Real Estate Investing in Cherry Valley, Illinois (61016)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 61016 (Cherry Valley, IL)? Our answer, based on the numbers below.
Solid choice — values are growing steadily and the market is stable enough to buy with confidence.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High price-to-rent: Price-to-rent ratio 25.5 — hard to cash-flow at these prices.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Cherry Valley, IL (61016)?
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Market Analysis: 61016 Cherry Valley
This part of Winnebago County is not an easy win. The 61016 ZIP clocks in at softness in key indicators, and the playbook that works in cleaner markets often stalls here.
Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 61016 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
In practical terms, 61016 offers a low basis, the region around Cherry Valley has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
Employment concentration in 61016 leans toward sectors with higher volatility. The demographic consequence is income fluctuation that investors need to factor into their pro forma.
New investors are better served looking at Cherry Valley's stable or hybrid ZIPs before stepping into 61016. The learning curve here is expensive when the lesson is wrong.
Here's what matters if you're considering buying a home in Cherry Valley:
Property Strategy for 61016
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $191,876 | $1,070 | 4.0% | +7.9% | $95,938 |
| 3BR | $271,456 | $1,410 | 3.7% | +9.4% | $90,485 |
| 4BR | $337,263 | $1,450 | 3.1% | +8.1% | $84,316 |
Market Trends
Home Value History (with trend line)
📊 How Does 61016 Compare?
| Metric | 61016 | Cherry Valley | Rockford, IL | Illinois |
|---|---|---|---|---|
| Home Value | $294,120 | $294,120 | N/A | $279,761 |
| 5-Year CAGR | 8.4% | 8.4% | N/A | 6.6% |
| Avg Rent | $963 | $963 | N/A | - |
| Cap Rate | 2.6% | 2.6% | - | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 61016 (Cherry Valley, IL). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $294,120 |
| Monthly Rent | $963 |
| Price-to-Rent | 25.5:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.9% |
| Cap Rate | 2.6% |
| 5-Year IRR | 11.0% |
📈 Home Appreciation
| 1-Year | +10.2% ▲ |
| 3-Year CAGR | +8.0% ▲ |
| 5-Year CAGR | +8.4% ▲ |
| 10-Year CAGR | +7.5% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.6%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 61016
Population: 5,166
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Nearby Colleges & Universities
Investor Insight: With 3,649 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What is the typical vacancy rate in Cherry Valley, IL?
Cherry Valley, IL vacancy trends elevated. Investors running standard buy-and-hold plays see reasonable downtime between tenants.
How strong is tenant demand in Cherry Valley, IL?
Working renters make up the core of the Cherry Valley, IL tenant base. The pool is reasonable for investors targeting long-term holds.
What are home prices like in Cherry Valley, IL?
The median home value in Cherry Valley, IL is roughly $294K. That puts it reasonable relative to the IL statewide average.
How do landlord-tenant laws work in Cherry Valley, IL?
IL law landlord-friendly for landlords, and Cherry Valley inherits those rules. Investors should still review local ordinances for rental licensing.
What type of investing works in Cherry Valley, IL?
A careful cash-flow rentals with hands-on management strategy Cherry Valley, IL best. The market produces stable results for that approach at the $294K price point.
You know 61016 now. You don’t know where it ranks.
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How 61016 ranks in Rockford, IL
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