1st Advantage MortgageIn Racine, WI, rental investors qualify on the property's rent instead of personal income. The market data behind that: $1,033 median rent, $166,500 median home value and 40% of households renting.
Racine rental market at a glance
Start with the two numbers every DSCR file turns on. Rent in Racine runs a median $1,033 a month (close to the Wisconsin median of $1,087), and the median owner-occupied home is worth $166,500. Put the two medians together and Racine shows a gross yield of 7.4%, neither especially thin nor especially rich. Because the rent number covers apartments as well as houses, expect single-family rentals to land above or below it.
| Indicator | Wisconsin | Racine | Difference |
|---|---|---|---|
| Share of homes detached | 66.2% | 65.0% | -2% |
| Long commuters, 45 min plus | 10.2% | 9.9% | -3% |
| Degree holders, age 25+ | 33.4% | 21.4% | -36% |
| Workers on their own account | 8.5% | 6.5% | -23% |
| Renters paying 30%+ of income | 43.7% | 53.3% | +22% |
| Units sitting vacant | 10.8% | 8.3% | -23% |
| Typical construction year | 1975 | 1953 | |
| Annual rent divided by value | 4.9% | 7.4% | +52% |
| Households that rent | 32.2% | 39.8% | +24% |
| Tax as a share of home value | 1.42% | 2.17% | +52% |
| Annual property tax bill, median | $3,792 | $3,607 | -5% |
| Household income, median | $77,485 | $57,740 | -25% |
| Typical owner-occupied value | $266,500 | $166,500 | -38% |
| Typical monthly rent | $1,087 | $1,033 | -5% |
| Residents (Census estimate) | 5,914,872 | 77,633 |
About 39.8% of occupied homes in Racine are renter-occupied, about 24% above the Wisconsin median of 32%, a balanced mix of owners and tenants. Incomes matter for rent growth: the median household earns $57,740, well below the Wisconsin median of $77,485, and 53% of renters are already cost-burdened at 30 percent of income or more.
Housing mix and age in Racine
Detached single-family homes make up 65% of the housing units in Racine, so most rentals here compete as houses, and rents follow neighborhood and school boundaries more than building type. A median construction year of 1953 means many properties predate modern codes, so budget for repairs before you trust a cash-flow figure.
Vacancy is a quiet driver of rent. 8% of homes are vacant citywide and 7.6% of the rental inventory was listed for rent when the Census surveyed.
What the data means for Racine buyers
At 7.4%, Racine is neither a bargain nor a stretch for DSCR underwriting, so the file turns on the exact rent, tax and insurance figures for the property. With homes this old, a pre-offer inspection is not optional in Racine. Renters are 40% of households, which gives investors a real tenant base to market to.
Taxes, insurance and hazards in Racine
Property taxes in Racine run a median $3,607 a year for owners, close to the Wisconsin median of $3,792. As a share of median value, that is about 2.17%. Set beside the median rent, the tax alone consumes about 29% of annual rent.
The federal National Risk Index scores Racine County relatively moderate for overall risk, led by cold waves (relatively high), tornadoes (relatively high) and strong wind (relatively high). That is a county-level view, so check the flood map for the exact parcel.
| Hazard in Racine County, FEMA index | Level |
|---|---|
| Lightning exposure | Relatively High |
| Strong wind exposure | Relatively High |
| Tornadoes exposure | Relatively High |
| Cold waves exposure | Relatively High |
| Social vulnerability score | Relatively Low |
| Annualized loss estimate | Relatively Moderate |
| Composite risk | Relatively Moderate |
Many investors meet insurance too late, so get a quote tied to the Racine property's roof age and flood zone before you waive your inspection period.
What the Racine medians allow
The quick test for Racine: rent of $1,033 divided by a 1.25 ratio allows a total payment of $826, and subtracting $301 in monthly taxes leaves $526 for the loan, insurance and dues. At 1.00 the allowance is the full $732.
Rental rules for Racine, WI
For Racine, treat local rental rules as an open question to close before you offer. Ask the city and Racine County about landlord registration, inspections and short-term rental permits, and check association documents too. On lodging taxes, a Racine host should read this first. Wisconsin taxes short-term lodging of under a month, requires a marketplace that processes the guest's payment to collect state sales tax, and leaves municipal room taxes to be filed with each taxing municipality.
A Racine landlord must handle the deposit within 21 days after move-out under Wisconsin law.
Neighbors of Racine by the numbers
Set Racine ($166,500 median value) beside its neighbors: Milwaukee comes in lowest at $184,000, and Waukesha tops the group at $315,500.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Waukesha | 41% | $4,511 | $315,500 | 71,233 | $1,219 |
| Milwaukee | 58% | $3,668 | $184,000 | 566,973 | $1,059 |
| Kenosha | 41% | $3,839 | $225,200 | 99,372 | $1,186 |
| Racine | 40% | $3,607 | $166,500 | 77,633 | $1,033 |
Workforce and demand drivers in Racine
Self-employed workers, incorporated or not, make up 6.5% of employed residents, a group that often has irregular tax-return income and a natural fit with rent-based qualification. Three more data points: government workers are about 11% of employment, 21% of adults hold a bachelor's degree or higher and 10% of commuters travel 45 minutes or more.
Education is part of the Racine rental picture, with University of Wisconsin-Parkside and Gateway Technical College among the institutions listed. Wikipedia's entry for Racine notes air service through John H. Batten Airport and O'Hare International Airport, a practical point for tenants and owners alike.
Putting a Racine file together
Bring the Racine numbers to a loan officer: the rent, the taxes, the insurance and your reserves. Apply online or ask for a quote, and use the calculator to preview the ratio.
More Wisconsin markets
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- Every market we cover
Where these facts come from
- American Community Survey tables, Wisconsin
- Federal hazard index, WI
- Racine on Wikipedia
- Wisconsin security deposit statute (Wis. Stat. 704.28; Wis. Admin. Code ATCP 134.06)
- Wisconsin DOR Publication 219
All Racine statistics are ACS five-year survey estimates from 2020 to 2024. Deposit and notice summaries come from RedFlagLease (CC BY 4.0) and the linked Wisconsin sections. Our check date is October 2026, so look for newer Racine rules before you commit.
A short buyer checklist
For a Racine rental, request the current lease, the last tax bill and the insurance declarations page early, and confirm which utilities the tenant pays, because each one changes the monthly figure a lender compares with the rent.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
What rent do DSCR lenders use for a Racine rental?
Underwriters take the lease if one exists and compare it with the appraisal's rent estimate; the lower figure often governs. Racine median rent is $1,033.
Does the ratio in Racine include taxes and dues?
They do. Rent of $1,033 divided by 1.25 gives about $826 as the payment ceiling, and $301 of that is spoken for by the median Racine tax bill.
How high are property taxes in Racine?
The Census reports a median of $3,607 a year for Racine owners, about 2.17% of median value against 1.42% for Wisconsin. The county reassesses after a sale, so ask the tax office for an estimate on your purchase price.
Is short-term rental income allowed for a Racine DSCR loan?
It depends on the program and on local law. A Racine owner needs the right permit or registration, an association that allows nightly stays, and documented bookings.
What does Wisconsin law say about deposits at a Racine rental?
Under Wis. Stat. 704.28; Wis. Admin. Code ATCP 134.06: The deposit is due back within 21 days of move-out. Check the statute and your lease before collecting.
How exposed is Racine to natural hazards?
FEMA's index puts the county at relatively moderate overall. A lender cares about the premium and any flood requirement, which are address-specific in Racine.
Can a company be the borrower on a Racine purchase?
Not required. An LLC borrower is routine for investor programs, with entity paperwork and a guaranty. Form the company before you go under contract in Racine.