Market Analysis
Indianapolis Rental Market
Rental investment market data and analysis · Updated October 2026
Median Home Price
$257,400
Average Monthly Rent
$1,424
Estimated Cap Rate
6.6%
Rent-to-Price Ratio
0.6%
Below 1% Rule
Rent ÷ price by zip code
0 of 4 clear the 1% rule · October 2026
| Zip | Median price | Median rent | Rent ÷ price |
|---|---|---|---|
| 46218 | $135,000 | $1,170 | 0.87% |
| 46237 | $274,900 | $1,795 | 0.65% |
| 46227 | $239,900 | $1,280 | 0.53% |
| 46204 | $360,000 | $1,450 | 0.40% |
Rent ÷ price over time
PacRent rent-to-price index · Indianapolis
Context · FRED home price index
Market Trends
Indianapolis metro area — % change since 2018
Home Prices
+87.4%
Rent Index
+36.2%
Average Rent by Bedroom
| Bedrooms | Avg Rent |
|---|---|
| Multi-Family | $1,038/mo |
| Apartment | $1,092/mo |
| Townhouse | $1,464/mo |
| Condo | $1,505/mo |
| Single Family | $1,570/mo |
Sample Investment Analysis
Based on median price + average rent, 20% down, 6.8% rate, 30yr
Purchase Price$257,400
Down Payment (20%)$51,480
Monthly P&I$1,342
Monthly Rent$1,424
Est. NOI$10,253/yr
Est. Cash Flow-$488/mo
Cash on Cash-10.3%
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 $2,574/mo to pass
- 3Below-average rents keep entry costs low for new investors
Ready to analyze a property in Indianapolis?
Get instant cap rate, cash flow, and DSCR analysis on any address. Access data on 140M+ properties.