Bloomington is a mid-range market in the Midwest with a smaller market with 87,000 residents. At a 4.18% estimated cap rate, this is a moderate market where rents of $1,480/mo lag behind home prices. With a median home price of $290,000 and steady population growth supports long-term rental demand, Bloomington offers opportunities for investors who source deals carefully.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
Bloomington's 0.5% rent-to-price ratio is well below the 1% rule. At median prices of $290,000, the $1,480/mo rent produces only $1,009/mo in NOI. Investors here need to target below-median properties or pursue value-add strategies to make the numbers work.
At current rates, a 20% down conventional loan ($58K at 7%) would result in approximately $-534/mo cash flow — negative at median prices. Larger down payments, seller financing, or buying 15–25% below median are strategies to turn the numbers positive.
The 16.3x gross rent multiplier and 5.2% vacancy rate position Bloomington as a balanced market. With annual appreciation at 2.6%, total returns (cash flow + equity growth) run approximately 6.8% before financing leverage.
Pre-filled with Bloomington medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Bloomington.
Bloomington, IN has a population of 87,000 and has been growing at 0.8% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $290,000 paired with median rents of $1,480/mo produces an estimated cap rate of 4.18%.
Property taxes at 0.83% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.2% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 7.6x, homes cost about 7.6 times the local median income of $38,400. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 2.6% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Bloomington presents moderate opportunities. Cap rates near 4.18% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.