Market Analysis
Indianapolis, Indiana
Rental investment market data and analysis · Updated July 2026
Median Home Price
$264,900
Average Monthly Rent
$1,426
Estimated Cap Rate
6.5%
Rent-to-Price Ratio
0.5%
Below 1% Rule
Market Trends
Indianapolis metro area — % change since 2018
Home Prices
+85.3%
Rent Index
+36.2%
Average Rent by Bedroom
| Bedrooms | Avg Rent |
|---|---|
| Multi-Family | $875/mo |
| Apartment | $1,088/mo |
| Townhouse | $1,226/mo |
| Condo | $1,450/mo |
| Single Family | $1,663/mo |
Sample Investment Analysis
Based on median price + average rent, 20% down, 6.8% rate, 30yr
Purchase Price$264,900
Down Payment (20%)$52,980
Monthly P&I$1,382
Monthly Rent$1,426
Est. NOI$10,267/yr
Est. Cash Flow-$526/mo
Cash on Cash-10.8%
The Indianapolis market is cash-flow negative at median prices. Look for properties 15-20% below median or with value-add potential.
What Investors Should Know About Indianapolis
- 1Moderate cap rates suggest balanced cash flow and appreciation
- 21% Rule fails at median prices — need rent of $2,649/mo to pass
- 3Below-average rents keep entry costs low for new investors
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