Real Estate Investing in Granite City, Illinois (62040)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 62040 (Granite City, 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.
- Elevated vacancy: 11.1% vacancy may signal weakening demand.
What’s happening in Granite City, IL (62040)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 62040 Granite City
Meanwhile, ZIP 62040 has challenges — vacancy pressure, softer price growth, and tenant stability concerns sit alongside the $123K median. It rewards specialists, not generalists.
Rent of $1,141/mo on a $123K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 62040 sits below the stated 0.0% once reality is priced in.
ZIP 62040's metrics run below Madison County's averages on price growth and tenant stability. Investors who ignore that regional gap tend to relearn it the hard way.
Demographically, 62040 is a market where tenant selection matters more than unit finishes. Operators who understand that tend to do fine; those who do not tend to learn why the ZIP trades at a discount.
tilts toward the ZIP is not uninvestable, but it is unforgiving. Section 8 landlords, local operators, and specialized value-add funds are the investor types that tend to succeed.
Here's what matters if you're considering buying a home in Granite City:
Property Strategy for 62040
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $65,048 | $850 | 9.4% | +4.4% | $65,048 |
| 2BR | $86,162 | $1,040 | 8.7% | +6.6% | $43,081 |
| 3BR | $133,998 | $1,340 | 7.2% | +7.1% | $44,666 |
| 4BR | $160,622 | $1,550 | 6.9% | +7.0% | $40,156 |
| 5BR | $144,501 | — | — | +5.9% | $28,900 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 62040 Compare?
| Metric | 62040 | Granite City | St. Louis, MO-IL | Illinois |
|---|---|---|---|---|
| Home Value | $123,332 | $123,332 | N/A | $279,761 |
| 5-Year CAGR | 5.5% | 5.5% | N/A | 6.6% |
| Avg Rent | $1,141 | $1,141 | N/A | - |
| Cap Rate | 7.2% | 7.2% | - | - |
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 62040 (Granite City, IL). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $123,332 |
| Monthly Rent | $1,141 |
| Price-to-Rent | 9.0:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 11.1% |
| Cap Rate | 7.2% |
| 5-Year IRR | 12.7% |
📈 Home Appreciation
| 1-Year | +6.4% ▲ |
| 3-Year CAGR | +4.4% ▲ |
| 5-Year CAGR | +5.5% ▲ |
| 10-Year CAGR | +5.8% ▲ |
🏠 Rent Trends
| 1-Year | -1.2% ▼ |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) is close to the estimated cap rate (7.2%). Financing this market at current rates produces a cash-on-cash return near the cap rate. Appreciation and tax benefits may still support the investment.
⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 62040
Population: 40,365
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
🎓 Schools in 62040
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Investor Insight: With 2,192 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
How quickly do rentals get leased in Granite City, IL?
Vacancy risk in Granite City, IL is elevated. That supports reliable cash flow for typical rental holds.
How much do tenants pay in Granite City, IL?
Rent in Granite City, IL is around $1,141/mo. The resulting rent-to-value relationship with $123K pricing is reasonable for most investor models.
What price range are homes in Granite City, IL?
The median home value in Granite City, IL is roughly $123K. That puts it reasonable relative to the IL statewide average.
Does a duplex house hack pencil in Granite City, IL?
For house hackers, Granite City, IL is a challenging. The $1,141/mo rent on a unit helps defray the mortgage on a $123K property.
Is Granite City, IL a good place for real estate investing?
Granite City, IL stands at an investability rating of 3.0/5, with median home values near $123K and average rents around $1,141/mo. That combination puts it in the substantial tier for investor interest.
You know 62040 now. You don’t know where it ranks.
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How 62040 ranks in St. Louis, MO-IL
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