1031 Exchange in Janesville Beloit MSA
The Janesville-Beloit MSA offers solid 1031 exchange opportunities with moderate cap rates, stable rental demand driven by manufacturing and healthcare sectors, and competitive property taxes in Wisconsin's industrial heartland.
Population
165,461
Key Industries
Manufacturing, Healthcare (Mercy Health), Education
Table of Contents
Information is for educational purposes only. Consult qualified professionals for specific advice.
Local Tax Considerations
Property taxes, transfer taxes, and local incentives
Property Tax Rates
Average Rate
1.17% - 1.25%
Assessment Method
Assessed Value (Wisconsin Property Tax Code)
MSA rate (1.17%) vs State average (1.38%)
-15% below state average
Transfer Taxes & Fees
Transfer Tax Rate
0.3% state transfer fee
Wisconsin real estate transfer fee of 0.3% plus local recording fees and title insurance costs
Local Tax Incentives
Wisconsin Economic Development Corporation Incentives
Various state incentives for business development and job creation
Eligibility: Qualifying commercial and industrial developments
Rock County Economic Development
Local incentives for business expansion and retention
Eligibility: Companies creating jobs and investing in the county
Opportunity Zones
Number of Zones
1
Key Locations
- Downtown Beloit
Opportunity Zones offer significant tax benefits for long-term investments, including deferral and potential elimination of capital gains taxes.
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Market Profile Dashboard
Economic indicators and market trends
Population
165,461
Growth: +0.8% annually
Median Income
$73,643
Unemployment
3.5%
Job Growth
+1.2% annually
Economic Drivers
Market Trends
Median Home Price
$275,000 - $329,000
Average Rent
$1,037/mo
Cap Rates
7.5% - 9.0%
Demographics
Median Age
40 years
Bachelor's Degree+
32.5%
Owner Occupied
68.2%
Property Type Analysis
Investment opportunities by asset class
Multifamily
Strong demand driven by manufacturing workers, healthcare employees, and students with stable employment base.
Market Metrics
- Cap Rates: 8.5%
- Vacancy Trends: Low vacancy at 7.2% due to manufacturing and healthcare employment
- Demand Forecast: Stable demand from manufacturing recovery and healthcare growth
Risk Factors
- Manufacturing sector cyclical nature
- Competition from single-family rentals
Opportunities
- Manufacturing employment base (16,375 workers)
- Mercy Health System employment stability
Single-Family Rental
Popular with manufacturing workers, healthcare professionals, and families seeking quality housing.
Market Metrics
- Cap Rates: 9.0%
- Vacancy Trends: Very low vacancy at 5.8% with good tenant retention
- Demand Forecast: Strong fundamentals with manufacturing and healthcare employment base
Risk Factors
- Higher property taxes affecting returns
- Manufacturing sector economic cycles
Opportunities
- Stable healthcare employment (Mercy Health)
- Manufacturing worker housing demand
Neighborhood Spotlights
Up-and-coming areas and investment hotspots
Downtown Janesville
Historic downtown core with revitalization efforts and proximity to major employers
Investment Thesis
Downtown revitalization, proximity to Mercy Health System, and potential for appreciation as redevelopment continues.
Median Price
$285,000
Price Growth
+5.8% YoY
Rental Yield
8.2%
Days on Market
25 days
Key Highlights
Development Pipeline
Downtown revitalization and mixed-use development projects
Downtown Beloit
Opportunity zone area with strong appreciation and development activity
Investment Thesis
Opportunity zone benefits, exceptional appreciation (67.3% over 5 years), and ongoing development creating value.
Median Price
$209,000
Price Growth
+67.3% over 5 years
Rental Yield
9.8%
Days on Market
23 days
Key Highlights
Development Pipeline
Opportunity zone development and urban renewal projects
West Janesville
Residential area with family amenities and good schools
Investment Thesis
Family rental market, good schools, and appeal to healthcare and manufacturing workers.
Median Price
$315,000
Price Growth
+4.2% YoY
Rental Yield
7.8%
Days on Market
28 days
Key Highlights
Development Pipeline
Residential development and school improvements
South Beloit
Border area with Illinois offering unique market dynamics
Investment Thesis
Cross-border appeal, manufacturing worker housing, and potential for growth as area develops.
Median Price
$195,000
Price Growth
+8.5% YoY
Rental Yield
9.2%
Days on Market
30 days
Key Highlights
Development Pipeline
Border area development and infrastructure improvements
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Frequently Asked Questions
Common questions about Janesville Beloit 1031 exchanges
Janesville-Beloit offers solid cap rates (7.5-9%), stable rental demand from manufacturing (16,375 workers) and healthcare employment, moderate property taxes (1.17% vs. 1.02% national), and exceptional appreciation in Beloit (67.3% over 5 years).
Manufacturing employs 16,375 people (largest sector) providing stable rental demand. Major employers include Seneca Foods, SSI Technologies, and others. The sector has diversified since GM plant closure, creating more resilient employment base.
Yes, downtown Beloit is a designated Opportunity Zone offering potential tax benefits for qualifying investments including deferral and possible exclusion of capital gains, with strong appreciation already demonstrated.
The economy is anchored by manufacturing (16,375 workers), Mercy Health System (largest employer), education institutions, Rock County government, and food processing companies, providing diversified employment base.
Wisconsin has moderate property taxes (1.17% vs. 1.02% national) and 0.3% transfer fee, but strong manufacturing and healthcare employment, good cap rates, and opportunity zone benefits can provide attractive returns for investors.