Decatur Home Prices: $99K, Up 8.3% — 3 ZIPs Analyzed (2026)

$99,395. That’s the typical home price in Decatur, IL right now — and it’s up 8.3% from a year ago. Few cities this cheap are climbing this fast.

Quick answer: The average home price in Decatur, IL is $99,395 as of February 2026, up 8.3% year over year according to Zillow.

Current Home Prices in Decatur

Decatur is one of the few US cities where a typical home still trades for under $100,000. The median sits at $99,395 as of February 2026. A year ago it was closer to $91,800.

The 8.3% annual gain is steeper than what most large US metros posted in the same window. Smaller, lower-priced markets often move in larger percentage swings because the dollar base is small. A $7,600 increase looks dramatic on a $92,000 home and barely registers on a $600,000 one.

The price spread between the cheapest and priciest ZIP is about $30,750. That’s a tight band — buyers in Decatur are not choosing between sharply different price tiers the way they would in a larger metro. The whole city sits within a narrow corridor between roughly $87K and $117K.

You’re looking at a market where entry-level ownership remains realistic for households earning median incomes. A 20% down payment on the median home is under $20,000.

Decatur Home Prices by Neighborhood

Three ZIP codes anchor the Decatur housing data. Prices vary by about 35% from the cheapest to the most expensive.

Most Expensive

• 62521 — $117,375. This is the priciest ZIP in Decatur, sitting about 18% above the city average. Rents here are middle-of-the-pack at $1,016, suggesting owner-occupancy is more common than rentals.

Most Affordable

• 62522 — $86,626. The lowest-priced ZIP, about 13% below the city average. It also posts the lowest rent at $991, so the cheap-to-buy, cheap-to-rent pattern holds.
• 62526 — $94,183. Slightly below the city median. Rent here is the highest of the three at $1,313, which is unusual — buying looks like a clear win over renting in this ZIP.

The 62526 numbers stand out. You can buy a home for less than the city average and rent it out for more than tenants pay in the priciest ZIP. That gap matters if you’re considering an investment property.

Rent vs Buy in Decatur

The math here favors buying — by a lot.

Average rents across the three Decatur ZIPs range from $991 to $1,313 per month. The midpoint is roughly $1,106.

A mortgage on the $99,395 median home, assuming 20% down and a 7% rate on a 30-year fixed loan, runs about $529 per month in principal and interest. Add property taxes (Illinois averages roughly 2.1% of home value annually, or about $174/month here) and insurance (estimate $80/month), and your monthly carrying cost lands near $783.

That’s still $200 to $500 less per month than renting in the same ZIPs.

The catch: you need the down payment. About $19,879 plus closing costs. For households that can clear that hurdle, owning costs less month to month than renting in any of the three ZIPs.

The buy-side advantage is unusual at this scale. In most US metros, the rent-vs-buy gap has flipped the other way over the past three years. Decatur’s low prices keep ownership math working.

Population Growth and Migration

Decatur is losing people. The population dropped from 70,978 in 2020 to 68,763 in 2024 — a 3.1% decline over four years.

The decline is steady. Each year posted a loss, though the rate slowed sharply between 2023 and 2024 (down just 61 residents).

Compare that to other Illinois cities:

Decatur is the only city in this group losing residents. Champaign, an hour east, gained 4% over the same period.

Population loss usually pushes home prices down. Decatur’s prices are doing the opposite — climbing 8.3% year over year. That tells you the price increase is being driven by something other than demand from new residents. Tight housing supply, investor purchases, and a low starting price base are likely factors.

If population continues to slide, the price gains may not last.

Decatur Housing Market Trends

The trend is one direction: up. Every single month over the past year posted a gain.

Twelve straight months of gains. The total move was $7,624, or about $635 per month on average.

Recent months show acceleration, not cooling. The November-to-February stretch added $2,786. The March-to-June stretch added $1,890. Buyers waiting for a dip have not seen one.

The home is on track to cross $100,000 within the next month or two if the pattern holds.

Is Decatur a Good Place to Buy in 2026?

The case for buying:

• Median price under $100K — entry costs are low
• Twelve straight months of price gains — momentum favors current owners
• Rent costs more than owning at the median price level
• Down payment requirements are achievable for many households

The case against:

• Population is shrinking, which usually drags prices down eventually
• Rapid price gains in a small market can reverse quickly
• Limited ZIP-level diversity (only 3 tracked) means fewer options if your first pick goes over budget

This looks like a seller’s market by the numbers, but a thin one. With population declining and only three ZIPs in play, you don’t have many alternatives if your first choice goes over budget.

If you’re buying to live in the home for 7+ years, the affordability case is strong. If you’re buying as an investment hoping for further appreciation, the demographic headwind is a real risk.

Decatur Housing Market Outlook for 2026-2027

The 12-month trend has not slowed. The most recent three months (Dec 2025 through Feb 2026) added $1,942, an annualized pace near 8%. That’s consistent with the 8.3% YoY figure.

If the current pace continues, the median home value crosses $100,000 in March or April 2026 and approaches $107,000 by year end. That’s an extrapolation, not a forecast — actual outcomes depend on mortgage rates, inventory, and whether population loss eventually catches up to prices.

The 3-month trend suggests no immediate slowdown. There is no sign in the monthly data of buyer fatigue or price resistance.

Watch for two signals that the run could end: a flattening in the Dec-Feb pattern that doesn’t continue into spring, or any acceleration in population loss in the next Census release. Either would be reason to reassess.

Similar Markets in IL

• Champaign — an hour east, growing population, but home prices run higher.
• Bloomington — another central Illinois mid-size city worth comparing on price.
• Aurora — Chicago suburb with much higher prices and stable population.
• Joliet — another Chicago-metro option with a different price structure.
• Chicago — the state’s anchor market, dramatically more expensive.

Frequently Asked Questions

What is the average home price in Decatur?

The average home price in Decatur, IL is $99,395 as of February 2026. That figure comes from the Zillow Home Value Index, which tracks typical home values in the 35th to 65th percentile range. Decatur is one of a shrinking number of US cities where a typical home still trades for less than $100,000.

Are home prices going up or down in Decatur?

Prices are up 8.3% year over year. The median climbed in each of the last 12 months, rising from $91,771 in March 2025 to $99,395 in February 2026. There has been no monthly decline anywhere in the recent trend.

Is it cheaper to rent or buy in Decatur?

Buying is cheaper. A mortgage on the median $99,395 home runs roughly $783 per month including taxes and insurance, while average rents range from $991 to $1,313 across the three tracked ZIPs. The gap holds even after accounting for the down payment over a typical ownership period.

What is the most affordable neighborhood in Decatur?

ZIP 62522 is the most affordable, with a typical home value of $86,626. That’s about 13% below the citywide average of $99,395. Rents in 62522 are also the lowest of the three Decatur ZIPs at $991 per month.

Methodology

Home values are based on the Zillow Home Value Index (ZHVI), a smoothed measure of typical home values in the 35th to 65th percentile range. Rent estimates use the Zillow Observed Rent Index (ZORI). Population figures come from the U.S. Census Bureau Population Estimates Program (2020-2024 vintage). All datasets are publicly available. Housing data updated 2026-02-28.