How much income do I need to buy a house in Naperville?

To afford the median Naperville home ($416,478.13) using conventional lending guidelines (28% of gross income to housing, 20% down payment), you'd need approximately $134,714 annual household income. With a smaller down payment, you'd need higher income to offset PMI costs, or could qualify for FHA/VA loans with different requirements.

What is the price-to-rent ratio in Naperville?

Naperville's price-to-rent ratio is 17.0. This ratio divides the median home price by annual rent. Generally, ratios under 15 favor buying, over 20 favor renting, and 15-20 is a toss-up. In Naperville, the decision depends more on personal factors than pure math.

How long should I plan to stay if I buy in Naperville?

Our analysis shows a break-even point of approximately 5-7 years in Naperville. This means if you sell before that point, you'd likely have more wealth if you had rented and invested the difference. We generally recommend planning to stay at least 5 years before buying, though in Naperville specifically, this general rule applies.

Is Naperville a good place to invest in real estate?

Naperville has seen positive appreciation of 25.1% over the past 5 years. Growth has been modest, which could mean better entry points but also lower short-term returns. For investment analysis, use our Single Family or Multifamily calculator.

How do Naperville home prices compare to the national average?

Naperville home prices are above the national average by 4%. The median home in Naperville costs $416,478.13 compared to the national median of approximately $420,000. This modest premium is common for major metropolitan areas.

Rent vs Buy in Naperville, Illinois

Should you rent or buy in Naperville? Get a personalized analysis based on current Naperville housing market data.

Median Home:$416,478.13

Median Rent:$2,039.84/mo

Price Change (1yr):+5.0%

Our Verdict: Rent

🔑

RENT

Our Recommendation for Naperville

In Naperville, Illinois, renting may be more advantageous than buying. Over 10 years, renting and investing the difference could build approximately $171K more wealth. This is a strong recommendation based on current market conditions.

Break-even

N/A

10-Year Advantage

$170,842

renting wins

Confidence

100%

Price-to-Rent

17.0

Naperville Market Statistics

Median Home Price

$416,478.13

+4% vs national

Median Rent

$2,039.84/mo

+18% vs national

Property Tax Rate

2.27%

Price Change (1 Year)

+5.0%

Price Change (5 Year)

+25.1%

Price-to-Rent Ratio

17.0

-9% vs national avg

Income to Afford

$134,714

Days on Market

35 days

Data sources: Zillow, Tax Foundation. Last updated: 12/30/2025

Naperville Market Insights

Home prices in Naperville have increased 5.0% over the past year, outpacing many markets. This strong appreciation benefits current owners and buyers who get in now, but also means affordability is declining for those still saving.

Naperville's price-to-rent ratio of 17.0 is in the moderate range (15-20). Neither buying nor renting has a clear mathematical advantage based on this metric alone. Your decision should weigh personal factors like job stability and how long you plan to stay.

Naperville has a property tax rate of 2.27%, which is above the national average. This adds significantly to the cost of homeownership and should be factored into your monthly budget calculations.

About This Analysis

These insights are generated based on current Naperville market data including median home prices, rental rates, property taxes, and historical appreciation. The analysis uses standard assumptions (20% down payment, 7% interest rate, 10-year horizon) for comparability. Your specific situation may differ—use our calculator below to run personalized numbers.

Run Your Own Numbers

Our analysis uses standard assumptions. Your situation may be different. Use our full Buy vs Rent calculator to input your specific income, down payment, and financial goals.

Home: $416,478.13

Rent: $2,039.84/mo

Tax: 2.27%

Open Calculator with Naperville Data

Other Tools:

🏠 House Hack CalculatorLive in one unit, rent the others 📊 Investment Property AnalyzerAnalyze rental property returns 🏢 Multifamily CalculatorUnderwrite 2-20 unit properties

Compare Nearby Markets

See how Naperville compares to other cities in Illinois and the surrounding area.

City	Median Home	Median Rent	Price/Rent	Break-even	Verdict
Naperville(current)	$416,478.13	$2,039.84	17.0	N/A	Rent
Chicago	$314,516.51	$2,113.41	12.4	N/A	Rent
Joliet	$361,064.29	$2,121.37	14.2	N/A	Rent
Rockford	$195,413.19	$1,211.55	13.4	5 yrs	Buy

Click on a city name to see its detailed rent vs buy analysis.

Frequently Asked Questions

Based on current Naperville market data (median home price: $416,478.13, median rent: $2,039.84/month), our analysis suggests renting. The break-even point is approximately N/A years. However, your personal situation (income, savings, job stability, plans to stay) significantly impacts this decision. Use our calculator to run your specific numbers.

Our Methodology

Our rent vs buy analysis uses a comprehensive financial model that compares the total cost of homeownership against renting and investing the difference. Here's how we calculate each verdict:

1Buying Costs We Include

Mortgage principal and interest (P&I)
Property taxes (using local rates)
Homeowner's insurance
PMI (if down payment is less than 20%)
Maintenance costs (1-2% of home value/year)
Transaction costs (closing costs, realtor fees)
Home appreciation over time

2Renting + Investing Assumptions

Monthly rent with annual increases (~3%/year)
Renter's insurance
Down payment invested in stock market
Monthly savings (buy cost - rent cost) invested
7% average annual stock market returns
Investment growth over holding period

Standard Assumptions for City Analysis

Down Payment

20%

Interest Rate

7.0%

Loan Term

30 years

Time Horizon

10 years

How We Determine the Verdict

Buy: When buying builds $20,000+ more wealth than renting over 10 years
Rent: When renting + investing builds $20,000+ more wealth than buying over 10 years
Toss-Up: When the difference is less than $20,000 either way—lifestyle factors should guide your decision

Note: This analysis provides general guidance based on market averages. Individual results will vary based on specific property characteristics, negotiated prices, timing, and personal financial factors. Always run your own numbers with our full calculator for personalized results.

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Ready to Run Your Numbers?

This analysis uses standard assumptions. Your situation is unique. Use our comprehensive Buy vs Rent calculator to input your specific income, savings, down payment, and financial goals.

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