Racine County

Racine County's gross rent-to-price ratio sits at 5.49%, which puts it in the lower half of workable cash-flow territory before financing costs enter the picture. At a 3.57% cap rate and a modeled cash-on-cash return of negative 11.83% at 6.85% interest with 20% down, the market is clearly underwater on a leveraged basis at the median price point. The monthly mortgage of $1,598 against a median rent of $1,394 creates a deficit before a single operating expense is counted, and estimated expenses add another $488, producing a modeled cash flow of negative $691 per month. The saving grace, and it is a meaningful one, is the appreciation score of 84 out of 100, supported by 4.4% year-over-year price growth to a median of $304,766. This is a market where the return story lives in the asset, not the income statement.

Given those numbers, a pure cash-flow buyer has little reason to be here at current financing rates unless they can source assets meaningfully below median, force rents above median through renovation or unit mix, or bring enough equity to compress the debt service. The appreciation buyer has a clearer case: the 84 appreciation score and 4.4% price growth place Racine in the upper tier of Wisconsin markets for capital accumulation, and the affordability index of 67 suggests there is still household purchasing power in the county to sustain that trajectory. A value-add operator is the investor profile most likely to make the numbers work in the near term, using below-market acquisition and rent upside to bridge the gap between a 5.49% gross yield and the cost of capital. The affordability score of 67 and median household income of $72,658 indicate that the renter pool can support rents above the current median if the product warrants it.

The tax and insurance picture deserves a dedicated line on any underwrite. Using the Tax Foundation 2024 state-average effective rate of 1.85%, annual property tax on a median-priced asset runs approximately $5,638, and insurance adds another $701, totaling roughly $528 per month in combined carry before any other operating costs. That is a non-trivial number against a $1,394 median rent; the tax and insurance load alone consumes 38 cents of every rent dollar. The 1.85% rate carries a high flag, and it is warranted. Worth flagging: this is a state-average estimate, and actual Racine County or township-level rates may differ, so verify the specific parcel rate before closing. Wisconsin's property tax structure does not offer much relief at the county level, and this cost needs to be stress-tested in any sensitivity analysis.

On the risk side, the stability score of 50 out of 100 is the number that warrants the most scrutiny. A market can exhibit strong appreciation and still carry meaningful volatility or demand fragility. The population of 197,068 creates a reasonably sized tenant pool, but concentration risk is a real consideration in smaller Midwest markets where a shift in one or two major employers can move vacancy meaningfully. No economic anchor data was provided for Racine, so specific employer commentary would be speculative, but the combination of a 50 stability score and a cash-flow-negative financing environment means an investor here should underwrite conservatively on vacancy and should not rely on rent growth to bail out a stretched entry price.

Compared to the neighboring counties in the data, Racine presents a specific trade-off. Milwaukee County has a nearly identical median rent of $1,396 against a lower median price of $273,685, producing a rent-to-price ratio of 6.12% versus Racine's 5.49%. That 63 basis point spread is material at scale, and Milwaukee edges ahead on current income yield while matching Racine's overall score of 63. Rock County at $277,313 median and a 4.99% ratio is cheaper to enter but generates less rent. Outagamie County at $325,896 median has the weakest rent-to-price ratio in the peer set at 4.64%, making it harder to underwrite on income. Manitowoc and Wood County are cheaper absolute markets but deliver lower rents, with Wood County's $902 median rent limiting the investor profile to lower price points. An investor should choose Racine over its neighbors specifically when the thesis is appreciation-led, when they believe the Lake Michigan corridor and proximity to Chicago provide durable demand support, and when they can source properties below the $305,000 median to improve the entry yield. If current income is the priority, Milwaukee County's higher rent-to-price ratio is the more direct path.