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

In Scott County, Illinois, investors hold a substantial 32.7% of the Single-Family Residential (SFR) market, totaling 409 properties out of 1,251. This high penetration rate indicates a significant rental presence within the community.

The ownership structure is overwhelmingly dominated by individual investors rather than corporations. Individuals own 377 of the 409 properties, accounting for 92.2% of the investor-owned housing stock, while companies own just 35 properties (8.6%).

A defining feature of this market is its reliance on all-cash transactions. Data shows that 100% of the 409 investor-held properties were purchased with cash, with no financed properties recorded. This suggests a market with low acquisition prices or a prevalence of investors who operate without leverage.

The vast majority of investor-owned properties are actively used as rentals. A total of 401 properties are designated as rented, confirming that the primary investor strategy in Scott County is buy-and-hold for rental income, not speculation or flipping.

The landlord landscape mirrors the ownership data, with 528 individual landlords compared to just 26 company entities. This nearly 20-to-1 ratio of individual to company landlords solidifies the characterization of Scott County as a classic mom-and-pop rental market.

Investors in Scott County have historically achieved a significant pricing advantage over traditional homebuyers. In Q1 2025, the average acquisition price for a landlord was benchmarked at $76,700, which is 30.5% less than the $110,357 paid by homeowners.

This price disparity represents a substantial $33,657 discount per property for investors, signaling a market where off-market deals or distressed properties may play a key role in acquisitions. This advantage allows investors to achieve better returns on their rental properties.

However, the most critical finding for the recent quarter is the complete lack of activity. Despite the favorable pricing, investors purchased zero properties in Q1 2025. This indicates a market that is either highly illiquid or has reached a point of stability where properties are not changing hands.

Comparing prices over time, the 2024 average landlord purchase price was $63,900, while the pandemic-era (2020-2023) average was $69,759. The Q1 2025 benchmark of $76,700, while based on zero transactions, suggests a potential appreciation trend, though the lack of volume makes this difficult to confirm.

The absence of recent transactions despite a clear historical price advantage suggests that Scott County is a mature buy-and-hold market. Existing landlords appear content with their portfolios, and few new properties are becoming available for acquisition by either new or existing investors.

Investor purchasing activity in Scott County came to a complete halt in Q1 2025. Landlords acquired 0 new SFR properties, representing a 0.0% share of the total market transactions for the quarter.

This lack of activity was universal across all investor sizes. Mom-and-pop landlords, who constitute the entirety of the investor base in the county, made no purchases. Similarly, there was no activity from mid-size or institutional investors.

The data indicates that no new landlords entered the market in Q1 2025, as there were zero acquisitions in the crucial single-property (Tier 01) category. This points to a period of market stagnation rather than growth.

This freeze in acquisition activity contrasts sharply with the county's high overall investor ownership rate of 32.7%. While investors are a major presence, they are not currently expanding their portfolios, suggesting a stable, long-term holding pattern.

The complete absence of purchases highlights an extremely illiquid market for real estate investing. Potential investors would find very few, if any, opportunities to enter the Scott County market based on Q1 2025's performance.

The investor landscape in Scott County is exclusively composed of small landlords. Mom-and-pop investors (owning 1-10 properties) command 100% of the 409 investor-owned SFRs, leaving no market share for larger operators.

First-time investors and single-property owners are the backbone of this market. Landlords in the single-property tier own 351 homes, which accounts for a remarkable 83.2% of all investor-owned properties in the county.

The next tiers show a steep drop-off, further emphasizing the small-scale nature of ownership. Two-property landlords hold 37 properties (8.8%), followed by owners with 3-5 properties holding 27 (6.4%).

There is a complete absence of institutional capital in Scott County's SFR market. The 1000+ property tier (Tier 09) has zero presence, and even mid-size landlords (11-1000 properties) are not found in the data.

This ownership structure indicates a market driven by local individuals rather than large, out-of-state corporations. It suggests that rental housing is provided by community members, a dynamic that differs significantly from more metropolitan markets.

In Scott County, individual investors are the controlling force across every single portfolio size. In the single-property tier, individuals own 333 of the 351 properties, a commanding 94.3% share.

This pattern continues into the next tier, where individuals own 35 of the 37 two-property portfolios (94.6%). This demonstrates that as landlords begin to scale, they almost exclusively do so as private individuals.

Unlike in larger U.S. markets, there is no crossover point where companies become the majority owners. In the highest portfolio tier present in the county (3-5 properties), individuals still own 21 properties, or 77.8% of the total, compared to just 6 properties (22.2%) owned by companies.

The data shows that corporate ownership, while present, is minimal and does not scale. Companies own only 35 properties in total across all tiers, reinforcing the market's character as being driven by personal investment.

This complete dominance by individual owners suggests that the local rental market is highly fragmented and likely managed directly by the property owners themselves, rather than through third-party management companies often associated with corporate landlords.

Investor ownership in Scott County is not evenly distributed but instead shows areas of extreme concentration. The zip code 62663 stands out with a staggering 95.7% investor ownership rate, where 111 of the properties are landlord-owned.

Another area of high saturation is the 62610 zip code, which has an 87.7% investor ownership rate, with 57 properties held by investors. These figures suggest that certain neighborhoods or towns within the county function primarily as rental markets.

The zip code with the largest absolute number of investor-owned properties is 62694, with 120 properties. However, its ownership rate of 17.3% is far more modest compared to other areas, indicating a larger overall housing stock with a more balanced mix of homeowners and renters.

There is a clear distinction between regions with the highest count and those with the highest percentage. While 62694 has the most investor units, 62663 and 62610 represent the most saturated markets, where investors own nearly all the housing.

This geographic distribution reveals a nuanced picture of the county. Investors are not just present; they have created super-dense rental pockets in specific zip codes, which likely influences local housing dynamics and availability for traditional homebuyers.

An analysis of historical transactions in Scott County reveals a complete lack of recorded buy-and-sell activity among landlords. This absence of data is itself a powerful insight into the nature of the local market.

The lack of transactions suggests a market characterized by extreme illiquidity. Properties owned by investors do not appear to be trading hands, meaning there is very little churn in the rental housing stock.

This pattern strongly supports the conclusion that the dominant investor strategy is long-term buy-and-hold. Landlords in Scott County are likely focused on generating steady rental income over many years, rather than seeking short-term capital gains through property flipping.

For those looking to enter the market, this presents a significant barrier. The low transaction volume means few properties become available for purchase, making it difficult for new investors to acquire assets or for existing investors to expand their portfolios.

Furthermore, the data shows no evidence of landlord-to-landlord transactions. This indicates a lack of a secondary market where investors sell properties to each other, a common feature in more active and liquid real estate markets.

In Q1 2025, the transactional role of landlords in the Scott County SFR market was non-existent. Investors were part of 0 transactions, accounting for a 0.0% share of market activity.

This inactivity was consistent across all investor tiers. The mom-and-pop landlords who own 100% of the investor-held properties in the county did not purchase or sell any homes during the quarter.

Consequently, analysis of pricing strategies by tier is not possible. The average purchase price for all tiers was $0, reflecting the total absence of acquisitions.

There was also no inter-landlord trading activity. The percentage of properties bought from other landlords was 0%, as no purchase transactions occurred in the first place.

The data for Q1 2025 paints a picture of a market in deep hibernation. The high investor ownership rate is a feature of the market's history, not its current activity, which has ground to a complete halt.