%
CapRateCity
Free cap rate calculators for every US market
← All comparisons

Carmel vs Lafayette for Rental Property Investing

Side-by-side comparison of Carmel, IN and Lafayette, IN — cap rates, rent, prices, and investment metrics.

◉
Carmel wins 7–0 across key metrics
Carmel leads on cash flow (4.39% vs 4.06% cap rate)
Metric
Carmel, IN
Lafayette, IN
Est. Cap Rate
4.39%
4.06%
Median Home Price
$285,000
$275,000
Median Monthly Rent
$1,490
$1,390
1% Rule
0.52%
0.51%
GRM
15.9x
16.5x
Price / Income
2.5x
6.0x
Property Tax Rate
0.82%
0.85%
Vacancy Rate
4.2%
5.8%
Population Growth
1.8% / yr
0.6% / yr
Annual Appreciation
3%
2.4%
Population
105,000
73,000
Median Income
$112,000
$46,200

Carmel vs Lafayette: Which Is Better for Investors?

Cash flow: Carmel has the edge with an estimated cap rate of 4.39% compared to Lafayette's 4.06%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $285,000 in Carmel vs $275,000 in Lafayette, while rents come in at $1,490/mo and $1,390/mo respectively. For context, the national average cap rate is 3.81% and average price is $333K.

Growth & appreciation: Carmel is growing faster at 1.8% annually vs Lafayette's 0.6%. Carmel leads on home value appreciation at 3% per year. Strong population growth typically translates to sustained rental demand and long-term price support.

Costs & risk: Property taxes are 0.82% in Carmel vs 0.85% in Lafayette. Vacancy rates of 4.2% and 5.8% are both healthy, suggesting strong tenant demand in both markets.

Entry point: Lafayette offers a lower entry at $275K vs Carmel's $285K — a difference of $10K. With a 20% down payment, that's $55K vs $57K. Carmel's higher price may be justified by stronger growth.

Bottom line: Carmel edges out Lafayette on most key metrics. While cap rates are moderate at 4.39%, Carmel's overall profile is stronger. Use our free calculators to model specific deals in Carmel or Lafayette.

Sponsored · Want to analyze a specific property? DealCheck imports real listing data and runs the full analysis for you.
Try Free →
Carmel, IN
4.39% cap rate · $285,000 median · $1,490/mo
Full analysis →
Lafayette, IN
4.06% cap rate · $275,000 median · $1,390/mo
Full analysis →

Frequently Asked Questions

Is Carmel or Lafayette better for rental investing?
Carmel wins 7–0 across our 7 key metrics (cap rate, 1% rule, GRM, taxes, vacancy, growth, appreciation). Carmel's 4.39% cap rate and $285K median price edge out Lafayette's 4.06% at $275K.
What is the cap rate difference between Carmel and Lafayette?
Carmel has a 4.39% cap rate vs Lafayette's 4.06% — a difference of 0.33 percentage points. This is a relatively small difference — other factors like growth, taxes, and local market conditions may matter more. For context, the national average is 3.81%.
Which city has lower property taxes?
Carmel has lower property taxes at 0.82% vs 0.85%. On a $280K property, that's a difference of approximately $1/year in tax expense — money that goes directly to (or from) your cash flow.
Which city is growing faster?
Carmel is growing at 1.8% annually vs Lafayette's 0.6%. This rapid growth drives rental demand and supports both rent increases and home price appreciation. Carmel's appreciation rate of 3% also leads on home value growth.

Explore More

vs Indianapolis, IN →vs Bloomington, IN →vs Fishers, IN →vs Fishers, IN →All Indiana Markets →4% – 5% Cap Rate Cities →Lowest Vacancy Cities →Best Price-to-Income Ratio →
The CapRateCity Report
Weekly market analysis: highest cap rate cities, emerging markets, and deal breakdowns. Free, no spam.