Chicago offers some of the most affordable home prices of any major US city — but its 2.1% property tax rate is the highest of any major US market and changes the monthly math significantly.
Pre-filled with Chicago median values including the correct 2.1% property tax rate — the most important local variable to get right.
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Chicago stands apart from coastal cities: home prices are genuinely affordable relative to incomes, which makes buying achievable for many middle-class households. The catch is Cook County's property tax rate of approximately 2.1% — nearly three times the rate in Los Angeles and nearly double the national average.
On a $350,000 home, that's $7,350 per year in property taxes, or $613 per month added to your housing costs on top of your mortgage payment.
Chicago's affordable purchase prices mean break-even is achievable in 6–8 years — but the high property tax means your monthly ownership cost will always be higher than a comparable city with average taxes. Factor it in before you decide.
| Home Price | Annual Tax (2.1%) | Monthly Tax Cost | vs. National Avg |
|---|---|---|---|
| $250,000 | $5,250 | $438 | +$196/mo |
| $350,000 | $7,350 | $613 | +$274/mo |
| $500,000 | $10,500 | $875 | +$391/mo |
Chicago and Cook County have significant unfunded pension liabilities that have historically driven periodic property tax increases above inflation. Conservative buyers should consider modeling a scenario where their effective rate rises to 2.4–2.5% over a 15-year hold — our detailed settings let you adjust this assumption.
Cook County property tax assessments vary significantly by neighborhood and property type. Always look up the actual tax bill for a specific property at the Cook County Assessor's website (cookcountyassessor.com) before making an offer — don't rely on the 2.1% average alone.
Despite the tax headwind, Chicago's $350,000 median means a 20% down payment is just $70,000 — far more manageable than LA, SF, or NYC. Monthly mortgage P&I at 7% is around $1,863, which is genuinely competitive with rents in many neighborhoods.