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Cap Rate Analysis: Carmel, IN

Investment metrics, interactive calculators, and data-driven analysis for Carmel rental properties.

Challenging for pure cash flow
Based on $395,000 median price and $1,780/mo median rent
Est. Cap Rate
3.56%
1% Rule
0.45%
Fails
GRM
18.5x
Price / Income
3.5x

Market Data

Median Home Price$395,000
Median Monthly Rent$1,780
Property Tax Rate0.82%
Population105,000
Population Growth1.8% / yr
Median Household Income$112,000
Vacancy Rate4.2%
Annual Appreciation3%

Cap Rate Calculator — Carmel

Pre-filled with Carmel medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.82% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.99%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$11,799
net operating income
Gross Rent Multiplier
18.5x
High (>15)
1% Rule
0.45%
✗ Fails
Monthly Cash Flow
$983
before debt service
Annual Breakdown
Gross Rental Income$21,360
Less Vacancy−$897
Effective Income$20,463
Less Operating Expenses−$8,664
Net Operating Income$11,799

Cash-on-Cash Return — Carmel

Factor in financing to see your actual return on invested capital in Carmel.

$
$98,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-9.76%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$110,600
$98,750 down + $11,850 closing
Monthly Mortgage
$1,931
on $296K loan
Monthly Cash Flow
$-899
after all expenses
Annual Cash Flow
$-10,792
before taxes
Cash Flow Breakdown
Monthly Rent$1,780
Less Expenses−$748
Less Mortgage−$1,931
Monthly Cash Flow$-899

Is Carmel a Good Place to Invest in Rental Property?

Carmel, IN has a population of 105,000 and has been growing at 1.8% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $395,000 paired with median rents of $1,780/mo produces an estimated cap rate of 3.56%.

Property taxes at 0.82% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 4.2% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.

At a price-to-income ratio of 3.5x, homes cost about 3.5 times the local median income of $112,000. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. Home values have appreciated at roughly 3% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: At current median prices, Carmel is challenging for pure cash flow investing. Consider BRRRR strategies with below-market purchases, or look at neighboring metros with stronger price-to-rent ratios.

Run a BRRRR analysis for Carmel
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