Coles (IL) Investor Pulse Report (2026-Q1)

In Coles County, investors own 2,247 single-family residential properties, representing 14.9% of the total 15,031 SFRs in the market. This portfolio underscores a significant investor presence in the local housing ecosystem.

Ownership is overwhelmingly dominated by 1,659 individual landlords who control 1,607 properties, or 71.5% of the investor-owned inventory. In contrast, 285 company entities own the remaining 658 properties (29.3%), highlighting that the market is driven by smaller, private investors rather than large corporations.

The operational focus of this portfolio is clearly on generating rental income. A total of 2,113 properties are classified as rented, which accounts for 94.0% of all investor-owned SFRs. This high penetration rate shows a mature rental market supplied by these investors.

When it comes to financing, investors in Coles County show a strong preference for cash transactions. The data reveals 1,604 properties are owned free-and-clear, more than double the 643 properties that are financed. This suggests many investors have significant capital and are possibly less leveraged against market fluctuations.

The ratio of individual to company landlords (1,659 to 285) is nearly 6 to 1, further cementing the profile of the typical Coles County landlord as an individual. This challenges the common narrative that corporate entities are the primary players in real estate investing.

A dramatic pricing disparity emerged in Q1 2026, with landlords paying an average of $69,966 per property. This is a staggering $102,177, or 59.4%, less than the $172,143 paid by traditional homeowners, indicating investors are securing properties at a deep discount.

The landlord discount has not been static; it has widened considerably over the past year. In Q3 2025, the gap was a more moderate 20.2% ($38,474), and in Q2 2025, it was 42.1% ($83,764). The jump to a 59.4% discount in the current quarter signals a potential shift in market dynamics or investor acquisition strategy, possibly targeting more distressed or off-market properties.

Landlord acquisition prices themselves have shown volatility. The Q1 average of $69,966 is a significant drop from the $151,720 average seen in Q3 2025, and well below the 2020-2023 average of $148,806. This suggests investors are either finding lower-priced inventory or are exercising greater price discipline.

This ability to purchase properties far below the typical homeowner price gives investors a powerful competitive advantage. It allows for greater potential cash flow, higher return on investment, and a larger margin of safety against market downturns.

During the fourth quarter of 2025, landlords acquired 25 of the 142 total SFR properties sold in Coles County, capturing a 17.6% market share of purchases. This consistent acquisition activity demonstrates their ongoing role in the local real estate market.

The bulk of purchasing activity was driven by small-scale investors. Mom-and-pop landlords (owning 1-10 properties) were responsible for 18 of the 25 investor purchases, representing 72.0% of all landlord acquisitions. This highlights the grassroots nature of investor activity in the area.

A significant influx of new investors entered the market, with 22 new entities purchasing 16 properties to become single-property landlords. This is the most active tier, accounting for 64.0% of all properties bought by investors in Q4.

In stark contrast to the activity at the smaller end of the spectrum, large institutional investors (1,000+ properties) had no presence in the market, recording zero purchases. This further reinforces that the Coles County investment landscape is defined by local, smaller operators.

Mid-size landlords also showed targeted activity, with entities in the 11-20 property tier acquiring 5 homes, making up 20.0% of investor purchases. This indicates a segment of established local investors continuing to expand their portfolios.

The investor landscape in Coles County is overwhelmingly controlled by small-scale landlords. Mom-and-pop investors, defined as those owning 1-10 properties, hold a combined 86.6% of all investor-owned SFRs. This concentration demonstrates a highly decentralized market structure.

Single-property landlords (Tier 01) are the single largest group, owning 1,161 homes, which accounts for 49.0% of the entire investor portfolio. This signifies that the foundation of the local rental market is built upon individuals who own just one investment property.

The share of ownership declines steadily as portfolio size increases. Mid-size landlords (11-100 properties) own a combined 12.8% of the inventory. This gradual drop-off illustrates the pyramid-like structure of ownership in the market.

Institutional investors (1,000+ properties) have a negligible footprint in Coles County, owning just 2 properties, or 0.1% of the investor-owned housing stock. This finding directly counters the narrative of large corporations dominating the single-family rental space in this market.

The data clearly shows that the typical landlord in Coles County is not a large, faceless corporation but a small, local operator. The combined power of these mom-and-pop investors shapes the rental market far more than any other group.

A clear crossover point exists where companies surpass individuals as the dominant owner type. While individuals control the vast majority of smaller portfolios, companies become the majority owners starting in the small-medium tier of 11-20 properties, where they own 124 homes (64.2%).

Individual investors are the bedrock of the smaller tiers. They own 86.4% of all single-property landlord portfolios (1,013 properties) and 79.6% of two-property portfolios (164 properties). This dominance gradually wanes as portfolio sizes increase.

The 6-10 property tier represents a near-even split, with individuals owning 117 properties (52.5%) and companies owning 106 (47.5%). This tier acts as a transition zone where investors may begin to formalize their operations under a company structure.

Company ownership concentration peaks in the 21-50 property tier, where corporations hold 75 properties, a commanding 73.5% share. This suggests that as investors scale their operations to this level, incorporating becomes the standard practice for liability and management purposes.

This tiered analysis reveals a distinct pattern of ownership structure evolution. Investors typically start as individuals and, as their portfolios grow beyond 10 properties, are more likely to operate as a company. This provides a roadmap of investor maturity in the Coles County market.

Geographic analysis reveals a high concentration of investor ownership in specific areas of Coles County. The two zip codes of 61938 and 61920 are the epicenters of activity, containing 1,054 and 976 investor-owned properties, respectively. Together, they account for 90.3% of all investor SFRs in the county.

While 61938 leads in sheer volume of investor properties, the zip code 61920 has a higher rate of investor ownership at 17.2%, compared to 13.8% in 61938. This indicates a denser concentration of rental properties within the 61920 community.

A key finding is that the highest ownership rate does not correlate with the highest count. The zip code 61930 has the highest penetration in the county, with 33.3% of its homes owned by investors, despite having a relatively small number of properties. This identifies it as a niche market heavily targeted by investors.

Other areas with notable investor presence include 61931 (16.3% ownership rate) and 61928 (16.7% ownership rate). These sub-markets, while smaller in total property count, exhibit a significant level of investor saturation.

This data from our market reports dashboard allows investors to identify not just where most rentals are, but also which markets have the highest density of investor activity, signaling potentially different types of opportunities or competition.

Landlords in Coles County are actively growing their portfolios, demonstrating strong confidence in the local market. In the first quarter of 2026, they operated as decisive net buyers, purchasing 31 properties while selling only 10, resulting in a buy-to-sell ratio of 3.1 to 1.

This pattern of accumulation is not new. The net buyer trend was consistent throughout the previous year. In 2025, landlords acquired 143 SFRs and sold just 50, a nearly 3-to-1 buy/sell ratio. Similarly, in 2024, they purchased 176 properties and sold 57.

The quarterly data reinforces this momentum. In Q3 2025, the buy/sell ratio was nearly 3-to-1 (47 buys vs. 16 sells), and in Q2 2025, it was over 2-to-1 (28 buys vs. 13 sells). This sustained buying pressure indicates a long-term strategic focus on acquiring rental assets in the area.

Institutional transaction data for the 1,000+ property tier was not available, but the overall market trend is clearly one of expansion, driven by the cumulative activity of smaller and mid-sized investors.

The consistent net positive acquisition volume suggests that landlords view Coles County as a stable or growing market for single-family rentals, and they are actively deploying capital to increase their holdings.

In the first quarter's real estate transactions, landlords played a significant role, accounting for 31 of the 190 total SFR sales, or a 16.3% share of the market's activity. New single-property landlords were the most active group, conducting 22 of these transactions.

A notable pattern of inter-landlord trading emerged among mid-size investors. Landlords in the 11-20 property tier sourced 40.0% of their new acquisitions (2 of 5 properties) from other landlords, the highest rate of any tier. This suggests an active secondary market where established investors trade assets among themselves.

Pricing strategies varied significantly across tiers. New, single-property investors paid the highest average price at $73,760. In contrast, larger tiers appeared to secure properties at much lower prices, such as the 51-100 tier investor who acquired a property for just $12,000, though this may reflect small sample sizes or distressed asset purchases.

First-time investors also participated in the landlord-to-landlord market, with 18.2% of their purchases (4 of 22 transactions) coming from existing landlords. This shows that new entrants are able to source deals from the established investor network.

Overall, Q1 transaction data reveals a dynamic market where new investors are actively entering, and established landlords are trading properties, creating liquidity and opportunities within the investor community.