McHenry (ND) Investor Pulse Report (2026-Q1)

Investors hold a substantial 25.2% share of the single-family residential market in McHenry County, owning 348 of the 1,380 total SFR properties.

The ownership structure is overwhelmingly dominated by individuals, who own 339 properties, accounting for 97.4% of all investor-owned SFRs. In contrast, companies own just 19 properties, or 5.5% of the portfolio.

Landlord portfolios are financed with a high proportion of cash, with 255 properties (73.3%) owned free and clear, compared to 93 that are financed. This indicates a well-capitalized investor base that is less sensitive to interest rate fluctuations.

The portfolio is almost exclusively dedicated to rentals, with 346 of 348 properties (99.4%) classified as non-owner-occupied. This highlights a clear focus on generating rental income rather than short-term speculation.

The data shows 506 distinct landlord entities for 348 properties, suggesting co-ownership is a common practice among the 486 individual and 20 company landlords in the county.

The significant pricing advantage historically enjoyed by landlords in McHenry County has eroded. In Q1 2026, investors paid an average of $167,500, a negligible $700 (or 0.4%) less than the traditional homeowner price of $168,200.

This is a stark departure from the previous year's trend. In 2025, landlords consistently paid less, with the discount peaking at 24.7% ($57,561) in Q3 2025 and also showing significant savings of 13.2% in Q2 and 9.9% in Q1.

The closing of this price gap may signal increased competition for limited housing stock, with investors willing to pay closer to market rates to secure properties.

Overall price trends show a decrease from the pandemic-era average of $161,403 (2020-2023) and the 2024 average of $202,900, suggesting a market correction or a shift in the type of assets being acquired.

Despite the smaller price advantage, the average acquisition price for landlords in Q1 2026 ($167,500) remains below the 2025 yearly average of $182,069, indicating that purchase prices have moderated recently.

Investors represented a major force in the McHenry County market last quarter, purchasing 5 of the 12 total single-family properties sold, a market share of 41.7%.

The growth in real estate investing is entirely grassroots. All 5 properties acquired by investors (100.0%) were bought by those in the single-property tier, highlighting the critical role of new and small-scale landlords.

This activity was driven by 6 new landlord entities, indicating a steady flow of new entrants into the local rental market.

The complete absence of purchasing activity from mid-size (11-1000 properties) or institutional (1000+) tiers underscores the hyper-local, small-scale nature of investment in the area.

This high concentration of purchasing power among new investors suggests that McHenry County remains an accessible and attractive market for individuals starting their investment journey.

The investor landscape in McHenry County is defined by its smallest participants. Landlords owning just one property hold 335 of the 348 investor-owned homes, representing a 94.9% market share.

Ownership is almost completely concentrated in the hands of mom-and-pop landlords (1-10 properties), who collectively control 99.4% of the investor-owned housing stock. This figure defies the common narrative of corporate dominance in rental markets.

There is absolutely no institutional footprint in the county, with the 1000+ property tier (Tier 09) holding 0.0% of properties. This indicates the market is not a target for large-scale investment funds.

Beyond the single-property tier, ownership drops off sharply. The two-property tier accounts for just 14 properties (4.0%), and the small landlord tier (3-5 properties) holds only 2 properties (0.6%).

This ownership structure reveals a market built on local, individual capital, where the quintessential small landlord is the backbone of the rental housing supply.

Individual ownership is the unchallenged standard across every investor tier in McHenry County. In the dominant single-property tier, individuals own 329 properties compared to just 16 owned by companies (a 95.4% share for individuals).

This pattern continues even as portfolio sizes increase slightly. In the two-property tier, individuals own 13 of the 14 properties, a 92.9% share.

There is no tier in the McHenry County market where company ownership approaches, let alone surpasses, individual ownership. The market is not structured to foster large corporate portfolios.

This data reinforces the 'mom-and-pop' character of the local rental market, where investment decisions are driven by local individuals rather than corporate boards.

The lack of company scaling suggests that the market dynamics may not support or attract larger, structured investment operations, preserving its local character.

A geographic analysis of McHenry County reveals specific pockets of high investor concentration rather than a uniform distribution.

The zip code 58790 stands out as the primary hub for investor volume, containing 124 investor-owned properties, which is more than a third of the county's total investor portfolio.

In terms of market penetration, zip code 58384 has the highest rate, where investors own a full 50.0% of the single-family homes.

The zip code 58736 also demonstrates significant investor presence, with 40 investor-owned properties translating to a 29.2% ownership rate.

These high concentration rates suggest that investors are targeting specific neighborhoods, possibly driven by local economic factors, school districts, or housing stock characteristics that are particularly attractive for rentals.

Transactional data reveals a clear and consistent strategy of portfolio accumulation among landlords in McHenry County, who are overwhelmingly net buyers.

In 2025, the buy-to-sell ratio was a powerful 10.5-to-1, with 42 properties purchased versus only 4 sold. This signals strong investor confidence in the long-term value of the local market.

This bullish behavior is not new. The trend was firmly established in 2024, which recorded a similarly high ratio of 10.7-to-1 (32 buys vs. 3 sells), demonstrating sustained portfolio growth.

Quarterly breakdowns confirm the pattern, with Q3 2025 alone showing 7 acquisitions against just a single disposition.

With no institutional transactions recorded, this aggressive accumulation is entirely driven by small, local investors who are actively expanding their holdings and deepening their commitment to the market.

Landlords were a significant driver of market activity in Q1, participating in one-third of all 18 SFR transactions completed in McHenry County.

The entirety of this investor activity came from the single-property tier, which executed 6 transactions at an average purchase price of $167,500.

A key insight from the quarter is that none of the investor purchases were sourced from other landlords. This 0% inter-landlord transaction rate suggests investors are acquiring inventory from traditional homeowners or possibly new construction.

The lack of landlord-to-landlord sales indicates a strong hold sentiment among existing investors, who are choosing to retain their assets rather than trade them within the investor community.

This dynamic confirms that market growth is fueled by new capital and small investors expanding their footprint by purchasing from the non-investor housing stock.