent rose $245 a month ($2,940 a year), while median household income rose $22,114 a year. Income has outpaced rent, which means tenants have a bit more room in their budgets than they did five years ago. HUD's FY2027 Fair Market Rent for a two-bedroom unit, $2,011, is 66.9% 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: Waukegan Rental Market

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

• Waukegan, IL has 89,076 residents, up 2% from the 2015–2019 survey (U.S. Census ACS 2020–2024).
• Median household income in Waukegan, IL is $71,919, up 44.4% over five years (U.S. Census ACS 2020–2024).
• Median gross rent in Waukegan, IL is $1,205 a month, up 25.5% over five years (U.S. Census ACS 2020–2024).
• 49.8% of households in Waukegan, IL rent, about 15,952 renter households (U.S. Census ACS 2020–2024).
• 28.4% of homes in Waukegan, IL are in buildings with 5 or more units (U.S. Census ACS 2020–2024).
• The rental vacancy rate in Waukegan, IL is 1.9%, and 49% of renters spend 30% or more of income on rent (U.S. Census ACS 2020–2024).
• The median home in Waukegan, IL was built in 1967 (U.S. Census ACS 2020–2024).

What We Look For In A Waukegan Apartment Building

Our buy box in Waukegan is the same one we use nationwide: 5+ unit apartment buildings, stabilized or in need of work, priced on today's rents. Then we test the property against the local data on this page and a full inspection of its major systems.

Property taxes are a big line item for any Illinois apartment building. We underwrite the tax bill after purchase, not the seller's current bill, since a sale often resets the assessment. 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.

Given how fast rents rose here, we assume much slower rent growth going forward and make sure the deal still works if rents stay flat for a while.

Questions To Ask About An Apartment Syndication In Waukegan

The data on this page turns into a short checklist for evaluating an apartment syndication in Waukegan.

• What vacancy does the plan assume? Rental vacancy in Waukegan is 1.9%. A plan that assumes much lower vacancy than the market should explain why.
• What rent growth is underwritten? Rents here rose 25.5% 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 Waukegan was built in 1967, so roofs, plumbing and electrical systems deserve their own line items.
• 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 Waukegan Apartment Syndication Works

Here's the short version. The general partner, in this case Skyline, finds an apartment building in Waukegan, buys it with a loan and investor capital, and runs it. Limited partners supply part of that capital and hold an ownership share, without landlord duties or personal liability for the loan.

Syndications are long-term and illiquid, and capital usually stays committed for several years. Results are never certain. Most offerings are limited to accredited investors, and the rules depend on whether a deal uses Rule 506(b) or Rule 506(c). See investing with Skyline Capital for how we work with limited partners.

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