Tampa, FL vs Naperville, IL: Which Is the Better Investment?
Compare Tampa (cap rate 6.5%) vs Naperville (cap rate 7.2%). Rent, appreciation, vacancy, and market health analysis.
Tampa Price
$380K
Naperville Price
$475K
Tampa Cap Rate
6.5%
Naperville Cap Rate
7.2%
Tampa Rent
$2,050/mo
Naperville Rent
$2,850/mo
Tampa Growth
1.8%
Naperville Growth
1.2%
| Tampa | Metric | Naperville |
|---|---|---|
| $380K | Median Price | $475K |
| $2,050/mo | Median Rent | $2,850/mo |
| 6.5% | Cap Rate | 7.2% |
| 6.1% | Appreciation | 4.8% |
| 4% | Vacancy | 3.2% |
| 392,890 | Population | 149,540 |
| 1.8% | Pop. Growth | 1.2% |
| 6/10 | School Rating | 9/10 |
AI Comparison Verdict
Tampa, FL
Good Investment
Naperville, IL
Strong Buy
RecommendedTampa ($380K median, 6.5% cap rate) vs Naperville ($475K median, 7.2% cap rate). Tampa offers lower entry costs with 1.8% population growth, while Naperville provides stronger yield with 4.8% appreciation. Naperville scores 67/100, outperforming Tampa with stronger cash flow potential.
Summary
Tampa ($380K median, 6.5% cap rate) vs Naperville ($475K median, 7.2% cap rate). Tampa offers lower entry costs with 1.8% population growth, while Naperville provides stronger yield with 4.8% appreciation. Naperville scores 67/100, outperforming Tampa with stronger cash flow potential.
Bull Case
- 1
Tampa, FL: Strong population growth of +1.8% annually drives sustained rental demand and reduces vacancy risk, creating favorable conditions for landlords.
- 2
Naperville, IL: Strong population growth of +1.2% annually drives sustained rental demand and reduces vacancy risk, creating favorable conditions for landlords.
- 3
Tampa, FL: Above-average cap rate of 6.5% generates strong cash flow from day one, providing a buffer against expense increases and vacancy periods.
- 4
Naperville, IL: Above-average cap rate of 7.2% generates strong cash flow from day one, providing a buffer against expense increases and vacancy periods.
Bear Case
- 1
Tampa, FL: Rising interest rates increase carrying costs — a 1% rate increase on a $304K loan adds ~$253/month to mortgage payments, compressing cash flow.
- 2
Naperville, IL: Rising interest rates increase carrying costs — a 1% rate increase on a $380K loan adds ~$317/month to mortgage payments, compressing cash flow.
- 3
Tampa, FL: Extremely tight inventory (1.9 months) may force overpaying, eroding cap rate below the 6.5% market average.
- 4
Naperville, IL: Extremely tight inventory (1.8 months) may force overpaying, eroding cap rate below the 7.2% market average.
Key Risks
- !
Interest rate risk: refinancing in a higher-rate environment could eliminate positive cash flow on leveraged properties, requiring additional capital reserves.
- !
Interest rate risk: refinancing in a higher-rate environment could eliminate positive cash flow on leveraged properties, requiring additional capital reserves.
- !
Above-median crime index (45) in certain neighborhoods may impact tenant quality, insurance costs, and property appreciation trajectory.
- !
Local economic concentration risk — downturn in primary industries could rapidly increase vacancy and reduce rental rates.
Final Verdict
Naperville, IL edges ahead in our analysis. Naperville scores 67/100, outperforming Tampa with stronger cash flow potential. Ultimately, the best choice depends on your investment timeline, risk tolerance, and portfolio allocation.
Compare Alternatives
Analyze Your Own Investment
Run a full AI-powered comparison of Tampa, FL vs Naperville, IL with detailed Decision Scores and personalized recommendations.
Try LargeKite AI — Compare NowGet Weekly AI Investment Insights
Decision Scores, market analysis, and opportunities — delivered every Monday.
Free forever. No spam. Unsubscribe anytime.