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Frankfort vs Marion for Rental Property Investing

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

Marion wins 3–0 across key metrics
Marion leads on cash flow (5.09% vs 2.79% cap rate) · Frankfort leads on population growth
Metric
Frankfort, IN
Marion, IN
Est. Cap Rate
2.79%
5.09%
Median Home Price
$215,000
$145,000
Median Monthly Rent
$840
$860
1% Rule
0.39%
0.59%
GRM
21.3x
14.1x
Price / Income
3.5x
2.4x
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

Frankfort vs Marion: Which Is Better for Investors?

Cash flow: Marion has the edge with an estimated cap rate of 5.09% compared to Frankfort's 2.79%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $215,000 in Frankfort vs $145,000 in Marion, while rents come in at $840/mo and $860/mo respectively. For context, the national average cap rate is 3.81% and average price is $333K.

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

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

Entry point: Marion offers a lower entry at $145K vs Frankfort's $215K — a difference of $70K. With a 20% down payment, that's $29K vs $43K. Marion combines the lower price with a higher cap rate — a compelling combination.

Bottom line: Marion edges out Frankfort on most key metrics. With a 5.09% cap rate, it offers solid cash flow potential. Use our free calculators to model specific deals in Frankfort or Marion.

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Frankfort, IN
2.79% cap rate · $215,000 median · $840/mo
Full analysis →
Marion, IN
5.09% cap rate · $145,000 median · $860/mo
Full analysis →

Frequently Asked Questions

Is Frankfort or Marion better for rental investing?
Marion wins 3–0 across our 7 key metrics. Marion's 5.09% cap rate and $145K median price give it the edge overall.
What is the cap rate difference between Frankfort and Marion?
Frankfort has a 2.79% cap rate vs Marion's 5.09% — a difference of 2.30 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?
Marion has lower property taxes at 0.84% vs 0.84%. On a $180K 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?
Frankfort is growing at 0.9% annually vs Marion's 0.9%. Moderate growth provides stable demand. Frankfort's appreciation rate of 2.6% also leads on home value growth.

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