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Cap Rate Analysis: Columbus, IN

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

Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026

Moderate — source deals carefully
Based on $270,000 median price and $1,350/mo median rent
Est. Cap Rate
4.03%
1% Rule
0.50%
Fails
GRM
16.7x
Price / Income
4.4x

Market Data

Median Home Price$270,000
Median Monthly Rent$1,350
Property Tax Rate0.84%
Population50,000
Population Growth0.9% / yr
Median Household Income$60,888
Vacancy Rate5.5%
Annual Appreciation2.6%

Cap Rate Calculator — Columbus

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.84% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.35%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$9,045
net operating income
Gross Rent Multiplier
16.7x
High (>15)
1% Rule
0.50%
✗ Fails
Monthly Cash Flow
$754
before debt service
Annual Breakdown
Gross Rental Income$16,200
Less Vacancy−$891
Effective Income$15,309
Less Operating Expenses−$6,264
Net Operating Income$9,045
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Cash-on-Cash Return — Columbus

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

$
$67,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-8.53%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$75,600
$67,500 down + $8,100 closing
Monthly Mortgage
$1,320
on $203K loan
Monthly Cash Flow
$-537
after all expenses
Annual Cash Flow
$-6,446
before taxes
Cash Flow Breakdown
Monthly Rent$1,350
Less Expenses−$567
Less Mortgage−$1,320
Monthly Cash Flow$-537

Is Columbus a Good Place to Invest in Rental Property?

Columbus, IN has a population of 50,000 and has been growing at 0.9% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $270,000 paired with median rents of $1,350/mo produces an estimated cap rate of 4.03%.

Property taxes at 0.84% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.5% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 4.4x, homes cost about 4.4 times the local median income of $60,888. 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 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: Columbus presents moderate opportunities. Cap rates near 4.03% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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