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Elkhart vs Kokomo for Rental Property Investing

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

Kokomo wins 3–0 across key metrics
Kokomo leads on cash flow (4.55% vs 3.16% cap rate) · Elkhart leads on population growth
Metric
Elkhart, IN
Kokomo, IN
Est. Cap Rate
3.16%
4.55%
Median Home Price
$255,000
$185,000
Median Monthly Rent
$1,080
$1,010
1% Rule
0.42%
0.55%
GRM
19.7x
15.3x
Price / Income
4.2x
3.0x
Property Tax Rate
0.84%
0.84%
Vacancy Rate
5.5%
5.5%
Population Growth
0.9% / yr
0.9% / yr
Annual Appreciation
2.6%
2.6%
Population
50,000
50,000
Median Income
$60,888
$60,888

Elkhart vs Kokomo: Which Is Better for Investors?

Cash flow: Kokomo has the edge with an estimated cap rate of 4.55% compared to Elkhart's 3.16%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $255,000 in Elkhart vs $185,000 in Kokomo, while rents come in at $1,080/mo and $1,010/mo respectively. For context, the national average cap rate is 3.81% and average price is $333K.

Growth & appreciation: Elkhart is growing faster at 0.9% annually vs Kokomo's 0.9%. Elkhart leads on home value appreciation at 2.6% per year.

Costs & risk: Property taxes are 0.84% in Elkhart vs 0.84% in Kokomo. Vacancy rates of 5.5% and 5.5% are both healthy, suggesting strong tenant demand in both markets.

Entry point: Kokomo offers a lower entry at $185K vs Elkhart's $255K — a difference of $70K. With a 20% down payment, that's $37K vs $51K. Kokomo combines the lower price with a higher cap rate — a compelling combination.

Bottom line: Kokomo edges out Elkhart on most key metrics. While cap rates are moderate at 4.55%, Kokomo's overall profile is stronger. Use our free calculators to model specific deals in Elkhart or Kokomo.

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Elkhart, IN
3.16% cap rate · $255,000 median · $1,080/mo
Full analysis →
Kokomo, IN
4.55% cap rate · $185,000 median · $1,010/mo
Full analysis →

Frequently Asked Questions

Is Elkhart or Kokomo better for rental investing?
Kokomo wins 3–0 across our 7 key metrics. Kokomo's 4.55% cap rate and $185K median price give it the edge overall.
What is the cap rate difference between Elkhart and Kokomo?
Elkhart has a 3.16% cap rate vs Kokomo's 4.55% — a difference of 1.39 percentage points. This is a significant gap that meaningfully impacts cash flow. For context, the national average is 3.81%.
Which city has lower property taxes?
Kokomo has lower property taxes at 0.84% vs 0.84%. On a $220K property, that's a difference of approximately $588/year in tax expense — money that goes directly to (or from) your cash flow.
Which city is growing faster?
Elkhart is growing at 0.9% annually vs Kokomo's 0.9%. Moderate growth provides stable demand. Elkhart's appreciation rate of 2.6% also leads on home value growth.

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