Knox (IL) Investor Pulse Report (2025-Q4)

Investor ownership in Knox County comprises 2,209 single-family residential properties, making up 12.7% of the total 17,418 SFRs in the market.

The market is characterized by the overwhelming dominance of individual investors, who own 2,095 properties, or 94.8% of the entire investor-owned portfolio. In contrast, company-owned properties number just 126, a mere 5.7% share.

This individual dominance extends to the entity level, where 1,992 of the 2,091 total landlords (95.3%) are individuals, reinforcing the 'mom-and-pop' nature of the local rental market.

A significant financial characteristic of this market is the preference for cash ownership. Landlords hold 1,624 properties free of financing, nearly three times the 585 properties that are financed, indicating a low-leverage, high-equity investor base.

The rental focus of the portfolio is clear, with 2,124 properties classified as rented or non-owner-occupied. This represents 96.1% of all investor-owned SFRs, underscoring that these properties are actively serving the local rental housing supply.

Landlords in Knox County demonstrated a remarkable pricing advantage in Q4 2025, paying an average of just $66,717 per property. This was 61.6% less than the $173,920 paid by traditional homeowners, representing a substantial discount of $107,203 on average.

This significant discount marks a dramatic reversal from the previous quarter. In Q3 2025, landlords paid a premium, with an average acquisition price of $176,000 compared to the homeowner average of $158,032—an 11.4% difference in the other direction.

The volatility in the landlord-homeowner price gap is a key market feature, fluctuating from a 16.0% discount in Q1 2025 to the 11.4% premium in Q3 and back to the extreme 61.6% discount in Q4, suggesting that investors are targeting specific, often distressed or undervalued, properties that vary widely in price.

Despite quarterly fluctuations, the overall price trend shows appreciation. The average landlord purchase price in 2025 stands at $129,685, a significant increase from the 2024 average of $88,580.

Comparing recent activity to the pandemic era (2020-2023 average of $130,945), 2025 prices are nearly on par, indicating a stabilization at a higher price point following the post-pandemic market adjustments.

In Q4 2025, landlords were a significant force in the Knox County market, acquiring 17 of the 73 total SFR properties sold, which amounts to a 23.3% market share of all purchases.

The entirety of this purchasing activity came from small-scale investors. Mom-and-pop landlords (1-10 properties) were responsible for 100% of the 19 properties acquired by the landlord cohort, with institutional investors making no purchases.

New entrants are a key driver of activity, with 12 distinct entities purchasing their first investment property in Q4. These single-property landlords acquired 10 homes, representing 52.6% of all investor buying activity for the quarter.

Smaller, existing landlords also expanded their portfolios. Investors in the 3-5 property tier were the second most active group, purchasing 5 properties (26.3% of the landlord total).

The complete absence of mid-size (11-1000 properties) and institutional (1000+ properties) buyers underscores the hyper-local and fragmented nature of the acquisition market in Knox County.

The ownership structure in Knox County is overwhelmingly dominated by small landlords. Investors owning 1-10 properties (Tiers 01-04) collectively hold 93.0% of all investor-owned SFRs, cementing their role as the foundation of the local rental market.

First-time or single-property investors (Tier 01) represent the largest segment by a wide margin, owning 1,336 properties. This accounts for 56.8% of the total investor portfolio, highlighting the fragmented nature of ownership.

The next largest tiers are also small-scale, with landlords owning 3-5 properties holding a 17.0% share and those with 6-10 properties holding a 9.6% share.

As portfolio sizes increase, investor presence diminishes rapidly. Small-medium landlords (11-50 properties) control only 6.8% of the market combined, and there is virtually no large-scale ownership.

There is a complete absence of institutional-scale investors (1,000+ properties) in Knox County, indicating the market is not a target for large national or global investment firms and remains entirely in the hands of local and regional operators.

Individual investors are the primary owners across nearly every segment of the Knox County market, not just in smaller portfolios. In the single-property tier, individuals own 1,260 of the 1,336 homes (93.7%).

This pattern of individual dominance continues as portfolios grow. Individuals own 97.3% of homes in the two-property tier, 96.0% in the 3-5 property tier, and 100% in the 6-10 property tier.

Even in the small-medium tiers, companies have a very limited footprint. In the 11-20 property tier, individuals own 99 properties (86.8%) compared to just 15 for companies. In the 21-50 property tier, individuals own 46 properties (95.8%).

The only point where companies hold a majority is the statistically insignificant 51-100 property tier, where they own 2 of the 3 total properties. This demonstrates that corporate ownership is an anomaly rather than a trend in the local market.

This data firmly establishes that the path to a larger portfolio in Knox County is almost exclusively pursued by individual investors rather than through corporate structures.

Investor ownership in Knox County is highly concentrated geographically, with the 61401 zip code serving as the primary hub. This single area contains 1,245 investor-owned SFRs, representing a significant portion of the county's total rental stock.

While 61401 leads in sheer volume, its investor ownership rate of 12.0% is more moderate. This contrasts with other areas that have a much higher penetration of investors relative to their smaller market size.

The highest concentrations of investor ownership by rate are found in smaller zip codes. For instance, 61490 has a 33.3% investor ownership rate, and 61449 has a 29.5% rate, indicating these smaller communities have a very high proportion of rental housing.

The 61428 zip code stands out for having both a high volume (243 properties) and a high ownership rate (28.9%), marking it as a key secondary market for investors in the county.

This geographic distribution reveals a dual strategy among investors: targeting volume in the core market of 61401 while also achieving high market saturation in several smaller, surrounding communities.

Investors in Knox County are firmly in an accumulation phase, consistently buying far more properties than they sell. In Q4 2025, landlords purchased 23 SFRs while selling only one, demonstrating strong confidence in the local market.

This aggressive net buyer stance has been a consistent theme throughout the year. In 2025, landlords have acquired 76 properties and disposed of only 25, resulting in a net gain of 51 properties to their portfolios.

The pace of acquisitions has remained robust and stable over the past two years. The 76 properties purchased in 2025 are in line with the 80 properties purchased during 2024, indicating a steady, ongoing appetite for investment.

The low sales volume suggests that investors are adopting a long-term hold strategy, choosing to retain assets rather than flip them, which contributes to the stability of the local rental supply.

Given the complete absence of institutional players, this net buying activity is driven entirely by individual and small-scale company landlords looking to expand their local holdings.

In Q4 2025, landlords participated in 23 of the 96 total SFR transactions in Knox County, capturing a 24.0% share of market activity.

All 23 of these transactions were conducted by mom-and-pop investors in Tiers 01-04. The most active group was new or single-property landlords, who were involved in 12 transactions.

A clear pricing strategy emerges among tiers, with new entrants securing the most favorable prices. Single-property landlords paid an average of $53,458, significantly less than those in the 3-5 property tier, who paid an average of $101,167.

Investors are primarily acquiring properties from the open market rather than from each other. Among the most active tier (single-property), only 1 of 12 transactions (8.3%) involved purchasing from another landlord, indicating a focus on sourcing deals from homeowners.

The complete lack of transactions from investors in tiers 05 and above reinforces that market liquidity and activity are concentrated entirely at the small-investor end of the spectrum.