Palestine, IL
Population 1,396 · Illinois
About Palestine, IL
Palestine is a small town located in Illinois with a population of 1,396 residents according to the latest US Census Bureau American Community Survey data. The median household income is $60,000 per year, which is 20% below the national median of $75,149. The median age of 47.6 years is notably older the US median age of 38.9 years, suggesting a more established community with a higher proportion of long-term residents.
Housing Market Overview
The housing market in Palestine features a median home value of $75,800, which is 69% below the national median of $244,900. This makes Palestine one of the more affordable markets in the country, potentially attractive for first-time homebuyers. Median monthly rent is $755, 35% below the national average of $1,163/month. Of the 666 total housing units, 81% are owner-occupied (481 units) and 19% are renter-occupied (115 units). The high homeownership rate suggests a stable, established residential community.
Economy & Employment
The local economy in Palestine shows an unemployment rate of 2.4%, which is lower than the national rate of 3.7%, indicating a relatively strong job market. The poverty rate stands at 10.7%, below the national average of 12.4%, reflecting generally favorable economic conditions. Workers in Palestine have an average one-way commute time of 22.2 minutes.
Education & Demographics
10.5% of Palestine residents aged 25 and older hold a bachelor's degree or higher, compared to the national average of 33.7%. The lower educational attainment rate may reflect the area's industry mix, with more employment in trades, manufacturing, or agricultural sectors. The community's demographic composition includes 0.7% White, 1.9% Hispanic or Latino, 0.0% Black or African American, and 2.2% Asian residents, with 0.3% of the population being foreign-born.
Cost of Living in Palestine, IL
Compared to national averages, Palestine has a median household income of $60,000 (20% below the national median of $75,149). Home values average $75,800, which is 69% below the national median. Monthly rent at $755 is 35% below the US average of $1,163. Within Illinois, Palestine's income is 20% below the state average of $75,072, and home values are 54% below the state median of $165,779.
Why Live in Palestine, IL?
Palestine offers affordable housing with a median home value of $75,800, below the US average of $244,900, and rent that’s lower than the national average at $755/month, and a strong job market with an unemployment rate of just 2.4%. Additionally, the city features a low poverty rate of 10.7%, better than the national average, and short commute times averaging just 22.2 minutes.
Potential considerations include median household income ($60,000) that falls below the national average. However, Palestine’s smaller community size offers a quieter lifestyle and tight-knit neighborhoods.
Palestine has a population of 1,396 with a median age of 47.6 years. Compare Palestine with other cities to see how it stacks up, or explore all cities in Illinois.
Similar Cities Near Palestine
Cities in Illinois with a similar population size.
| City | Population | Median Income | Home Value | |
|---|---|---|---|---|
| Ladd | 1,393 | $73,646 | $123,600 | Compare |
| St. Elmo | 1,401 | $47,115 | $80,300 | Compare |
| Toulon | 1,390 | $51,316 | $96,100 | Compare |
| Walnut | 1,402 | $62,019 | $94,700 | Compare |
| Arbury Hills | 1,408 | $103,456 | $225,600 | Compare |
| Waterman | 1,419 | $97,386 | $212,900 | Compare |
| Mazon | 1,424 | $76,458 | $203,100 | Compare |
| Cerro Gordo | 1,426 | $69,118 | $108,000 | Compare |
Demographics
Racial & Ethnic Composition
Economy & Education
Housing
Other Cities in Illinois
Data source: US Census Bureau ACS 5-Year Estimates. Last updated: 2026-04-05.
Compare Palestine With Other Cities
Frequently Asked Questions about Palestine
What is the population of Palestine, IL?
The population of Palestine, IL is 1,396 according to the latest US Census Bureau American Community Survey estimates. This makes it a small town in Illinois.
What is the median household income in Palestine?
The median household income in Palestine, IL is $60,000 per year, which is 20% below the national median of $75,149.
What is the median home value in Palestine?
The median home value in Palestine, IL is $75,800, which is 69% below the national median of $244,900. The majority of housing units are owner-occupied.
What is the average rent in Palestine?
The median monthly rent in Palestine, IL is $755, which is 35% below the national average of $1,163/month.
What is the unemployment rate in Palestine?
The unemployment rate in Palestine, IL is 2.4%, compared to the national average of 3.7%. This lower-than-average rate suggests a relatively healthy local job market.
Is Palestine, IL a good place to live?
Palestine offers a moderate cost of living, affordable housing, and a strong job market. With a population of 1,396 and a median age of 47.6, the city appeals to established professionals and retirees.
How educated is Palestine, IL?
10.5% of residents in Palestine aged 25 and older hold a bachelor's degree or higher, compared to the national average of 33.7%. The educational profile reflects the area's industry mix and employment landscape.
What is the cost of living in Palestine?
Key cost-of-living indicators for Palestine, IL: median home value is $75,800 (69% below national), median rent is $755/month, and median household income is $60,000. The home-value-to-income ratio is 1.3x, indicating relatively affordable housing relative to local incomes.
What is the poverty rate in Palestine?
The poverty rate in Palestine, IL is 10.7%, compared to the national average of 12.4%. This below-average poverty rate reflects generally favorable economic conditions in the community.
How diverse is Palestine, IL?
Palestine's population is 0.7% White, 1.9% Hispanic or Latino, 0.0% Black or African American, 2.2% Asian, and 0.0% two or more races. 0.3% of residents are foreign-born.