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Evansville vs Indianapolis for Rental Property Investing

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

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Indianapolis wins 6–1 across key metrics
Indianapolis leads on cash flow (4.24% vs 3.86% cap rate)
Metric
Evansville, IN
Indianapolis, IN
Est. Cap Rate
3.86%
4.24%
Median Home Price
$215,000
$285,000
Median Monthly Rent
$1,050
$1,490
1% Rule
0.49%
0.52%
GRM
17.1x
15.9x
Price / Income
4.9x
5.4x
Property Tax Rate
0.82%
0.84%
Vacancy Rate
6.5%
6.2%
Population Growth
0.2% / yr
0.9% / yr
Annual Appreciation
2.2%
2.8%
Population
117,429
882,039
Median Income
$44,200
$52,900

Evansville vs Indianapolis: Which Is Better for Investors?

Cash flow: Indianapolis has the edge with an estimated cap rate of 4.24% compared to Evansville's 3.86%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $215,000 in Evansville vs $285,000 in Indianapolis, while rents come in at $1,050/mo and $1,490/mo respectively. For context, the national average cap rate is 3.81% and average price is $333K.

Growth & appreciation: Indianapolis is growing faster at 0.9% annually vs Evansville's 0.2%. Indianapolis leads on home value appreciation at 2.8% per year.

Costs & risk: Property taxes are 0.82% in Evansville vs 0.84% in Indianapolis. Vacancy rates of 6.5% and 6.2% are mixed — Indianapolis has the tighter rental market.

Entry point: Evansville offers a lower entry at $215K vs Indianapolis's $285K — a difference of $70K. With a 20% down payment, that's $43K vs $57K. Indianapolis's higher price may be justified by stronger growth.

Bottom line: Indianapolis edges out Evansville on most key metrics. While cap rates are moderate at 4.24%, Indianapolis's overall profile is stronger. Use our free calculators to model specific deals in Evansville or Indianapolis.

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Evansville, IN
3.86% cap rate · $215,000 median · $1,050/mo
Full analysis →
Indianapolis, IN
4.24% cap rate · $285,000 median · $1,490/mo
Full analysis →

Frequently Asked Questions

Is Evansville or Indianapolis better for rental investing?
Indianapolis wins 6–1 across our 7 key metrics. Indianapolis's 4.24% cap rate and $285K median price give it the edge overall.
What is the cap rate difference between Evansville and Indianapolis?
Evansville has a 3.86% cap rate vs Indianapolis's 4.24% — a difference of 0.39 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?
Evansville has lower property taxes at 0.82% vs 0.84%. On a $250K property, that's a difference of approximately $631/year in tax expense — money that goes directly to (or from) your cash flow.
Which city is growing faster?
Indianapolis is growing at 0.9% annually vs Evansville's 0.2%. Moderate growth provides stable demand. Indianapolis's appreciation rate of 2.8% also leads on home value growth.

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