Thinking about buying rental property in Chicago? You’re not alone. The Windy City continues to attract property investors with its diverse neighborhoods, strong tenant demand, and relatively affordable entry prices compared to other major metros. However, not all pockets are created equal, which is why at High Fidelity Property Management we’re breaking down our top 5 Chicago neighborhoods for rental investments.

Whether you’re a first-time investor or looking to expand your portfolio, these neighborhoods are on track to deliver solid rental income and long-term appreciation:

1. Chicago’s Avondale Neighborhood 

Avondale has emerged as one of the fastest-growing areas in Chicago, with rising home values and a steady influx of young professionals and creatives priced out of Logan Square. It’s also close to DeVry University-Illinois, North Park University, and Northeastern Illinois University for tapping into the college student demographic. 

  • Average Rent (2BR): $2,206 per month
  • Rental Demand: High
  • Investor Tip: Look for vintage 2 to 4 flats near Milwaukee Avenue. Many are being updated for modern renters while maintaining character.

2. Chicago’s Bronzeville Neighborhood

With major revitalization efforts and increasing development, Bronzeville is gaining traction among both tenants and investors. The neighborhood offers proximity to the lake, downtown, and the future Obama Presidential Center.

3. Chicago’s Pilsen Neighborhood

Pilsen blends cultural richness with urban edge. It’s been on investor radars for years, and while prices have risen, so has rental demand, especially among students, artists, and young professionals.

  • Median Rent (2BR): $3,216
  • Rental Demand: Very high
  • Investor Tip: Pay attention to zoning and preservation rules, especially if you’re planning renovations or short-term rentals.

4. Chicago’s Edgewater Neighborhood

With its lakefront access, public transit, and solid housing stock, Edgewater offers stability and steady appreciation. It’s ideal for investors looking for long-term, low-maintenance holds.

  • Median Rent (2BR): $1,947
  • Rental Demand: Strong among families and professionals
  • Investor Tip: Look for garden units and mid-size apartment buildings close to the Red Line or near Loyola University.

5. Chicago’s Humboldt Park Neighborhood

Still more affordable than nearby Wicker Park or West Town, Humboldt Park is a neighborhood in transition. Renters are flocking to the area for its parks, culture, and increasing restaurant and retail options.

  • Median Rent (2BR): $1,172
  • Rental Demand: High, especially with younger renters
  • Investor Tip: Watch for off-market deals and two-flats, great options for house hacking or adding value.

Make Your Next Investment Count

Chicago remains strong as one of the best cities in the U.S. to invest in real estate, if you know where to look and do your research. We hope you found this post on our top 5 Chicago neighborhoods for rental investments helpful. All in all, balance of affordability, rental demand, and long-term growth potential are key takeaways savvy investors should be paying attention to.

At High Fidelity Property Management, we help property investors and owners identify the right opportunities, navigate local rental regulations, and manage your assets with care and expertise. Want help evaluating a property or neighborhood? Contact us today to learn more: info@hifipm.com.