Kenosha and Racine DSCR Loans: The Border Corridor
Program and regulatory figures verified September 15, 2026. Details change; confirm your scenario with us.
These two lakefront cities sit between Milwaukee and Chicago, and they are the second-best DSCR story in Wisconsin because their rents are set by a market much larger and more expensive than Wisconsin.
The corridor numbers
| Market | Typical value | Typical rent | Gross yield |
|---|---|---|---|
| Kenosha | $286,557 | $1,649 | 6.9% |
| Racine (city) | $220,914 | $1,200 | 6.5% |
| Racine (metro) | $319,383 | $1,433 | 5.4% |
| Madison, for comparison | $432,061 | $1,621 | 4.5% |
Zillow Research public ZHVI and ZORI data, July 2026. Gross yield = annual rent ÷ typical value.
The comparison that makes the case: Kenosha's typical rent of $1,649 is slightly above Madison's $1,621, on a typical value $145,504 lower. A Kenosha landlord collects Madison money against a Kenosha purchase price.
Why Kenosha rents like that
Geography. Kenosha sits at the Illinois line, roughly an hour from downtown Chicago by Metra's Union Pacific North line terminus at Kenosha, and within commuting distance of the northern Illinois employment corridor around Lake County. Renters priced out of Lake County and the northern Chicago suburbs come across the state line, where Wisconsin's housing costs are substantially lower and Wisconsin's income tax treatment and property tax structure differ from Illinois's.
That in-migration sets the rent floor. It is a durable driver rather than a cycle, because it is a function of the price difference between two states, and that difference has been widening rather than narrowing.
The same logic runs, more weakly, through Racine: closer to Milwaukee than Chicago, with a lower basis and a lower rent, producing a 6.5% city yield that still beats every Wisconsin market except Milwaukee and Beloit.
Submarkets worth knowing
- Kenosha: downtown and the Library Park and Third Avenue historic districts. Walkable to the Metra terminus, strong historic stock including two-flats, the best combination of rent and resale in the city.
- Kenosha: Columbus Park and the Wilson neighborhood. Workforce single-family and duplex stock at a lower basis, the strongest straightforward ratios.
- Kenosha: the west side toward Somers and Pleasant Prairie. Newer construction, family tenancy, easier management, weaker ratio.
- Racine: the near west side and Uptown. Lowest basis in the city and the widest spread, with the most rehab scope.
- Racine: Southside and the historic districts near the lake. Larger homes, some already converted, professional tenancy, longer holds.
- Mount Pleasant and Sturtevant. Suburban Racine County, newer stock, lower yield, lightest operation.
The honest part about the corridor
Both cities have industrial histories and both have lost manufacturing employment over decades, which is the reason the housing basis is where it is. Racine in particular carries the profile of a city whose population has been flat to declining, with older stock and a real capital-expenditure requirement on the value-add end.
What has replaced some of that industrial base is distribution and logistics along the I-94 corridor between Milwaukee and Chicago, which is genuine employment but pays differently than the manufacturing it succeeded. Underwrite these cities on current rent against current payment, budget properly for capital expenditure on pre-war stock, and use local management. Do not underwrite a recovery thesis.
The statutory backdrop
Everything in the §66.0104 page applies here identically, because these are statewide rules rather than local options. Neither Kenosha nor Racine may restrict how you screen a tenant, limit how far back you look at credit or conviction records, stop you showing a unit during a current tenancy, add local deposit or inspection rules beyond the state administrative code, or charge more than the statutory inspection fee caps of $75, $90 and $150.
Neither may regulate your rent, under Wis. Stat. §66.1015. And neither may prohibit you renting a residential dwelling for 7 consecutive days or longer, under §66.1014, which is worth knowing in two lakefront cities with genuine summer demand. See your town cannot ban your short-term rental.
No pressure and no obligation: a 20-minute call with our team, the real full payment run against a realistic Wisconsin rent, and a straight answer on whether the deal clears before you write an offer. In this state that answer is no more often than in most, and we would rather say so early.
Frequently asked questions
Is Kenosha a good rental investment market?
It is the second-best DSCR market in Wisconsin after Milwaukee city, at a 6.9% gross yield on a $286,557 typical value and $1,649 rent in July 2026. The reason is geography: Kenosha sits at the Illinois line within commuting distance of northern Illinois employment, so renters priced out of Lake County set the rent floor while Wisconsin sets the purchase price.
How does Kenosha compare to Madison for investors?
Kenosha's typical rent of $1,649 is slightly above Madison's $1,621, on a typical value $145,504 lower. That produces a 6.9% gross yield in Kenosha against 4.5% in Madison city. For a DSCR underwrite, which measures rent against payment, that gap is decisive: Kenosha clears a ratio on a standard structure and Madison generally does not.
Is Racine worth buying for rental income?
The city is, at a 6.5% gross yield on a $220,914 typical value and $1,200 rent, which beats every Wisconsin market except Milwaukee, Beloit and Kenosha. Note the city-metro split: the Racine metro runs 5.4%, so the value sits inside the city. Budget properly for capital expenditure on older stock and use local management.
What is the risk in the Kenosha and Racine corridor?
Both cities have industrial histories and have lost manufacturing employment over decades, which is why the basis is low. Distribution and logistics along the I-94 corridor have replaced some of it at different wage levels. Underwrite on current rent against current payment with a real capital-expenditure line, rather than on a recovery thesis.
Can Kenosha or Racine restrict short-term rentals?
Not below seven days' duration. Wis. Stat. §66.1014(2)(a) provides that a political subdivision may not enact or enforce an ordinance prohibiting the rental of a residential dwelling for 7 consecutive days or longer. For rentals of more than 6 but fewer than 30 consecutive days, a municipality may cap the total at no fewer than 180 days in a 365-day period. That matters in two lakefront cities with summer demand.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content, not a loan commitment and not legal or tax advice. Wisconsin statutes, assessment classifications, municipal licensing and short-term-rental ordinances change; confirm current requirements with the municipal clerk, the assessor, your CPA, or a Wisconsin real estate attorney before you buy. Loans are subject to buyer and property qualification.